American Oilfield Divers announces third quarter results; company reports profitable third quarter, record revenues.LAFAYETTE, La.--(BUSINESS WIRE)--Sept. 14, 1995--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 $24.9 million for the fiscal third quarter ended July 31, 1995, while the company reported net income of $685,000 (or $0.10 per share). Factors cited for the record revenues include an increase in demand for the company's 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. related work in the 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 and off the coast of 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. , an increase in sales of 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". pipeline connectors and tie-ins, and diving related activity associated with the sale and installation of a marginal field production system manufactured by 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 Systems. Third quarter revenues increased 83.0 percent over revenues of $13.6 million for the fiscal third quarter of 1994. Net income for the fiscal third quarter of 1995 increased significantly compared with a net loss of $677,000 (or a loss of $0.10 per share) for the same period a year ago. Revenues for the nine-month period ended July 31, 1995 were a record $56.8 million, an 84.4 percent increase over revenues of $30.8 million for the nine months ended July 31, 1994, and a 7.6 percent increase over the record $52.8 million in revenues for the full year 1994. "Although we demonstrated our ability to increase revenues, we intend to focus on enhancing profitability going forward," said George C. Yax, AOD's Chairman of the Board, Chief Executive Officer and President. "The company benefited from increased diving related work in the Gulf of Mexico traditionally associated with the third quarter. In addition, the company capitalized on its strong international presence, particularly in the West Africa market. "However, profitability in the third quarter was adversely impacted primarily by a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern operating loss 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. of approximately $1 million associated with our pipelay/bury 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. , the American Enterprise," Yax said. "The loss was attributable primarily to lower than expected gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. due to intense pricing competition and certain operational difficulties. "Of the $1 million operation loss, approximately one third of such loss was attributable primarily to certain delays associated with the certification process of the company's derrick derrick: see crane. Derrick famous hangman; eponym of modern hoisting apparatus. [Br. Hist.: Espy, 170] See : Execution barge which is of a non-recurring nature. Utilization of the barge also declined 43 percent and revenues declined 20 percent from the third quarter of 1994. We intend to closely scrutinize scru·ti·nize tr.v. scru·ti·nized, scru·ti·niz·ing, scru·ti·niz·es To examine or observe with great care; inspect critically. scru this area and make the necessary adjustments to return it to profitability." Margins remain unchanged, efficiency improves The company's gross profit percentage was 31.8 percent in the fiscal third quarter of 1995, compared with 31.3 percent for the same period a year ago. Margins increased substantially in the international services sector due in large part to record production in the West Africa market. "Despite the problems with the American Enterprise, combined gross profit percentages remained relatively unchanged compared with the third quarter of 1994," Yax said. "Although activity has increased in the Gulf of Mexico, rates and margins are still not where we would like them. "Rates and margins have improved during our fiscal fourth quarter as activity continues to increase and oil and natural gas prices stabilize stabilize See peg. . SG&A expenses as a percentage of total revenues decreased to 20.1 percent from 28.9 percent for the same period a year ago, an indication that we are gradually improving efficiency. Although SG&A did not increase as much as revenues, we intend to pursue further SG&A containment containment Strategic U.S. foreign policy of the late 1940s and early 1950s intended to check the expansionist designs of the Soviet Union through economic, military, diplomatic, and political means. It was conceived by George Kennan soon after World War II. ." Record dive crews per day attributable to integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. approach AOD See HD DVD. averaged a company-record 105.9 dive crews per day during the fiscal third quarter of 1995, compared with 58.9 dive crews per day for the same period a year ago. Vessel utilization was 51 percent during the third quarter of 1995, compared with 47 percent during the third quarter of 1994. Tarpon Systems recorded its most profitable quarter since being acquired by AOD in 1994. This was due primarily to the sale and installation of a marginal field production system off the coast of West Africa. "Our integrated services approach moved into a growth phase during the third quarter," Yax said. "Big Inch Marine Systems personnel and AOD divers teamed up to complete a major flexiforge repair in Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. , and Tarpon Systems personnel and divers from American International Divers, Ltd., installed a Tarpon-designed marginal field production system off the coast of West Africa. These are just two examples of our ability to provide turnkey See turnkey system. , project management services. "We expect the trend of increased demand experienced in the third quarter to continue for the balance of fiscal 1995 ending October 31," Yax said. "In fact, through the first 44 days of the fourth quarter, AOD is averaging 140 dive crews per day and 63 percent vessel utilization, compared with 91 dive crews per day and 59 percent vessel utilization for the entire fourth quarter of 1994. In addition, our presence in the deepwater Gulf of Mexico market through our partnering of the dynamically positioned DSV DSV Deep Submergence Vehicle DSV Diving Support Vessel DSV Dynamic Signature Verification DSV Dilute Solution Viscosity DSV Directia Sanitar Veterinara DSV Dive Surface Valve (rebreather) Balmoral Sea will provide us the opportunity to increase market share and operate in rougher sea states." 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 Nine Months Ended
July 31, July 31,
1995 1994 1995 1994
Income Statement
Diving and related revenues $24,908 $13,570 $56,833 $30,821
Operating income (loss) 1,632 (614) (1,101) (2,022) Other income (expense), net (474) (39) (909) 144 Income (loss) from continuing operations before income taxes and minority interest 1,158 (653) (2,010) (1,878) Income tax provision (benefit) 473 (228) (710) (662) Minority interest - (13) - (68) Income (loss) from continuing operations 685 (412) (1,300) (1,148) Loss from discontinued operations - (265) - (709) Net income (loss) $ 685 $ (677) $(1,300) $(1,857) Income (loss) per share: Continuing operations $ .10 $ (.06) $ (.19) $ (.28) Discontinued operations - (.04) - (.11) Net income (loss) per share $ .10 $ (.10) $ (.19) $ (.28) Weighted average shares outstanding 6,709 6,709 6,709 6,704
July 31,
1995 1994
Balance Sheet
Assets:
Current assets $33,842 $24,654
Plant and equipment, net 26,332 24,681
Other long-term assets 3,814 2,763
Total assets $63,988 $52,098
Liabilities & Stockholders' Equity: Current liabilities $20,457 $11,731 Long-term debt 5,622 10 Deferred taxes - 1,039 Minority interest in subsidiary (116) (102) Stockholders' equity 38,025 39,420 Total liabilities & stockholders' equity $63,988 $52,098
Three Months Ended July 31, 1995
Gulf International Inland Subsea
Services(1) Services(2) Services(3) Products(4) Total
Diving and
Related
Revenues $12,574 $5,550 $3,978 $2,806 $24,908
Diving and
Related
Expenses $ 9,274 $3,620 $2,683 $1,406 $16,983
Gross Profit $ 3,300 $1,930 $1,295 $1,400 $ 7,925
Gross Profit
Margin 26.2% 34.8% 32.6% 50.0% 31.8%
Three Months Ended July 31, 1994
Gulf International Inland Subsea
Services(1) Services(2) Services(3) Products(4) Total
Diving and
Related
Revenues $ 9,290 $ 221 $2,868 $1,191 $13,570
Diving and
Related
Expenses $ 6,502 $ 319 $1,925 $ 576 $ 9,322
Gross Profit $ 2,788 $ (98) $ 943 $ 615 $ 4,248
Gross Profit
Margin 30.0% (44.3%) 32.9% 51.6% 31.3%
(1) Includes diving and related services to the Gulf of Mexico, 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 amd oil spill oil spill: see water pollution. response services provided by American Pollution Control, Inc. (2) Includes all international diving and related services. (3) Includes diving and related services to the U.S. West Coast provided by American Pacific Marine, Inc. and diving and related services provided to Inland industrial and governmental customers provided by American Inland Divers, Inc. (4) Includes manufacturing and marketing of subsea pipeline connectors by Big Inch Marine Systems, Inc. and manufacturing and marketing of patented marginal well production systems by Tarpon Systems, Inc. CONTACT: American Oilfield Divers Inc., Lafayette Steve Weems or Greg Rosenstein, 318/234-4590 |
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