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TUBOSCOPE VETCO INTERNATIONAL CORPORATION ANNOUNCES 1993 SECOND QUARTER FINANCIAL RESULTS

 HOUSTON, July 31 /PRNewswire/ -- Tuboscope Vetco International Corporation (NASDAQ-NMS: TUBO) today announced financial results for the three months ended June 30, 1993. Including an after tax extraordinary charge of U.S. $4,497,000 related to refinancing the company's subordinated debentures, the company reported a net loss of $3,977,000 or 23 cents per share (after preferred stock dividends of $175,000 and on weighted average shares of 18,351,721) for the second quarter of 1993, compared to net income of $1,136,000, or 5 cents per share (after preferred stock dividends of $175,000 and on weighted average shares of 18,222,272) for the second quarter of 1992.
 In April 1993, the company issued $75 million of 10-3/4 percent senior subordinated notes. The proceeds were used to redeem all the outstanding 14 percent senior subordinated debentures. The costs associated with the redemption of the 14 percent notes resulted in an extraordinary charge of $4,497,000 or 25 cents per share. In addition, due to the timing of receiving the proceeds of the new debt and calling the old debt, both issues were on the company's books for an overlapping period. This overlap increased interest costs by $260,000 after taxes or 1 cent per share. The company's reported second quarter revenue of $45.2 million was $4.3 million or 10 percent increase over the second quarter of 1992.
 Approximately $1.7 million of the increase was due to the acquisitions of the oilfield inspection assets of DJ Inspection Services, Inc. and CTI Inspection Services, Inc., a leader in the emerging above ground storage tank and pressure vessel inspection market. North America Oilfield Inspection activity continued to improve with revenue (excluding the DJ acquisition) $2.2 million or 32 percent greater than the prior year, as average rig count for North America in the second quarter 1993 was 12 percent higher than the second quarter 1992. International Oilfield revenues were $2.1 million or 13 percent lower than the second quarter 1992 due to a 10 percent decline in international rig count and a reduction in Tubular production in European and Japanese steel mills. Industrial Inspection revenues were $1.8 million or 52 percent greater than the second quarter 1992 as a result of increased activity in the Middle East. Gross profit margins, as a percent of sales, declined from 26.0 percent in the second quarter 1992 to 25.5 percent in the second quarter 1993. This decline was primarily the result of unfavorable product mix as the revenue increase was concentrated in the lower margin Industrial Inspection and North America Oilfield Inspection product lines.
 Selling, administrative and general expenses increased $0.9 million due to overhead costs associated with the DJ and CTI acquisitions ($0.6 million) and expense investments in new business opportunities. Operating profit for the second quarter was $4.4 million, equal to the second quarter 1992 but $1.2 million higher than the prior quarter. Interest expense was $0.4 million greater than the second quarter 1992 as the overlapping debt issues resulted in higher interest costs of $0.4 million. Foreign exchange losses were $112,000 in the second quarter 1993 compared to a gain of $617,000 in the second quarter 1992. On July 15, 1993, Weatherford International Incorporated and Tuboscope Vetco International Corporation jointly announced that the companies have executed a letter of intent relating to the acquisition by Weatherford of TVI pursuant to a merger of the companies. The letter of intent calls for Weatherford to exchange with TVI shareholders one share of Weatherford common stock for each share of Tuboscope common stock, subject to adjustment based on the average closing stock price of Weatherford stock prior to the merger.
 Tuboscope Vetco International is the world's leading supplier of coating and inspection services to the petroleum industry, supplies in-service inspection for oil and gas pipelines, sells and leases advanced in-line inspection to the makers of oil country tubular goods and provides quality assurance and inspection services to a diverse range of world-wide industries. Tuboscope Vetco International is headquartered in Houston and services markets in over 54 countries. 1992 sales were $165.0 million. The company is traded on the NASDAQ National Market System under the symbol "TUBO."
 TUBOSCOPE VETCO INTERNATIONAL CORPORATION CONSOLIDATED
 Statements of Operations


(Thousands of U.S. dollars, except share and per share data - Unaudited)
 Periods ended Three Months Six Months
 June 30 1993 1992 1993 1992
 Revenue:
 Sale of services 43,036 39,452 81,409 77,485
 Sale of products 1,401 593 1,944 1,882
 Rental income 775 911 1,648 1,845
 Total 45,212 40,956 85,001 81,212
 Costs and expenses:
 Costs of services sold 32,891 29,790 62,651 60,469
 Costs of products sold 485 210 685 696
 Goodwill amortization 294 307 588 565
 Selling, administrative
 and general 6,121 5,218 11,459 10,068
 Research and engineering costs 988 1,020 1,941 2,061
 Restructuring costs -- -- -- 1,010
 Total 40,779 36,545 77,324 74,869
 Operating profit 4,433 4,411 7,677 6,343
 Other expense (income):
 Interest expense 3,292 2,904 5,069 6,204
 Interest income (133) (111) (286) (428)
 Foreign exchange 112 (617) 83 607
 Gain on sale of TKC -- -- -- (3,983)
 Other, net 362 487 1,022 1,155
 Income before income taxes
 and extraordinary item 800 1,748 1,789 2,788
 Provision for income taxes 280 612 626 976
 Net income before
 extraordinary item 520 1,136 1,163 1,812
 Extraordinary item, net of
 income tax effect (4,497) -- (4,497) --
 Net loss (3,977) 1,136 (3,334) 1,812
 Dividends applicable to
 redeemable preferred stock 175 175 350 350
 Net income applicable to
 common stock (4,152) 961 (3,684) 1,462
 Earnings per common share:
 Income before extra-
 ordinary item and after
 deduction of preferred
 stock dividends 0.02 0.05 0.04 0.08
 Extraordinary item (0.25) -- (0.25) --
 Net income (0.23) 0.05 (0.20) 0.08
 Weighted average number
 of common shares
 outstanding 18,351,721 18,222,272 18,287,119 18,198,160
 Other Data:
 Depreciation and
 amortization 3,410 3,350 6,871 6,684
 Capital spending 1,241 251 2,223 1,967
 TUBOSCOPE VETCO INTERNATIONAL CORPORATION
 Revenue by Product Line
 Periods ended Three Months Ended Six Months Ended
 June 30 1993 1992 1993 1992
 Oilfield Services:
 Inspection 22,310 20,374 42,440 41,922
 Coating 9,346 10,284 19,086 21,574
 Oilfield Services 31,656 30,658 61,526 63,496
 Industrial Inspection 5,278 3,477 9,730 6,982
 Pipeline Services 4,933 5,431 8,612 8,197
 Mill Systems
 and Sales 2,095 1,390 3,455 2,537
 Business Development 1,250 -- 1,678 --
 Total Revenue 45,212 40,956 85,001 81,212
 -0- 7/31/93
 /CONTACT: M.R. Reid or R.L. Koons of Tuboscope Vetco International, 713-799-5100/
 (TUBO)


CO: Tuboscope Vetco International ST: Texas IN: OIL SU: ERN

SM -- NYSA002 -- 8035 07/31/93 08:32 EDT
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Date:Jul 31, 1993
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