-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QInEUSIUwLPNeZV72ct11+T1X5tx0+qU8mwsJO6TC5h1WQw7MkGqMin46XQVUVIC MGuKmKKtcjCHbHaCdDNmMw== 0001275287-05-001609.txt : 20050429 0001275287-05-001609.hdr.sgml : 20050429 20050429124245 ACCESSION NUMBER: 0001275287-05-001609 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050427 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050429 DATE AS OF CHANGE: 20050429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OIL STATES INTERNATIONAL INC CENTRAL INDEX KEY: 0001121484 STANDARD INDUSTRIAL CLASSIFICATION: OIL & GAS FILED MACHINERY & EQUIPMENT [3533] IRS NUMBER: 760476605 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16337 FILM NUMBER: 05783944 BUSINESS ADDRESS: STREET 1: THREE ALLEN CENTER STREET 2: 333 CLAY STREET SUITE 3460 CITY: HOUSTON STATE: TX ZIP: 77002 BUSINESS PHONE: 7136920582 MAIL ADDRESS: STREET 1: THREE ALLEN CENTER STREET 2: 333 CLAY STREET SUITE 3460 CITY: HOUSTON STATE: TX ZIP: 77002 8-K 1 os2543.txt ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): April 27, 2005 ---------- OIL STATES INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware 1-16337 76-0476605 (State or other jurisdiction (Commission File (I.R.S. Employer of incorporation or organization) Number) Identification No.) Three Allen Center 333 Clay Street, Suite 4620 Houston, Texas 77002 (Address and zip code of principal executive offices) Registrant's telephone number, including area code: (713) 652-0582 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ Item 2.02 Results of Operations and Financial Condition On April 27, 2005, Oil States International, Inc. (the "Company") issued a press release announcing its financial condition and results of operations for the three-month period ended March 31, 2005. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. Exhibit Number Description of Document - -------- ---------------------------------------------------- 99.1 Press Release dated April 27, 2005 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: April 28, 2005 OIL STATES INTERNATIONAL, INC. By: Cindy B.Taylor -------------------------------- Name: Cindy B. Taylor Title: Senior Vice President and Chief Financial Officer INDEX TO EXHIBITS Exhibit Number Description of Document - -------- ------------------------------------------- 99.1 Press Release dated April 27, 2005 EX-99.1 2 os2543ex991.txt Exhibit 99.1 OIL STATES ANNOUNCES RECORD FIRST QUARTER EARNINGS OF $0.50 PER SHARE HOUSTON, Texas, April 27 /PRNewswire-FirstCall/ -- Oil States International, Inc. (NYSE: OIS) today reported a 57% year-over-year increase in net income for the quarter ended March 31, 2005. Net income for the first quarter of 2005 increased to $25.3 million, or $0.50 per diluted share, from $16.2 million, or $0.32 per diluted share, in the first quarter of 2004. Oil States' revenues and EBITDA (defined as net income plus interest, taxes, depreciation and amortization) for the first quarter of 2005 increased 63% and 89%, respectively, from last year's results as each business segment generated improved operating results.(A) The Company generated $331.9 million of revenues and $52.5 million of EBITDA in the first quarter of 2005 compared to $204.2 million and $27.8 million, respectively, in the first quarter of 2004. Tubular Services benefited from continued strong U.S. land drilling activity, limited oil country tubular goods ("OCTG") supplies and the acquisition of the U.S. OCTG distribution business of Hunting Energy Services, L.P. ("Hunting"), completed in May 2004. Well Site Services generated increased revenues and EBITDA due to strong land drilling and Canadian oil sands activity, capital investments made in the North American drilling and accommodations businesses and contributions from the Elenburg acquisition completed in February 2005. Offshore Products also improved significantly year-over-year as volumes and margins expanded. The Company's effective tax rate in the first quarter of 2005 was 36.9% compared to an effective tax rate of 8.6% in the first quarter of 2004. The 2004 quarter included the Company's recognition of a $5.4 million income tax benefit related to the partial reversal of valuation allowances applied against net operating loss carryforwards. The Company expects that the effective rate for the full year 2005 will be approximately 35% - 38%. Capital expenditures during the first quarter of 2005 totaled $17.1 million. BUSINESS SEGMENT RESULTS Well Site Services Well Site Services generated strong first quarter earnings as year-over- year activity improved and the segment benefited from recently completed capital expenditures and acquisitions. Well Site Services' revenues and EBITDA in the first quarter of 2005 improved by 33% and 35%, respectively, from the first quarter of 2004. For the first quarter of 2005, revenues and EBITDA from the Well Site Services segment were $127.6 million and $32.1 million, respectively, compared to $96.1 million of revenues and $23.8 million of EBITDA in the first quarter of 2004. This year-over-year increase was primarily due improved results in the accommodations, land drilling and rental tool businesses. Accommodations' revenues and EBITDA were up 33% and 28%, respectively, due primarily to increased utilization, expanded capacity and economies of scale in the oil sands region of Canada. Land drilling's revenues and EBITDA were up 58% and 79%, respectively, from the first quarter of 2004 due to incremental earnings from the seven rigs acquired in the Elenburg acquisition, the additional rig added to the fleet in Texas and higher dayrates and cash margins. Overall utilization was slightly lower during the quarter due to normal, seasonal downtime in the Company's operations in the Rocky Mountains and Ohio. Revenues and EBITDA from the rental tool business were up 24% and 30%, respectively, from the first quarter of 2004 due to moderate pricing and activity improvements. The rental tools business also benefited during the quarter from acquisitions made in the second and third quarters of 2004. Offshore Products Offshore Products reported a much improved first quarter of 2005 with revenues of $66.5 million and EBITDA of $7.7 million compared to revenues of $41.9 million and EBITDA of $1.5 million in the first quarter of 2004. This 59% increase in revenues and 431% increase in EBITDA was primarily the result of higher activity levels and increased fixed cost absorption. Gross margin for the first quarter increased to 21% from 17% in the first quarter of 2004. Backlog was $99.8 million as of March 31, 2005 compared to $97.5 million as of December 31, 2004 and $76.9 million at March 31, 2004. Tubular Services Tubular Services generated record quarterly profits in the first quarter of 2005 as OCTG supply remained constrained and U.S. drilling activity continued to increase. Tubular Services generated $137.9 million of revenues and $15.4 million of EBITDA in the first quarter of 2005 compared to $66.2 million of revenues and $4.0 million of EBITDA in the first quarter of 2004. First quarter gross margin was 13.0% compared to 8.9% in the first quarter of 2004. Tubular Services also benefited from increases in OCTG mill pricing during the first quarter, contributions from the May 2004 Hunting acquisition and the overall year-over-year increase in drilling and completion activity, as the U.S. rig count increased 14% from the first quarter of 2004. OCTG shipments were 82,000 tons in the first quarter of 2005 compared to 67,300 tons shipped in the first quarter of 2004. The Company's OCTG inventory at March 31, 2005 was $142.0 million compared to $123.6 million at December 31, 2004 and $59.8 million at March 31, 2004. As of March 31, 2005, approximately 85% of Oil States' OCTG inventory was committed to customer orders. "Oil States had a record first quarter due to strong activity in many of our key markets as well as the benefits of our recent strategic capital spending and acquisition programs," stated Douglas E. Swanson, Oil States' President and Chief Executive Officer. "We were pleased to close the Elenburg acquisition during the quarter which provides us with a strong base for drilling in the Rockies. Looking forward, the year 2005 holds great promise for Oil States due to improved U.S. drilling activity, a recovery in deepwater spending, growth in the oil sands region of Canada and incremental earnings from the acquisitions closed over the past year. Second quarter 2005 results, of course, will be lower than first quarter 2005 results due to the normal seasonal slow-down in Canadian drilling activity. Our current expectations for second quarter earnings are in the range of $0.28 to $0.33 per diluted share." Oil States International, Inc. is a diversified oilfield services company. With locations around the world, Oil States is a leading manufacturer of products for deepwater production facilities and subsea pipelines, and a leading supplier of a broad range of services to the oil and gas industry, including production-related rental tools, work force accommodations and logistics, oil country tubular goods distribution, hydraulic workover services and land drilling services. Oil States is organized in three business segments - -- Offshore Products, Tubular Services and Well Site Services, and is publicly traded on the New York Stock Exchange under the symbol OIS. For more information on the Company, please visit Oil States International's website at http://www.oilstatesintl.com . The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Business" section of the Form 10-K for the year ended December 31, 2004 filed by Oil States with the SEC on March 2, 2005. (A) The term EBITDA consists of net income plus interest, taxes, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles. You should not consider it in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA as a supplemental disclosure because its management believes that EBITDA provides useful information regarding our ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. Oil States International, Inc. Statements of Operations (in thousands, except per share amounts) (unaudited)
Three Months Ended March 31, ---------------------------- 2005 2004 ------------ ------------ Revenue $ 331,946 $ 204,190 Costs and expenses: Cost of sales 260,653 161,297 Selling, general and administrative 19,065 14,691 Depreciation and amortization 10,228 8,572 Other expense / (income) (214) 532 Operating income 42,214 19,098 Interest income 131 81 Interest expense (2,314) (1,647) Other income 46 145 Income before income taxes 40,077 17,677 Income tax expense (14,788) (1,520) Net income applicable to common stock $ 25,289 $ 16,157 Net income per common share Basic $ 0.51 $ 0.33 Diluted $ 0.50 $ 0.32 Average shares outstanding Basic 49,669 49,129 Diluted 50,560 49,754 Segment Data: Revenues Well Site Services $ 127,595 $ 96,140 Offshore Products 66,491 41,888 Tubular Services 137,860 66,162 Total Revenues $ 331,946 $ 204,190 EBITDA (A) Well Site Services $ 32,123 $ 23,758 Offshore Products 7,744 1,459 Tubular Services 15,401 3,975 Corporate / Other (2,780) (1,377) Total EBITDA $ 52,488 $ 27,815 Operating Income / (Loss) Well Site Services $ 24,602 $ 17,520 Offshore Products 5,268 (798) Tubular Services 15,145 3,767 Corporate / Other (2,801) (1,391) Total Operating Income $ 42,214 $ 19,098
Oil States International, Inc. Consolidated Balance Sheets (in thousands)
Mar. 31, 2005 Dec. 31, 2004 ------------- ------------- (unaudited) (audited) Assets Current assets Cash $ 21,188 $ 19,740 Accounts receivable 214,766 198,297 Inventory 230,712 209,825 Prepaid and other current assets 6,019 7,322 Total current assets 472,685 435,184 Property, plant and equipment, net 242,686 227,343 Goodwill 272,014 258,046 Other intangible assets, net 7,111 7,108 Other long term assets 6,669 5,931 Total assets $ 1,001,165 $ 933,612 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued liabilities $ 143,695 $ 159,265 Income taxes payable 10,226 5,821 Current debt 576 228 Deferred revenue 27,798 25,420 Other current liabilities 438 2,296 Total current liabilities 182,733 193,030 Long term debt 219,323 173,887 Deferred income taxes 32,299 28,871 Other liabilities 7,708 7,800 Total liabilities 442,063 403,588 Stockholders' equity Common stock 499 496 Additional paid-in capital 343,691 338,906 Retained earnings 193,469 168,180 Accumulated other comprehensive income 21,760 22,759 Treasury stock (317) (317) Total stockholders' equity 559,102 530,024 Total liabilities and stockholders' equity $ 1,001,165 $ 933,612
Oil States International, Inc. Additional Quarterly Segment and Operating Data (unaudited)
Three Months Ended March 31, ---------------------------- 2005 2004 ------------ ------------ Additional Well Site Services Financial Data ($ in thousands) Revenues Accommodations $ 83,194 $ 62,474 Hydraulic Workover Services 8,490 7,634 Rental Tools 19,057 15,374 Land Drilling 16,854 10,658 Total Revenues $ 127,595 $ 96,140 EBITDA (A) Accommodations $ 19,838 $ 15,453 Hydraulic Workover Services 1,021 772 Rental Tools 5,889 4,534 Land Drilling 5,375 2,999 Total EBITDA $ 32,123 $ 23,758 Operating Income Accommodations $ 17,092 $ 13,161 Hydraulic Workover Services 74 (183) Rental Tools 3,263 2,317 Land Drilling 4,173 2,225 Total Operating Income $ 24,602 $ 17,520 Well Site Services Supplemental Operating Data Accommodations Operating Statistics Average Mandays Served 9,225 9,567 Average Camps Rented Canadian Side-by-Side Camps 64 56 US Offshore Steel Buildings (10 foot wide) 119 75 Hydraulic Workover Services Operating Statistics Average Units Available 30 30 Utilization 33.5% 27.0% Average Day Rate ($ in thousands per day) $ 9.4 $ 10.3 Average Daily Cash Margin ($ in thousands per day) $ 1.9 $ 2.1 Land Drilling Operating Statistics Average Rigs Available 23 17 Utilization 86.0% 90.0% Implied Day Rate ($ in thousands per day) $ 9.6 $ 7.9 Implied Daily Cash Margin ($ in thousands per day) $ 3.3 $ 2.4 Offshore Products Backlog ($ in millions) $ 99.8 $ 76.9 Tubular Services Operating Data Shipments (Tons in thousands) 82.0 67.3 Quarter end Inventory ($ in thousands) $ 141,989 $ 59,757
Oil States International, Inc. Reconciliation of GAAP to Non-GAAP Financial Information (in thousands) (unaudited)
Three Months Ended March 31, ---------------------------- 2005 2004 ------------ ------------ Net income $ 25,289 $ 16,157 Income tax expense 14,788 1,520 Depreciation and amortization 10,228 8,572 Interest income (131) (81) Interest expense 2,314 1,647 EBITDA $ 52,488 $ 27,815
SOURCE Oil States International, Inc. -0- 04/27/2005 /CONTACT: Cindy B. Taylor of Oil States International, Inc., +1-713-652-0582/ /Web site: http://www.oilstatesintl.com / -----END PRIVACY-ENHANCED MESSAGE-----