UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 2, 2002
SUPERIOR ENERGY SERVICES, INC.
(Exact name of registrant as specified in its charter)
|
Delaware |
0-20310 |
75-2379388 |
|
(State or other jurisdiction |
(Commission |
(IRS Employer |
|
1105 Peters Road, Harvey, Louisiana |
70058 |
|
(504) 362-4321
(Registrant's telephone number, including area code)
|
Item 5. |
Other Events. | ||
|
|
|||
| On May 2, 2002, Superior Energy Services, Inc. issued the press release attached hereto as Exhibit 99. | |||
|
|
|||
|
Item 7. |
Financial Statements and Exhibits. | ||
|
|
|||
|
(b) |
Exhibits. | ||
|
|
|||
| 99 | Press release issued by Superior Energy Services, Inc. on May 2, 2002 announcing earnings for the first quarter ended March 31, 2002. | ||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SUPERIOR ENERGY SERVICES, INC. | |
|
|
|
| By: /s/Robert S. Taylor | |
|
Robert S. Taylor |
|
|
|
|
|
Dated: May 2, 2002 |
Exhibit 99
Press Release
Superior Energy Services, Inc. Announces First Quarter 2002 Results
HARVEY, La.--(BUSINESS WIRE)--May 2, 2002--Superior Energy Services, Inc. (NYSE: SPN ) today announced results for the first quarter ended March 31, 2002. For the quarter, revenues were $104.8 million resulting in net income of $5.8 million or $0.08 diluted earnings per share, as compared to revenues of $91.3 million and net income from operations of $11.9 million or $0.17 diluted earnings per share, exclusive of goodwill amortization, for the first quarter of 2001.
Well Intervention Group Segment
First quarter revenues for the Well Intervention Group were $36.3 million, a 13% increase from the first quarter of 2001 and a 20% decrease from the fourth quarter of 2001. On a sequential basis, activity declined for most services, reflecting an overall decline in demand and seasonality often associated with the first quarter. Activity levels improved during March.
Rental Tools Segment
Revenues for the Rental Tools segment were $32.0 million, 17% higher than the first quarter of 2001 and 2% lower than the fourth quarter of 2001. Rentals of drill pipe and accessories to customers in the deepwater Gulf of Mexico remained strong throughout the period. Although demand decreased for shallow water and land rentals such as stabilizers, hole openers and on-site accommodations, rentals of those products showed improvement in March.
Marine Segment
Superior's marine revenues were $14.6 million, a 12% increase as compared to the first quarter of 2001 and a 21% decrease as compared to the fourth quarter of 2001. Utilization decreased for most of the Company's liftboat classes as activity levels were impacted by weaker demand and seasonal weather-related factors, particularly in January. Liftboat dayrates and utilization increased as the quarter progressed. The segment benefited from additional revenues generated by the Company's 230-ft. class liftboat, the Superior Champion, which was added to the fleet in mid-November.
In April, Superior took delivery of the 250-ft. class Dixie Endeavor, the sister liftboat to the 250-ft. class Dixie Legacy. Superior now owns three liftboats with leg lengths of 230-ft. and greater. The Company anticipates taking delivery of the 245-ft. class Superior Storm in the second quarter and the 245-ft. class Superior Gale in the fourth quarter. As a result, by year end Superior will own and operate five of the industry's 10 liftboats with leg lengths of 230-ft. and greater currently operating in the Gulf of Mexico.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended March 31, 2002
($ actual)
Class Liftboats Average Dayrate Utilization
105' 8 $ 2,620 69.7%
120-135' 9 3,196 80.4%
145-155' 11 6,064 68.5%
160'-175' 6 7,052 44.3%
200' 4 9,485 53.9%
230' 1 11,638 100.0%
250' 1 18,868 58.9%
Other Oilfield Services Segment
The Company has combined its Field Management and Environmental/Other Segments to create the "Other Oilfield Services" segment. Revenues in this segment were $22.0 million, a 17% increase over the first quarter of 2001 and a 4% decrease over the fourth quarter of 2001. The primary factors impacting this segment's performance were fewer construction and fabrication projects as well as decreased demand for maintenance cleaning, and offshore and dockside services.
President and CEO Terry Hall Comments
President and CEO Terry Hall commented, "Gulf of Mexico activity levels improved toward the end of the quarter after starting slowly and bottoming in late January and into early February. We believe our increased earnings power as a result of executing our bundled services strategy and the contribution of acquisitions and asset purchases made during the past 12 months puts Superior in an excellent position to leverage the industry's strengthening fundamentals.
"Superior historically has grown its asset base and earnings power through cycles, and this cycle is no different. The company can offer the industry a unique package of rig-less, production-related services and rental tools supported by large liftboats and a staff of experienced, in-house engineers. In addition, Superior's diversified business mix allows it to participate in several geographic, product and service arenas."
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 4000694. The replay is available beginning two hours after the call and ending May 9, 2002.
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, 2002 and 2001
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Ended
March 31,
-------------------------------
2002 2001(A)
------------- --------------
Revenues $ 104,826 $ 91,256
------------- --------------
Costs and expenses:
Cost of services 59,238 48,318
Depreciation and amortization 9,522 6,769
General and administrative 21,213 14,618
------------- --------------
Total costs and expenses 89,973 69,705
------------- --------------
Income from operations 14,853 21,551
Other income (expense):
Interest expense (5,409) (3,570)
Interest income 185 460
------------- --------------
Income before income taxes and
cumulative effect of change in
accounting principle 9,629 18,441
Income taxes 3,804 7,561
------------- --------------
Income before cumulative effect
of change in accounting principle 5,825 10,880
Cumulative effect of change in
accounting principle, net of
income tax expense - 2,589
------------- --------------
Net income $ 5,825 $ 13,469
============= ==============
Basic earnings per share:
Earnings before cumulative effect
of change in accounting principle $ 0.08 $ 0.16
Cumulative effect of change in
accounting principle - 0.04
------------- --------------
Earnings per share $ 0.08 $ 0.20
============= ==============
Diluted earnings per share:
Earnings before cumulative effect
of change in accounting principle $ 0.08 $ 0.16
Cumulative effect of change in
accounting principle - 0.04
------------- --------------
Earnings per share $ 0.08 $ 0.20
============= ==============
Weighted average common shares used
in computing earnings per share:
Basic 70,305 67,943
============= ==============
Diluted 71,310 69,017
============= ==============
(A) Earnings per diluted share before cumulative effect of
change in accounting principal, excluding goodwill
amortization, net of taxes, was $0.17 (SFAS 142)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2002 AND DECEMBER 31, 2001
(in thousands)
03/31/2002 12/31/2001
(Unaudited) (Audited)
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 9,758 $ 3,769
Accounts receivable - net 102,958 109,835
Income taxes receivable 6,099 11,694
Prepaid insurance and other 12,867 10,181
-------------- --------------
Total current assets 131,682 135,479
Property, plant and equipment - net 364,655 345,878
Goodwill - net 154,424 148,729
Notes receivable 8,898 23,062
Other assets - net 7,665 12,372
-------------- --------------
Total assets $ 667,324 $ 665,520
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 22,616 $ 34,843
Accrued expenses 25,625 26,841
Deferred income taxes 1,130 510
Current maturities of long-term debt 17,161 16,727
-------------- --------------
Total current liabilities 66,532 78,921
-------------- --------------
Deferred income taxes 50,640 47,390
Long-term debt 234,982 269,633
Total stockholders' equity 315,170 269,576
-------------- --------------
Total liabilities and stockholders'
equity $ 667,324 $ 665,520
============== ==============
Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended March 31, 2002 and 2001, and December 31, 2001
(Unaudited)
(in thousands)
Revenue March 2002 December 2001 March 2001
----------- ------------- -----------
Well Intervention
Group $36,288 $45,374 $32,066
Marine 14,586 18,565 13,007
Rental Tools 31,965 32,627 27,339
Other Oilfield
Services 21,987 22,975 18,844
----------- ------------- -----------
Total $104,826 $119,541 $91,256
Gross Profit
Well Intervention
Group 13,495 $17,688 $14,012
Marine 5,038 8,506 6,857
Rental Tools 22,777 23,575 17,577
Other Oilfield
Services 4,278 4,330 4,492
----------- ------------- -----------
Total $45,588 $54,099 $42,938
Contact:
Superior Energy Services Inc., Harvey
Terence Hall, Robert Taylor, or Greg Rosenstein
504/362-4321