H & H OIL ANNOUNCES THIRD QUARTER AND NINE MONTH RESULTS
SANTA PAULA, Calif., Nov. 13 /PRNewswire/ -- H & H Oil Tool Co. Inc. (NASDAQ: HHOT) today reported results for the third quarter and nine months ended Sept. 30, 1991. For the quarter, H & H reported a net loss of $892,000, equal to $.27 per share. This compares with net income of $429,000, equal to $.13 per share, for the corresponding period a year ago. Revenues for the period were $5,628,000 compared with $6,289,000 last year.
H & H's net loss for the nine-month period was $494,000, equal to $.15 per share, compared with net income of $831,000, equal to $.26 per share for the same period in 1990. Revenues were $18,107,000 compared with $17,100,000 in 1990.
Henry H. Rushing, president and chief executive officer, said revenues declined in the 1991 third quarter due to a sharp decrease in domestic oilfield activity levels. He added that operating results were also affected by research and development costs associated with the company's crude oil recycling system.
"The active rig count in the United States declined 27 percent from the beginning of 1991, due to lower natural gas prices. However, we are seeing signs of somewhat stronger gas prices and are hopeful for increased activity levels by year-end," said Rushing. "H & H is well prepared for an upturn in the oil services industry."
Rushing also said that H & H's recently developed environmental recycling system that separates crude oil contaminated materials into its original components; oil, water, solids, has been encouraging and progressing well. The market for this service is worldwide and growing rapidly. He noted that while H & H is not ready to announce complete success in this project, the company is cautiously hopeful that the process will be an important source of diversification and revenue.
H & H Oil Tool, founded in 1953, and its wholly owned subsidiary, H & H Bi-Co Rental, Inc., rent a wide range of equipment to oil, gas and geothermal companies throughout the Western United States. The Midway Fishing Tool Company division provides rentals and specialized services and equipment for recovery of downhole tools at drilling and production sites throughout California.
H & H OIL TOOL CO., INC.
Consolidated Statements of Income
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1991 1990 1991 1990
(000's omitted, except per share data)
Rental $4,901 $5,630 $15,978 $15,285
Sales 727 659 2,129 1,815
Total 5,628 6,289 18,107 17,100
Cost and expenses:
Operating: 3,433 3,552 10,557 10,008
Cost of sales 475 420 1,442 1,166
amortization 913 761 2,555 2,211
administration 1,031 605 2,549 1,827
Interest 146 157 399 504
development 647 295 1,064 415
and expenses 6,645 5,790 18,566 16,131
Income (loss) before
income taxes and
item (1,017) 499 (459) 969
provision (202) 209 35 428
item (815) 290 (494) 541
Extraordinary item -
tax benefit (77) 139 290
Net income (loss) ($892) $429 ($494) $831
per common share
item ($.25) $.09 ($.15) $.17
Extraordinary item (.02) .04 .00 .09
Net earnings (loss)
per share ($.27) $.13 ($.15) $.26
Weighted average shares
Outstanding 3,257,109 3,252,472 3,255,659 3,245,672
/CONTACT: Henry H. Rushing of H & H Oil Tool Co. Inc., 805-525-6679; or Roger S. Pondel or Kim P. Feazle of Rifkind Pondel & Parsons, 310-207-9300, for H & H Oil/
(HHOT) CO: H & H Oil ST: California IN: OIL SU: ERN SE -- LA005 -- 3782 11/13/91 09:07 EST