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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: mph who wrote (19484)	4/17/1998 10:37:00 AM
From: marc chatman	Respond to of 95453

BJS .47, beats Zacks by a penny. Friday April 17, 9:45 am Eastern Time Company Press Release SOURCE: BJ Services Company BJ Services Quarterly EPS Increases 88% HOUSTON, April 17 /PRNewswire/ -- BJ Services Company (NYSE: BJS; CBOE) continued its impressive earnings growth reporting net income of $38.6 million, or $.47 diluted earnings per share, for its second fiscal quarter ended March 31, 1998. These figures represent increases of 91% and 88% over prior year's second fiscal quarter net income and EPS, respectively. Both the revenue and profits represent the highest second quarters figures in the Company's history. The significant rise in both revenue and earnings were attributed to continued strength in U.S. natural gas activity and increases resulting from the Company's growth initiatives. The Company's operating income margins improved significantly, increasing to 17.1% from 11.4% in prior year's second fiscal quarter, both figures exclusive of goodwill amortization. Strong operating cash flows resulted in a $1.2 million reduction in interest expense, despite $77 million of stock repurchases since the beginning of the fiscal year. The Company's interest-bearing debt was reduced to $394 million and the debt to total capitalization ratio to 28.7% at quarter end. The Company's effective tax rate was 33% for the quarter, an increase from prior year's second quarter rate of 29%. The quarter's tax provision included noncash taxes of $12.9 million from the availability of U.S. and international net operating loss carryforwards. The effective cash tax rate on profit before taxes was approximately 11%. For the six months ended March 31, 1998, the Company reported increases in revenue and net income of 19% and 106%, respectively. U.S. Revenues Increase on Gas Activity The Company's U.S. revenues increased by 14% compared to prior year's second fiscal quarter due primarily to strength in natural gas drilling activity partially offset by a decline in workover activity. Additionally, coiled tubing and downhole tool operations contributed to the quarter results with revenues growing by 28% and 54%, respectively. International Growth Continues Growth in the Company's international operations continued with revenue increasing by 16% from prior year's second fiscal quarter. Each of the Company's international pressure pumping regions showed revenue and profit increases, with the Middle East and Far East regions showing the largest percentage gains. The Company's Canadian pressure pumping revenues also increased slightly from the prior year, despite being negatively impacted by lower oil prices, an earlier spring breakup, and unfavorable currency rates. Latin American operations continued to expand on the strength of stimulation activity in Venezuela, Brazil and Colombia. Overall international operations benefited from an increase in fracturing and coiled tubing services of 28% and 23% respectively. Other Service Lines Also Show Gains The Company's other service lines, which include tubular services, process and pipeline services, and production and industrial chemical businesses showed an overall revenue increase of 12%. The process and pipeline services business achieved significant revenue growth as a result of new contracts in the North Sea and expansion into West Africa. CEO Stewart Comments CEO J.W. Stewart commented, ''While the growth in oil related activity has slowed in the U.S., Canada and certain parts of Latin America, natural gas drilling, which represents two-thirds of our U.S. revenue, has remained strong. We are on target with our stated growth initiatives in international stimulation, coiled tubing, downhole tools and pipeline inspection businesses. These initiatives are complemented by our international expansion efforts which continue to contribute to our growth.''