H & H OIL TOOL CO. INC. ANNOUNCES EARNINGS
H & H OIL TOOL CO. INC. ANNOUNCES EARNINGS SANTA PAULA, Calif., March 11 /PRNewswire/ -- H & H Oil Tool Co.
Inc. (NASDAQ: HHOT) today announced a net loss of $1,149,000, or $.35 per share, for 1991. The company registered net income of $585,000, or $.10 per share for 1990. The 1991 loss reflected costs associated with H & H's environmental processing system including $1.2 million for research and development and $.6 million for other related expenses. Revenues for 1991 declined to $22,866,000 from $23,319,000 the previous year.
For the fourth quarter ended December 31, 1991, H & H reported a net loss of $655,000, or $.20 per share, compared with a net loss of $246,000, or $.06 per share, in 1990. Revenues for the quarter were $4,759,000, compared with $6,219,000 last year. Henry H. Rushing, president and chief executive officer, said that 1991 proved to be a unique year for the oil industry and a challenging one for H & H Oil Tool Co. The year began with 550,000 young men and women placed in harm's way to safeguard the nation's fragile crude oil supply line from the Persian Gulf. By year-end, the domestic rig count declined to near historical lows, and Congress rejected President Bush's national energy strategy. Rushing stated that the decrease in revenues for the year and fourth quarter reflected lower oilfield activity levels, which also impacted profitability. However, despite the trend of continued lower oilfield activity, H & H was profitable in its core business -- oil tool equipment rentals. He added that the company achieved this profitability by successfully expanding into new product lines and markets which enhanced H & H's existing industry niche. Rushing explained that the company's Enhanced Oil Recycling (EOR) project, which separates crude oil contaminated residues into recyclable, safe components, is essentially completed. He noted, however, that H & H is actively seeking an affiliate to provide the additional financial, technical, operational and marketing resources required to finalize the operating design and fully exploit the exceptional business opportunity. "In the absence of a national energy policy, it is inevitable that domestic oilfield activities will remain volatile," said Rushing. "At H & H, we will continue our efforts to diversify into new products and services so that we will meet our long-term objective of achieving profitable growth." 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 Co. 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 Operations (000s omitted, except per share data) (Unaudited) Year Ended Three Months Ended Dec. 31, Dec. 31, 1991 1990 1991 1990 Revenues and sales $22,866 $23,319 $4,759 $6,219 Income (loss) before interest, research and development, income taxes and extraordinary credit 685 2,404 (319) 516 Research and development 1,244 1,083 180 668 Net income (loss) (1,149) 585 (655) (246) Earnings (loss) per share before extraordinary credit (.35) .10 (.20) (.06) Average number of shares outstanding 3,256 3,247 3,257 3,253 -0- 3/11/92 /CONTACT: Henry H. Rushing of H & H Oil Tool, 805-525-6679; or Roger S. Pondel or Kim P. Feazle of Rifkind Pondel & Parsons, 310-207-9300, for H & H Oil Tool/ (HHOT) CO: H & H Oil Tool Co. Inc. ST: California IN: OIL SU: ERN
KJ-JL -- LA013 -- 7194 03/11/92 09:05 EST
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|Date:||Mar 11, 1992|
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