W-H Energy Services Announces First Quarter 2008 Results
W-H Energy Services, Inc. (NYSE:WHQ) posted first quarter net income of $37.1 million or $1.18 per share as compared to the $35.8 million or $1.16 per share reported for the same period in the prior year. In the preceding quarter, the Company reported net income of $36.8 million or $1.18 per share.
The Company projects that earnings per share will range from $1.20 to $1.25 for the quarter ending June 30, 2008.
Revenues for the first quarter of $301.0 million were 10 percent higher than the first quarter of 2007 and were 3 percent higher than the preceding quarter. Domestic revenues increased 14 percent as compared to the first quarter of last year and were 4 percent higher than the preceding quarter. International revenues decreased 13 percent as compared to the first quarter of last year and were 6 percent lower than the preceding quarter.
QUARTERLY SEGMENT RESULTS
Drilling
Revenues in the drilling segment were $194.3 million in the first quarter, 8 percent higher than the comparable period in the prior year and 1 percent higher than the preceding quarter. Operating income of $37.6 million was 4 percent lower than the comparable period in the prior and the preceding quarter.
Completion and workover
First quarter revenues in the completion and workover segment were $106.7 million, 14 percent higher than the comparable period in the prior year and 6 percent higher than the preceding quarter. Operating income of $28.4 million recorded in the first quarter was 10 percent higher than the comparable period in the prior year and 8 percent higher than the preceding quarter.
W-H Energy is a diversified oilfield service company that provides products and services used in connection with the drilling and completion of oil and natural gas wells and the production of oil and natural gas. The Company has operations in North America and select areas internationally.
Statements in this press release that are not strictly historical are “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward-looking statements due to, among other things, the current and expected future prices of crude oil and natural gas, the level of exploration, development and production activity of, and the corresponding capital spending by, our customers, risks associated with events that result in personal injuries, loss of life, damage to or destruction of property, equipment or the environment and suspension of operations, unavailability of or costs associated with insurance, competition in our industry, difficulty in continuing to develop, produce and commercialize technologically advanced products and services, loss of use of certain technologies and weather conditions in offshore markets. These and other risks are more fully described in W-H Energy Services, Inc.’s Annual Report filed on Form 10-K with the Securities and Exchange Commission. The Company disclaims any obligation to update the statements in this press release.
W-H ENERGY SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended March 31,
Three Months Ended
2008
2007
December 31, 2007
Revenues
$
300,968
$
272,887
$
293,376
Costs and Expenses:
Cost of revenues
164,038
147,419
161,055
Selling, general and administrative
46,170
43,280
44,336
Research and development
6,094
4,716
5,239
Depreciation and amortization
23,317
17,552
22,155
Total costs and expenses
239,619
212,967
232,785
Operating income
61,349
59,920
60,591
Other (income) expenses:
Interest expense, net
2,408
1,993
2,163
Other (income) expense, net
(8
)
29
(7
)
Income before income taxes
58,949
57,898
58,435
Provision for income taxes
21,889
22,074
21,634
Net income
$
37,060
$
35,824
$
36,801
Earnings per common share:
Basic
$
1.21
$
1.19
$
1.21
Diluted
$
1.18
$
1.16
$
1.18
Weighted average shares outstanding:
Basic
30,575
30,076
30,536
Diluted
31,312
30,868
31,290
W-H ENERGY SERVICES, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
March 31, 2008
December 31, 2007
Assets:
Cash and cash equivalents
$
28,122
$
23,076
Accounts receivable, net
262,400
252,313
Inventory
112,069
102,584
Other current assets
24,332
28,880
Total current assets
426,923
406,853
Property and equipment, net
483,992
448,913
Other assets
192,308
151,264
Total assets
$
1,103,223
$
1,007,030
Liabilities and Shareholders’ Equity:
Accounts payable and accrued liabilities
$
117,590
$
116,815
Total current liabilities
117,590
116,815
Long-term debt (1)
210,744
150,000
Other liabilities
81,920
84,687
Total liabilities
410,254
351,502
Shareholders’ equity
692,969
655,528
Total liabilities and shareholders’ equity
$
1,103,223
$
1,007,030
(1) As of March 31, 2008, there was approximately $154.7 million available under the Company’s revolving credit facility.
W-H ENERGY SERVICES, INC.UNAUDITED SEGMENTED AND SELECTED FINANCIAL DATA(in thousands)
For the Three Months Ended:
March 31, 2008
December 31, 2007
September 30, 2007
June 30, 2007
March 31, 2007
SEGMENTED INFORMATION:
Revenue:
Drilling
$
194,253
$
192,555
$
187,456
$
179,141
$
179,261
Completion and workover
106,715
100,821
95,536
98,611
93,626
Total revenue
$
300,968
$
293,376
$
282,992
$
277,752
$
272,887
Depreciation and amortization:
Drilling
$
14,063
$
13,737
$
12,542
$
11,600
$
10,573
Completion and workover
9,190
8,352
7,825
7,493
6,933
Corporate
64
66
50
69
46
Total depreciation and amortization
$
23,317
$
22,155
$
20,417
$
19,162
$
17,552
Operating income:
Drilling
$
37,593
$
39,272
$
40,114
$
41,307
$
38,982
Completion and workover
28,447
26,318
21,726
26,032
25,852
Corporate
(4,691
)
(4,999
)
(5,147
)
(4,584
)
(4,914
)
Total operating income
$
61,349
$
60,591
$
56,693
$
62,755
$
59,920