OMNI has reported third quarter 2008 net income of $4.0 million, or $0.15 per diluted share, on revenues of $53.3 million, compared to net income of $4.1 million, or $0.16 per diluted share, on revenues of $44.1 million for the same period of 2007 and compared favorably to net income of $2.6 million, or $0.10 per diluted share, on revenues of $48.9 million for the second quarter of 2008.
When comparing the third quarter 2008 to the same quarter for 2007, net income is essentially flat, due in part to the shift in seismic drilling activity from higher margin transition zone activity to highland areas, generating lower overall margins, which was in line with our forecast. Offshore activity continues to be below the comparable period in 2007, generating reduced contribution from our environmental services segment when compared to the third quarter of 2007.
The continuation of cost, without corresponding revenue, during the two hurricanes (Gustav and Ike) contributed to the pressure on our margin. The full quarter contributions of B.E.G. Liquid Mud Services Corp. ("BEG") and Industrial Lift Truck and Equipment Company, Inc. ("ILT") operations into OMNI's land division was able to essentially offset these reductions.
Brian J. Recatto, President and Chief Executive Officer of OMNI, stated, "We are again very pleased with OMNI's financial performance this quarter despite the effect of the two hurricanes mentioned above. The two storms are estimated to have reduced revenue for the third quarter 2008 by approximately $4.5 million and net income was likewise reduced by $0.9 million or $0.04 per diluted share. We continue to be optimistic about the remainder of the year as demand for our services continues to be healthy. We continue to monitor activity in our sector in these uncertain economic times. Fortunately, activity levels remain high in the geographic regions we currently service and our clients remain committed to continued drilling and production activity."
Brian J. Recatto, President and Chief Executive Officer of OMNI commented further, "The fourth quarter is off to a great start with all segments performing well and activity exceeding pre-hurricane levels. Our forecast remains positive for the balance of the year. Our financial performance will depend upon the ability of our client base to continue current activity levels in current credit and capital markets. The revenue and profit enhancement opportunities identified and put in place are being realized and accordingly we are confirming guidance for 2008. We project full year 2008 Revenue, Adjusted EBITDA, and EPS in the range of $190.0 million to $200.0 million, $38.0 million to $41.0 million and $0.33 to $0.39 per diluted share, respectively."
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