"Prevention service segment revenues from SafeGuard contracts in Algeria, Kazakhstan and India were up during the quarter. In Venezuela however, we experienced delays due to certain management changes at the customer level," said Jerry Winchester, President and Chief Executive Officer. "While we expect these delays to be temporary, our SafeGuard business will be affected in the fourth quarter, so we are revising our estimate for prevention revenues from $15.0 million to $13.5 million for 2005. We have an excellent relationship with, and perform critical services for our contractor in Venezuela, and we expect to be fully operational again under that contract in the first quarter of 2006."
"Results continue to strengthen," continued Winchester. "Revenues from the rest of our SafeGuard business are at or above plan and steadily continue to increase quarter over quarter. This supports the fact that our strategy to focus on the prevention business is the right strategy. The impact that our programs make for our customers will continue to create opportunities for us and move us toward our goal to become the premier pressure control services company in the industry."
For the quarter ended September 30, 2005, revenues were $4.6 million compared with revenues of $3.3 million for the same period of 2004. Net loss from continuing operations for the quarter was $0.5 million compared to a $1.3 million loss for the third quarter of 2004. Net loss attributable to common shareholders was $0.7 million, or $0.02 per diluted share in the third quarter of 2005, compared to a net loss in the prior year period of $1.6 million, or $0.05 per diluted share.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was $3.3 million for the nine months ended September 30, 2005, compared to $1.5 million in the prior year period. For the third quarter of 2005, EBITDA was $0.3 million compared to $(0.5) million in the third quarter of 2004.
Operational highlights include: * Prevention revenues were $3.1 million for the third quarter of 2005, compared to $1.9 million for the third quarter of 2004. Prevention revenues were $10.3 million for the nine months ended September 30, 2005, compared to $6.3 million in the prior period. * Response revenues were $1.5 million for the third quarter of 2005, as compared to $1.4 million in the third quarter of 2004. Response revenues were $13.3 million for the nine months ended September 30, 2005, compared to $8.4 million in the prior period. * At September 30, 2005, the company reported working capital of $2.5 million and total debt of $5.9 million.
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