Allis-Chalmers reported results for the second quarter of 2010. Revenues for the second quarter of 2010 increased 41.0% to $158.6 million compared to $112.5 million for the second quarter of 2009 and Adjusted EBITDA increased 159% in the quarter to $27.2 million compared to $10.5 million for the second quarter of 2009. Allis-Chalmers reported a net loss attributed to common stockholders for the second quarter of 2010 of $6.0 million, or $0.08 per diluted share, compared to a net loss of $125,000, or $0.00 per diluted share in the second quarter of 2009. Results for the second quarter of 2010 included the impact of a strike in Argentina which negatively affected pre-tax income by an estimated $1.7 million. Results for the second quarter of 2009 included a $26.4 million pre-tax gain on debt extinguishment.
Revenues for the first six months of 2010 increased 16.1% to $299.0 million compared to $257.6 million for the first six months of 2009. Allis-Chalmers reported a net loss attributed to common stockholders for the first six months of 2010 of $16.2 million, or $0.23 per diluted share, compared to a net loss of $2.7 million, or $0.08 per diluted share for the first six months of 2009. Results for the first six months of 2010 included the impact of a strike in Argentina which negatively affected pre-tax income by an estimated $1.7 million. Results for the first six months of 2009 included a pre-tax gain of $26.4 million from the extinguishment of debt.
EBITDA and Adjusted EBITDA are non-GAAP financial measures that are not necessarily comparable from one company to another and additional information and discussion regarding EBITDA and Adjusted EBITDA are provided later in this release.
Weighted average shares of common stock outstanding on a diluted basis increased to 71.3 million for the second quarter of 2010 compared to 37.0 million for the second quarter of 2009.
Micki Hidayatallah, Allis-Chalmers' Chairman and Chief Executive Officer, stated, "We have seen significant improvement in our performance compared to the challenging environment which existed in the first half of 2009. Since the second quarter of 2009 our total revenues have increased sequentially in each of the past four quarters, and our Adjusted EBITDA is up 159% from the second quarter of 2009 and up 23.6% compared to the first quarter of 2010. Our Oilfield Services segment revenues increased 25.5% in the second quarter compared to the first quarter of 2010 led by improved utilization and pricing in our directional drilling and coiled tubing business lines. We have successfully focused our resources on the strongest U.S. onshore markets, including the Marcellus, Haynesville and Eagle Ford shale plays."
Mr. Hidayatallah continued, "Revenues for our Rental Services segment increased sequentially by 5.7% compared to the first quarter of 2010, due to our emphasis on providing the highest quality equipment for the onshore unconventional gas market, where pricing and equipment utilization is the most favorable. Even prior to the U.S. Gulf of Mexico blowout, Allis-Chalmers has been proactive in diversifying from the U.S. offshore market and responding to market demands with strategic initiatives such as: 1) redeploying rental equipment to Egypt, Saudi Arabia and Brazil, 2) investing in equipment that is in strong demand in the U.S. land shale plays, and 3) embarking on an aggressive plan to recertify our existing inventory of blowout preventers (BOPs) so that we can maintain our competitive strength in providing certified BOPs both offshore in the Gulf of Mexico and onshore in the U.S. In the third quarter we expect to have Rental Services facilities in Pennsylvania to serve the Marcellus shale activity and in Macae, Brazil to serve the offshore market with our large diameter drill pipe and patented deepwater landing string system."
Mr. Hidayatallah concluded, "As a result of improved pricing and rig utilization in Argentina and new contracts in Bolivia, our Drilling and Completion segment achieved a 29.1% increase in operating income compared to the first quarter of 2010. This is a remarkable achievement considering labor disruptions in Argentina during the second quarter which had a $2.1 million negative impact on revenues and an estimated $1.7 million negative impact on pre-tax income. We expect strong utilization of our drilling rigs in Argentina and Bolivia for the remainder of 2010."
Segment Results for Second Quarter 2010
Most Popular Articles
From the Career Center
Jobs that may interest you