Superior Energy Services Announces Record Fourth Quarter, Year 2000 Results
HARVEY, La.--(BUSINESS WIRE)--Feb. 20, 2001--Superior Energy Services, Inc. (NASDAQ:SESI) today announced results for the fourth quarter ended December 31, 2000. For the period, revenues were a record $81.4 million resulting in record net income from operations of $8.5 million or $0.12 diluted earnings per share, as compared to revenue of $44.1 million and net income from operations of $1.8 million or $0.03 diluted earnings per share for the fourth quarter of 1999.
For the year ended December 31, 2000, the Company posted record revenues of $257.5 million and record net income from operations of $19.9 million or $0.30 diluted earnings per share, as compared to revenues of $113.1 million and a net loss from operations of $2.0 million or $0.11 diluted loss per share for the same period a year ago.
In the fourth quarter, the Company secured a new, $190 million credit facility that provides lower interest rates. Consequently, the Company took a non-cash charge of $1.6 million, or approximately $0.02 per share for the write-off of the unamortized amount of loan issuance costs related to the prior credit facility. As a result, after the extraordinary loss, the Company reported net income of $6.9 million or $0.10 diluted earnings per share for the fourth quarter of 2000 and $18.3 million or $0.28 diluted earnings per share for the year.
"We had an excellent quarter - and year - despite the seasonal slowdown typically associated with the fourth quarter," said Terry Hall, Chairman, President and CEO of Superior Energy Services. "During the quarter, we experienced improved demand and stronger pricing for many of our production-related services, including coiled tubing, electric line, mechanical wireline and liftboats. Higher demand has helped broaden our Gulf of Mexico customer base in many service areas, creating additional opportunities to market our full suite of services."
2000 in Review
"The year 2000 was one of recovery for the industry, and for Superior it was one of increasing exposure to the production side of the industry, or what we refer to as exposure to the well," Hall said. "We centralized the operations and management of our well intervention, marine and wireline services into our expanded Harvey, La., campus, and are developing a similar facility in Broussard, La. We believe centralized operations are integral to successfully bundling multiple well intervention services. Today, we have 47 facilities, employ more than 2,500 people and operate in more than five countries. Finally, in 2000 our safety statistics were outstanding, with a total recordable incident rate of just 1.52 in more than 6.3 million man hours worked."
2001 Outlook
"We are extremely encouraged by market activity heading into 2001," Hall said. "We believe the fundamentals are such that well permitting activity - permits filed for most well remediation work in the Gulf of Mexico - should increase and liftboat spot rates across most, if not all fleets should be at their highest levels in more than four years. The market outlook coupled with our ever-increasing exposure to the well should yield significant revenue and earnings growth in 2001."
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 800/289-0495. The replay telephone number is 888/203-1112 and the passcode for the replay call is 659924.
Superior Energy Services, Inc. provides a broad range of specialized oilfield services and equipment primarily to major and independent oil and gas companies engaged in the exploration, production and development of oil and natural gas properties offshore in the Gulf of Mexico and throughout the Gulf Coast region. These services and equipment include the rental of liftboats, rental of specialized oilfield equipment, electric and mechanical wireline services, well plug and abandonment services, coiled tubing services and engineering services. 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
Consolidated Statements of Operations
Three and Twelve Months Ended December 31, 2000 and 1999
(in thousands, except earnings per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- --------------------
2000 1999 2000 1999
--------- --------- --------- ---------
Revenues $ 81,385 $ 44,102 $ 257,502 $ 113,076
--------- --------- --------- ---------
Costs and expenses:
Cost of services 45,705 24,737 147,601 67,364
Depreciation
and amortization 6,281 4,399 22,255 12,625
General
and administrative 13,461 9,144 44,287 23,071
--------- --------- --------- ---------
Total costs
and expenses 65,447 38,280 214,143 103,060
--------- --------- --------- ---------
Income from operations 15,938 5,822 43,359 10,016
Other income (expense):
Interest expense (2,945) (2,994) (12,078) (12,969)
Interest income 503 168 1,898 308
--------- --------- --------- ---------
Income (loss) before
income taxes and
extraordinary loss 13,496 2,996 33,179 (2,645)
Income taxes 5,031 1,194 13,298 (611)
--------- --------- --------- ---------
Income (loss) before
extraordinary loss 8,465 1,802 19,881 (2,034)
Extraordinary loss, net
of income tax benefit (1,557) -- (1,557) (4,514)
--------- --------- --------- ---------
Net income (loss) $ 6,908 $ 1,802 $ 18,324 $ (6,548)
========= ========= ========= =========
Basic and Diluted earnings
(loss) per share:
Earnings (loss) before
extraordinary loss $ 0.12 $ 0.03 $ 0.30 $ (0.11)
Extraordinary loss (0.02) -- (0.02) (0.14)
--------- --------- --------- ---------
Earnings (loss)
per share $ 0.10 $ 0.03 $ 0.28 $ (0.25)
========= ========= ========= =========
Weighted average common
shares used in computing
earnings (loss) per share:
Basic 67,787 59,598 64,991 31,131
========= ========= ========= =========
Diluted 68,743 60,024 65,921 31,131
========= ========= ========= =========
Condensed Consolidated Balance Sheets
December 31, 2000 and December 31, 1999
(in thousands)
12/31/00 12/31/99
--------- ---------
ASSETS
Current assets $ 88,770 $ 56,122
Property, plant and equipment - net 202,498 134,723
Goodwill - net 114,650 78,641
Notes receivable 19,213 8,898
Other assets - net 5,545 3,871
--------- ---------
Total assets $ 430,676 $ 282,255
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 53,732 $ 30,917
Long-term debt, less current portion 146,393 117,459
Deferred income taxes 24,304 12,392
Stockholders' equity 206,247 121,487
--------- ---------
Total liabilities
and stockholders' equity $ 430,676 $ 282,255
========= =========
Superior Energy Services, Inc.
Revenue and Gross Profit by Segment
(Unaudited)
($ in thousands)
Three Months Ended December 31, 2000
Revenue Gross Profit GP %
------- ------------ -----
Well Service $18,876 $7,927 42.0%
Wireline 8,884 2,760 31.1%
Marine 11,269 5,759 51.1%
Rental Tools 25,526 16,122 63.2%
Environmental 4,246 1,347 31.7%
Field Management and Construction 11,688 1,260 10.8%
Other 896 505 56.4%
------- ------------
Total $81,385 $35,680 43.8%
======= ============
Twelve Months Ended December 31, 2000
Revenue Gross Profit GP %
------- ------------ -----
Well Service $56,515 $21,962 38.9%
Wireline 33,516 10,609 31.7%
Marine 34,390 15,461 45.0%
Rental Tools 75,814 49,974 65.9%
Environmental 16,738 5,982 35.7%
Field Management 36,493 3,789 10.4%
Other 4,036 2,124 52.6%
------- ------------
Total $257,502 $109,901 42.7%
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| CONTACT: | Superior Energy Services Inc., Harvey |
|---|---|
| Terence Hall, Robert Taylor or Greg Rosenstein | |
| 504/362-4321 | |
