NEW YORK, March 15, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that only five days remain to file to be appointed Lead Plaintiff in the class action lawsuit pending in the United States District Court for the Eastern District of Louisiana on behalf of purchasers of the common stock and other securities of Hornbeck Offshore Services, Inc. ("Hornbeck" or the "Company") (NYSE:HOS) who purchased during the period from November 1, 2006 through January 10, 2007, inclusive (the "Class Period").
For further information you may call toll free, 1-888-884-4490, or contact counsel by e-mail by writing to jacobs@jacobsclasslaw.com.
The complaint alleges that Hornbeck and certain of its officers and directors violated the federal securities laws by making false and misleading statements and omissions concerning the Company's operations and expected earnings for the 4th Quarter 2006, and for fiscal 2007. On November 1, 2006, the Company reaffirmed its guidance for fiscal 2007 and specifically reaffirmed earnings before interest, taxes, depreciation and amortization ("EBITDA") for the fourth quarter of 2006 to range of between $39.0 million and $41.0 million and earnings per share to range of between $0.69 and $0.74. On November 6, 2006, the Company announced an offering of $200.0 million in convertible senior notes with an over-allotment of $30.0 million in principal amount of additional notes. On November 13, 2006, the Company announced that it had closed the note offering and received the offering proceeds. These aggressive projections were crucial to the completion of the note offering, but had the effect of artificially inflating the price of the stock.
On January 10, 2007, the Company shocked the market by announcing that that it was revising its EBITDA and earnings per share guidance for the fourth quarter of 2006 and for fiscal 2006, materially reducing EBITDA for the fourth quarter of 2006 to range between $33.0 million and $34.0 million, down from $39.0 million to $41.0 million. The Company announced it now expected that per share earnings for the fourth quarter of 2006 to range between $0.61 and $0.63, down from $0.72 to $0.77. It also expected to reduce 2007 guidance by 15 to 20 percent.
The Company was forced to admit that it had knowledge over the previous several months that operating issues had negatively impacted the Company's financial performance, including volatility in the offshore vessel day-rate, a lag in the shipyard delivery schedules for new-builds and increased turnaround time for regulatory dry-dockings, repairs and maintenance, as well as increased costs for personnel and insurance.
As a result of this unexpected news, the price Hornbeck shares slumped to a 52-week low in trading on January 11, 2007 and the stock closed down $7.37, or 22%, on markedly increased volume. Hornbeck shares have not recovered.
If you purchased Hornbeck stock or other securities during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased Hornbeck stock or other securities from November 1, 2006 through January 10, 2007. You are not required to have sold your Hornbeck stock or other securities in order to claim damages, or to serve in this role. All motions for appointment as Lead Plaintiff must be filed with the Court by March 19, 2007.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Roy L. Jacobs. Mr. Jacobs will personally speak with you at no cost or obligation. You may also join this action by visiting our website at www.jacobsclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca/