For the six months ended
Business Segment Results
Well Intervention
For the second quarter of 2006, Well Intervention generated
Response
For the second quarter of 2006, the Response segment reported revenues of
'With strong activity both domestically and internationally, Boots and
Coots experienced a great quarter due to the acquisition of HWC and strong
international activity which also benefited our Safeguard business,' stated
'We are continuing to focus our business development efforts toward
additional growth internationally and domestically, continued expansion into
new markets and improving current utilization in our existing locations,'
added Winchester. 'We are confident in our plan and our ability to achieve a
For the second quarter, the income tax expense was
For the six month period, interest expense was
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 six months, the Company
incurred non-cash charges of
Conference Call
Boots & Coots will hold its quarterly conference call to discuss 2006
second 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:
Investor Contacts: Jennifer Tweeton
VOLLMER
713-970-2100
jennifert@vollmerpr.com
Stan Altschuler / Miri Segal
Strategic Growth International
212-838-1444
info@sgi-ir.com
(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 Six Months Ended
June 30, June 30,
2006 2005 2006 2005
REVENUES(a) $23,472 $4,762 $34,992 $19,052
COST OF SALES,
excluding depreciation
and amortization 12,808 2,088 18,108 10,674
Gross Margin 10,664 2,674 16,884 8,378
OPERATING EXPENSES 3,461 2,001 6,331 3,980
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 1,000 662 1,818 1,327
OTHER OPERATING EXPENSES 94 --- 112 ---
DEPRECIATION AND
AMORTIZATION 1,456 219 2,028 440
OPERATING INCOME(LOSS) 4,653 (208) 6,595 2,631
INTEREST EXPENSE AND
OTHER, net 792 276 1,349 438
INCOME(LOSS) BEFORE
INCOME TAXES 3,861 (484) 5,246 2,193
INCOME TAX EXPENSE 1,229 179 1,936 383
Net Income(loss) 2,632 (663) 3,310 1,810
PREFERRED DIVIDEND
REQUIREMENTS AND
ACCRETIONS --- 216 (616) 427
NET INCOME(LOSS)
ATTRIBUTABLE TO COMMON
STOCKHOLDERS $2,632 $(879) $3,926 $1,383
Basic Earnings(Loss)
per Common Share: $0.05 $(0.03) $0.08 $0.05
Weighted Average
Common Shares
Outstanding -
Basic 58,436,000 29,499,000 48,667,000 29,495,000
Diluted Earnings
(Loss) per Common
Share: $0.04 $(0.03) $0.08 $0.04
Weighted Average
Common Shares
Outstanding -
Diluted 62,259,000 29,499,000 51,879,000 31,103,000
(a) Revenues for the six months ended June 30, 2005 include $5,341 of
pass-through third-party charges related to personnel security. No
such charges were applicable for the six months ended June 30, 2006.
Information concerning operations in different business segments for the
three and six months ended June 30, 2006 and 2005 is presented below. Certain
reclassifications have been made to the prior periods to conform to the
current presentation.
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
Revenues
Well Intervention $22,806 $4,127 $32,837 $7,230
Response 666 635 2,155 11,822
$23,472 $4,762 $34,992 $19,052
EBITDA(a)
Well Intervention $5,915 $857 $7,866 $1,885
Response 194 (846) 757 1,186
$6,109 $11 $8,623 $3,071
Depreciation and
Amortization(b)
Well Intervention $1,440 $108 $1,985 $153
Response 16 111 43 287
$1,456 $219 $2,028 $440
Operating Income (Loss)
Well Intervention $4,475 $749 $5,881 $1,732
Response 178 (957) 714 899
$4,653 $(208) $6,595 $2,631
(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 CONSOLIDATED STATEMENT OF
OPERATIONS AND EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION
(in thousands)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
Net Income (Loss) $2,632 $(663) $3,310 $1,810
Income Tax Expense $1,229 $179 $1,936 $383
Interest Expense and
Other, net $792 $276 $1,349 $438
Depreciation and
Amortization $1,456 $219 $2,028 $440
Earnings Before
Interest, Taxes,
Depreciation and
Amortization
(EBITDA)(a) $6,109 $11 $8,623 $3,071
(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)
June 30, December 31,
2006 2005
(unaudited)
Current Assets $36,297 $10,598
Current Liabilities(a) $16,375 $7,033
Total Working Capital(b) $19,922 $3,565
Total Assets $82,077 $14,767
Long Term Debt and Notes
Payable(c) $36,413 $3,939
Total Liabilities $52,788 $10,972
Total Stockholders' Equity $29,289 $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 3, 2006 was
credited to income as a result of the March 3, 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 3, 2006 was
credited to income as a result of the March 3, 2006 refinancing and
acquisition.
SOURCE Boots & Coots International Well Control, Inc.
