-----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, HHdpu3lFBH1F9Kv89GZttfj6qAzK0mtaMcwrwdDM4fWWLOAvlhPenxTtlSl5sOiV Ieg9Ezp6qjKebzVm7qMDxQ== 0000899243-03-000991.txt : 20030516 0000899243-03-000991.hdr.sgml : 20030516 20030430173151 ACCESSION NUMBER: 0000899243-03-000991 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030423 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030430 DATE AS OF CHANGE: 20030516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BJ SERVICES CO CENTRAL INDEX KEY: 0000864328 STANDARD INDUSTRIAL CLASSIFICATION: OIL, GAS FIELD SERVICES, NBC [1389] IRS NUMBER: 630084140 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10570 FILM NUMBER: 03674408 BUSINESS ADDRESS: STREET 1: 5500 NW CENTRAL DR CITY: HOUSTON STATE: TX ZIP: 77210 BUSINESS PHONE: 7134624239 MAIL ADDRESS: STREET 1: 5500 NORTHWEST CENTRAL DR STREET 2: 5500 NORTHWEST CENTRAL DR CITY: HOUSTON STATE: TX ZIP: 77092 8-K 1 d8k.txt CURRENT REPORT ON FORM 8-K =============================================================================== UNITED STATES 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 23, 2003 BJ SERVICES COMPANY (Exact name of registrant as specified in the charter) Delaware 001-10570 63-0084140 (State or other jurisdiction (Commission File Number) (I.R.S. Employer of incorporation) Identification No.) 5500 Northwest Central Drive Houston, Texas 77092 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (713) 462-4239 =============================================================================== ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. The following exhibits are filed herewith pursuant to Item 9: Exhibit No. Description of Exhibit ----------- ---------------------- 99.1 News Release dated April 23, 2003 with respect to BJ Services Company's financial results for the second quarter ended March 31, 2003. ITEM 9. REGULATION FD DISCLOSURE (INCLUDING ITEM 12 INFORMATION). News Release Announcing Second Quarter Results. This information, furnished under this "Item 9. Regulation FD Disclosure," is intended to be provided under "Item 12. Results of Operations and Financial Condition," in accordance with U.S. Securities and Exchange Commission Release No. 33-8216. On April 23, 2003, BJ Services Company issued a news release announcing second quarter results for the period ended March 31, 2003. A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated by reference in this Item 9. The information in this report is being furnished, not filed, pursuant to Item 12 of Form 8-K. Accordingly, the information in Item 12 of this report will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. Forward-looking information. In addition, on April 23, 2003, at 9:00 a.m. Central Time, following the news release, the Company held a conference call regarding the second quarter results. During the conference call, management of BJ Services Company indicated that it expects to achieve earnings per share of between $.28 and $.31 for its third fiscal quarter and between $1.15 and $1.20 for its fiscal year ending September 30, 2003. It also indicated that it expects to achieve earnings per share of between $1.30 TO $1.40 for the 2003 calendar year. The publicly announced conference call was available via real-time webcast and is available for replay on the Company's website at www.bjservices.com. This report contains forward-looking statements within the meaning of the Securities Litigation Reform Act that involve risks and uncertainties, including oil and gas price volatility, variations in demand for our services, operational and other risks, and other factors described from time to time in the Company's publicly available SEC reports, which could cause actual results to differ materially from those indicated in the forward-looking statements. In this report, the words "expect," "estimate," "project," "believe," "achievable" and similar words are intended to identify forward-looking statements. 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. BJ SERVICES COMPANY By: /s/ Margaret Shannon ------------------------------------- Name: Margaret Shannon Title: Vice President--General Counsel and Secretary Date: April 30, 2003 EX-99.1 3 dex991.txt NEWS RELEASE DATED APRIL 23, 2003 Exhibit 99.1 INVESTOR RELATIONS BJ SERVICES REPORTS SECOND QUARTER EARNINGS HOUSTON, April 23 /PRNewswire-FirstCall/ -- BJ Services Company (NYSE: BJS; PCX; CBOE) reported net income of $44.8 million ($.28 per diluted share) for its fiscal quarter ended March 31, 2003. Financial Results (in millions, except per share amounts) 3 Months Ended 3/31/03 12/31/02 3/31/02 Revenue $534.6 $473.1 $442.4 Net Income $44.8 $33.5 $39.0 Diluted Earnings Per Share $0.28 $0.21 $0.24 Consolidated revenue increased 13% sequentially, with US/Mexico Pressure Pumping Services up 10%, International Pressure Pumping Services up 22%, and Other Oilfield Services up 3%. Compared to prior year's second quarter, consolidated revenue increased 21%. US/Mexico Pressure Pumping Services revenue increased 12% and International Pressure Pumping Services increased 17%. Revenues from Other Oilfield Services were up 74% over the prior year, due primarily to the addition of completion fluids and completion tools service lines acquired with OSCA in May 2002. Operating income margins improved to 13.4% from 11.5% reported in the first fiscal quarter. This was due to strong incremental results from the Company's North American operations. Compared to the prior year's second quarter, operating income margins declined from 13.7% due primarily to price declines in the US market. Interest expense, net was flat sequentially and increased $3.3 million from the prior year's second quarter as a result of the issuance of convertible debt used to finance the OSCA acquisition. Capital spending was $36.7 million for the quarter. Cash as of March 31, 2003 was $122.0 million. Debt (net of cash) to total capitalization was 19.6% at the end of March, down from 21.7% at the end of December. U.S./Mexico Pressure Pumping Revenue The Company's US/Mexico pressure pumping revenue increased 10% sequentially as favorable commodity prices led the average U.S. drilling rig count during the quarter up 6% to 901 rigs. Also contributing to the revenue improvement was continued activity increase in Mexico. Compared to the second quarter of the prior year, revenue increased 12% consistent with a 10% increase in rig activity. During the quarter, 83% of the rigs were drilling for natural gas, the same percentage as last year. International Pressure Pumping Revenue Canadian revenue increased 87% sequentially on the strength of a 74% increase in rig activity. International revenue excluding Canada increased 3% sequentially as activity gains in the U.K., West Africa, Malaysia, Argentina, and Russia more than offset the impact of the strike in Venezuela. Compared to the second quarter of the prior year, Canadian revenue increased 21%. While rig activity was up 29%, higher levels of shallow gas drilling contributed to slightly lower revenue per rig. International revenue excluding Canada increased 15% year-over-year led by improved activity in the North Sea, West Africa, Malaysia, New Zealand, Brazil and Russia. Other Oilfield Services Revenue from the Company's Other Oilfield Services (completion fluids, completion tools, process and pipeline services, tubular services and production chemicals) increased 3% sequentially as a 20% increase in both the completion fluids and completion tools service lines were offset by seasonal and project declines in the tubular services and process and pipeline services. Compared to the second quarter of the prior year, revenue for these services increased 74% due to the addition of the completion fluids and completion tools service lines acquired with OSCA. Process and pipeline services and production chemicals also contributed to the year-over-year increase. CEO Stewart Comments Chairman and CEO Bill Stewart commented, "Our second fiscal quarter was one of good financial performance for the Company. Sequentially, we experienced good revenue improvement with solid incremental profit contribution. The revenue improvement was better than earlier projected as drilling rig activity levels exceeded our expectation for both the U.S. and Canadian markets. The long hoped for drilling rig activity increase in the U.S. began to materialize during the quarter resulting in an increase in 100 rigs drilling over the course of the quarter." "Looking forward, the North American natural gas fundamentals are strong and we expect the U.S. market activity to continue to improve into the summer. We also expect a normal seasonal decline in Canadian activity which will offset some of the activity increase gains expected in the U.S. market for the quarter. Accordingly, we believe earnings will be in the $.28 to $.31 range for our third fiscal quarter and in the $1.15 to $1.20 range for the fiscal year ending September 30, 2003." Conference Call The Company has scheduled a conference call today to discuss the results of today's earnings announcement. The call will begin at 9:00 a.m. Central Time. To participate in the conference call, please phone 719/457-2642, ten minutes prior to the start time and give the conference code number 294701. If you are unable to participate, the conference call will be available for playback three hours after its conclusion. The playback number is 719/457-0820 and the replay entry code is 294701. Playback will be available for three days. The conference call will also be available via real-time webcast at www.bjservices.com. Playback of the webcast will be available for seven days following the conference call. CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) Three Months Ended Six Months Ended 3/31/03 3/31/02 3/31/03 3/31/02 (In thousands except per share data) Revenue $534,580 $442,388 $1,007,704 $952,449 Operating Expenses: Cost of sales and services 415,031 342,232 790,764 706,595 Research and engineering 10,365 8,784 19,679 17,598 Marketing 18,345 14,884 35,474 30,668 General and administrative 18,947 15,940 35,322 31,956 Total operating expenses 462,688 381,840 881,239 786,817 Operating income 71,892 60,548 126,465 165,632 Interest expense, net 3,397 111 6,879 1,633 Other expense, net 2,113 508 3,619 1,084 Income before income taxes 66,382 59,929 115,967 162,915 Income taxes 21,574 20,975 37,689 57,020 Net income $44,808 $38,954 $78,278 $105,895 Earnings Per Share: Basic $0.28 $0.25 $0.50 $0.67 Diluted $0.28 $0.24 $0.49 $0.66 Average Shares Outstanding: Basic 157,813 156,491 157,692 157,249 Diluted 160,985 160,125 160,833 160,476 Supplemental Data: Depreciation and amortization 29,530 25,174 57,992 49,612 Capital expenditures 36,664 42,560 70,915 96,063 U.S./Mexico Pressure Pumping Revenue 232,156 207,300 444,138 480,426 International Pressure Pumping Revenue 217,671 186,493 396,551 373,421 Other Oilfield Services Revenue 84,753 48,595 167,015 98,602 Interest-bearing debt 494,058 83,246 This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act that involve risks and uncertainties, including price volatility, operational and other risks, and other factors described from time to time in the Company's publicly available SEC reports, which could cause actual results to differ materially from those indicated in the forward-looking statements. In this press release, the words "expect," "estimate," "project," "believe," and similar words are intended to identify forward-looking statements. BJ Services Company is a leading provider of pressure pumping and other oilfield services to the petroleum industry. SOURCE BJ Services Company -----END PRIVACY-ENHANCED MESSAGE-----