BJ Services Says Profit Nearly Doubles

BJ Services Company (NYSE: BJS; PCX; CBOE) reported that net income for the quarter ended March 31, 2006 was $203.5 million, or $0.62 per diluted share, up 86% compared to $109.6 million or $0.33 per diluted share for the second fiscal quarter of 2005 and up 27% compared to $159.7 million or $0.48 per diluted share for the previous quarter.

Consolidated revenue in the second quarter of fiscal 2006 was $1,078.8 million, up 36% compared to $795.9 million in prior year's March quarter and up 13% compared to $956.2 million reported in the previous quarter.

Consolidated operating income for the quarter was $295.3 million, an 84% increase compared to $160.4 million for the same quarter last year and a 29% increase compared to $229.6 million reported in the previous quarter.

During the quarter, the Company's capital expenditures were $109.6 million. Other uses of cash during the quarter included dividend payments of $16.1 million and the purchase of 2,784,782 shares of the Company's common stock for $93.1 million. Fiscal year to date, the Company has repurchased 3,322,382 shares for $112.0 million. On March 1, 2006, the Company's Board of Directors authorized the expansion of its share repurchase program, increasing the repurchase authority by $450 million. The Company now has authorization to purchase up to an additional $490.9 million in stock. On February 1, 2006, the Company paid the remaining balance of the outstanding unsecured 7% Series B Notes of $79.0 million, reducing the debt balance to $0.5 million as of March 31, 2006. Cash and cash equivalents decreased $100.1 million from the previous quarter to $326.3 million.

Commenting on the results, Chairman and CEO Bill Stewart said, "Activity increases in all reporting segments and price improvement have contributed to the Company's record earnings performance.

"We continue to believe the worldwide market activity will remain strong into the foreseeable future. We have also planned for a normal third fiscal quarter spring breakup in Canada. Based on our current estimates, we expect consolidated revenue for fiscal 2006 to increase 30% to 32% over fiscal 2005 with earnings per share expected to be in the range of $2.30 - $2.35, an increase of 67% to 70%."