Best Energy Services Announces 2008 Year-End Results and Comments on 2009 Objectives and Expectations
Management to Host Conference Call and Web Cast Tomorrow at
Financial Highlights:
- Total revenues were
$21.8 million .- Well service revenue (BWS) totaled
$16.9 million . - Drilling service revenue (BBD) was
$3.9 million . - Portable rig housing revenue (American Rig Housing) was
$778,000 . - Mud logging revenue, a new service division launched in the third quarter of this year, totaled
$182,000 .
- Well service revenue (BWS) totaled
- Net loss was
$7.6 million including the following non-cash or non-recurring costs:- Amortization and depreciation of
$3.3 million ; - Non-cash interest expense of
$3.4 million ; - Write-off of
$920,000 of deferred financing costs associated with the reclassification of the amounts owed under the Credit Facility to current liabilities; - Accrued but unpaid deferred executive compensation of
$1.0 million ; - Non-cash stock-based compensation of
$300,000 ; and - Non-recurring cash costs of
$400,000 and$1.2 million of non-cash costs attributable largely to the completion of the Best Well and Beeman acquisitions and asset purchase of American Rig Housing.
- Amortization and depreciation of
- Net loss attributable to common shareholders, after accounting for a preferred dividend of
$766,000 , was approximately$8.4 million , or$0.43 per basic and diluted share. - As of
December 31, 2008 , the Company had$3.9 million in cash and accounts receivables and total shareholders’ equity of$9.3 million .
On
Commenting on the results,
Continuing, Harrington said, “These are enormously challenging times. We are working diligently to meet those challenges through tight cost management at all business unit levels and at the corporate level. Subsequent to the end of 2008 and in response to the severe industry downturn in workover activity, we reduced BWS’ day rates by 10%, positioning us as a low-cost service provider in the Hugoton basin region. Consequently, we have seen our market share increase from approximately 38% as of the end of the third quarter 2008, to over 70% currently. This, however, is with utilization varying between six and ten rigs at any one time. With negligible employee turnover, optimized operating efficiencies, pricing that is 30% less than our major competitors, and a branded market presence recognized and respected by our coveted customer base, we believe that BWS provides our Company with a sound platform for growth over the next several years.”
“In 2009, we will focus our BBD activities largely on water well drilling and drilling opportunities in the potash market, and selected opportunities in shallow oil and gas and minerals exploration within a 300 mile radius of our
“Our housing accommodations division will continue to focus on its core competency, which is building steel cased housing units and renting refurbished trailer units for use on oil and gas project sites. In addition, under-utilized American Rig assets will be refurbished to support our new geologic services division. To date, seven units have been refurbished for mud logging use,” concluded Harrington.
Management will also host a teleconference tomorrow afternoon beginning at
About Best Energy Services, Inc.
Based in
Certain statements contained in this press release, which are not based on historical facts, are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to substantial uncertainties and risks in part detailed in the respective Company’s Securities and Exchange Commission filings, that may cause actual results to materially differ from projections. Although the Company believes that its expectations are reasonable assumptions within the bounds of its knowledge of its businesses, expectations, representations and operations, there can be no assurance that actual results will not differ materially from their expectations. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the Company’s ability to execute properly its business model, to raise additional capital to implement its continuing business model, the ability to attract and retain personnel – including highly qualified executives, management and operational personnel, ability to negotiate favorable current debt and future capital raises, and the inherent risk associated with a diversified business to achieve and maintain positive cash flow and net profitability. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will, in fact, occur.
FOR MORE INFORMATION, PLEASE CONTACT
Elite Financial Communications Group/Elite Media Group
Dodi B. Handy, President and CEO
407-585-1080 or via email at BEYS@efcg.net
SOURCE Best Energy Services, Inc.