Superior Energy Services Reports Third Quarter Results; Earnings Up 512 Percent
The Company's third quarter results improved over the second quarter of fiscal 2000 as revenue increased 23.7 percent, EBITDA increased 37.3 percent and net income increased 55.7 percent.
For the nine months ended September 30, 2000, the Company recorded revenue of $176.1 million and net income of $11.4 million or $0.18 diluted earnings per share, as compared to revenue of $69.0 million and a net loss before extraordinary item of $(3.8) million or $(0.24) diluted loss per share for the same period a year ago.
"The key driver through the first three quarters of 2000 continues to be increasing activity levels in the Gulf of Mexico market as producers focus on enhancing production," said Terry Hall, Superior Energy Services' President and CEO. "In addition to strong revenue growth in the third quarter, we experienced improved margins for most of our production-related services, particularly in the Well Service, Wireline, and Marine segments. We are encouraged with the growth experienced so far this year and will continue to position Superior for growth by leveraging cross-selling opportunities across our various disciplines to meet customers' production-related requirements."
The Company will host a conference call at 10:30 a.m. Central Time today. The call can be accessed from Superior's website at www.superiorenergy.com, or by telephone at 888/855-5487. A replay of the call is available starting at 1:30 p.m. Central time today and will be available through Friday, November 3, 2000. The replay telephone number is 888/203-1112 and the passcode for the replay call is 559456.
Superior Energy Services, Inc. provides specialized oilfield services and equipment focusing on serving the production-related needs of oil and gas companies in the Gulf of Mexico. These services and equipment include the rental of specialized oilfield equipment, coiled tubing services, electric wireline service, well pumping and stimulation services, data acquisition services, well plug and abandonment services, mechanical wireline services, and the rental of liftboats. Additional services provided include contract operating and supplemental labor, offshore construction and maintenance services, offshore and dockside environmental cleaning services, the manufacture and sale of drilling instrumentation and the manufacture and sale of oil spill containment equipment.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which involve known and unknown risks, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: volatility of the oil and gas industry, including the level of exploration, production and development activity; risks associated with the Company's rapid growth; changes in competitive factors and other material factors that are described from time to time in the Company's filings with the Securities and Exchange Commission. Actual events, circumstances, effects and results may be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Consequently, the forward-looking statements contained herein should not be regarded as representations by Superior or any other person that the projected outcomes can or will be achieved.
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
Three and Nine Months Ended September 30, 2000 and 1999
(in thousands, except earnings per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2000 1999 2000 1999
--------- --------- --------- ---------
Revenues $ 71,251 $ 33,729 $ 176,117 $ 68,974
--------- --------- --------- ---------
Costs and expenses:
Cost of services 40,203 18,692 101,896 42,627
Depreciation and
amortization 6,302 4,099 15,974 8,226
General and administrative 11,842 6,579 30,826 13,927
--------- --------- --------- ---------
Total costs and expenses 58,347 29,370 148,696 64,780
--------- --------- --------- ---------
Income from operations 12,904 4,359 27,421 4,194
Other income (expense):
Interest expense (3,145) (3,061) (9,133) (9,975)
Interest income 561 140 1,395 140
--------- --------- --------- ---------
Income (loss) before
income taxes and
extraordinary loss 10,320 1,438 19,683 (5,641)
Income taxes 4,335 460 8,267 (1,805)
--------- --------- --------- ---------
Income (loss) before
extraordinary loss 5,985 978 11,416 (3,836)
Extraordinary loss, net of
income tax benefit -- (4,514) -- (4,514)
--------- --------- --------- ---------
Net income (loss) $ 5,985 $ (3,536) $ 11,416 $ (8,350)
========= ========= ========= =========
Basic earnings (loss) per share:
Earnings (loss) before
extraordinary loss $ 0.09 $ 0.02 $ 0.18 $ (0.24)
Extraordinary loss -- (0.09) -- (0.21)
--------- --------- --------- ---------
Earnings (loss) per share $ 0.09 $ (0.07) $ 0.18 $ (0.45)
========= ========= ========= =========
Diluted earnings (loss) per share
Earnings (loss) before
extraordinary loss $ 0.09 $ 0.02 $ 0.18 $ (0.24)
Extraordinary loss -- (0.09) -- (0.21)
--------- --------- --------- ---------
Earnings (loss) per share $ 0.09 $ (0.07) $ 0.18 $ (0.45)
========= ========= ========= =========
Weighted average common
shares used in computing
earnings (loss) per share:
Basic 67,616 51,302 64,052 21,538
========= ========= ========= =========
Diluted 68,672 51,302 64,972 21,538
========= ========= ========= =========
Unaudited Condensed Consolidated Balance Sheets
September 30, 2000 and December 31, 1999
(in thousands; unaudited)
09/30/2000 12/31/1999
---------- ----------
ASSETS
Current assets $ 73,658 $ 56,122
Property, plant and equipment - net 182,104 134,723
Goodwill - net 91,501 78,641
Note receivable 18,928 8,898
Other assets - net 4,158 3,871
---------- ----------
Total assets $ 370,349 $ 282,255
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 39,582 $ 30,917
Long-term debt, less current portion 118,187 117,459
Deferred income taxes 13,345 12,392
Stockholders' equity 199,235 121,487
---------- ----------
Total liabilities and stockholders' equity $ 370,349 $ 282,255
========== ==========
Superior Energy Services, Inc.
Revenue and Gross Profit Breakdown
(Unaudited)
Three Months Ended September 30, 2000
($ in thousands) Revenue Gross Profit GP %
------- ------------ -----
Well Service $15,336 $6,150 40.1%
Wireline 9,141 3,148 34.4%
Marine 10,074 4,690 46.6%
Rental Tools 21,485 14,097 65.6%
Environmental 4,351 1,328 30.5%
Field Management 9,989 1,077 10.8%
Other 875 558 63.8%
------- ------------ -----
Total $71,251 $31,048 43.6%
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Superior Energy Services, Inc.
Revenue and Gross Profit Breakdown
(Unaudited)
Nine Months Ended September 30, 2000
($ in thousands) Revenue Gross Profit GP %
------- ------------ -----
Well Service $37,639 $14,035 37.3%
Wireline 24,632 7,849 31.9%
Marine 23,121 9,702 42.0%
Rental Tools 50,288 33,852 67.3%
Environmental 12,492 4,635 37.1%
Field Management 24,805 2,529 10.2%
Other 3,140 1,619 51.6%
------- ------------ -----
Total $176,117 $74,221 42.1%
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CONTACT: Superior Energy Services Inc., Harvey
Terence Hall, Robert Taylor or Greg Rosenstein
504/362-4321
