Coil Tubing Technology Reports First Quarter 2012 Financial Results
Date : 05/18/2012 @ 12:12PM
Source : Business Wire
Stock : Coil Tubing Tech (PN) (CTBG)
Quote : 2.25 0.0 (0.00%) @ 10:46AM
Coil Tubing Technology Reports First Quarter 2012 Financial Results
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Coil Tubing Tech (PN) (USOTC:CTBG)
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Today : Friday 18 May 2012
Coil Tubing Technology, Inc. (OTC: CTBG.PK)(the “Company” or “CTT”) a leading manufacturer in providing new technology to the coiled tubing industry, specializing in the design of proprietary downhole tools used in conjunction with coiled tubing for the oil and gas services industry, today reported its financial results for the quarter ended March 31, 2012.
“I am extremely pleased with our results of operations for the first quarter of 2012. I am proud of the results that Coil Tubing Technology’s team has accomplished over the past year, the results of which can be seen in our significant increase in revenue which demonstrates the demand for our products in the marketplace,” commented Jason Swinford, Chief Executive Officer of CTT.
First Quarter Financial Results (unaudited)
Sales revenue for the three months ended March 31, 2012 was $2,265,083, an increase of $1,618,167, as compared with sales revenue of $646,916 for the three months ended March 31, 2011. The increase for the three months ended March 31, 2012 compared to the three months ended March 31, 2011 was due to the increased inventory of rental tools and the expansion of the Company’s sales force and sales territories.
Cost of sales for the three months ended March 31, 2012 was $642,897, an increase of $367,398, as compared with cost of sales of $275,499 for the three months ended March 31, 2011. The increase in cost of sales was in direct correlation to the Company’s growth and revenue increase.
Depreciation expense on rental tools for the three months ended March 31, 2012 was $224,198, an increase of $165,687, as compared with depreciation of $58,511 for the three months ended March 31, 2011. The increase in depreciation was a result of the increase in the Company’s rental tool fleet and support equipment.
General and administrative expenses for the three months ended March 31, 2012 were $295,753, an increase of $116,919, as compared with $178,834 for the three months ended March 31, 2011. The increase was primarily due to increased legal feels, professional service fees and increased payroll costs due to increased staff.
Selling and marketing expenses for the three months ended March 31, 2012 were $503,215, an increase of $330,958, as compared with $172,257 for the three months ended March 31, 2011. The increase was primarily due to the expansion of the Company’s outside sales force and related expenses.
The Company generated net income of $536,993 for the three months ended March 31, 2012, an increase of $631,935 from the three months ended March 31, 2011, when the Company had a net loss of $94,942. The increase in net income was a direct result of the Company’s expansion of its sales force and marketing efforts, the increase in its rental tool fleet and inventory, and the corresponding increase in revenue described above.
The above financial information is unaudited, has not been reviewed or approved by the Company’s outside auditors, and as such, may not include all adjustments or accounting treatment the Company’s outside auditor may deem necessary; provided that such financial information, other than the disclosure of EBITDA, has been presented in accordance with Generally Accepted Accounting Principles (GAAP). Furthermore, the above financial information has been supplied without footnotes describing and explaining the information above which information may be necessary for an accurate understanding of the above financial information. Finally, the above financial information has not been consolidated to eliminate intercompany transactions. Readers should keep in mind that if the Company’s operating results for the quarter ended March 31, 2012, were reviewed by its outside auditors and were presented on a consolidated basis, along with footnotes describing the information presented, the Company’s financial results for the quarter ended March 31, 2012, may be materially different than as presented above.
Non-GAAP Financial Measures: The Company believes that the non-GAAP financial measures disclosed above, including the discussion of EBITDA, provide useful and supplemental information to investors regarding its quarterly financial performance. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material impact on the Company's reported financial results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company. The non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, GAAP financial measures.
As of the date of this press release, Herbert C. Pohlmann, our majority shareholder, has paid an aggregate of $700,000 in connection with various subscription agreements that he entered into with the Company in December 2011 which provided for him to purchase an aggregate of $1,600,000 of our securities and which required that payments be made to the Company at various times from December 2011 to May 2012. The Company is working with Mr. Pohlmann to revise and extend the due dates of the payments required to be made under the subscription agreements.
About Coil Tubing Technology, Inc.
Coil Tubing Technology, Inc. (CTT) began operation in February 1999. CTT supplies a full line of proprietary tools, manufactured in accordance with and to oil industry specifications. The core business of the Company is the development and marketing of specialty tools and related innovative technical solutions used with coiled tubing in the bottomhole assembly for the exploration and production of hydrocarbons. The tools are provided to oil companies, coiled tubing operators and well service companies for use in thru tubing fishing, thru tubing well stimulation workover, and CT lateral drillout operations.
For more information visit the Coil Tubing Technology, Inc. website at www.coiltubingtechnology.com.
Forward-Looking Statements
This press release contains forward-looking statements, including information about management’s view of the Company’s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product or services development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company takes no obligation to update or correct (i) its own forward-looking statements, except as required by law, or (ii) those prepared by third parties that are not paid for by the Company.
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