American Oilfield Divers announces fourth quarter, year-end results; Company reports profitable fourth quarter, record revenues.LAFAYETTE, La.--(BUSINESS WIRE)--Jan. 4, 1996--American Oilfield Divers, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : DIVE DIVE Distributed Interactive Virtual Environment DIVE Direct Interface Video Extensions DIVE Dismounted Infantry in a Virtual Environment ) today reported record revenues of $31.8 million and net income of $971,000 (or $0.14 per share) for the fiscal fourth quarter ended Oct. 31, 1995, and record revenues of $88.6 million and a net loss of $329,000 (or a loss of $0.05 per share) for the fiscal year ended Oct. 31, 1995. Fourth quarter revenues increased 45.2 percent over revenues of $21.9 million for the fourth quarter of 1994. Net income (and income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the ) for the fourth quarter of 1995 increased 9.1 percent compared with income from continuing operations of $890,000 (or $0.13 per share) for the same period a year ago. Revenues for the fiscal year ended Oct. 31, 1995 increased 67.8 percent over revenues of $52.8 million for the fiscal year ended Oct. 31, 1994. "Although I am pleased with the significant growth in revenues, I am extremely disappointed by our loss for the year," George C. Yax, AOD's chairman of the board, chief executive officer and president. "We believe we have identified the factors that impacted fiscal 1995, many of which were associated with `learning curves' involved in expanding into new market areas and with our transition from a regional Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east diving diving Sport of plunging into water, usually headfirst and often following the execution of one or more acrobatic maneuvers. It emerged as a competitive sport in the late 19th century and became part of the Olympic Games in 1904. company to a nationwide and international oil services company. We have worked diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to make these factors one-time occurrences." Factors cited for the increase in fourth quarter revenues include increased customer demand for the company's diving and related services in the Gulf of Mexico, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. markets compared with the fourth quarter of fiscal 1994, as well as high utilization of the American Intrepid, the company's jackup derrick derrick: see crane. Derrick famous hangman; eponym of modern hoisting apparatus. [Br. Hist.: Espy, 170] See : Execution barge barge, large boat, generally flat-bottomed, used for transporting goods. Most barges on inland waterways are towed, but some river barges are self-propelled. There are also sailing barges. . However, profitability was adversely impacted by cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor on certain turnkey See turnkey system. diving projects, and 60 percent downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. in the Gulf of Mexico market during October, traditionally the company's busiest month, due to Hurricanes Opal and Roxanne. The company estimates that these two factors cost between $0.18 per share and $0.22 per share in fourth quarter net income. Other factors cited for the fiscal year loss include operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. recorded by the company's pipelay/bury barge, inland diving subsidiary, and Dubai operations totaling $2.7 million, cost overruns and losses of approximately $1.2 million on certain turnkey diving projects in the Gulf of Mexico and Dubai, as well as lower than expected diving and related activity in the Gulf of Mexico, U.S. West Coast and U.S. inland markets during the first and second fiscal quarters. The company has identified the contract bidding errors and operational difficulties that were the primary reasons of the turnkey losses, including equipment underperformance and failures, and unanticipated adverse worksite conditions. The company has taken steps to prevent their recurrence recurrence /re·cur·rence/ (-ker´ens) the return of symptoms after a remission.recur´rent re·cur·rence n. 1. by, among other things, the addition of an experienced turnkey project management specialist and increased diver diver, general term used to refer to many diving birds, e.g., the loon, the grebe, and some ducks, auks, and penguins. and manager training. The losses were partially offset by $3.6 million in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. recorded by the company's Gulf of Mexico diving services and vessels, $3.1 million in operating income recorded by the company's international services sector, $0.5 million in operating income recorded by the company's subsea Subsea is a general term frequently used to refer to equipment, technology, and methods employed to explore, drill, and develop oil and gas fields that exist below the ocean floors. This may be in "shallow" or "deepwater". products sector and $0.3 million in operating income recorded by American Pacific Marine, Inc., the company's west coast subsidiary. The company's gross profit percentage was 28.6 percent in the fourth quarter of 1995 and 28.7 percent for fiscal 1995, compared with 31.8 percent in the fourth quarter of 1994 and 33.0 percent for fiscal 1994. AOD See HD DVD. averaged 133 dive crews per day during the fourth quarter of 1995 and 98 dive crews per day for fiscal 1995, compared with 92 dive crews per day for the fourth quarter of 1994 and 62 dive crews per day for fiscal 1994. Vessel utilization was 55 percent during the fourth quarter of 1995 and 47 percent during fiscal 1995, compared with 63 percent during the fourth quarter of 1994 and 49 percent during fiscal 1994. "Despite the loss in fiscal 1995, we believe the foundation for profitability is in place," Yax said. "We were profitable in three of our four quarters, with the lone loss recorded in the second quarter. In fiscal 1996, we want to implement the lessons we learned in our new market areas as well as reduce losses that traditionally have plagued our second quarter. In addition, we are committed to improving our turnkey bidding and operational processes, and significantly lowering both SG&A and operating costs operating costs npl → gastos mpl operacionales as a percentage of revenue companywide." Through 60 days of the first quarter of fiscal 1996, the company has averaged 92 dive crews per day and 55 percent vessel utilization. The company estimates it has a work backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of approximately $12.5 million, including the previously announced $8.5 million contract with Chevron for the removal of four platforms off the California coast which was postponed from June 1995 to June 1996. American Oilfield Divers, Inc. is a leading provider of diving services, subsea products, marine construction, and environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, to the offshore oil and gas industry, primarily in the U.S. Gulf of Mexico, U.S. West Coast, internationally and to certain U.S. inland customers. -0-
AMERICAN OILFIELD DIVERS, INC.
Consolidated Results of Operations and Financial Position
($ in thousands except for per share amounts)
Three Months Ended Year Ended
October 31, October 31,
1995 1994 1995 1994
Income Statement
Diving and related revenues $31,827 $21,934 $88,660 $52,755
Operating income (loss) 2,199 1,802 1,098 (220) Other income (expense), net (340) (188) (1,249) (44) Income (loss) from continuing operations before income taxes and minority interest 1,858 1,614 (151) (264) Income tax provision (benefit) 772 738 (62) (75) Minority interest (116) 14 (116) 82 Income (loss) from continuing operations 971 890 (329) (257) Loss from discontinued operations - (986) - (1,696) Net income (loss) $ 971 $ (96) $ (329) $(1,953) Income (loss) per share: Continuing operations $ .14 $ .13 $ (.05) $ (.04) Discontinued operations - (.14) - (.25) Net income (loss) per share $ .14 $ (.01) $ (.05) $ (.29) Weighted average shares outstanding 6,709 6,709 6,709 6,706
October 31,
1995 1994
Balance Sheet
Assets:
Current assets $39,365 $31,040
Plant and equipment, net 26,079 24,424
Other long-term assets 3,964 6,143
Total assets $69,408 $61,607
Liabilities & Stockholders' Equity: Current liabilities $25,298 $16,953 Long-term debt 5,121 5,443 Minority interest in subsidiary -- (116) Stockholders' equity 38,989 39,327 Total liabilities & stockholders' equity $69,408 $61,607
Three Months Ended October 31, 1995
Gulf International Inland Subsea
Services(1) Services(2) Services(3) Products(4) Total
Diving and
Related
Revenues $16,737 $7,220 $5,606 $2,264 $31,827
Diving and
Related
Expenses $13,124 $4,883 $3,209 $1,499 $22,723
Gross Profit $ 3,613 $2,337 $2,396 $ 765 $ 9,104
Gross Profit
Percentage 21.6% 32.4% 42.7% 33.8% 28.6%
Three Months Ended October 31, 1994
Gulf International Inland Subsea
Services(1) Services(2) Services(3) Products(4) Total
Diving and
Related
Revenues $14,410 $ 747 $4,738 $2,040 $21,934
Diving and
Related
Expenses $10,139 $ 889 $3,008 $ 920 $14,957
Gross Profit $ 4,270 $ (142) $1,730 $1,120 $ 6,978
Gross Profit
Percentage 29.6% (19.0%) 36.5% 54.9% 31.8%
(1) Includes diving and related services, pipelay/bury and derrick barge services provided by American Marine Construction, Inc. and environmental remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a and oil spill oil spill: see water pollution. response services provided by American Pollution Control, Inc., all of which were performed in the Gulf of Mexico. (2) Includes all diving and related services performed outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and its coastal waters except for Latin America, which is included in inland and west coast services. (3) Includes diving and related services off the U.S. West Coast by American Pacific Marine, Inc. and diving and related services provided by American Inland Divers, Inc. (4) Includes manufacturing and marketing of Big Inch pipeline connectors and Tarpon tarpon (tär`pŏn), common name for members of the family Elopidae, large herringlike game fish of the warm seas of the Western Hemisphere, ranging occasionally from Long Island to Brazil and to the west coast of Africa and entering freshwater marginal well production systems. Year Ended October 31, 1995 Inland and Gulf International West Coast Subsea Services(1) Services(2) Services(3) Products(4) Total Diving and Related Revenues $49,522 $17,079 $14,539 $7,520 $88,660 Diving and Related Expenses $37,362 $11,318 $10,114 $4,386 $63,180 Gross Profit $12,160 $ 5,761 $ 4,425 $3,134 $25,480 Gross Profit Percentage 24.6% 33.7% 30.4% 41.7% 28.7% Year Ended October 31, 1994 Inland and Gulf International West Coast Subsea Services(1) Services(2) Services(3) Products(4) Total Diving and Related Revenues $35,733 $3,889 $8,439 $4,694 $52,755 Diving and Related Expenses $24,887 $2,545 $5,619 $2,287 $35,338 Gross Profit $10,846 $1,344 $2,820 $2,407 $17,417 Gross Profit Percentage 30.4% 35.0% 33.4% 51.3% 33.0%
(1) Includes diving and related services, pipelay/bury and
derrick barge services provided by American Marine Construction, Inc.
and environmental remediation and oil spill response services
provided by American Pollution Control, Inc., all of which were
performed in the Gulf of Mexico.
(2) Includes all diving and related services performed outside
the United States and its coastal waters except for Latin America,
which is included in inland and west coast services.
(3) Includes diving and related services off the U.S. West Coast
by American Pacific Marine, Inc. and diving and related services
provided by American Inland Divers, Inc.
(4) Includes manufacturing and marketing of Big Inch pipeline
connectors and Tarpon marginal well production systems.
CONTACT: American Oilfield Divers Inc., Lafayette Steve Weems or Greg Rosenstein, 318/234-4590 |
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