American Oilfield Divers reports strong six-month revenues; company announces second quarter loss, measures to improve efficiency.LAFAYETTE Lafayette (lä'fēĕt`, lăf'ēĕt`). 1 City (1990 pop. 23,501), Contra Costa co., NW Calif., a residential suburb in the San Francisco–Oakland area; settled 1848, inc. 1968. , La.--(BUSINESS WIRE)--June 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 revenues or $12.3 million for the fiscal second quarter ended April 30, 1995, while the company recorded a loss of $2.1 million (or a loss of $.32 per share) for the quarter. Revenues for the six months ended April 30, 1995, were $31.9 million. In addition, the company announced measures to increase efficiency and reduce expenses. Factors cited for the loss include traditional seasonal declines in U.S. inland activity, lower 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. 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 services sector, lower than expected utilization levels for the company's pipelay/pipe bury Bury (bĕ`rē), city (1991 pop. 60,785) and metropolitan district, NE England, located in the Manchester metropolitan area on the Irwell River and linked by canal with Bolton and Manchester. 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. , and the costs incurred in connection with the company's Middle East expansion as well as the integration of AOD's acquired and newly organized operations. Second quarter revenues increased by 38.2 percent over revenues or $8.9 million for the second quarter of fiscal 1994. Revenues for the six-month period increased by 84.4 percent over revenues of $17.3 million for the first and second quarters of fiscal 1994. The company's second quarter loss compares with a net loss of $577,000 (or $.09 per share) for the corresponding second quarter of fiscal 1994. The net loss for the six months ended April 30, 1995, was $2.0 million (or a loss of $.30 per share), compared with a net loss of $1.2 million (or $.18 per share) for the six months ended April 30, 1994. "Without question, we are extremely disappointed with our second quarter results," said George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). C. Yax, the company's chairman of the board, chief executive officer and president. "Despite solid growth in revenues, we have yet to realize the full benefit of our acquisitions, particularly the counter-seasonal operations that were developed to provide a hedge against external factors hampering Gulf of Mexico and U.S. inland activities during the winter months." Average diver diver, general term used to refer to many diving birds, e.g., the loon, the grebe, and some ducks, auks, and penguins. days during the second quarter of fiscal 1995 were 57, an increase of 21.0 percent versus the second quarter of fiscal 1994, while boat utilization decreased to 26.0 percent during the quarter from 32.0 percent in the second quarter of fiscal 1994. The overall increase in diver days can be attributed primarily to an increase in international diver days. The company's international services, however, are more diver intensive rather than boat intensive. The company's gross profit margin during the second quarter of fiscal 1995 was 20.0 percent, down 45.0 percent from 36.4 percent in the second quarter of fiscal 1994. This was due in part to a 14.9 percent gross profit margin in the Gulf of Mexico service sector. "The low profit margin in the Gulf of Mexico was caused by tight competitive pricing in the pipelay market, which adversely impacted work for our pipelay barge," Yax said. "During the winter months, when the pipelay market is at a low point, smaller companies tend to provide extremely low bids. As a result, our pipelay barge saw minimal work during the second quarter." Measures Taken to Improve Efficiency, Reduce Expenses American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Oilfield Divers will initiate measures to increase efficiencies and reduce costs which are expected to save the company approximately $750,000 per year. The measures initially identified include consolidating inland and offshore 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. offices in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded and Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , respectively, consolidating separate subsidiary operations bases to the Port of Iberia Iberia (ībĭr`ēə), ancient country of Transcaucasia, roughly the eastern part of present-day Georgia. It was inhabited in earliest times by various tribes, collectively called Iberians by ancient historians, although Herodotus called , La., closing the Big Inch Marine System Inc. office in Aberdeen, Scotland, and establishing a new state workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. program aimed at cutting the cost for workers' compensation insurance. "These measures will contain expenses without compromising our competitive advantage and quality of service," Yax said. "It is a proactive step to increase efficiency, profitability and shareholder value." The Port of Iberia currently houses 10 diving support vessels A diving support vessel is a ship that is used as a floating base for professional diving projects. Commercial Diving Support Vessels emerged during the 1960s and 1970s when the need arose for diving operations to be performed below and around oil production platforms and , the Company's pipelay barge and spill spill - register spilling response equipment, diving and vessel operations offices and offices for three subsidiaries -- American Marine Construction Inc., 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 Inc. and American Pollution Control Inc. Once the channel from the Port of Iberia to the Gulf of Mexico is dredged later this year, the location will improve AOD's access to the Gulf of Mexico and reduce mobilization mobilization Organization of a nation's armed forces for active military service in time of war or other national emergency. It includes recruiting and training, building military bases and training camps, and procuring and distributing weapons, ammunition, uniforms, costs to customers. Gulf of Mexico Market Indicators Point to Busy Season Yax anticipates a busy Gulf of Mexico diving season based on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market indicators, including increasing natural gas and oil prices, higher exploration success ratios due to advances in technology, and the increasing need by oil and gas companies to complete long-delayed projects. "The market for our diving and related services in the Gulf of Mexico is materializing," Yax said. "Our customer base has a cash flow motivation to complete projects that have been delayed for several months. In addition, our international work is carrying over into the summer months. To quantify Quantify - A performance analysis tool from Pure Software. this improvement, our diver days and boat utilization rates in the first six weeks of the third quarter are now higher than where they were at the same time last year, bidding for jobs has increased, and our 1995 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. if $14.0 million, the largest backlog in company history." American Oilfield Divers Inc., headquartered in Lafayette, La., is a leading provider of a broad range of undersea construction, installation, repair and maintenance services to the offshore oil and gas industry, primarily in the U.S. Gulf of Mexico and U.S. West Coast, internationally and to certain U.S. inland customers. The company also manufactures and installs subsea Subsea is a general term frequently used to refer to equipment, technology, and methods employed to explore, drill, and develop oil and gas fields that exist below the ocean floors. This may be in "shallow" or "deepwater". pipeline connectors and marginal well production systems that are typically installed through the use of the company's dive crews and diving support vessels. The company also owns 14 DSVs and one barge for pipelay and pipe bury operations in the U.S., West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. and Dubai, U.A.E. -0-
American Oilfield Divers Inc.
Consolidated Results of Operations and Financial Position
($ in thousands except for per share amounts)
Three Months Ended Six Months Ended
April 30, April 30,
1995 1994 1995 1994
Income Statement
Diving and related revenues $12,287 $ 8,946 $31,925 $17,251
Operating loss from continuing
operations (3,117) (699) (2,733) (1,408)
Other income (expense) (243) 62 (435) 183
Loss from continuing operations
before income taxes and
minority interest (3,360) (637) (3,168) (1,225)
Income tax benefit (1,281) (206) (1,183) (435)
Minority interest 47 (24) -- (55)
Loss from continuing operations (2,126) (407) (1,985) (735)
Loss from discontinued operations -- (170) -- (444)
Net loss $(2,126) $ (577) $(1,985) $(1,179)
Loss per share:
Continuing operations $ (.32) $ (.06) $ (.30) $ (.11)
Discontinued operations -- (.03) -- (.07)
Net loss per share $ (.32) $ (.09) $ (.30) $ (.18)
Weighted average shares
outstanding 6,709 6,709 6,709 6,702
April 30,
1995 1994
Balance Sheet
Assets:
Current assets $25,003 $20,719
Plant and equipment, net 27,729 22,728
Other long-term assets 3,309 2,577
Total assets $56,041 $46,024
Liabilities and Stockholders' Equity: Current liabilities $12,687 $ 4,970 Long-term debt 6,122 11 Deferred income taxes -- 1,039 Minority interest in subsidiary (166) (88) Stockholders' equity 37,348 40,092 Total liabilities & stockholders' equity $56,041 $46,024
Three Months Ended April 30, 1995
Gulf International Inland Subsea
Services(1) Services(2) Services(3) Products(4) Total
Diving and
Related Revenues $7,785 $2,115 $1,267 $1,120 $12,287
Diving and Related
Expenses $6,622 $1,229 $1,265 $ 703 $ 9,819
Gross Profit $1,163 $ 886 $ 2 $ 417 $ 2,468
Gross Profit Margin 14.9% 41.9% --% 37.2% 20.0%
Three Months Ended April 30, 1994
Gulf International Inland Subsea
Services(1) Services(2) Services(3) Products(4) Total
Diving and
Related Revenues $6,114 $1,240 $ 536 $1,056 $8,946
Diving and Related
Expenses $4,203 $ 585 $ 406 $ 492 $5,686
Gross Profit $1,911 $ 655 $ 130 $ 564 $3,260
Gross Profit Margin 31.3% 52.8% 24.3% 53.4% 36.4%
(1) Includes diving and related services to the Gulf of Mexico,
pipelay/bury barge services provided by American Marine Construction
Inc. and environmental remediation and oil spill 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, Lafayette Steve Weems or Greg Rosenstein, 318/234-4590 |
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