Equity Compression Services Corporation Reports Record Revenue and Income From Operations for the Third Quarter 1997.DALLAS--(BUSINESS WIRE)--Nov. 13, 1997--Equity Compression Services Corporation (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 :EQCS EQCS Enlisted Quality Control System EQCS Equilibrium Computer Systems (repair shop) ) today announced financial and operating results for the third quarter ended September September: see month. 30, 1997. The Company took a non-recurring non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $1,440,000 as a result of the vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: of stock warrants issued to HACL HACL HSBC Actuaries and Consultants Limited (UK) HACL Harvard Air Cleaning Laboratory HACL Host Access Control Library , Ltd. in 1996. As a result of the warrant expense, the Company had a third quarter net loss of $1,345,000 or $0.05 per share. Revenue for the third quarter grew to $4.8 million, a 116% increase over the same quarter in 1996. Earnings from operations rose 273% over the same period in 1996 to $764,000. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta earnings before the warrant expense was $182,000 as compared to a $13,000 loss in the third quarter of 1996. For the nine-month period, revenue was $9.9 million, or 39% higher than the same period in 1996. Earnings from operations increased 54% from comparative 1996 levels to $1,151,000. The warrant expense created a net loss for the period of $1,314,000. Pre-tax net earnings before the warrant expense was $232,000, a 222% increase over the same period in 1996. With regard to the warrant expense, Jack D. Brannon, Equity's chief financial officer stated, "In December of 1996, the Company sold to HACL, Ltd., a Texas based investment partnership, 8 million shares of common stock with a warrant for an additional 8 million shares. The warrants would vest upon the delivery of certain levels of new compression business brought to the company by the HACL group. The non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) resulted from the complete vesting of warrants during the third quarter. The warrant expense is equal to the theoretical value of the warrants as of December 1996, the closing date of the HACL transaction. At the completion of that transaction, the Company increased shareholders' paid in capital by the estimated $1,440,000 value and offset that amount by a warrant expense contra-equity account. The third quarter warrant expense eliminates the contra-equity account. The result is, that despite the third quarter's reported $1,345,000 loss, stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. rose $95,000 through earnings." On August 6, 1997, Equity completed its previously announced acquisition of Ouachita Energy Corporation and the assets of two Ouachita affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. . Equity's reported operating results for the third quarter and the last nine months include the impact of the Ouachita operations since August 1, 1997. Equity's natural gas compression fleet totaled 173,000 horsepower horsepower, unit of power in the English system of units. It is equal to 33,000 foot-pounds per minute or 550 foot-pounds per second or approximately 746 watts. at quarter-end, representing the addition of 123,000 horsepower year to date. The Ouachita acquisition accounted for roughly 100,000 horsepower of the growth with the remaining 23,000 horsepower resulting from internal growth. Matthew S Matthew one of the twelve disciples. [N.T.: Matthew] See : Evangelism . Ramsey, Equity's president and chief executive officer stated, "I am extremely pleased with the operating results for the quarter. The warrant expense is a one time event that resulted because of the rapid growth that the HACL group brought to the company. The integration of Ouachita Energy into our Company is proceeding as planned. Our customers are now receiving full contract compression services in addition to rentals with full maintenance." Equity Compression Services Corporation is a Dallas-based, publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. engaged in the leasing, contract service, sales and re-manufacturing of natural gas compressors <includeonly></includeonly>A gas compressor is a mechanical device that increases the pressure of a gas by reducing its volume. Compression of a gas naturally increases its temperature. through its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Equity Compressors, Inc. and Ouachita Energy Corporation. The company has offices in Tulsa, Oklahoma Tulsa is the second-largest city in the state of Oklahoma and 45th-largest in the United States. With an estimated population of 382,872 in 2006,[1] it is the principal municipality of the Tulsa Metropolitan Statistical Area, a region of 897,752 residents projected to ; Oklahoma City, Oklahoma “OKC” redirects here. For the airport, see Will Rogers World Airport. Oklahoma City is the capital of the U.S. state of Oklahoma. The county seat of Oklahoma County, the city is the 30th largest city in the U.S. and West Monroe, Louisiana West Monroe is a city in Ouachita Parish, Louisiana, United States. The population was 13,250 at the 2000 census. West Monroe is situated on the Ouachita River, just across from the neighboring city of Monroe (pop. 53,107). . The company currently has 29,892,668 outstanding shares of common stock. The Company's common stock trades on the NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol EQCS. -0-
Equity Compression Services Corporation
Results of Operations
(In Thousands)
Three Months Ending
September 30,
1997 1996
Revenues:
Oil & Gas $ 696 $ 428
Compressor Sales $ 238 $ 207
Compressor Rental/Service Fees $ 3,831 $ 1,571
Total Revenues $ 4,765 $ 2,206
Expenses:
Oil & Gas Operating Costs $ 188 $ 139
Compressor Sales $ 229 $ 171
Compressor Rental/Service Operating Costs $ 1,417 $ 331
Depreciation, Depletion & Amortization $ 1,232 $ 575
Selling, General & Administrative $ 935 $ 423
Loss on Asset Sale $ -- $ 359
Total Operating Expenses $ 4,001 $ 2,001
Earnings from Operations $ 764 $ 205
Earnings Before: Interest,
Taxes, Depreciation, Depletion
Amortization & Warrant Expense: $ 1,996 $ 783
Interest & Other Income $ 14 $ 4
Interest Expense $ (596) $ (222)
Pre-Tax Earnings before Nonrecurring Expenses $ 182 $ (13)
Contingent Warrant Expense (nonrecurring) $ (1,440) $ --
Earnings before Income Taxes $ (1,258) $ (13)
Income Tax Benefit (Expense) $ (87) $ 1
Net Earnings $ (1,345) $ (12)
Net Earnings per Common Share @ $ (0.05) $ --
Weighted Average Number of
Shares Outstanding 25,763 13,040
Nine Months Ending
September 30,
1997 1996
Revenues:
Oil & Gas $ 1,884 $ 1,278
Compressor Sales $ 766 $ 1,036
Compressor Rental/Services Fees $ 7,258 $ 4,793
Total Revenues $ 9,908 $ 7,107
Expenses:
Oil & Gas Operating Costs $ 564 $ 394
Compressor Sales $ 693 $ 789
Compressor Rental/Service Operating Costs $ 2,754 $ 1,913
Depreciation, Depletion & Amortization $ 2,461 $ 1,649
Selling, General & Administrative $ 2,285 $ 1,317
Loss on Asset Sale $ -- $ 298
Total Operating Expenses $ 8,757 $ 6,360
Earnings from Operations $ 1,151 $ 747
Earnings Before: Interest, Taxes,
Depreciation, Depletion, Amortization
& Warrant Expense: $ 3,612 $ 2,396
Interest & Other Income $ 15 $ 27
Interest Expense $ (934) $ (702)
Pre-Tax Earnings before Nonrecurring Expenses $ 232 $ 72
Contingent Warrant Expense (nonrecurring) $ (1,440) $ --
Earnings before Income Taxes $ (1,208) $ 72
Income Tax Benefit (Expense) $ (106) $ (40)
Net Earnings $ (1,314) $ 32
Net Earnings per Common Share @ $ (0.05) $ --
Weighted Average Number of
Shares Outstanding 24,331 13,014
CONTACT: Equity Compression Services Corporation Jack D. Brannon, 214/953-9560 |
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