EVI Announces 110 Percent Increase in Quarterly
Earnings
Business Wire - April 20, 1998 18:45
%EVI EVI %TEXAS %OIL %GAS %ENERGY %EARNINGS V%BW P%BW
HOUSTON--(BUSINESS WIRE)--April 20, 1998--EVI Inc. (NYSE:EVI) today
announced income from continuing operations of $31,277,000 or $.65 per diluted share
on revenues of $316,840,000 for the first quarter of 1998 compared to income from
continuing operations of $14,345,000 or $.31 per diluted share on revenues of
$164,640,000 for the first quarter of 1997. Operating income for the first quarter of
1998 was $55,322,000 compared to $23,337,000 for the first quarter of 1997. The
results of the first quarter reflect continued revenue and margin improvement in the
Company's drilling products segment as well as the impact of acquisitions and cost
reduction programs at the Company's production equipment segment.
Operating income at the Company's drilling products segment increased to $46,256,000
on revenues of $192,899,000 for the first quarter of 1998 up from $21,466,000 on
revenues of $117,803,000 for the first quarter of 1997. Drill stem revenues increased to
approximately $102 million in 1998 from $59 million in 1997. With enhanced
manufacturing productivity, the Company was able to increase shipments of drill pipe by
900,000 feet over the first quarter of 1997. With a current backlog of approximately
$325 million, the Company expects to ship in excess of 2.5 million feet of drill pipe in
each of the remaining quarters of 1998. Premium tubular and subsea equipment revenues
increased to approximately $91 million in 1998 from approximately $59 million in 1997.
The 54 percent revenue increase is due to the 1997 acquisitions of TA Industries and XL
Systems as well as an approximate 20 percent increase in engineered connections and
premium casing revenues. The Company expects that premium tubular and subsea
revenues will continue to show improvement on a year-on-year basis due to continued
strength in the offshore markets as well as the revenue growth attributable to the
acquisitions of TA Industries and XL Systems.
Operating income at the Company's production equipment division increased to
$11,214,000 in the first quarter of 1998 from $3,592,000 in the first quarter of 1997.
Revenues increased by $77,104,000 over the same period. The increase in revenues and
operating income is due to the impact of second-half 1997 acquisitions as well as strong
growth in Latin America, evidenced by a doubling of Latin American revenues from 1997
to 1998. Excluding the impact of acquisitions, revenues in the production equipment
division increased by 39 percent over the first quarter of 1997. Operating income margins
improved to 9 percent from 7 percent as manufacturing cost reduction programs in the
artificial lift businesses began to have an impact in the second half of 1997. Manufacturing
and distribution cost reduction initiatives will continue throughout the balance of 1998 as
the Company integrates the businesses that were acquired during 1997. The Company's
progressing cavity pump line of artificial lift products was negatively impacted during the
first quarter of 1998 by the interruption of heavy oil drilling activity in both Canada and
California. The Company has taken steps during the first quarter to lower its cost
structure in heavy oil markets.
The Company also announced that it had set May 27, 1998 as the meeting date for the
special meeting of the EVI stockholders to consider its proposed merger with
Weatherford Enterra Inc. (NYSE:WII). The merger is subject to various conditions,
including stockholder approval and the expiration of the waiting period under the notice
provisions of the United States antitrust laws, which waiting period is currently scheduled
to expire on April 29, 1998.
This press release contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 concerning, among other things, EVI's
prospects and development for its operations and the integration of recent acquisitions, all
of which are subject to certain risks, uncertainties and assumptions. These risks and
uncertainties, which are more fully described in EVI's Annual Quarterly and Current
Reports filed with the Securities and Exchange Commission, include changes in market
conditions in the oil and gas industry as well as the effect of changes in prices of oil and
gas. Should one or more of these risks or uncertainties materialize, or should the
assumptions prove incorrect, actual results may vary in material aspects from those
currently anticipated. |
