Boots & Coots Reports 2Q Results, Resumes Operations in Venezuela

Boots & Coots has announced revenues of $47.0 million for the quarter ended June 30, 2009 compared to $51.9 million for the same quarter of 2008. Net income for the quarter was $0.7 million or $0.01 per diluted share, compared to $6.1 million or $0.08 per diluted share for the 2008 second quarter. EBITDA (earnings before interest, income taxes, depreciation and amortization; see the reconciliation and rationale for this non-GAAP financial measure below) was $5.1 million or 10.9% of revenues for the quarter, compared to $9.3 million or 17.8% of revenues for the second quarter of 2008.

For the six months ended June 30, 2009, Boots & Coots reported revenues of $101.7 million compared to $96.9 million for 2008. Net income for the 2009 period was $2.7 million or $0.03 per diluted share, compared to $11.2 million or $0.14 per diluted share for the prior six month period. EBITDA was $11.8 million for the six months ended June 30, 2009 compared to $19.1 million for the 2008 period.

For the quarter ended June 30, 2009, the effective income tax rate was 28.7% of pre-tax income compared to 5.0% of pre-tax income in the quarter ended June 30, 2008. The effective tax rate for the 2009 six month period was 30.8% of pre-tax income compared to 17.1% for the
same period in 2008. The increase in the rate is largely due a proportionately higher amount of US source income versus foreign source income.

Boots & Coots also announced that it resumed operations in Venezuela, having remobilized its hydraulic workover units. "We have received a substantial amount of the outstanding receivables that we reported in our March 10-Q filing," continued Mr. Winchester. "We feel that
based on the payments that have been made and the positive dialogue with our customers it was time for us to resume operations in Venezuela."

"During the second quarter we began to aggressively manage our costs to help mitigate the effects of a very challenging market," said Jerry Winchester, chief executive officer of Boots & Coots. "In North America we will stay focused on those concentrated areas with significant
activity. Outside of North America, the mobilization of jobs under new contracts in Venezuela, a substantial opportunity in Southeast Asia and growth in North Africa are signs that activity could pick up later this year. We continue to see roughly 75% of our revenues generated
outside North America."

Business Segment Results

Pressure Control

For the quarter ended June 30, 2009, the Pressure Control segment generated revenues of $22.6 million and EBITDA of $2.4 million, compared to revenues of $22.6 million and EBITDA of $4.9 million for the second quarter of 2008. For the six months ended June 30, 2009, the Pressure Control segment generated revenues of $49.6 million and EBITDA of $5.3 million, compared to revenues of $37.0 million and EBITDA of $9.3 million for the 2008 six month period. EBITDA was negatively impacted by increased third party charges and a decrease in the company's high margin response activities.

Well Intervention

For the quarter ended June 30, 2009, the Well Intervention segment generated revenues of $18.6 million and EBITDA of $1.4 million, compared to revenues of $22.8 million and EBITDA of $2.3 million for the second quarter of 2008. For the six months ended June 30, 2009, the Well Intervention segment generated revenues of $39.1 million and EBITDA of $2.4 million, compared to revenues of $50.0 million and EBITDA of $7.3 million for the 2008 six month period. The changes in revenues and EBITDA were primarily due to the temporary suspension of services in Venezuela and continued curtailment of North America drilling activity. Also included in the 2008 six month results was a non-recurring Bangladesh project.

Equipment Services

For the quarter ended June 30, 2009, the Equipment Services segment generated revenues of $5.8 million and EBITDA of $1.4 million, compared to revenues of $6.5 million and EBITDA of $2.1 million for the second quarter of 2008. For the six months ended June 30, 2009, the Equipment Services segment generated revenues of $13.0 million and EBITDA of $4.1 million, compared to revenues of $9.9 million and EBITDA of $2.6 million for the 2008 six month period. The 2008 quarter benefited from two significant international projects that were
concluded during the quarter. Year-over-year, the increases in revenues and EBITDA were primarily due to the continued expansion of this service line from its inception in August 2007.
 

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