H & H OIL TOOL REPORTS RESULTS
H & H OIL TOOL REPORTS RESULTS SANTA PAULA, Calif., Nov. 11 /PRNewswire/ -- H & H Oil Tool Co.
Inc. (NASDAQ: HHOT) today reported results for the third quarter and nine months ended Sept. 30, 1992.
For the third quarter, H & H reported net income of $33,000, equal to $.01 per share, compared with a net loss of $892,000, equal to $.27 per share, a year ago. Revenues were $5,154,000, compared with $5,628,000 for the 1991 third quarter. The company reported a net loss of $932,000, equal to $.29 per share, for the nine months ended Sept. 30, 1992, compared with a net loss of $494,000, equal to $.15 per share for the same period last year. Revenues declined to $14,563,000 from $18,107,000 for the corresponding period in 1991. Henry H. Rushing, president and chief executive officer, said, "Revenues declined in the third quarter of 1992, compared to the third quarter of 1991, due to an 18 percent decline in rig activity levels for H & H's areas of operations. However, revenues have increased for the third quarter relative to the first two quarters of this year because of increased natural gas activity for H & H Bi-Co Rental Inc., our Rocky Mountain subsidiary. "Despite relatively stable oil prices, third quarter revenues were hampered by the continued downward pressure on domestic oilfield activities which began during the first quarter of 1991," stated Rushing. "Some of the major oil companies are still undergoing significant operational restructuring, which temporarily diverts resources, human and monetary, from oilfield activities. These restructuring efforts are exacerbated by the continuing over- regulation of the industry, particularly in California. This same over-regulation has led oil companies to redirect their exploration budgets to foreign countries. "In spite of lower third quarter revenues the company generated a small net income due to selective cost reductions implemented in the first half of 1992 and strong natural gas activity in the Rocky Mountains. Our financial condition remains strong, and we utilized cashflow to reduce debt by $965,000 and purchased $866,000 of needed capital assets," added Rushing. The operations of Enhanced Oil Recycling Inc. (EORI), H & H's environmental processing plant, were temporarily suspended while construction modifications as recommended by an independent engineering study were made. Testing of these modifications with customer product began in November. Results of these tests on processing rates and operating efficiencies will help to evaluate the economic potential of the process by year-end. 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 Income (000s omitted, except per share data) (Unaudited) Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 1992 1991 1992 1991 Revenues: Rental $4,597 $4,901 $12,982 $15,978 Sales 557 727 1,581 2,129 Total 5,154 5,628 14,563 18,107 Cost and expenses: Operating: 3,191 3,472 9,362 10,596 Cost of sales 376 475 1,026 1,442 Depreciation and amortization 830 913 2,586 2,555 General and administration 604 992 2,036 2,510 Interest 105 146 340 399 Research and development --- 647 106 1,064 Total costs and expenses 5,106 6,645 15,456 18,566 Income (loss) before income taxes and extraordinary item 48 (1,017) (893) (459) Income tax provision 15 (202) 39 35 Income (loss) before extraordinary item 33 (815) (932) (494) Extraordinary item - reversal of tax benefit --- (77) --- --- Net income (loss) $33 ($892) ($932) ($494) Earnings (loss) per common share before extraordinary item $.01 ($.25) ($.29) ($.15) Extraordinary item .00 (.02) .00 .00 Net earnings (loss) per share $.01 ($.27) ($.29) ($.15) Weighted average shares outstanding 3,264,534 3,257,109 3,263,828 3,255,659 -0- 11/11/92 /CONTACT: Henry H. Rushing, president and CEO of H & H Oil Tool, 805-525-6679; or Kim P. Feazle or Roger S. Pondel of Pondel Parsons & Wilkinson, 310-207-9300, for H & H Oil Tool/ (HHOT) CO: H & H Oil Tool Co. Inc. ST: California IN: OIL SU: ERN
JL-LS -- LA010 -- 9603 11/11/92 09:02 EST
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|Date:||Nov 11, 1992|
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