Boots & Coots Reports Fourth Quarter and Record Year End Results.Annual Revenues Nearly Double; Annual Net Income Up 177% 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; -- Boots & Coots COOTS Conference on Object-Oriented Technologies and Systems International Well Control, Inc. (NYSE NYSE See: New York Stock Exchange :WEL wel: see catfish. ), announced record revenues, net income and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the year ended December 31, 2008. Revenues for 2008 increased 99% to $209.2 million compared to $105.3 million for the prior year. Net income attributable to common stockholders increased 177% to $21.8 million, or $0.28 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $7.9 million, or $0.11 per diluted share for 2007. EBITDA (earnings before interest, income taxes, depreciation and amortization; see the reconciliation and rationale rationale (rash´  nal´),n the fundamental reasons used as the basis for a decision or action. for this non-GAAP financial measure below) was $39.1 million for the year ended December 31, 2008, up 109% from $18.7 million for 2007. For the quarter ended December 31, 2008, revenues were $55.9 million compared to $36.1 million for the 2007 fourth quarter. Net income attributable to common stockholders were $5.1 million, or $0.07 per diluted share for the quarter ended December 31, 2008, compared to $5.8 million, or $0.08 per diluted share for the same quarter of 2007. EBITDA was $9.8 million, or 17.6% of revenues for the quarter compared to $9.9 million, or 27.4% of revenues for the fourth quarter of 2007. Included in 2008 results are a $2.0 million ($0.02 per diluted share after tax) one-time bad debt expense attributed to one customer contract, and start up expenses related to a new hydraulic workover contract in North Africa. "The record results for the year are a reflection on our strategy of focusing on pressure control and continuing to build our portfolio of products, services and talent with the objective of being a trusted advisor to our customers in all situations involving pressure control," stated Jerry Winchester, president and chief executive officer. "In 2009, we will continue to focus on international markets to further strengthen our operations. Our domestic operations remain centered on the prolific shale shale, sedimentary rock formed by the consolidation of mud or clay, having the property of splitting into thin layers parallel to its bedding planes. Shale tends to be fissile, i.e., it tends to split along planar surfaces between the layers of stratified rock. plays. Additionally, we will look for opportunities to selectively expand complementary product offerings and services both domestically and internationally." The Company has revised its reporting segments to provide better clarity to the market place and align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. more closely with the management of its businesses. Prevention and emergency response are reported in the company's Pressure Control segment, snubbing/hydraulic workover are reported in the Well Intervention A well intervention, or 'well work', is an activity involving maintenance, modification, repair or completion of an oil or gas well. Types of well work Pumping
Business Segment Results Pressure Control For the quarter ended December 31, 2008, the Pressure Control segment generated revenues of $27.5 million compared to $10.5 million in the fourth quarter of 2007 and $28.3 million in the 2008 prior quarter. EBITDA for the fourth quarter was $5.7 million compared to $2.4 million for the fourth quarter of the prior year and $7.3 million for the third quarter of 2008. For the year ended December 31, 2008, the Pressure Control segment generated revenues of $92.8 million and EBITDA of $22.2 million, compared to revenues of $36.8 million and EBITDA of $9.0 million for 2007. The year-over-year increases in segment revenues and EBITDA were primarily due to increases in both critical and non-critical events such as new contracts and project activity in the company's prevention business, offset by the $2.0 million in bad debt expense attributed to one customer contract. Well Intervention For the quarter ended December 31, 2008, the Well Intervention segment generated revenues of $23.6 million compared to $23.8 million in the fourth quarter of 2007 and $23.6 million in the 2008 third quarter. EBITDA for the fourth quarter was $3.1 million compared to $6.6 million for the fourth quarter of 2007 and $2.2 million for the third quarter of 2008. For the year ended December 31, 2008, the Well Intervention segment generated revenues of $97.2 million and EBITDA of $12.6 million, compared to revenues of $66.6 million and EBITDA of $9.3 million for the prior year. Included in the 2008 fourth quarter are start up expenses associated with a new workover contract in North Africa. Included in 2007 fourth quarter revenues is a $3.0 million contract settlement with a Middle East customer, resulting in EBITDA of $2.5 million for the quarter. The year-end increases in revenues and EBITDA were primarily due to higher rig utilization resulting from growth in the company's international and domestic snubbing/hydraulic workover services, offset by the expenses stated above. Equipment Services For the quarter ended December 31, 2008, the Equipment Services segment generated revenues of $4.8 million compared to $1.8 million for the same period in 2007 and $4.6 million for the third quarter of 2008. EBITDA for the quarter was $1.1 million compared to EBITDA of $0.8 million for the fourth quarter of 2007 and $0.7 million for the 2008 third quarter. For the year ended December 31, 2008, the Equipment Services segment generated revenues of $19.3 million and EBITDA of $4.3 million, compared to revenues of $1.9 million and EBITDA of $0.5 million for 2007. The increases in revenues and EBITDA were due to domestic and international expansion of the company's equipment rental services, which began in August 2007. Conference Call Boots & Coots will discuss 2008 fourth quarter and year end results via a conference call and Webcast today at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The dial-in number for the call is 866-578-5801, passcode 'Boots & Coots'. To listen to the live Web cast, log on to www.boots-coots.com/investorrelations and click on the '2008 Earnings Web cast' link. A replay of the Web cast will be available on the investor relations Investor relations The process by which the corporation communicates with its investors. page of the Company's Website within 24 hours of the call. The call will also be available for replay for 30 days by dialing 888-286-8010, passcode 45331449. About Boots & Coots Boots & Coots, with its headquarters in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , provides a suite of integrated pressure control services to onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. and offshore oil and gas exploration companies around the world. Boots & Coots' products and services include prevention and risk management services designed to reduce the number and severity of critical events such as oil and gas well fires, blowouts or other incidences due to loss of control at the well, and personnel, equipment and emergency services emergency services Emergency care '…services …necessary to prevent death or serious impairment of health and, because of the danger to life or health, require the use of the most accessible hospital available and equipped to furnish those services' utilized during a critical well event; equipment and services that are designed to enhance production for oil and gas operators and consist primarily of hydraulic workover and snubbing Snubbing is a type of heavy well intervention performed on oil and gas wells. It involves running the BHA on a pipe string using a hydraulic workover rig. Unlike wireline or coiled tubing, the pipe is not spooled off a drum but made up and broken up while running in and pulling services; and equipment and services designed for safer and more efficient production under high pressure situations, consisting primarily of pressure control equipment rentals and services. Additional information can be found at www.boots-coots.com. Certain statements included in this news release are intended as "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc these forward-looking statements are found in Boots & Coots' SEC filings, which are available free of charge on the SEC's web site at www.sec.gov. (Tables to follow) [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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