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) August 1, 2002
SUPERIOR ENERGY SERVICES, INC.
(Exact name of registrant as specified in its
charter)
| Delaware (State or other jurisdiction of incorporation) |
0-20310 (Commission File Number) |
75-2379388 (IRS Employer Identification No.) |
||
|
1105 Peters Road, Harvey, Louisiana (Address of principal executive offices) |
70058 |
|||
(504) 362-4321
(Registrant's telephone number, including area
code)
Item 5. Other Events.
On August 1, 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 August 1, 2002 announcing earnings for the second quarter ended June 30, 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
Chief Financial Officer
Dated: August 1, 2002
Exhibit 99
Thursday August 1, 8:07 am Eastern Time
Press Release
SOURCE: Superior Energy Services, Inc.
Superior Energy Services, Inc. Announces Second Quarter 2002 Results
HARVEY, La.--(BUSINESS WIRE)--Aug. 1, 2002--Superior Energy Services, Inc. (NYSE:SPN - News) today announced results for the second quarter ended June 30, 2002. For the quarter, revenues were $112.7 million resulting in net income of $8.5 million or $0.11 diluted earnings per share, as compared to revenues of $104.8 million and net income of $5.8 million or $0.08 diluted earnings per share for the first quarter of 2002, and revenues of $109.6 million and net income of $15.3 million or $0.22 diluted earnings per share, exclusive of goodwill amortization, for the second quarter of 2001.
For the six months ended June 30, 2002, revenues were $217.6 million and net income was $14.3 million or $0.20 diluted earnings per share, as compared to revenues of $200.9 million and net income before cumulative effect of change in accounting principle of $27.2 million or $0.39 diluted earnings per share, exclusive of goodwill amortization, for the six months ended June 30, 2001.
The Company's higher revenue during the first six months of 2002 as compared to the same period a year ago is primarily due to acquisitions and asset purchases made during the past year, which have increased the Company's earnings power and further diversified its business mix. However, during this period, decreasing industry demand has resulted in lower utilization of the company's expanded asset base, yielding lower net income as compared to last year.
Well Intervention Group Segment
Second quarter revenues for the Well Intervention Group were $40.2 million, a 3% decrease from the second quarter of 2001 and an 11% increase from the first quarter of 2002. On a sequential basis, activity increased for well control services, hydraulic workover, plug and abandonment and mechanical wireline services. During the quarter, subsidiaries Wild Well Control and International Snubbing Services successfully completed a large-scale well control project in Indonesia. This was offset by decreased activity levels for coiled tubing, where revenues decreased 28% as compared to the first quarter of 2002.
Rental Tools Segment
Revenues for the Rental Tools segment were $29.3 million, 1% higher than the second quarter of 2001 and 8% lower than the first quarter of 2002. Rentals for on-site accommodations, stabilizers and other downhole related tools were flat relative to the first quarter of 2002. Demand for drill pipe and handling tools fell slightly mainly due to project timing for certain customers in the deepwater Gulf of Mexico. The company anticipates demand for these items to increase in the third quarter.
Marine Segment
Superior's marine revenues were $17.8 million, a 4% decrease as compared to
the second quarter of 2001 and a 22% increase as compared to the first quarter
of 2002. Utilization increased for most of the Company's liftboat classes as
compared to the prior quarter as the fleet performed more production support
and construction-related projects. The segment benefited from additional
revenues generated by the 250-ft. class Dixie Endeavor, which was added to the
fleet in April, and the 245-ft. class Superior Storm, which was added to the
fleet in June. The Company anticipates taking delivery of the 245-ft. class
Superior Gale in the fourth quarter. As a result, by year end Superior will
own and operate five of the industry's 10 liftboats with leg lengths of
230-ft. and greater operating in the Gulf of Mexico.
Liftboat Average Dayrates and Utilization by Class Size
Three Months Ended June 30, 2002
($ actual)
Class Liftboats Average Dayrate Utilization
105' 8 $ 2,578 75.3%
120-135' 9 3,270 88.3%
145-155' 11 5,689 56.6%
160'-175' 6 7,262 63.7%
200' 4 9,565 76.4%
230 1 13,374 75.8%
245'(1) 1 18,750 76.1%
250'(2) 1 18,716 91.6%
(1) Utilization is for June, when the 245-ft. class Superior Storm
entered the fleet.
(2) Does not include dayrate and utilization for 250-ft. class
Dixie Legacy, which is committed to bundled services project.
Other Oilfield Services Segment
Revenues in this segment were $25.5 million, a 25% increase as compared to the second quarter of 2001 and a 16% increase over the first quarter of 2002. Year-over-year revenue growth was due primarily to acquisitions, while sequential growth was due to increased activity for waste disposal, field management, and construction and fabrication projects as a result of improved weather during the period.
President and CEO Terry Hall Comments
President and CEO Terry Hall commented, "We continued to see Gulf of Mexico production-related activity levels improve in the second quarter, albeit slowly, after reaching a trough early in the first quarter. A key benefit of our diversified business mix is that we can typically offset weakness in certain segments of the market with strong demand in other areas. As a result, during the second quarter we were able to capitalize on stronger demand in areas such as liftboats, well control, mechanical wireline and plug and abandonment. We expect demand in other areas of our business, such as coiled tubing, cased-hole logging and rental tools, to increase during the third quarter. During the past year, we have added capacity and expanded our product and service offerings which I believe enhances our position as we move through industry cycles."
The Company will host a conference call at 11 a.m. Central Time (noon Eastern 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 4960776. The replay is available beginning two hours after the call and ending August 8, 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 and Six Months Ended June 30, 2002 and 2001
(in thousands, except earnings per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2002 2001(A) 2002 2001(A)
--------- --------- --------- ---------
Revenues $ 112,730 $ 109,639 $ 217,556 $ 200,895
--------- --------- --------- ---------
Costs and expenses:
Cost of services 62,140 55,719 121,378 104,037
Depreciation and amortization 10,456 8,129 19,978 14,898
General and administrative 21,426 17,108 42,639 31,726
--------- --------- --------- ---------
Total costs and expenses 94,022 80,956 183,995 150,661
--------- --------- --------- ---------
Income from operations 18,708 28,683 33,561 50,234
Other income (expense):
Interest expense (5,321) (4,976) (10,730) (8,546)
Interest income 140 592 325 1,052
Equity in income of
affiliates 145 -- 145 --
--------- --------- --------- ---------
Income before income taxes and
cumulative effect of change
in accounting principle 13,672 24,299 23,301 42,740
Income taxes 5,167 9,963 8,971 17,524
--------- --------- --------- ---------
Income before cumulative
effect of change in
accounting principle 8,505 14,336 14,330 25,216
Cumulative effect of change in
accounting principle, net of
income tax expense -- -- -- 2,589
--------- --------- --------- ---------
Net income $ 8,505 $ 14,336 $ 14,330 $ 27,805
========= ========= ========= =========
Basic earnings per share:
Earnings before cumulative
effect of change in
accounting principle $ 0.12 $ 0.21 $ 0.20 $ 0.37
Cumulative effect of change
in accounting principle -- -- -- 0.04
--------- --------- --------- ---------
Earnings per share $ 0.12 $ 0.21 $ 0.20 $ 0.41
========= ========= ========= =========
Diluted earnings per share:
Earnings before cumulative
effect of change in
accounting principle $ 0.11 $ 0.21 $ 0.20 $ 0.36
Cumulative effect of change
in accounting principle -- -- -- 0.04
--------- --------- --------- ---------
Earnings per share $ 0.11 $ 0.21 $ 0.20 $ 0.40
========= ========= ========= =========
Weighted average common shares
used in computing earnings
per share:
Basic 73,737 68,287 72,030 68,126
========= ========= ========= =========
Diluted 74,970 69,199 73,142 69,037
========= ========= ========= =========
(A) Earnings per diluted share before cumulative effect of change
in accounting principal, excluding goodwill amortization, net
of taxes, was $0.22 and $0.39 for the three and six months
ended June 30, 2001, respectively (SFAS 142)
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2002 AND DECEMBER 31, 2001
(in thousands)
06/30/2002 12/31/2001
(Unaudited) (Audited)
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $7,568 $3,769
Accounts receivable - net 100,991 109,835
Income taxes receivable 10,153 11,694
Escrowed funds 10,734 --
Prepaid insurance and other 13,965 10,181
-------- --------
Total current assets 143,411 135,479
Property, plant and equipment - net 390,560 345,878
Goodwill - net 156,716 148,729
Notes receivable -- 23,062
Investments in affiliates 12,551 --
Other assets - net 7,731 12,372
-------- --------
Total assets $710,969 $665,520
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $22,217 $34,843
Accrued expenses 26,513 26,841
Deferred income taxes 180 510
Current maturities of long-term debt 14,268 16,727
-------- --------
Total current liabilities 63,178 78,921
-------- --------
Deferred income taxes 58,260 47,390
Long-term debt 262,843 269,633
Total stockholders' equity 326,688 269,576
-------- --------
Total liabilities and stockholders' equity $710,969 $665,520
======== ========
Superior Energy Services, Inc. and Subsidiaries
Segment Highlights
Three months ended June 30, 2002 and 2001, and March 31, 2002
(Unaudited)
(in thousands)
Revenue June 2002 March 2002 June 2001
------- ------- -------
Well Intervention Group $40,186 $36,288 $41,604
Marine 17,760 14,586 18,483
Rental Tools 29,310 31,965 29,141
Other Oilfield Services 25,474 21,987 20,411
------- ------- -------
Total $112,730 $104,826 $109,639
Gross Profit
Well Intervention Group $17,904 $13,495 $20,002
Marine 6,799 5,038 10,600
Rental Tools 20,110 22,777 18,580
Other Oilfield Services 5,777 4,278 4,738
------- ------- -------
Total $50,590 $45,588 $53,920
Contact:
Superior Energy Services, Inc., Harvey
Terence Hall, Robert Taylor or Greg Rosenstein
504/362-4321