UTI Reports First Quarter Results
HOUSTON--(BUSINESS WIRE)--April 26, 1999--UTI Energy Corp.
(AMEX:UTI) today reported a net loss of ($256,000) for the three
months ended March 31, 1999 compared to net income of $3.5 million for
the comparable three-month period in 1998. The net loss includes an
after-tax charge of $156,000 in connection with the Company's
streamlining and consolidation activities undertaken during the
quarter, as well as an after-tax gain of $1.7 million resulting from
the sale during the quarter of certain of the drilling assets of the
Company's Pennsylvania-based International Petroleum Services Company
(IPSCO) subsidiary. Without these two items, the net loss for the
quarter would have been ($1.8 million).
The net loss per share, including both the after-tax charge and
after-tax gain, was ($0.02) per share on 16,469,000 average diluted
common shares outstanding, compared to net earnings of $0.21 per share
on 17,256,000 average diluted common shares outstanding for the same
period last year. The net loss per share, without the after-tax charge
and gain, was ($0.11) per share. Revenues for the quarter were $32.5
million versus $48.3 million for the comparable quarter last year.
Commenting on the results, UTI's chairman Mark S. Siegel said,
"Over the past several months we have implemented a number of
significant changes in our organization structure and the way in which
we operate. As a result of these changes, we believe that we are in an
excellent position to take advantage of industry conditions as they
improve."
He added, "We have continued to make excellent progress in
controlling costs and generating cash despite the depressed industry
conditions. During the quarter we generated EBITDA of $3.4 million
from operations. Our cash balance at the end of the quarter was $20.3
million, and we continue to have no outstanding balance on our $30
million line of credit."
Vaughn Drum, UTI's president and chief executive officer, stated,
"The final stages of our restructuring efforts are complete, and we
believe that we are now well positioned to take advantage of
improvements in industry conditions."
UTI Energy Corp. is a leading provider of contract drilling and
pressure pumping services in the continental United States. UTI has a
total of 104 drilling rigs that provide drilling services primarily in
Texas, Oklahoma, and New Mexico. The Company's pressure pumping
subsidiary provides stimulation and cementing services in the
Northeast.
Statements made in this press release that state the Company's or
management's intentions, beliefs, expectations or predictions for the
future are forward-looking statements. It is important to note that
the Company's actual results could differ materially from those
projected in such forward-looking statements. In addition to the
factors set forth above, other important factors that could cause
actual results to differ materially include, but are not limited to,
the impact of recent declines in prices of oil and gas on the demand
for the Company's services and the risk of any further declines in oil
and gas prices that could adversely affect demand for the Company's
services, and their associated effect on day rates and rig
utilization, industry conditions, integration of acquisitions, demand
for oil and gas, and ability to retain management and field personnel.
Additional information concerning factors that could cause actual
results to differ materially from those in the forward-looking
statements is contained from time to time in the Company's SEC
filings, including but not limited to the Company's report on Form
10-K for the year ended December 31, 1998. Copies of these filings may
be obtained by contacting the Company or the SEC.
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UTI ENERGY CORP.
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
----------------------------
1999 1998
REVENUES $ 32,536 $ 48,317
COST OF REVENUES 25,907 35,390
GROSS PROFIT 6,629 12,927
OTHER COSTS AND EXPENSES
Selling, general and administrative 2,724 2,728
Provision for bad debts 292 429
Other charge 260 0
Depreciation and amortization 5,834 3,801
9,110 6,958
OPERATING INCOME (LOSS) (2,481) 5,969
OTHER INCOME (EXPENSE)
Interest expense (1,028) (879)
Interest income 126 647
Other 2,955 103
2,053 (129)
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INCOME (LOSS) BEFORE TAXES (428) 5,840
INCOME TAXES (172) 2,293
NET INCOME (LOSS) $ (256) $3,547
EARNINGS (LOSS) PER COMMON SHARE
Basic $ (0.02) $0.22
Diluted $(0.02) $0.21
AVERAGE COMMON SHARES OUTSTANDING
Basic 16,211 16,151
Diluted 16,469 17,256
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UTI ENERGY CORP.
Additional Financial and Operating Data (Unaudited)
(Dollars in thousands)
Three Months Ended
March 31,
------------------
1999 1998
EBITDA $ 3,353 $ 9,770
Total Capital Expenditures $999 $11,352
Contract Drilling:
Revenues $27,572 $ 43,381
Cost of revenues $22,806 $ 32,390
Selling, general and
administrative $ 882 $ 977
Operating days 3,287 5,272
Average revenue per operating day $ 8.388 $ 8.229
Average costs per operating day $ 6.938 $ 6.144
Average margin per operating day $ 1.450 $ 2.085
Number of owned rigs at end of period 104 89
Average number of rigs owned
during period 108 89
Rig utilization percentage 34% 66%
Capital expenditures $ 335 $ 10,964
Capital expenditures per
operating day $ 0.102 $ 2.080
Pressure Pumping:
Revenues $ 4,927 $ 4,884
Cost of revenues $ 3,087 $ 2,974
Selling, general and administrative $ 909 $ 799
Total jobs 691 717
Average revenue per job $ 7.130 $ 6.812
Average costs per job $ 4.467 $ 4.148
Average margin per job $ 2.663 $ 2.664
Capital expenditures $ 664 $ 383
Other and Corporate:
Revenues $ 37 $ 52
Cost of revenues $ 14 $ 26
Selling, general and administrative $ 933 $ 952
Capital expenditures -- $ 5
March 31, December 31,
1999 1998
Selected Balance Sheet Data:
Cash and cash equivalents $ 20,320 $ 10,337
Current assets $ 51,518 $ 44,557
Total assets $232,450 $232,067
Current portion of
long-term debt $ 0 $ 0
Current liabilities $ 18,491 $ 23,919
Long-term debt (excluding current portion) $ 31,840 $ 31,721
Working capital $ 33,027 $ 20,638
Amount drawn under line of credit $ 0 $ 0
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CONTACT:
UTI Energy Corp., Houston
John Vollmer, 281/873-4111
or
Sitrick And Company, Los Angeles
Jeff Lloyd, 310/788-2850 |
