In the news release, Boots & Coots (Amex: WEL) Reports Third Quarter
Results, issued yesterday,
Boots & Coots Reports Third Quarter Results; Response and Well Intervention
Both Strong Performers for the Quarter
For the nine months ended
Business Segment Results
Well Intervention
For the 2006 third quarter, the Well Intervention segment generated
revenues of
Response
For the 2006 third quarter, the Response segment generated revenues of
'The strong results across the board are a testimonial to the intrinsic
value we provide our customers and to our expertise and leadership in the
pressure control industry,' stated
'Growth in our Well Intervention segment continues to be strong: on a proforma basis, revenues from this segment of our business grew by over 56% as compared to the prior year nine month period as both our hydraulic well control and Safeguard businesses reported strong quarters. Utilization of our hydraulic units was 36.3% during the third quarter of 2006, which represents an 8% year-over-year increase on a proforma basis.'
During the first quarter, the Company adopted Statement of Financial
Accounting Standards No. 123 (revised 2004), which requires the measurement
and recognition of compensation expense for all share-based payment awards
made to employees, consultants and directors; including employee stock options
based on estimated fair values. For the current quarter and nine months, the
Company incurred non-cash charges of
Conference Call
Boots & Coots will hold its quarterly conference call to discuss 2006
third quarter results tomorrow,
About Boots & Coots
Boots & Coots International Well Control, Inc.,
Certain statements included in this news release are intended as 'forward-
looking statements' under the Private Securities Litigation Reform Act of
1995. Boots & Coots cautions that actual future results may vary materially
from those expressed or implied in any forward-looking statements. More
information about the risks and uncertainties relating to these forward-
looking statements are found in Boots & Coots' SEC filings, which are
available free of charge on the SEC's web site at http://www.sec.gov .
Company contact:
(Tables to follow)
BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(000's except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
REVENUES(a) $28,293 $4,612 $63,285 $23,664
COST OF SALES,
excluding depreciation
and amortization 15,329 1,846 33,437 12,520
Gross Margin 12,964 2,766 29,848 11,144
OPERATING EXPENSES 4,401 1,842 10,732 5,822
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 1,295 662 3,113 1,989
OTHER OPERATING EXPENSES 62 --- 174 ---
DEPRECIATION AND
AMORTIZATION 1,438 152 3,466 592
Operating Income 5,768 110 12,363 2,741
INTEREST EXPENSE AND
OTHER, net 760 85 2,109 523
INCOME BEFORE INCOME
TAXES 5,008 25 10,254 2,218
INCOME TAX EXPENSE 1,639 494 3,575 877
Net Income(loss) 3,369 (469) 6,679 1,341
Preferred Dividend
Requirements AND
accretions --- 222 (616) 649
Net Income(loss)
Attributable to COMMON
STOCKHOLDERS $3,369 $(691) $7,295 $692
Basic Earnings(Loss)
per Common Share: $0.06 $(0.02) $0.14 $0.02
Weighted Average Common
Shares Outstanding -
Basic 58,696,000 29,499,000 52,047,000 29,497,000
Diluted Earnings(Loss)
per Common Share: $0.05 $(0.02) $0.13 $0.02
Weighted Average Common
Shares Outstanding -
Diluted 62,076,000 29,499,000 55,315,000 31,376,000
(a) Revenues for the nine months ended September 30, 2005 include $5,341
of pass-through third-party charges related to one large job for
personnel security. A lower level of charges were applicable for
the nine months ended September 30, 2006.
Information concerning operations in different business segments for the
three and nine months ended September 30, 2006 and 2005 is presented below.
Certain reclassifications have been made to the prior periods to conform to
the current presentation.
(unaudited) (unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
Revenues
Well Intervention $21,311 $3,109 $54,148 $10,339
Response 6,982 1,503 9,137 13,325
$28,293 $4,612 $63,285 $23,664
EBITDA(a)
Well Intervention $4,426 $289 $12,292 $2,174
Response 2,780 (27) 3,537 1,159
$7,206 $262 $15,829 $3,333
Depreciation and
Amortization (b)
Well Intervention $1,340 $86 $3,325 $238
Response 98 66 141 354
$1,438 $152 $3,466 $592
Operating Income (Loss)
Well Intervention $3,086 $203 $8,967 $1,936
Response 2,682 (93) 3,396 805
$5,768 $110 $12,363 $2,741
(a) EBITDA represents earnings before interest, taxes, depreciation and
amortization. See the reconciliation and rationale for this non-GAAP
financial measure below.
(b) Depreciation has been charged to each segment based upon specific
identification of expenses and an allocation of remaining non-
segment specific expenses pro rata between segments based upon
relative revenues.
BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.
RECONCILIATION BETWEEN CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(in thousands)
(unaudited)
Three Months Ended Nine Months Ended
September 30,
September 30,
2006 2005 2006 2005
Net Income (Loss) $3,369 $(469) $6,679 $1,341
Income Tax Expense $1,639 $494 $3,575 $877
Interest Expense and
Other, net $760 $85 $2,109 $523
Depreciation and
Amortization $1,438 $152 $3,466 $592
Earnings Before
Interest, Taxes,
Depreciation and
Amortization
(EBITDA)(a) $7,206 $262 $15,829 $3,333
(a) Earnings before Interest, Income taxes, Depreciation, Depletion and
Amortization ('EBITDA') is a non-GAAP financial measure, as it
excludes amounts or is subject to adjustments that effectively
exclude amounts, included in the most directly comparable measure
calculated and presented in accordance with GAAP in financial
statements. 'GAAP' refers to generally accepted accounting
principles in the United States. Non-GAAP financial measures
disclosed by management are provided as additional information to
investors in order to provide them with an alternative method for
assessing our financial condition and operating results. These
measures are not in accordance with, or a substitute for, GAAP, and
may be different from or inconsistent with non-GAAP financial
measures used by other companies. Pursuant to the requirements of
Regulation G, whenever we refer to a non-GAAP financial measure, we
also present the most directly comparable financial measure and
presented in accordance with GAAP, along with a reconciliation of
the differences between the non-GAAP financial measure and such
comparable GAAP financial measure. Management believes that EBITDA
may provide additional information with respect to the Company's
performance or ability to meet its debt service and working capital
requirements.
BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2006 2005
(unaudited)
Current Assets $50,075 $10,598
Current Liabilities (a) $22,939 $7,033
Total Working Capital (b) $27,136 $3,565
Total Assets $95,021 $14,767
Long-Term Debt and Notes Payable (c) $32,162 $3,939
Total Liabilities $61,809 $10,972
Total Stockholders' Equity $33,212 $3,795
(a) December 31, 2005 includes $259 for the current portion of Troubled
Debt Restructuring interest related to the 2000 refinancing of the
Prudential Loan Agreement. The remaining amount at March 1, 2006 was
credited to income as a result of the March 1, 2006 refinancing and
acquisition.
(b) The Company defines Working Capital as all current assets, including
cash, less all current liabilities which includes current maturities
of long-term debt.
(c) Net of current maturities of long-term debt. December 31, 2005
includes $339 for the long-term portion of Troubled Debt
Restructuring interest related to the 2000 refinancing of the
Prudential Loan Agreement. The remaining amount at March 1, 2006 was
credited to income as a result of the March 1, 2006 refinancing and
acquisition.
Investor Contact: Jennifer Tweeton
VOLLMER
713-970-2100
jennifert@vollmerpr.com
SOURCE Boots & Coots International Well Control, Inc.
