Complete Production Services Reports First-Quarter Earnings Up 139%.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; -- Complete Production Services, Inc. (NYSE NYSE See: New York Stock Exchange :CPX CPX Command Post Exercise CPX Culebra Puerto Rico (airport code) CPX Cleft Palate, X-Linked CPX Corel Painter X CPX Compare with X (6502 processor instruction) CPX Command Post/Paper Exercise ) today reported first-quarter 2006 net income of $28.1 million, or $0.48 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 on revenue of $275.7 million compared to net income of $11.8 million or $0.26 per diluted share on revenue of $161.3 million for the first quarter of 2005. This represents a 139% increase in net income and a 71% increase in revenue over the same period in the prior year. First quarter 2006 revenues and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased year-over-year as a result of significant investment in growth capital during the last twelve months, higher market activity and an improved pricing environment, along with an active acquisition program. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $56.5 million increased 107% from the previous year, resulting in an operating profit margin Operating profit margin The ratio of operating profit to net sales. as a percent of revenue of 20.5%. All three operating segments' revenue increased on a year-over-year basis, with the Completion & Production Services segment up 82%, the Drilling Services segment up 66% and the Product Sales segment up 36%. Revenues compared to the fourth quarter of 2005 were up 19% overall, with Completion & Production Services revenue up 21%, Drilling Services revenue up 10% and Product Sales up 19%. "I am pleased to report excellent results in our first earnings report as a public company," commented Joe Winkler Winkler may refer to:
During the first quarter of 2006, we completed two acquisitions for total consideration of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $18 million (net of cash acquired) and invested approximately $59 million in capital equipment. As previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , we sold 13 million shares of common stock on April 20, 2006 in our Initial Public Offering and our stock began trading on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. on April 21 under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors "CPX". Complete Production Services, Inc. provides completion, production and drilling services and products to the oil and gas industry in many of the most active basins throughout North America. We will hold our quarterly conference call to discuss first quarter 2006 results on Wednesday Wednesday: see week. , May 3, 2006, at 10:00 a.m. Central Time. To participate in the live conference call, dial 866-761-0748 at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 60280152. The conference call will be available for replay beginning at 1:00 p.m., May 3, 2006, and will be available until May 10, 2006. To access the conference call replay, please call 888-286-8010 and use the passcode: 78473959. The call is also being webcast and can be accessed at our website at www.completeproduction.com. The foregoing contains 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risk and uncertainties. The forward-looking statements included herein are based on current expectations and entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry. The company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that may arise after the date of this press release. Management evaluates the performance of our operating segments using a non-GAAP financial measure, 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 . EBITDA is calculated as net income before interest expense, taxes, depreciation and amortization and minority interest. EBITDA is not a substitute for GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures of earnings and cash flow. EBITDA is used in this press release because our management considers it an important supplemental measure of performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry.
Complete Production Services, Inc.
Consolidated Statements of Operations
For the Quarters Ended March 31, 2006 and 2005
(in thousands)
Quarter Ended Quarter Ended
March 31, March 31,
2006 2005
-------------- --------------
(unaudited) (unaudited)
Revenue:
Services $235,119 $131,987
Products 40,617 29,264
-------------- --------------
275,736 161,251
Cost of services 135,511 79,670
Cost of products 30,373 22,583
Selling, general and administrative
expense 37,608 21,886
Depreciation and amortization 15,727 9,774
-------------- --------------
219,219 133,913
-------------- --------------
Operating income 56,517 27,338
Interest expense 10,682 4,015
Income from operations
-------------- --------------
before taxes and minority interest 45,835 23,323
Tax provision 17,417 8,356
-------------- --------------
Income before minority interest 28,418 14,967
Minority interest 305 3,212
-------------- --------------
Net income $28,113 $11,755
============== ==============
Earnings per share:
Basic earnings per share $0.51 $0.28
-------------- --------------
Diluted earnings per share $0.48 $0.26
-------------- --------------
Weighted average shares outstanding:
Basic 55,601 41,471
Diluted 58,783 45,860
Complete Production Services, Inc.
Condensed Consolidated Balance Sheet
As of March 31, 2006 and December 31, 2005
(in thousands)
March 31, December 31,
2006 2005
------------- -------------
(unaudited) (unaudited)
Assets:
Current assets $279,760 $247,486
Property, plant and equipment, net 436,596 384,580
Goodwill 336,378 298,297
Other long-term assets 6,939 7,290
------------- -------------
Total assets 1,059,673 937,653
============= =============
Liabilities and Stockholder's Equity:
Current liabilities 133,300 120,203
Long-term debt 562,965 509,990
Long-term deferred tax liabilities 53,752 54,334
Minority interest 2,664 2,365
------------- -------------
Total liabilities and minority
interest 752,681 686,892
Common stock 568 555
Treasury stock (202) (202)
Additional paid-in capital 248,996 220,786
Deferred compensation (3,790) (3,803)
Retained earnings 44,998 16,885
Cumulative translation adjustment 16,422 16,540
------------- -------------
Total stockholder's equity 306,992 250,761
------------- -------------
Total liabilities and
stockholder's equity $1,059,673 $937,653
============= =============
Cash Flow Data
For the Quarter Ended March 31, 2006
(in thousands)
March 31,
2006
-------------
(unaudited)
Cash flows provide by/(used for):
Operating activities $31,307
Investing activities:
Capital expenditures $(58,882)
Other investing activities $(16,466)
Financing activities $44,805
Complete Production Services, Inc.
Consolidated Segment Information
For the Quarters Ended March 31, 2006 and 2005, and December 31, 2005
(in thousands)
March 31, March 31, December 31,
2006 2005 2005
------------ ------------- -------------
(unaudited) (unaudited) (unaudited)
Revenue:
Completion and production
services $192,021 $105,393 $159,150
Drilling services 44,030 26,594 40,101
Products 39,685 29,264 33,239
------------ ------------- -------------
Total revenues $275,736 $161,251 $232,490
============ ============= =============
EBITDA: (1)
Completion and production
services $54,609 $26,109 $35,188
Drilling services 16,020 7,872 14,839
Products 5,547 3,937 4,902
Corporate and other (3,932) (806) (4,211)
------------ ------------- -------------
Total EBITDA $72,244 $37,112 $50,718
============ ============= =============
EBITDA as a % of Revenue:
Completion and production
services 28.4% 24.8% 22.1%
Drilling services 36.4% 29.6% 37.0%
Products 14.0% 13.5% 14.7%
Total 26.2% 23.0% 21.8%
(1) EBITDA is a non-GAAP measure used by management, as defined in
the last paragraph of this press release.
Complete Production Services, Inc.
Reconciliation of EBITDA to the most Comparable GAAP Measure
For the Quarters Ended March 31, 2006 and 2005 and December 31, 2005
(unaudited, in thousands)
---------------------------------------
Quarter Ended March 31, 2006
---------------------------------------
(unaudited)
Depreciation Operating
Segment: EBITDA & Amortization Income
------------------------------ ------------ --------------------------
Completion and production
services $54,609 $12,932 $41,677
Drilling services 16,020 2,018 14,002
Products 5,547 503 5,044
Corporate and other (3,932) 274 (4,206)
------------ ------------- ------------
Totals $72,244 $15,727 $56,517
============ ============= ============
---------------------------------------
Quarter Ended March 31, 2005
---------------------------------------
(unaudited)
Depreciation Operating
Segment: EBITDA & Amortization Income
------------------------------ ------------ --------------------------
Completion and production
services $26,109 $8,116 $17,993
Drilling services 7,872 1,215 6,657
Products 3,937 376 3,561
Corporate and other (806) 67 (873)
------------ ------------- ------------
Totals $37,112 $9,774 $27,338
============ ============= ============
---------------------------------------
Quarter Ended December 31, 2005
---------------------------------------
(unaudited)
Depreciation Operating
Segment: EBITDA & Amortization Income
------------------------------ ------------ --------------------------
Completion and production
services $35,188 $13,506 $21,682
Drilling services 14,839 1,698 13,141
Products 4,902 376 4,526
Corporate and other (4,211) 358 (4,569)
------------ ------------- ------------
Totals $50,718 $15,938 $34,780
============ ============= ============
(1)"EBITDA" is a non-GAAP measure. See a definition and description
of the use of EBITDA at footnote (a) to this Press Release.
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