HOUSTON, July 29, 2010 (GLOBE NEWSWIRE) -- T-3 Energy Services, Inc. (Nasdaq:TTES) reported that second quarter 2010 income from continuing operations increased to $3.3 million, or $0.25 per diluted share, compared to $2.0 million, or $0.15 per diluted share for the first quarter of 2010.
Revenues for the second quarter of 2010 increased 8% to $48.4 million, compared with $45.0 million in the first quarter of 2010. During the quarter, the Company benefitted from improvements in the United States market, which accounted for 57% of total revenues for the quarter.
Gross profit margins for the second quarter of 2010 improved to 35.8%, compared with 34.8% for the first quarter of 2010. Operating income for the second quarter of 2010 increased 79% to $5.0 million, compared with $2.8 million in the first quarter of 2010.
Steve Krablin, T-3's Chairman, President and Chief Executive Officer commented, "We are pleased to have achieved sequential improvements in revenues, operating income, bookings and backlog this quarter. A favorable product mix improved margins across all business units and contributed to a 65% incremental increase in our operating income from the increased revenues.
"Despite delays caused by the potential impact of new rules for Gulf Coast offshore drilling, we slightly increased quarterly bookings to $50.8 million. This represents the fourth consecutive quarterly increase in our bookings and also increased our backlog to $42.1 million at June 30, 2010. Of particular note, bookings for U.S. land activities began to increase toward the end of the quarter, and we are now seeing an uptick in bookings for service and certification work on items that may be used in both surface and subsea offshore operations.
"Looking forward, we believe recent events in the Gulf of Mexico will lead to an increase in demand for pressure control equipment and for the servicing of existing equipment. This should provide enhanced revenue opportunities for us once the timing and content of regulations is fully known. We welcome these changes and look forward to continuing to participate in the servicing, certification and upgrading of equipment to meet new requirements and customer needs."
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, the impact of new laws and regulations affecting the Company and its products and services, 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 | Six Months Ended | ||||
| June 30, | March 31, | June 30, | |||
| 2010 | 2009 | 2010 | 2010 | 2009 | |
| Revenues: | |||||
| Products | $ 39,630 | $ 49,206 | $ 36,632 | $ 76,262 | $ 102,547 |
| Services | 8,803 | 6,542 | 8,370 | 17,173 | 15,987 |
| 48,433 | 55,748 | 45,002 | 93,435 | 118,534 | |
| Cost of revenues: | |||||
| Products | 26,032 | 31,226 | 24,130 | 50,162 | 64,407 |
| Services | 5,066 | 3,860 | 5,207 | 10,273 | 9,439 |
| 31,098 | 35,086 | 29,337 | 60,435 | 73,846 | |
| Gross profit | 17,335 | 20,662 | 15,665 | 33,000 | 44,688 |
| Selling, general and administrative expenses | 12,745 | 13,468 | 12,957 | 25,702 | 31,546 |
| Equity in earnings of unconsolidated affiliates | 458 | 359 | 106 | 564 | 553 |
| Income from operations | 5,048 | 7,553 | 2,814 | 7,862 | 13,695 |
| Interest expense | (175) | (232) | (167) | (342) | (482) |
| Other income, net | 75 | 225 | 62 | 137 | 250 |
| Income from continuing operations before provision for income taxes |
4,948 |
7,546 |
2,709 |
7,657 |
13,463 |
| Provision for income taxes | 1,643 | 2,658 | 729 | 2,372 | 4,755 |
| Income from continuing operations | 3,305 | 4,888 | 1,980 | 5,285 | 8,708 |
| Income from discontinued operations, net of tax | 76 | -- | -- | 76 | -- |
| Net income | $ 3,381 | $ 4,888 | $ 1,980 | $ 5,361 | $ 8,708 |
| Basic earnings per common share: | |||||
| Continuing operations | $ .25 | $ .39 | $ .15 | $ .41 | $ .69 |
| Discontinued operations | $ .01 | $ -- | $ -- | $ -- | $ -- |
| Net income per common share | $ .26 | $ .39 | $ .15 | $ .41 | $ .69 |
| Diluted earnings per common share: | |||||
| Continuing operations | $ .25 | $ .38 | $ .15 | $ .40 | $ .69 |
| Discontinued operations | $ .01 | $ -- | $ -- | $ .01 | $ -- |
| Net income per common share | $ .26 | $ .38 | $ .15 | $ .41 | $ .69 |
| Weighted average common shares outstanding: | |||||
| Basic | 13,022 | 12,638 | 12,915 | 12,969 | 12,583 |
| Diluted | 13,195 | 12,744 | 13,093 | 13,143 | 12,698 |
| T-3 ENERGY SERVICES, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (in thousands, except for share amounts) | ||
| June 30, | December 31, | |
| 2010 | 2009 | |
| (unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 7,833 | $ 11,747 |
| Accounts receivable – trade, net | 32,713 | 28,450 |
| Inventories | 62,412 | 53,689 |
| Deferred income taxes | 3,114 | 2,485 |
| Prepaids and other current assets | 6,516 | 7,311 |
| Total current assets | 112,588 | 103,682 |
| Property and equipment, net | 49,093 | 49,353 |
| Goodwill, net | 88,699 | 88,779 |
| Other intangible assets, net | 30,877 | 32,091 |
| Other assets | 5,699 | 5,916 |
|
Total assets |
$ 286,956 | $ 279,821 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable – trade | $ 15,166 | $ 17,213 |
| Accrued expenses and other | 12,138 | 14,359 |
| Current maturities of long-term debt | -- | -- |
| Total current liabilities | 27,304 | 31,572 |
| Long-term debt, less current maturities | -- | -- |
| Other long-term liabilities | 959 | 1,144 |
| Deferred income taxes | 8,710 | 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, 13,337,819 and 13,038,143 shares issued and outstanding at June 30, 2010 and December 31, 2009 |
13 | 13 |
|
Warrants, 10,157 issued and outstanding at June 30, 2010 and December 31, 2009 |
20 | 20 |
| Additional paid-in capital | 186,835 | 181,115 |
| Retained earnings | 61,562 | 56,201 |
| Accumulated other comprehensive income | 1,553 | 1,747 |
| Total stockholders' equity | 249,983 | 239,096 |
| Total liabilities and stockholders' equity | $ 286,956 | $ 279,821 |