Oil States Announces Fourth Quarter Earnings Of $0.94 Per Share Before Transaction Costs

HOUSTON, Feb. 17, 2011 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE:OIS) reported net income for the quarter ended December 31, 2010 of $44.0 million, or $0.82 per diluted share, compared to $39.9 million, or $0.78 per diluted share, in the fourth quarter of 2009. During the fourth quarter of 2010, the Company completed the $725 million acquisition of The MAC Service Group Limited, a leading provider of remote site accommodations to the Australian natural resources industries, along with two other strategic acquisitions, incurring approximately $6.3 million ($0.11 per diluted share after-tax) of transaction related expenses and $0.9 million ($0.01 per diluted share after-tax) of interest expense prior to closing. Excluding these transaction costs, the Company earned fourth quarter 2010 net income of $50.6 million, or $0.94 per diluted share, and $105.7 million of Adjusted EBITDA on revenues of $696.8 million. EBITDA is defined as net income plus interest, taxes, depreciation and amortization. Adjusted EBITDA excludes goodwill impairments taken in 2009 and transaction costs incurred in the fourth quarter of 2010. (Please refer to the press release footnotes (A) and (D) for a reconciliation of EBITDA and Adjusted EBITDA, respectively.) These results compare to revenues of $528.7 million and EBITDA of $90.1 million in the fourth quarter of 2009.  The year-over-year improvements in revenues and EBITDA were primarily due to stronger North American drilling and completion activity partially offset by lower revenues and EBITDA from the offshore products segment due to lower backlog levels in 2010 compared to 2009. Consolidated operating income in the fourth quarter of 2010 was $67.6 million compared to $58.5 million for the corresponding quarter of 2009. 

"Our well site services businesses generated significantly improved results during the quarter, well in excess of the increase in U.S. drilling rig activity. Year-over-year revenue and EBITDA increased 70% and 134%, respectively, due to our proportionately higher revenue potential on horizontal well completions performed in the most active shale play regions," stated Cindy B. Taylor, Oil States' President and Chief Executive Officer.  "Oil sands activity remained strong given high occupancy levels at our oil sands lodges. Our offshore products business reported lower year-over-year results given its reduced backlog at the beginning of the period; however, order levels were exceptionally strong in the fourth quarter at $208 million, boding well for second half 2011 and 2012 activity for the segment."