Allis-Chalmers Energy Inc. (NYSE:ALY) today reported results for
the second quarter of 2010. Revenues for the second quarter of 2010
increased 41.0% to $158.6 million compared to $112.5 million for
the second quarter of 2009 and Adjusted EBITDA increased 159% in
the quarter to $27.2 million compared to $10.5 million for the
second quarter of 2009. Allis-Chalmers reported a net loss
attributed to common stockholders for the second quarter of 2010 of
$6.0 million, or $0.08 per diluted share, compared to a net loss of
$125,000, or $0.00 per diluted share in the second quarter of 2009.
Results for the second quarter of 2010 included the impact of a
strike in Argentina which negatively affected pre-tax income by an
estimated $1.7 million. Results for the second quarter of 2009
included a $26.4 million pre-tax gain on debt extinguishment.
Revenues for the first six months of 2010 increased 16.1% to
$299.0 million compared to $257.6 million for the first six months
of 2009. Allis-Chalmers reported a net loss attributed to common
stockholders for the first six months of 2010 of $16.2 million, or
$0.23 per diluted share, compared to a net loss of $2.7 million, or
$0.08 per diluted share for the first six months of 2009. Results
for the first six months of 2010 included the impact of a strike in
Argentina which negatively affected pre-tax income by an estimated
$1.7 million. Results for the first six months of 2009 included a
pre-tax gain of $26.4 million from the extinguishment of debt.
EBITDA and Adjusted EBITDA are non-GAAP financial measures that
are not necessarily comparable from one company to another and
additional information and discussion regarding EBITDA and Adjusted
EBITDA are provided later in this release.
Weighted average shares of common stock outstanding on a diluted
basis increased to 71.3 million for the second quarter of 2010
compared to 37.0 million for the second quarter of 2009.
Micki Hidayatallah, Allis-Chalmers’ Chairman and Chief Executive
Officer, stated, “We have seen significant improvement in our
performance compared to the challenging environment which existed
in the first half of 2009. Since the second quarter of 2009 our
total revenues have increased sequentially in each of the past four
quarters, and our Adjusted EBITDA is up 159% from the second
quarter of 2009 and up 23.6% compared to the first quarter of 2010.
Our Oilfield Services segment revenues increased 25.5% in the
second quarter compared to the first quarter of 2010 led by
improved utilization and pricing in our directional drilling and
coiled tubing business lines. We have successfully focused our
resources on the strongest U.S. onshore markets, including the
Marcellus, Haynesville and Eagle Ford shale plays.”
Mr. Hidayatallah continued, “Revenues for our Rental Services
segment increased sequentially by 5.7% compared to the first
quarter of 2010, due to our emphasis on providing the highest
quality equipment for the onshore unconventional gas market, where
pricing and equipment utilization is the most favorable. Even prior
to the U.S. Gulf of Mexico blowout, Allis-Chalmers has been
proactive in diversifying from the U.S. offshore market and
responding to market demands with strategic initiatives such as: 1)
redeploying rental equipment to Egypt, Saudi Arabia and Brazil, 2)
investing in equipment that is in strong demand in the U.S. land
shale plays, and 3) embarking on an aggressive plan to recertify
our existing inventory of blowout preventers (BOPs) so that we can
maintain our competitive strength in providing certified BOPs both
offshore in the Gulf of Mexico and onshore in the U.S. In the third
quarter we expect to have Rental Services facilities in
Pennsylvania to serve the Marcellus shale activity and in Macae,
Brazil to serve the offshore market with our large diameter drill
pipe and patented deepwater landing string system.”
Mr. Hidayatallah concluded, “As a result of improved pricing and
rig utilization in Argentina and new contracts in Bolivia, our
Drilling and Completion segment achieved a 29.1% increase in
operating income compared to the first quarter of 2010. This is a
remarkable achievement considering labor disruptions in Argentina
during the second quarter which had a $2.1 million negative impact
on revenues and an estimated $1.7 million negative impact on
pre-tax income. We expect strong utilization of our drilling rigs
in Argentina and Bolivia for the remainder of 2010.”
Segment Results for Second
Quarter 2010
- Oilfield Services.
Revenues for the quarter ended June 30, 2010 for the Oilfield
Services segment were $49.7 million, an increase of 68.7% compared
to $29.5 million in revenues for the quarter ended June 30, 2009.
Income from operations increased $12.3 million and resulted in
income from operations of $2.1 million for the second quarter of
2010 compared to a loss from operations of $10.3 million in the
second quarter of 2009. Our Oilfield Services segment revenues and
operating income for the second quarter of 2010 increased compared
to the second quarter of 2009 due to increased drilling activity in
the U.S. which resulted in increased demand and improved pricing
for our services. The loss from operations in the second quarter of
2009 includes $868,000 of costs related to the closing of
unprofitable locations and downsizing other locations in our
Oilfield Services segment. In addition, in the second quarter of
2009 we recorded bad debt expenses of $2.4 million as a result of
decreased oil and natural gas prices and the financial difficulties
some of our customers faced in 2009.
- Drilling and Completion.
Revenues for the quarter ended June 30, 2010 for the Drilling and
Completion segment were $96.0 million, an increase of 41.6%
compared to $67.8 million in revenues for the quarter ended June
30, 2009. Income from operations increased to $7.1 million in the
second quarter of 2010 compared to $403,000 in the second quarter
of 2009. This increase was due to: 1) improved rig utilization and
rig rates in Argentina and Bolivia during the three months ended
June 30, 2010, 2) a $1.9 million non-cash loss recorded in the
three months ended June 30, 2009 on an asset disposition, and 3)
$329,000 of costs incurred to consolidate operating locations in
Brazil in the second quarter of 2009. Partially offsetting the
improved results in the second quarter of 2010 was decreased rig
utilization and pricing in Brazil and an increase in depreciation
expense of $1.0 million.
- Rental Services. Revenues
for the quarter ended June 30, 2010 for the Rental Services segment
were $12.9 million, a decrease from $15.2 million in revenues for
the quarter ended June 30, 2009. Our Rental Services segment
generated a loss from operations of $831,000 in the second quarter
of 2010 compared to $588,000 of operating income in the second
quarter of 2009. The decrease in revenues and income from
operations is due to the decrease in utilization of rental
equipment due to a decline in drilling activity in the U.S. Gulf of
Mexico. Our income from operations in the second quarter of 2009
included $800,000 of bad debt expense due to the financial
difficulties some of our customers faced in 2009, and $235,000 of
costs related to closing a rental yard and reducing our work
force.
Conference Call
Allis-Chalmers has scheduled a conference call to be held on
Tuesday, August 3, 2010 at 11:00 am Eastern time, 10:00 am Central
time. The call will be web cast live on the Internet through the
Investor Relations page on the Allis-Chalmers’ website. To
participate by telephone, call 888-771-4350 domestically or
847-585-4343 internationally ten minutes prior to the start time.
The confirmation number is 27580357. Participants may pre-register
for the call at the following link and will be issued a new phone
number and a PIN number to use when dialing into the live call
which will provide quick access to the conference by bypassing the
operator upon connection.
http://www.yourconferencecenter.com/r.aspx?p=1&a=UebagyntXrjKdX
A telephonic replay will be available through August 10, 2010
and may be accessed by calling 888-843-8996 domestically or
630-652-3044 internationally, and using the passcode 7540224#. The
call will be available for replay through Allis-Chalmers’ website
one hour after the conference ends.
About
Allis-Chalmers
Allis-Chalmers Energy Inc. is a Houston-based multi-faceted
oilfield services company. Allis-Chalmers provides services and
equipment to oil and natural gas exploration and production
companies, domestically primarily in Texas, Louisiana, New Mexico,
Oklahoma, Arkansas, offshore in the Gulf of Mexico, and
internationally, primarily in Argentina, Brazil and Mexico.
Allis-Chalmers provides directional drilling services, casing and
tubing services, underbalanced drilling, production and workover
services with coiled tubing units, rental of drill pipe and
blow-out prevention equipment, and international drilling and
workover services. For more information, visit our website at
http://www.alchenergy.com or request future press releases via
email at
http://www.b2i.us/irpass.asp?BzID=1233&to=ea&s=0.
Forward-Looking
Statements
This press release contains forward-looking statements (within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934) regarding
Allis-Chalmers' business, financial condition, results of
operations and prospects. Words such as expects, anticipates,
intends, plans, believes, seeks, estimates and similar expressions
or variations of such words are intended to identify
forward-looking statements, but are not the exclusive means of
identifying forward-looking statements in this press release.
Although forward-looking statements in this press release
reflect the good faith judgment of our management, such statements
can only be based on facts and factors that our management
currently knows. Consequently, forward-looking statements are
inherently subject to risks and uncertainties, and actual results
and outcomes may differ materially from the results and outcomes
discussed in the forward-looking statements. Factors that could
cause or contribute to such differences in results and outcomes
include, but are not limited to, demand for oil and natural gas
drilling services in the areas and markets in which Allis-Chalmers
operates, competition, obsolescence of products and services, the
ability to obtain financing to support operations, environmental
and other casualty risks, and the effect of government
regulation.
Further information about the risks and uncertainties that may
affect our business are set forth in our most recent filings on
Form 10-K (including without limitation in the "Risk Factors"
section) and in our other SEC filings and publicly available
documents. We urge readers not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Allis-Chalmers undertakes no obligation to revise or
update any forward-looking statements in order to reflect any event
or circumstance that may arise after the date of this press
release.
Use of EBITDA and Adjusted
EBITDA & Regulation G Reconciliation
This press release contains references to EBITDA, a non-GAAP
financial measure that complies with federal securities regulations
when it is defined as net income (the most directly comparable GAAP
financial measure) before interest, taxes, depreciation and
amortization. Allis-Chalmers defines EBITDA accordingly for the
purposes of this press release. We also utilize Adjusted EBITDA as
a supplemental financial measurement in the evaluation of our
business. We have defined Adjusted EBITDA for the purposes of this
press release to mean EBITDA plus stock compensation expense.
However, EBITDA and Adjusted EBITDA, as used and defined by
Allis-Chalmers, may not be comparable to similarly titled measures
employed by other companies and is not a measure of performance
calculated in accordance with GAAP. Neither EBITDA nor Adjusted
EBITDA should be considered in isolation or as a substitute for
operating income, net income or loss, cash flows provided by
operating, investing and financing activities, or other income or
cash flow statement data prepared in accordance with GAAP. However,
we believe EBITDA and Adjusted EBITDA are useful to an investor in
evaluating our operating performance because these measures:
- are widely used by investors in
the energy industry to measure a company’s operating performance
without regard to the items excluded from EBITDA, which can vary
substantially from company to company depending upon accounting
methods and book value of assets, capital structure and the method
by which assets were acquired, among other factors;
- help investors to more
meaningfully evaluate and compare the results of our operations
from period to period by removing the effect of our capital
structure and asset base from our operating results; and
- are used by our management for
various purposes, including as a measure of operating performance,
in presentations to our board of directors, as a basis for
strategic planning and forecasting, as a component for setting
incentive compensation, and to assess compliance in financial
ratios.
There are significant limitations to using EBITDA and Adjusted
EBITDA as a measure of performance, including the inability to
analyze the effect of recurring and non-recurring items that are
excluded from EBITDA and materially affect net income or loss,
results of operations, and the lack of compatibility of the results
of operations of different companies. Reconciliations of these
financial measures to net income, the most directly comparable GAAP
financial measure, are provided in the table below.
Reconciliation of EBITDA and
Adjusted EBITDA to GAAP Net Income
($ in millions)
For the ThreeMonths EndedJune
30,
For the SixMonths EndedJune
30,
2010 2009 2010 2009 Net loss $ (5.4 ) $ (0.1 )
$ (14.9 ) $ (2.7 ) Depreciation and amortization 21.7 20.4 43.0
40.9 Interest expense, net 10.9 13.2 21.7 26.7 Income taxes
(benefit) (1.6 ) 0.2 (5.2 ) (2.7
) EBITDA 25.6 33.7 44.6 62.2 Stock compensation expense (non-cash)
1.6 1.3 3.0 2.3
Non-cash loss on sale of
investment/ asset disposition
- 1.9 1.5 1.9 Gain on debt extinguishment -
(26.4 ) - (26.4 ) Adjusted EBITDA $ 27.2 $
10.5 $ 49.1 $ 40.0 ALLIS-CHALMERS ENERGY INC CONSOLIDATED CONDENSED
STATEMENTS OF OPERATIONS (in thousands, except per share amounts)
(unaudited) For the Three Months Ended June 30,
For the Six Months Ended June 30, 2010 2009 2010
2009 Revenues $ 158,644 $ 112,505 $ 299,014 $
257,608 Operating costs and expenses Direct costs 120,723
87,239 228,438 190,373 Depreciation and Amortization 21,673 20,368
43,017 40,926 Selling, general and administrative expense 12,114
15,525 24,177 29,165 Loss on asset dispositions -
1,916 - 1,916 Total
operating costs and expenses 154,510 125,048
295,632 262,380 Income
(loss) from operations 4,134 (12,543 ) 3,382 (4,772 ) Other
income (expense) Interest expense (11,149 ) (13,221 ) (22,105 )
(26,728 ) Interest income 299 9 454 14 Gain on debt extinguishment
- 26,365 - 26,365 Other (303 ) (485 ) (1,818 )
(268 ) Total other income (expense) (11,153 )
12,668 (23,469 ) (617 ) Net income
(loss) before income taxes (7,019 ) 125 (20,087 ) (5,389 )
Income tax benefit 1,640 (215 ) 5,177
2,694 Net loss (5,379 ) (90 ) (14,910 )
(2,695 ) Preferred stock dividend (637 ) (35 )
(1,274 ) (35 ) Net loss attributed to common
stockholders $ (6,016 ) $ (125 ) $ (16,184 ) $ (2,730 ) Net
loss per common share: Basic $ (0.08 ) $ - $ (0.23 ) $ (0.08
) Diluted $ (0.08 ) $ - $ (0.23 ) $ (0.08 ) Weighted
average shares outstanding: Basic 71,270
36,959 71,149 36,087 Diluted
71,270 36,959 71,149
36,087 ALLIS-CHALMERS ENERGY INC. CONSOLIDATED
CONDENSED BALANCE SHEETS (in thousands) June 30,
December 31, 2010 2009 (unaudited) ASSETS Cash
and cash equivalents $ 17,569 $ 41,072 Trade receivables, net
130,904 105,059 Inventories 36,920 34,528 Deferred income tax asset
2,727 3,790 Prepaid expenses and other 7,667 13,799
Total current assets 195,787 198,248 Property and equipment,
net 733,334 746,478 Goodwill 40,639 40,639 Other intangible assets,
net 30,337 32,649 Debt issuance costs, net 8,628 9,545 Deferred
income tax asset 33,900 22,047 Other assets 37,949
31,014 Total assets $ 1,080,574 $ 1,080,620
LIABILITIES AND STOCKHOLDERS' EQUITY Current maturities of
long-term debt $ 18,596 $ 17,027 Trade accounts payable 45,592
34,839 Accrued salaries, benefits and payroll taxes 24,799 22,854
Accrued interest 15,969 15,821 Accrued expenses 25,743
21,918 Total current liabilities 130,699 112,459
Deferred income tax liability 8,136 8,166 Long-term debt, net of
current maturities 470,623 475,206 Other long-term liabilities
676 1,142 Total liabilities 610,134 596,973
Commitments and Contingencies Stockholders' Equity Preferred
stock 34,183 34,183 Common stock 724 714 Capital in excess of par
value 425,790 422,823 Retained earnings 9,743 25,927
Total stockholders' equity 470,440 483,647
Total liabilities and stockholders' equity
$
1,080,574 $ 1,080,620 ALLIS-CHALMERS ENERGY INC. SEGMENT
INFORMATION (Unaudited) For the Three Months Ended June 30,
For the Six Months Ended June 30, 2010 2009 2010 2009
Revenue Oilfield Services $ 49,730 $ 29,473 $ 89,365 $
73,923 Drilling and Completion 95,977 67,792 184,477 146,938 Rental
Services 12,937 15,240 25,172
36,747 $ 158,644 $ 112,505 $
299,014 $ 257,608 Operating income (loss)
Oilfield Services $ 2,055 $ (10,277 ) $ 507 $ (11,490 ) Drilling
and Completion 7,053 403 12,515 8,912 Rental Services (831 ) 588
(1,741 ) 4,536 General corporate (4,143 ) (3,257 )
(7,899 ) (6,730 ) $ 4,134 $ (12,543 ) $ 3,382
$ (4,772 ) Depreciation and amortization Oilfield
Services $ 7,883 $ 7,433 $ 15,697 $ 14,748 Drilling and Completion
6,498 5,463 12,826 10,720 Rental Services 7,226 7,395 14,364 15,299
General corporate 66 77 130
159 $ 21,673 $ 20,368 $ 43,017
$ 40,926 Capital expenditures Oilfield
Services $ 6,968 $ 4,028 $ 11,031 $ 8,060 Drilling and Completion
6,100 39,069 11,841 43,708 Rental Services 5,851 935 7,752 6,191
General corporate 312 3 365
34 $ 19,231 $ 44,035 $ 30,989
$ 57,993
Allis-Chalmers Energy (NYSE:ALY)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Allis-Chalmers Energy (NYSE:ALY)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024