HOUSTON, Aug. 4, 2009 (GLOBE NEWSWIRE) -- T-3 Energy Services, Inc. (Nasdaq:TTES) reported second quarter 2009 net income of $4.9 million, or $0.38 per diluted share. For the first quarter of 2009, net income was $3.8 million, or $0.30 per diluted share, which included pre-tax charges for separation and acquisition costs of $4.2 million, or $0.22 per diluted share after tax. Excluding these items, net income and diluted earnings per share for the first quarter of 2009 were $6.6 million, or $0.52 per diluted share.
Revenues for the second quarter decreased 11.2% to $55.7 million from $62.8 million in the first quarter of 2009. During the quarter, industry declines and the seasonal spring break-up in Canada caused average worldwide rig counts to decrease at more than twice this rate, or 25%. For the quarter, revenues on items destined for delivery to customer locations outside the United States represented 61% of total revenues, which is sequentially up from 56% and reflects the Company's continued success in international markets.
Net bookings for the quarter were $41.8 million compared with $46.1 million in the prior quarter, and backlog decreased to $45.4 million at June 30 versus $59.4 million at March 31, 2009. Gross margins were 37% for the second quarter of 2009, compared to 38% for the first quarter.
Steve Krablin, T-3 Energy's Chairman, President and Chief Executive Officer commented, "Even though our revenues continued to decline during the second quarter, we maintained our focus on operating efficiencies, international sales and working capital management. As a result, we produced healthy margins by reducing our global workforce and shifting manufacturing to lower cost facilities, particularly our facility in India. We also continue to have success selling into the offshore and international land markets, which remain relatively strong. During the quarter, we reduced our debt by approximately $18 million and, as of today, we have zero debt outstanding under our senior credit facility.
"Subsequent to the end of the quarter, industry activity and Company bookings appear to be stabilizing or even improving modestly. In this environment, we anticipate that overall Company revenues will approximate bookings over the next 2-3 quarters. One exception to this is our wellhead business unit, which should increase revenues by several million dollars related to an international order that we expect to complete and ship during the third quarter."
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.
Except for historical information, statements made in this release, including those relating to potential future revenues, bookings, cash flow, backlog and growth 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", "should" 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 or revise 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 June 30, 2009, June 30, 2008 and March 31, 2009. 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.
