HOUSTON, Nov. 4, 2009 (GLOBE NEWSWIRE) -- T-3 Energy Services, Inc. (Nasdaq:TTES) reported third quarter 2009 net income of $4.1 million, or $0.32 per diluted share, compared to $4.9 million, or $0.38 per diluted share for the second quarter of 2009. The current quarter results include the benefit of an insurance claim settlement related to Hurricane Ike of just under $1.1 million, or $0.05 per diluted share after tax.
Revenues for the third quarter decreased to $47.5 million from $55.7 million in the second quarter of 2009. While backlog decreased to $41.2 million at September 30 versus $45.4 million at June 30, 2009, net bookings for the quarter increased slightly to $43.3 million compared to $41.8 million in the prior quarter.
Steve Krablin, T-3's Chairman, President and Chief Executive Officer commented, "Our revenues, earnings and backlog continue to benefit from relatively stronger offshore and international markets. Third quarter revenues on products destined for international delivery represented 50% of total revenues, down from 61% in the prior quarter. Deliveries destined for international markets made up 75% of third quarter backlog, compared to 60% at the end of the second quarter. One large international order that we had anticipated completing and shipping in the third quarter was delayed into the fourth quarter of 2009, and will represent over $5 million in revenues for us in that period.
"We were pleased to record an uptick in bookings in the quarter, especially for our early cycle items including remanufacturing, repair and service. Since the end of the quarter, we have had continued success with international orders, which we believe indicates the bottoming process for our business has begun. While we anticipate that fourth quarter bookings may be affected by an expected seasonal year-end slowdown, we believe the longer-term strengthening trend should remain. For the fourth quarter, we anticipate earnings to be in the range of $0.22 to $0.26 per share."
T-3 Energy Services, Inc. provides a broad range of oilfield products and services primarily to customers in the drilling and completion of new oil and gas wells, the workover of existing wells and the production and transportation of oil and gas.
Except for historical information, statements made in this release, including those relating to potential future revenues, bookings, cash flow, backlog, growth, business trends and prospects constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Whenever possible, the Company has identified these "forward-looking" statements by words such as "believe", "encouraged", "expect", "expected", "anticipate", "should" and similar phrases. The forward-looking statements are based upon management's expectations and beliefs and, although these statements are based upon reasonable assumptions, actual results might differ materially from expected results due to a variety of factors including, but not limited to, overall demand for and pricing of the Company's products, changes in the level of oil and natural gas exploration and development, and variations in global business and economic conditions. The Company assumes no obligation to update or revise publicly any forward-looking statements whether as a result of new information, future events or otherwise. For a discussion of additional risks and uncertainties that could impact the Company's results, review the T-3 Energy Services, Inc. Annual Report on Form 10-K for the year ended December 31, 2008 and other filings of the Company with the Securities and Exchange Commission.
T-3 ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
------------------------------- --------------------
Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30,
2009 2008 2009 2009 2008
--------- --------- --------- --------- ---------
Revenues:
Products $ 39,098 $ 59,635 $ 49,206 $ 141,645 $ 175,386
Services 8,392 10,203 6,542 24,379 31,312
--------- --------- --------- --------- ---------
47,490 69,838 55,748 166,024 206,698
Cost of
revenues:
Products 25,819 37,440 31,226 90,226 107,815
Services 5,049 6,100 3,860 14,488 18,334
--------- --------- --------- --------- ---------
30,868 43,540 35,086 104,714 126,149
Gross profit 16,622 26,298 20,662 61,310 80,549
Selling,
general and
administrative
expenses 12,876 15,696 13,468 44,422 44,226
--------- --------- --------- --------- ---------
Income from
operations 3,746 10,602 7,194 16,888 36,323
Interest
expense (159) (453) (232) (641) (1,946)
Interest income 15 80 -- 15 143
Equity in
earnings
(loss) of
unconsolidated
affiliates 359 (206) 359 912 175
Other income,
net 1,219 42 225 1,469 168
--------- --------- --------- --------- ---------
Income from
continuing
operations
before
provision for
income taxes 5,180 10,065 7,546 18,643 34,863
Provision for
income taxes 1,101 5,359 2,658 5,856 13,128
--------- --------- --------- --------- ---------
Income from
continuing
operations 4,079 4,706 4,888 12,787 21,735
Loss from
discontinued
operations,
net of tax -- (9) -- -- (20)
--------- --------- --------- --------- ---------
Net income $ 4,079 $ 4,697 $ 4,888 $ 12,787 $ 21,715
========= ========= ========= ========= =========
Basic earnings
per common
share:
Continuing
operations $ .32 $ .38 $ .39 $ 1.01 $ 1.75
========= ========= ========= ========= =========
Discontinued
operations $ -- $ -- $ -- $ -- $ --
========= ========= ========= ========= =========
Net income per
common share $ .32 $ .38 $ .39 $ 1.01 $ 1.75
========= ========= ========= ========= =========
Diluted
earnings per
common share:
Continuing
operations $ .32 $ .37 $ .38 $ 1.00 $ 1.69
========= ========= ========= ========= =========
Discontinued
operations $ -- $ -- $ -- $ -- $ --
========= ========= ========= ========= =========
Net income per
common share $ .32 $ .37 $ .38 $ 1.00 $ 1.69
========= ========= ========= ========= =========
Weighted
average common
shares
outstanding:
Basic 12,811 12,504 12,638 12,660 12,437
========= ========= ========= ========= =========
Diluted 12,887 12,872 12,744 12,758 12,885
========= ========= ========= ========= =========
T-3 ENERGY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except for share amounts)
Sept. 30,
2009 Dec. 31,
(unaudited) 2008
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 2,797 $ 838
Accounts receivable - trade, net 32,159 47,822
Inventories 58,158 58,422
Deferred income taxes 6,962 5,131
Prepaids and other current assets 3,220 4,585
----------- -----------
Total current assets 103,296 116,798
Property and equipment, net 48,770 46,071
Goodwill, net 88,563 87,929
Other intangible assets, net 32,607 33,477
Other assets 5,499 2,837
----------- -----------
Total assets $ 278,735 $ 287,112
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable - trade $ 17,044 $ 26,331
Accrued expenses and other 16,910 19,274
Current maturities of long-term debt
-- 5
----------- -----------
Total current liabilities 33,954 45,610
Long-term debt, less current maturities -- 18,753
Other long-term liabilities 1,091 1,628
Deferred income taxes 10,898 10,026
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value,
25,000,000 shares authorized, no shares
issued or outstanding -- --
Common stock, $.001 par value, 50,000,000
shares authorized, 12,950,458 and
12,547,458 shares issued and outstanding
at September 30, 2009 and December 31,
2008 13 13
Warrants, 10,157 issued and outstanding at
September 30, 2009 and December 31, 2008 20 20
Additional paid-in capital 178,601 171,042
Retained earnings 52,823 40,036
Accumulated other comprehensive income
(loss) 1,335 (16)
----------- -----------
Total stockholders' equity 232,792 211,095
----------- -----------
Total liabilities and stockholders' equity $ 278,735 $ 287,112
=========== ===========