Deep Down Says 3Q07 Results on Target

Deep Down Reported unaudited results for the third quarter ended September 30, 2007, on Form 10-QSB filed with the U.S. Securities and Exchange Commission.

"We are pleased with our third quarter financial performance which is on target with our business plan," commented Robert E. Chamberlain, Jr., Deep Down's Chairman. Looking on the horizon, we expect continued record setting internal growth to be complemented with strategic acquisitions, including Mako Technologies, Inc."

Deep Down generated revenue of $12,128,737 for the nine months ended September 30, 2007, with cost-of-sales of $8,098,001, for a gross profit of $4,030,736, or 33.2%. Revenues for the third quarter ended September 30, 2007, were $4,885,555, with cost-of-sales of $3,552,599, for a gross profit of $1,332,956, or 27.3%.

"Gross margins were impacted by increased engineering and other costs associated with new product development, including our new line of Proteus(TM) custom-engineered active heave compensated in-line winches, deep water rated (4000 meter) launch and retrieval systems, and other products in development. We expect gross margins on these products to increase on future orders. We are actively looking at broadening the breadth of product and service offerings to meet the increasing demands of our growing customer base," commented Ron E. Smith, Deep Down's President and CEO.

Operating income for the three months and nine months ended September 30, 2007 was $290,298 and $1,070,236, respectively. Net income for the three months and nine months ending September 30, 2007, was $195,969 and $1,036,177, respectively. Included in net income for the nine months ended September 30, 2007, is a one-time gain of $2,000,000 related to the extinguishment of debt coupled with associated non-cash interest expense of $1,102,385, or a net gain of $897,615, related to 4,000 shares of Series E preferred stock that was redeemed at a 50% discount to face value. Adjusting for this nonrecurring non-operating activity, net income for the three months ending September 30, 2007 was $195,969 compared to $138,562 for the nine months ended September 30, 2007. Earnings before depreciation, interest, amortization, taxes and other non-cash charges (EBITDA) for the three months and nine months ended September 30, 2007 was $457,994 and $1,431,218, respectively.

"We are particularly proud of the improvements to our balance sheet over the last nine months. Since December 31, 2007, working capital has increased $2,358,323 from $932,929 on December 31, 2006, to $3,291,252 on September 30, 2007. Major changes in current assets include an increase in accounts receivable of $2,123,830; an increase in cash of $1,049,974; and increase in work in progress of $1,019,158; an increase in finished goods of $515,601 and an increase in lease receivables of $414,000. Major changes in current liabilities include an increase in accounts payable of $2,782,072 and a payable of $560,000. Our current ratio as of September 30, 2007 remains strong at 1.78 times. Stockholders' equity has increased $6,045,744 from ($3,299,717) on December 31, 2006 to $2,746,027 on September 30, 2007," commented Eugene L. Butler, Deep Down's CFO.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE


Most Popular Articles


From the Career Center
Jobs that may interest you
Sr. Analyst - Mobile & Application Development
Expertise: IT - Programming & Database|IT - Software Development|Project Management
Location: Houston, TX
 
Project Controls Analyst
Expertise: Budget / Cost Control|Cost Engineer|Project Controls
Location: Houston, TX
 
Senior Project Manager - Chemicals
Expertise: Project Management
Location: Greenville, SC
 
search for more jobs

Brent Crude Oil : $50.64/BBL 0.62%
Light Crude Oil : $48.04/BBL 1.47%
Natural Gas : $3.01/MMBtu 2.58%
Updated in last 24 hours