WEL $2.15 Boots & Coots Reports First Quarter Results
Monday May 5, 4:34 pm ET
Company Reports Second Consecutive Record Revenue Quarter
HOUSTON--(BUSINESS WIRE)--Boots & Coots International Well Control, Inc. (AMEX:WEL - News), announced net income of $5.1 million, or $0.07 per diluted share for the first quarter ended March 31, 2008, compared to $0.5 million, or $0.01 per diluted share for the same period last year. Revenues for the quarter were $45.0 million compared to $22.3 million for the first quarter of 2007. EBITDA (earnings before interest, income taxes, depreciation and amortization; see the reconciliation and rationale for this non-GAAP financial measure below) was $9.8 million, or 21.9% of revenues for the quarter compared to $2.7 million, or 12.3% of revenues for the first quarter of 2007.
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“Led by two international well intervention projects and higher international response activity, the first quarter generated record revenue for Boots & Coots,” stated Jerry Winchester, president and chief executive officer. “Our well intervention business increased 82% compared to the first quarter of last year, and the utilization rate on our hydraulic workover business increased sequentially from 42% at the end of last year’s fourth quarter to 50% by the end of the first quarter.”
“Our strategic initiatives have helped us increase Boots & Coots’ global presence and integrate the company’s service lines, such as expanding pressure control rental tools into our international locations as well as domestically in North and East Texas,” continued Mr. Winchester. “Additionally, a recovery project in offshore India should help maintain momentum in the well intervention segment in the second quarter.”
Business Segment Results
Well Intervention
For the quarter ended March 31, 2008, the Well Intervention segment generated revenues of $37.9 million and contributed EBITDA of $7.2 million, compared to revenues of $20.8 million and EBITDA of $2.4 million for the first quarter of 2007. The EBITDA margin was favorable due to increased activity partially offset by higher third-party costs associated with two international Safeguard projects.
Response
For the first quarter of 2008, the Response segment generated revenues of $7.1 million and contributed EBITDA of $2.7 million, compared to revenues of $1.4 million and EBITDA of $0.4 million for the first quarter of 2007. During the 2008 first quarter, the Company experienced a higher level of international response activity, primarily in Africa.
Conference Call
Boots & Coots will discuss 2008 first quarter results via a conference call and Webcast tomorrow, May 6, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The dial-in number for the call is 866-831-6272, passcode ‘Boots & Coots’. To listen to the live Webcast, log on to www.boots-coots.com/investor/invest.htm and click on the ‘2008 First Quarter Earnings Webcast’ link. A replay of the Webcast will be available on the investor relations page of the Company’s Website within 24 hours of the call. The call will also be available for replay for 30 days by dialing 888-286-8010, passcode 76022451.
