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MAVERICK TUBE CORP. IMPROVED DRILLING ACTIVITY LEADS TO HIGHER PROFITS

 ST. LOUIS, Nov. 1 /PRNewswire/ -- Maverick Tube Corp. (AMEX: MAV) announced today the unaudited results for its fourth quarter and full year ended Sept. 30, 1993. Maverick reported net earnings during the quarter of $1.1 million, and year-to-date net earnings of $3.6 million. The earnings per share for the fourth quarter was $0.18, up from $0.06 per share in the fourth quarter of fiscal 1992, while the fiscal year earnings per share was $0.58, up from a loss in fiscal 1992 of $0.47 per share. Maverick's 1993 results for the fourth fiscal quarter and fiscal year include a non-reoccurring restructuring charge to net earnings, in connection with the relocation of the company's facility in Missouri to Arkansas of $0.07 and $0.10 per share respectively. Fiscal 1992's net earnings were previously impacted by an Arkansas related restructuring charge of $0.59 per share.
 Sales increased to $39.1 million for the quarter from $33.3 million the same quarter a year ago. Full year sales were $133.7 million during fiscal 1993 as compared to $98.8 million in fiscal 1992. Higher sales in fiscal 1993 stemmed from higher U.S. drilling rates as compared to a year ago. Drilling during the quarter increased to an average level of 791 rigs. Drilling for both natural gas and oil during the quarter were higher than last year levels. Oil related drilling increased by 14 percent during the quarter, while gas related drilling was up 17 percent on average as compared to last year. On Oct. 29, the drilling rig count in the U.S was 870, having remained relatively flat for the previous seven weeks. The current rig count is up 3.8 percent from the previous year.
 Gregg Eisenberg, president and chief executive officer noted, "We were glad to see the 1993 drilling rates finally responding to higher and more stable energy prices. Maverick also benefited from increases in industry inventories during the quarter as opposed to the inventory liquidations experienced during the same quarter a year ago. Competition from imports has increased in fiscal 1993, however. Overall, our margins were better due to higher volume and improved mix, offset to a degree by higher raw material costs. Hopefully our pricing can improve further to offset the pressures of increasing steel costs."
 Eisenberg also noted, "Our start-up in Arkansas has been gratifying. The final phase of equipment start up is now underway, and our new employees there are performing well, as they move toward our goal of full operational capability by the end of the year. Unfortunately, our exit costs from our old plant proved to be higher than we originally thought, necessitating the additional charge to earnings during the quarter."
 Maverick Tube Corp. is a St. Louis-based manufacturer of tubular products used in the energy industry in drilling, production and surface transportation applications.
 MAVERICK TUBE CORP.
 Selected Consolidated Financial Data
 For the Fourth Quarter and Fiscal Year Ended Sept. 30, 1993
 (In Thousands, Except Rig Count, Tons Shipped and Per Share Data)
 Fourth Quarter Fiscal Year
 1993 1992 1993 1992
 Average Rig Count 791 691 756 701
 Tons Shipped 67,378 61,269 228,953 172,473
 Net Sales $39,070 $33,300 $133,729 $98,941
 Gross Profit $3,716 $2,320 $12,133 $6,599
 Restructuring Charge $514 0 $744 $5,074
 Income From
 Operations $1,388 $970 $5,351 ($3,258)
 Net Earnings $1,094 $350 $3,575 ($2,705)
 Earnings Per Share $0.18 $0.06 $0.58 ($0.47)
 Weighted Average
 Number Shares 6,140 6,140 6,140 5,711
 -0- 11/1/93
 /CONTACT: Charles O. Struckhoff, VP-Administration & Secretary Investor Relations, 314-537-1314/
 (MAV)


CO: Maverick Tube Corp. ST: Missouri IN: OIL SU: ERN

EH-JB -- LA022 -- 9062 11/01/93 10:37 EST
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Publication:PR Newswire
Date:Nov 1, 1993
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