WEL
Boots & Coots Reports Fourth Quarter and Record Year End Results
Annual Revenues Nearly Double; Annual Net Income Up 177%
Tuesday March 10, 2009, 7:01 am EDT
HOUSTON--(BUSINESS WIRE)--Boots & Coots International Well Control, Inc. (NYSE:WEL - News), announced record revenues, net income and EBITDA for the year ended December 31, 2008. Revenues for 2008 increased 99% to $209.2 million compared to $105.3 million for the prior year. Net income attributable to common stockholders increased 177% to $21.8 million, or $0.28 per diluted share, compared to $7.9 million, or $0.11 per diluted share for 2007. EBITDA (earnings before interest, income taxes, depreciation and amortization; see the reconciliation and rationale for this non-GAAP financial measure below) was $39.1 million for the year ended December 31, 2008, up 109% from $18.7 million for 2007.
Related Quotes
Symbol Price Change
WEL 1.17 0.00
{"s" : "wel","k" : "c10,l10,p20,t10","o" : "","j" : ""} For the quarter ended December 31, 2008, revenues were $55.9 million compared to $36.1 million for the 2007 fourth quarter. Net income attributable to common stockholders were $5.1 million, or $0.07 per diluted share for the quarter ended December 31, 2008, compared to $5.8 million, or $0.08 per diluted share for the same quarter of 2007. EBITDA was $9.8 million, or 17.6% of revenues for the quarter compared to $9.9 million, or 27.4% of revenues for the fourth quarter of 2007. Included in 2008 results are a $2.0 million ($0.02 per diluted share after tax) one-time bad debt expense attributed to one customer contract, and start up expenses related to a new hydraulic workover contract in North Africa.
“The record results for the year are a reflection on our strategy of focusing on pressure control and continuing to build our portfolio of products, services and talent with the objective of being a trusted advisor to our customers in all situations involving pressure control,” stated Jerry Winchester, president and chief executive officer. “In 2009, we will continue to focus on international markets to further strengthen our operations. Our domestic operations remain centered on the prolific shale plays. Additionally, we will look for opportunities to selectively expand complementary product offerings and services both domestically and internationally.”
The Company has revised its reporting segments to provide better clarity to the market place and align more closely with the management of its businesses. Prevention and emergency response are reported in the company’s Pressure Control segment, snubbing/hydraulic workover are reported in the Well Intervention segment, and rental tools are reported in the Equipment Services segment.
Business Segment Results
Pressure Control
For the quarter ended December 31, 2008, the Pressure Control segment generated revenues of $27.5 million compared to $10.5 million in the fourth quarter of 2007 and $28.3 million in the 2008 prior quarter. EBITDA for the fourth quarter was $5.7 million compared to $2.4 million for the fourth quarter of the prior year and $7.3 million for the third quarter of 2008. For the year ended December 31, 2008, the Pressure Control segment generated revenues of $92.8 million and EBITDA of $22.2 million, compared to revenues of $36.8 million and EBITDA of $9.0 million for 2007.
The year-over-year increases in segment revenues and EBITDA were primarily due to increases in both critical and non-critical events such as new contracts and project activity in the company’s prevention business, offset by the $2.0 million in bad debt expense attributed to one customer contract.
Well Intervention
For the quarter ended December 31, 2008, the Well Intervention segment generated revenues of $23.6 million compared to $23.8 million in the fourth quarter of 2007 and $23.6 million in the 2008 third quarter. EBITDA for the fourth quarter was $3.1 million compared to $6.6 million for the fourth quarter of 2007 and $2.2 million for the third quarter of 2008. For the year ended December 31, 2008, the Well Intervention segment generated revenues of $97.2 million and EBITDA of $12.6 million, compared to revenues of $66.6 million and EBITDA of $9.3 million for the prior year.
Included in the 2008 fourth quarter are start up expenses associated with a new workover contract in North Africa. Included in 2007 fourth quarter revenues is a $3.0 million contract settlement with a Middle East customer, resulting in EBITDA of $2.5 million for the quarter. The year-end increases in revenues and EBITDA were primarily due to higher rig utilization resulting from growth in the company’s international and domestic snubbing/hydraulic workover services, offset by the expenses stated above.
Equipment Services
For the quarter ended December 31, 2008, the Equipment Services segment generated revenues of $4.8 million compared to $1.8 million for the same period in 2007 and $4.6 million for the third quarter of 2008. EBITDA for the quarter was $1.1 million compared to EBITDA of $0.8 million for the fourth quarter of 2007 and $0.7 million for the 2008 third quarter. For the year ended December 31, 2008, the Equipment Services segment generated revenues of $19.3 million and EBITDA of $4.3 million, compared to revenues of $1.9 million and EBITDA of $0.5 million for 2007.
The increases in revenues and EBITDA were due to domestic and international expansion of the company’s equipment rental services, which began in August 2007. |
