Superior Energy Services, Inc. Announces Fourth Quarter 2003 Results
HARVEY, La.--(BUSINESS WIRE)--March 4, 2004--In BW5126 issued March 4, 2004: The sixth graph titled "Rental Tools Segment" and the seventh graph titled "Marine Segment" have been replaced.
The corrected release reads:
SUPERIOR ENERGY SERVICES, INC. ANNOUNCES FOURTH QUARTER 2003 RESULTS
Superior Energy Services, Inc. (NYSE:SPN) today announced results for the fourth quarter ended December 31, 2003. For the quarter, revenues were $120.3 million resulting in net income of $5.9 million or $0.08 diluted earnings per share, as compared to revenues of $118.4 million and net income of $5.6 million or $0.08 diluted earnings per share for the fourth quarter of 2002.
For the year ended December 31, 2003, revenues were a record $500.6 million and net income was $30.5 million or $0.41 diluted earnings per share, as compared to revenues of $443.1 million and net income of $21.9 million or $0.30 diluted earnings per share for the year ended December 31, 2002.
President and CEO Terry Hall Comments
President and CEO Terry Hall commented, "During the fourth quarter, well intervention and liftboat activity in our core Gulf of Mexico market remained solid until late November, at which time activity slowed dramatically and did not pick up for the rest of the year. In our rental tool segment, rentals were down from the third quarter as the Gulf of Mexico rig count remained at low levels. Despite only modest increases in Gulf of Mexico activity, Superior was able to post a record year in terms of revenue, and generate cash that was more than sufficient to service debt and maintain the company's capital expenditure budget.
"While visibility for 2004 is still unclear, we are encouraged by the ability to put assets to work on our own properties through SPN Resources, which allows us to deploy production-related services and liftboats to enhance our own production. We believe we are gaining momentum in this business as evidenced by our ability to close on multiple transactions since December 2003. This will help us keep well intervention and liftboat assets working when demand from our traditional customer base slows. As a result, our growth will be driven to a large extent by Gulf of Mexico activity levels, our growing international business and our backlog of work as a result of properties owned and operated by SPN Resources."
Well Intervention Group Segment
Fourth quarter revenues for the Well Intervention Group were $49.9 million, basically flat from the third quarter of 2003. Activity increased in electric line, pumping and stimulation, hydraulic workover and well control services, offset by decreased activity in coiled tubing, well services and mechanical wireline.
Rental Tools Segment
Revenues for the Rental Tools segment were $35.0 million, basically flat as compared to the third quarter of 2003. Rentals of stabilizers and on-site accommodations increased, particularly on land in the Texas market. However, rentals of drill pipe, connecting iron and handling tools decreased as deepwater activity slowed toward year end.
Marine Segment
Superior's Marine Segment revenues were $16.0 million, a decrease of 8% as compared to the third quarter of 2003. Average fleet utilization was flat compared to the third quarter of 2003, and the average fleet dayrate was $5,993 in the fourth quarter as compared to $6,238 for the third quarter of 2003.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended December 31, 2003
($ actual)
Class Liftboats Average Dayrate Utilization
---------- -------------- ------------------- -------------
105' 6(a) $3,003 50.0%
120-135' 7(a) 3,457 73.1%
145-155' 11 4,399 57.9%
160'-175' 6 6,183 74.1%
200' 3 9,750 88.6%
230'-245' 3 10,652 65.6%
250' 2 16,858 79.4%
(a) Does not include two 105-foot class liftboats and one 120-foot
class liftboat that were stacked.
Other Oilfield Services Segment
Revenues in this segment were $19.4 million, a 24% decrease as compared to the third quarter of 2003 due primarily to the third quarter sale of the company's construction assets and a decrease in environmental services and field management. The sale of the construction assets in the third quarter accounted for 85% of the decrease in revenues for the oilfield services segment.
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 800-763-5557. The replay telephone number is 800-642-1687 and the replay passcode is 5468139. The replay is available beginning two hours after the call and ending March 11, 2004.
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, well control, hydraulic workover, coiled tubing services and engineering services. Additional services provided include contract operating and supplemental labor, 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, 2003 and 2002
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
------------------- -------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues $120,257 $118,378 $500,625 $443,147
--------- --------- --------- ---------
Costs and expenses:
Cost of services 69,710 69,820 289,607 258,334
Depreciation and
amortization 12,852 11,322 48,853 41,595
General and administrative 23,249 22,279 94,822 86,197
--------- --------- --------- ---------
Total costs and expenses 105,811 103,421 433,282 386,126
--------- --------- --------- ---------
Income from operations 14,446 14,957 67,343 57,021
Other income (expense):
Interest expense (5,673) (5,597) (22,477) (21,884)
Interest income 98 100 209 530
Other income - - 2,762 -
Equity in income (loss) of
affiliates 493 (338) 985 (80)
--------- --------- --------- ---------
Income before income taxes 9,364 9,122 48,822 35,587
Income taxes 3,511 3,512 18,308 13,701
--------- --------- --------- ---------
Net income $5,853 $5,610 $30,514 $21,886
========= ========= ========= =========
Basic earnings per share $0.08 $0.08 $0.41 $0.30
========= ========= ========= =========
Diluted earnings per share $0.08 $0.08 $0.41 $0.30
========= ========= ========= =========
Weighted average common shares
used in computing earnings
per share:
Basic 74,079 73,784 73,970 72,912
========= ========= ========= =========
Diluted 74,759 74,480 74,648 73,872
========= ========= ========= =========
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2003 AND DECEMBER 31, 2002
(in thousands)
12/31/2003 12/31/2002
(Unaudited) (Audited)
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $19,794 $3,480
Accounts receivable - net 112,775 108,352
Income taxes receivable - 6,087
Notes receivable 19,212 -
Prepaid insurance and other 14,059 11,663
----------- -----------
Total current assets 165,840 129,582
Property, plant and equipment - net 427,360 418,047
Goodwill - net 204,727 160,366
Notes receivable 15,145 -
Investments in affiliates 13,224 12,343
Other assets - net 6,567 7,282
----------- -----------
Total assets $832,863 $727,620
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $20,817 $21,010
Accrued expenses 48,949 33,871
Income taxes payable 138 -
Decommissioning liabilities 20,097 -
Current maturities of long-term debt 14,210 13,730
----------- -----------
Total current liabilities 104,211 68,611
----------- -----------
Deferred income taxes 86,251 67,333
Decommissioning liabilities 18,756 -
Long-term debt 255,516 256,334
Total stockholders' equity 368,129 335,342
----------- -----------
Total liabilities and stockholders'
equity $832,863 $727,620
=========== ===========
Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended December 31, 2003 and 2002
(Unaudited)
(in thousands)
Revenue December 2003 December 2002
--------------- ---------------
Well Intervention Group $49,933 $36,081
Marine 15,958 21,212
Rental Tools 35,015 33,409
Other Oilfield Services 19,351 27,676
--------------- ---------------
Total $120,257 $118,378
Gross Profit (1)
Well Intervention Group $21,166 $12,096
Marine 3,420 8,530
Rental Tools 22,901 22,794
Other Oilfield Services 3,060 5,138
--------------- ---------------
Total $50,547 $48,558
(1) Gross profit is calculated by subtracting cost of services from
revenue for each of the Company's four segments.
CONTACT:
Superior Energy Services, Inc.
Terence Hall, 504-362-4321
or
Robert Taylor, 504-362-4321
or
Greg Rosenstein, 504-362-4321
SOURCE: Superior Energy Services, Inc.
