(Source: PrimeNewswire)
HOUSTON, May 1, 2009 (GLOBE NEWSWIRE) -- T-3 Energy Services, Inc. (Nasdaq:TTES) reported first quarter 2009 income from continuing operations of $3.8 million, or $0.30 per diluted share, which included pre-tax charges for severance-related costs of $3.9 million, or $0.20 per diluted share after tax, and for acquisition-related costs of $0.3 million, or $0.02 per diluted share after tax. For the fourth quarter of 2008, net loss was ($8.7) million, or ($0.69) per diluted share, which included a goodwill impairment charge of $23.5 million, or $1.62 per diluted share after tax and a non-operating tax benefit of ($0.9) million, or ($0.07) per diluted share after tax, related to the deductibility of strategic alternatives costs. Excluding these separately highlighted items above, net income from continuing operations and diluted earnings per share for the first quarter of 2009 were $6.6 million, or $0.52 per diluted share, compared to $10.9 million, or $0.86 per diluted share for the fourth quarter of 2008.
Revenues for the first quarter of 2009 decreased 20.2% to $62.8 million from $78.6 million in the fourth quarter of 2008. These revenue decreases are in line with average worldwide rig counts, which decreased 21% during the quarter. International revenues represented 56% of total revenues, which is sequentially up from 46%, approximating the proportional shift in industry activity.
Net bookings for the quarter were $46.1 million compared with $60.5 million in the prior quarter, and backlog decreased to $59.4 million at March 31, 2009, versus $76.1 million at December 31, 2008. Gross margins were 38% for the first quarter of 2009, compared to 39% for the fourth quarter of 2008.
Excluding the previously mentioned severance, acquisition and goodwill impairment costs, operating income for the quarter was $10.2 million compared with $16.2 million in the fourth quarter of 2008. The decrease represents a 38% decremental margin.
Steve Krablin, T-3 Energy's Chairman, President and Chief Executive Officer commented, "T-3 has excellent international brand acceptance, a strong balance sheet and good cash flow. Our current results reflect the continuing worldwide drilling activity decline, and we are actively adjusting our cost structure in response. We also intend to focus on our non-capital products and services and further expand our international presence. We do not expect our markets to improve during 2009, but we intend to stay committed to offering exceptional service and products to our customers and to expanding our product offerings."
T-3 Energy Services, Inc. provides a broad range of oilfield products and services primarily to customers in the drilling and completion of new oil and gas wells, the workover of existing wells and the production and transportation of oil and gas.
Certain comments contained in this news release concerning the anticipated financial results of the Company constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Whenever possible, the Company has identified these "forward-looking" statements by words such as "believe", "encouraged", "expect", "expected" and similar phrases. The forward-looking statements are based upon management's expectations and beliefs and, although these statements are based upon reasonable assumptions, actual results might differ materially from expected results due to a variety of factors including, but not limited to, overall demand for and pricing of the Company's products, changes in the level of oil and natural gas exploration and development, and variations in global business and economic conditions. The Company assumes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. For a discussion of additional risks and uncertainties that could impact the Company's results, review the T-3 Energy Services, Inc. Annual Report on Form 10-K for the year ended December 31, 2008 and other filings of the Company with the Securities and Exchange Commission.
Non-GAAP Financial Measures. Certain information discussed in this news release is not generally accepted accounting principles, or non-GAAP, financial measures. See the Supplementary Data - Schedule 1 in this news release for the corresponding reconciliations to GAAP financial measures for the quarters ended March 31, 2009, March 31, 2008 and December 31, 2008. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results.
T-3 ENERGY SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) Three Months Ended ---------------------------- March 31, ------------------ Dec.
