HOUSTON, April 29, 2010 (GLOBE NEWSWIRE) -- T-3 Energy Services, Inc. (Nasdaq:TTES) reported first quarter 2010 net income of $2.0 million, or $0.15 per diluted share, compared to $3.4 million, or $0.26 per diluted share for the fourth quarter of 2009.
Revenues for the first quarter of 2010 were $45.0 million, compared with $52.4 million in the fourth quarter of 2009. The fourth quarter of 2009 revenues included a large international shipment, representing over $9.0 million in revenues, which did not repeat for the first quarter of 2010. International revenues represented 50% of total revenues for the quarter.
Gross profit margins for the first quarter of 2010 were unchanged from the fourth quarter of 2009 at 34.8%. Operating income for the first quarter of 2010 was $2.8 million, compared with $4.7 million in the fourth quarter of 2009.
Steve Krablin, T-3's Chairman, President and Chief Executive Officer, commented, "Led by stronger industry activity, our quarterly bookings increased sequentially by over 10% to $50.3 million, which is our highest bookings level since 2008. During the quarter, our book-to-bill ratio of 1.1 allowed us to increase our March 31st backlog to $39.7 million, which reflects the first sequential quarterly increase in six quarters. We continue to believe that a recovery has started, and we expect improving results throughout 2010 as our revenues and earnings begin to benefit."
T-3 Energy Services, Inc. provides a broad range of oilfield products and services primarily to customers in the drilling and completion of new oil and gas wells, the workover of existing wells and the production and transportation of oil and gas.
Except for historical information, statements made in this release, including those relating to potential future revenues, bookings, cash flow, backlog, growth, business trends and prospects constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Whenever possible, the Company has identified these "forward-looking" statements by words such as "believe", "encouraged", "expect", "expected", "anticipate", "should" and similar phrases. The forward-looking statements are based upon management's expectations and beliefs and, although these statements are based upon reasonable assumptions, actual results might differ materially from expected results due to a variety of factors including, but not limited to, overall demand for and pricing of the Company's products, changes in the level of oil and natural gas exploration and development, and variations in global business and economic conditions. The Company assumes no obligation to update or revise publicly any forward-looking statements whether as a result of new information, future events or otherwise. For a discussion of additional risks and uncertainties that could impact the Company's results, review the T-3 Energy Services, Inc. Annual Report on Form 10-K for the year ended December 31, 2009 and other filings of the Company with the Securities and Exchange Commission.
| T-3 ENERGY SERVICES, INC. | |||
| CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||
| (in thousands, except per share amounts) | |||
| Three Months Ended | |||
| March 31, | December 31, | ||
| 2010 | 2009 | 2009 | |
| Revenues: | |||
| Products | $36,632 | $53,341 | $44,430 |
| Services | 8,370 | 9,445 | 8,007 |
| 45,002 | 62,786 | 52,437 | |
| Cost of revenues: | |||
| Products | 24,130 | 33,181 | 29,670 |
| Services | 5,207 | 5,579 | 4,498 |
| 29,337 | 38,760 | 34,168 | |
| Gross profit | 15,665 | 24,026 | 18,269 |
| Selling, general and administrative expenses | 12,957 | 18,078 | 13,817 |
| Equity in earnings of unconsolidated affiliates | 106 | 194 | 245 |
| Income from operations | 2,814 | 6,142 | 4,697 |
| Interest expense | (167) | (250) | (189) |
| Other income, net | 62 | 25 | 152 |
| Income from operations before provision for income taxes | 2,709 | 5,917 | 4,660 |
| Provision for income taxes | 729 | 2,097 | 1,282 |
| Net income | $1,980 | $3,820 | $3,378 |
| Earnings per common share: | |||
| Basic | $.15 | $.30 | $.26 |
| Diluted | $.15 | $.30 | $.26 |
| Weighted average common shares outstanding: | |||
| Basic | 12,915 | 12,529 | 12,860 |
| Diluted | 13,093 | 12,605 | 13,020 |
|
T-3 ENERGY SERVICES, INC. |
||
| CONSOLIDATED BALANCE SHEETS | ||
| (in thousands, except for share amounts) | ||
|
March 31, 2010 |
December 31, 2009 |
|
| (unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $6,646 | $11,747 |
| Accounts receivable – trade, net | 32,615 | 28,450 |
| Inventories | 57,574 | 53,689 |
| Deferred income taxes | 3,026 | 2,485 |
| Prepaids and other current assets | 5,582 | 7,311 |
| Total current assets | 105,443 | 103,682 |
| Property and equipment, net | 48,793 | 49,353 |
| Goodwill, net | 88,954 | 88,779 |
| Other intangible assets, net | 31,514 | 32,091 |
| Other assets | 5,994 | 5,916 |
| $280,698 | $279,821 | |
| Total assets | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable – trade | $17,017 | $17,213 |
| Accrued expenses and other | 11,443 | 14,359 |
| Current maturities of long-term debt | -- | -- |
| Total current liabilities | 28,460 | 31,572 |
| Long-term debt, less current maturities | -- | -- |
| Other long-term liabilities | 926 | 1,144 |
| Deferred income taxes | 8,345 | 8,009 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Preferred stock, $.001 par value, 25,000,000 shares authorized, no shares issued or outstanding | -- | -- |
| Common stock, $.001 par value, 50,000,000 shares authorized, | ||
| 13,061,644 and 13,038,143 shares issued and outstanding at | ||
| March 31, 2010 and December 31, 2009 | 13 | 13 |
| Warrants, 10,157 issued and outstanding at March 31, 2010 and | ||
| December 31, 2009 | 20 | 20 |
| Additional paid-in capital | 182,629 | 181,115 |
| Retained earnings | 58,181 | 56,201 |
| Accumulated other comprehensive income | 2,124 | 1,747 |
| Total stockholders' equity | 242,967 | 239,096 |
| Total liabilities and stockholders' equity | $280,698 | $279,821 |