Six Six Five Energy, Inc. Announces Third Quarter 2018 Performance
GlobeNewswire•November 15, 2018
OKLAHOMA CITY, Nov. 15, 2018 (GLOBE NEWSWIRE) -- Six Six Five Energy, Inc. (SSOF), today announces its financial results for the third quarter of 2018, posting sales and margin growth for the three months ended September 30, 2018, as well as an update on its audit.
Third Quarter Financial Highlights
Revenues for the third-quarter of 2018 were $2.7 million, up 47% compared to $1.4 million in the third quarter of 2017. Net margins increased to 14% in the third quarter of 2018 compared to 6% in the prior year period.
Third-quarter 2018 net income was $154,000 compared to $258,000 for the same period in 2017. The Company attributes the year-over-year decrease in net income to a change in its product mix and continued expenses related to changes in its corporate structure post-acquisition.
With the acquisition of Five Star and Supply, the Company reports an increase of $8.7 million in its asset base in inventory and equipment.
“In the third quarter we worked on consolidating our business, and going forward we expect to see continued improvement in our overall profit margins. Our focus at this time is to provide a quality product in the challenging and competitive drilling sector, and there are a couple factors we face in meeting this expectation,” states SSOF president and CEO Jason Clayton. “While we anticipated several rig purchases and sale transactions this year, our buyers will likely push these purchases into the first or second quarter of 2019. The rig transaction delay has also delayed our internal financing of the rigs, a portion of which were intended for acquisitions and the purchase of certain high-yield in demand inventory items associated with the rigs such as power swivels or blow out preventers. Accordingly, we are reviewing alternate plans for other potential rig buyers as well as additional funding options, as needed.”
Status of Corporate Audit
In response to shareholder inquiry, SSOF also provides an update on its audit.
“The original audit was to be completed on 66 Oilfield Services, LLC when it was acquired by Medically Minded, Holding Corp. and the public holding company’s name changed to Sixty Six Oilfield Services, Inc. This audit was stopped due the pending acquisition of Fluid End and the need to expand the audit beyond its original scope to include another acquisition with a much larger inventory. As we have now completed the acquisition of Fluid End along with necessary consolidations, we will begin the Company audit. We are finalizing our audit scope and I will provide an update when I can better estimate a completion date,” states SSOF CFO Jim Frazier.
About Six Six Five Energy, Inc.
Six Six Five Energy, formerly Sixty Six Oilfield Services, is now a third-generation heavy oil field equipment company founded in Oklahoma in 1959. Subsequent to the period ended June 30, 2018, the Company has completed the exchange with Fluid End Sales (doing business as Five Star Rig and Supply) which was established as a family owned business in 1983. The Company focuses on supplying the oil industry with custom drilling rigs, heavy-weight drill pipe, drill collars, pup joints, pony collars, handling tools, tubing, casing, blow-out preventers, engines, compressors and other select equipment to customers world-wide through its facilities in Oklahoma City. The Company’s services include the sale of new equipment, sale of refurbished and certified used equipment, as well as rental of oilfield equipment. For more information, visit www.665Energy.com
AI
