Superior Energy Services Announces Record First Quarter Results
HARVEY, La.--(BUSINESS WIRE)--May 3, 2001--Superior Energy Services, Inc. (NASDAQ:SESI) today announced results for the first quarter ended March 31, 2001. For the period, revenues were a record $91.3 million resulting in record net income from operations of $10.9 million or $0.16 diluted earnings per share, as compared to revenue of $47.3 million and net income from operations of $1.6 million or $0.03 diluted earnings per share for the first quarter of 2000.
Effective January 1, 2001, the Company elected to change the method used for depreciating its liftboats from the straight-line method to the units of production method. Management of the Company believes this method provides a more accurate allocation of cost and provides for a better matching of revenue and expenses. This method is used by many other service providers who operate marine equipment in the Gulf of Mexico. This change in accounting principle results in a one time cumulative positive net after tax adjustment of $2.6 million. As a result, net income for the first quarter was $13.5 million, or $0.20 diluted earnings per share.
"We experienced a record quarter as activity levels across all segments increased," said Terry Hall, Chairman, President and Chief Executive Officer. "In particular, operating margins in our Well Intervention Group and our Wireline, Environmental and Field Management divisions improved over the fourth quarter of 2000. The Gulf of Mexico remains the most accessible region in North America for oil and gas production. This should translate into increasing activity for Superior as producers seek our products and services for their production-related projects."
The Company will host a conference call at 2:30 p.m. Central Time today. The call can be accessed from Superior's website at www.superiorenergy.com, or by telephone at 800/289-0529. The replay telephone number is 888/203-1112 and the passcode for the replay call is 409917.
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 Months Ended March 31, 2001 and 2000
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Ended
March 31,
------------------------
2001 2000
---------- ----------
Revenues $ 91,256 $ 47,274
---------- ----------
Costs and expenses:
Cost of services 48,318 27,762
Depreciation and amortization 6,769 4,737
General and administrative 14,618 9,311
---------- ----------
Total costs and expenses 69,705 41,810
---------- ----------
Income from operations 21,551 5,464
Other income (expense):
Interest expense (3,570) (2,920)
Interest income 460 193
---------- ----------
Income before income taxes and cumulative
change in accounting principle 18,441 2,737
Income taxes 7,561 1,149
---------- ----------
Income before cumulative change in accounting
principle 10,880 1,588
Cumulative effect of change in accounting
principle, net of tax exp 2,589 -
---------- ----------
Net income $ 13,469 $ 1,588
========== ==========
Basic earnings per share:
Earnings before cumulative change
in accounting principle $ 0.16 $ 0.03
Cumulative change in accounting principle 0.04 -
---------- ----------
Earnings per share $ 0.20 $ 0.03
========== ==========
Diluted earnings per share:
Earnings before cumulative change
in accounting principle $ 0.16 $ 0.03
Cumulative change in accounting principle 0.04 -
---------- ----------
Earnings per share $ 0.20 $ 0.03
========== ==========
Weighted average common shares used in
computing earnings per share:
Basic 67,943 59,856
========== ==========
Diluted 69,017 60,301
========== ==========
Condensed Consolidated Balance Sheets
March 31, 2001 and December 31, 2000
(in thousands)
03/31/2001 12/31/2000
(unaudited) (audited)
---------- ----------
ASSETS
Current assets $ 98,426 $ 88,770
Property, plant and equipment - net 216,814 202,498
Goodwill - net 114,552 114,650
Note receivable 20,597 19,213
Other assets - net 4,076 5,545
---------- ----------
Total assets $ 454,465 $ 430,676
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 64,898 $ 53,732
Long-term debt, less current portion 144,118 146,393
Deferred income taxes 24,304 24,304
Stockholders' equity 221,145 206,247
---------- ----------
Total liabilities and stockholders'
equity $ 454,465 $ 430,676
========== ==========
Superior Energy Services, Inc.
Revenue and Gross Profit by Segment
(Unaudited)
Three Months Ended March 31, 2001
($ in thousands)
Revenue Gross Profit GP %
------- ------------ -----
Well Intervention Group $22,476 $10,435 46.4%
Wireline 9,590 3,577 37.3%
Marine 13,007 6,857 52.7%
Rental Tools 27,339 17,577 64.3%
Environmental 4,646 2,001 43.1%
Field Management and Construction 13,124 1,920 14.6%
Other 1,074 570 53.1%
------- ------------
Total $ 91,256 $ 42,937 47.1%
======= ============
Liftboat Average Dayrates and Utilization by Fleet Size
Three Months Ended March 31, 2001
($ actual)
Fleet Average Dayrate Utilization
------------- --------------- -----------
105' $ 2,970 84.7%
120-135' 3,206 75.2%
145-155' 5,167 76.4%
160' 6,958 93.3%
170' 7,053 84.4%
200' 11,979 94.4%
Fleet Average $ 5,043 80.8%
| CONTACT: | Superior Energy Services, Inc., Harvey |
|---|---|
| Terence Hall, Robert Taylor or Greg Rosenstein | |
| 504/362-4321 | |
