OMNI Completes Acquisition of Preheat, Inc.
OMNI Energy Services Corp. (Nasdaq: OMNI) has completed the previously announced acquisition of Preheat, Inc. for $16 million in cash plus the issuance of 900,000 shares of its common stock and $4 million in buyer promissory notes. At closing, Preheat's excess working capital was greater than the minimum required level of $4.5 million. With 2005 revenue of $21.3 million, Preheat reported unaudited pro forma net income of $1.7 million and unaudited pro forma EBITDA (earnings before interest, taxes, depreciation and amortization) of $6.0 million for the year ended December 31, 2005.
Additionally, OMNI announced today that it has added $6 million of new seismic drilling projects to its existing backlog. The new work will be performed in certain regions of Southwestern Louisiana and is scheduled to commence during the 4th quarter of 2006.
Commenting on the Preheat acquisition and the new seismic drilling projects, James C. Eckert, Chief Executive Officer, said, "The completion of the acquisition of Preheat is a significant milestone for OMNI's business plan. This acquisition establishes a solid foundation for further strategic growth of our core businesses. As we integrate the Preheat acquisition with our other core businesses, demand for our seismic drilling services remains very strong. In spite of the deferral of several key seismic drilling projects and the cessation of operations for the entire 4th quarter at two of our five environmental dockside facilities, early earnings estimates from our core businesses during the 4th quarter appear to be better than expected."
"This trend appears to be continuing into 2006 with solid business activity during the beginning of the 1st quarter for all our business segments," continued Eckert. "Our strong current backlog levels are evidence of this increased demand for our seismic drilling services. Barring any unforeseen weather or permitting delays, these new seismic drilling projects should result in a solid revenue year for this division. This strong demand for our seismic drilling services coupled with the expected continuing solid results from Preheat and our environmental services unit, Trussco, has our management team extremely optimistic. We have worked closely with the Preheat management team to hone our integration process and plan. We believe that today, OMNI represents a multi-dimensional enterprise poised for significant growth in the energy services sector. We are very excited about OMNI's future for 2006 and beyond," Eckert concluded.
Headquartered in Carencro, LA, OMNI Energy Services Corp. offers a broad
range of integrated services to geophysical companies engaged in the
acquisition of on-shore seismic data and to oil and gas companies operating
primarily in the Gulf of Mexico. The company provides its services through
two business divisions: Seismic Drilling (including drilling, survey and
permitting services) and Environmental Services. OMNI's services play a
significant role with geophysical companies who have operations in marsh,
swamp, shallow water and the U.S. Gulf Coast also called transition zones and
contiguous dry land areas also called highland zones.
- OMNI Puts Cleaning Technology to Work on GOM Platform (Jan 21)
- OMNI Installs First I.M.P.A.C.T. Systems Offshore (Nov 17)
- OMNI Scores Seismic Drilling Contract in Marcellus Shale (Oct 21)