BEST ENERGY SERVICES ANNOUNCES FIRST QUARTER 2009 RESULTS
Management to Host Conference Call and Webcast Tomorrow at 4:15 PM ET
HOUSTON – (PR NEWSWIRE) – May 20, 2009 – Best Energy Services, Inc. (OTCBB:BEYS), a U.S. energy production equipment and services provider, today announced its first quarter 2009 results for the three month-period ended March 31, 2009.
Highlights for the Three Months Ended March 31, 2009 Compared to the Three Months Ended April 30, 2008:
· | Total revenues were $2.83 million, a 34% decrease from $4.29 million. |
o | Well service revenues declined 52% to $1.88 million from $3.87 million due largely to the general economic downturn affecting the domestic oil and gas industry. |
o | Drilling service revenues climbed 175% to $829,000 from $301,000. |
o | Geological service revenues, reflecting combined sales of mud logging services and housing accommodations, rose 8.6% to $120,000 from $111,000. |
· | Due largely to continued cost-cutting initiatives and strict expense discipline, total operating costs and expenses decreased 34% to $3.90 million, down from $5.85 million. |
o | General and administrative expenses declined 64% to $679,000 from $1.88 million. Included in the $679,000 was $353,000 of non-cash stock-based compensation. |
o | Business unit operating expenses fell 58% to $540,000 from $1.28 million. |
· | Net loss totaled $1.40 million, or $0.07 loss per basic and diluted share, a 68% decrease from $4.41 million, or $0.26 loss per basic and diluted share. |
· | Net cash provided by Best’s operating activities totaled $1.39 million, as compared to $1.68 million in net cash used by the Company’s operating activities. |
Mark Harrington, Chairman and CEO of Best Energy Services, stated, “As covered during our April conference call held to discuss our 2008 year-end results, the economic downturn in the domestic workover services market took a harsh toll starting in January of this year and has been slow to recover. Conversely, our drilling services division enjoyed a very good first three months of this year, helping to mitigate the negative financial impact we would have otherwise suffered. Through continued execution of our ‘Management by Competence’ initiative, our business units are closely collaborating to optimize our marketing activities and to capitalize on further increasing our market share in the regions and industries we serve.”
Continuing, Harrington said, “It should be noted that late in the first quarter, we were hampered by inclement weather in Kansas, which continued into much of April. More recently, however, we have been encouraged by several indications that point to the workover services market strengthening and our financial performance improving in the coming quarters.”
The Company will host a teleconference tomorrow, Thursday, May 21, 2009, beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the first quarter financial results, key growth strategies and other meaningful developments at Best Energy. The conference call can be accessed via telephone by dialing toll free 1-877-941-1427 or via the web at www.BEYSinc.com. For those unable to participate at that time, a replay of the webcast will be available for 90 days on www.BEYSinc.com.
FINANCIAL CHARTS TO FOLLOW
Best Energy Services, Inc.
Consolidated Balance Sheets
(Unaudited)
ASSETS | March 31, 2009 | December 31, 2008 | ||||||
Current assets | ||||||||
Cash | $ | 109,246 | $ | 249,330 | ||||
Accounts receivable, net of allowance for doubtful accounts of $105,485 and $106,237, respectively | 1,950,462 | 3,602,118 | ||||||
Prepaid and other current assets | 158,083 | 123,053 | ||||||
Total current assets | 2,217,791 | 3,974,501 | ||||||
Property and equipment, net | 29,946,306 | 30,877,472 | ||||||
Deferred financing costs, net | 194,454 | - | ||||||
Goodwill and other intangible assets | 7,557,309 | 7,557,309 | ||||||
TOTAL ASSETS | $ | 39,915,860 | $ | 42,409,282 | ||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 221,129 | $ | 678,834 | ||||
Bank overdraft | 48,974 | - | ||||||
Current portion of accrued officer compensation | 135,000 | 140,000 | ||||||
Preferred stock dividends payable | 1,021,014 | 765,761 | ||||||
Current portion of loans payable | 1,417,705 | 21,802,193 | ||||||
Total current liabilities | 2,843,822 | 23,386,788 | ||||||
Accrued officer compensation, net of current portion | 380,000 | 410,000 | ||||||
Loans payable, net of current portion | 19,403,006 | 134,836 | ||||||
Deferred income taxes | 8,569,508 | 8,708,454 | ||||||
TOTAL LIABILITIES | 31,196,336 | 32,640,078 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Series A Preferred Stock, 2,250,000 shares authorized, 1,458,592 shares issued and outstanding, at redemption value of $10 per share | 14,585,920 | 14,585,920 | ||||||
Common stock, $0.001 par value per share; 90,000,000 shares authorized; 20,967,109 and 20,891,366 shares issued and outstanding, respectively | 20,967 | 20,891 | ||||||
Additional paid-in capital | 2,549,772 | 2,452,350 | ||||||
Retained deficit | (8,437,135 | ) | (7,289,957 | ) | ||||
Total stockholders’ equity | 8,719,524 | 9,769,204 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 39,915,860 | $ | 42,409,282 |
Best Energy Services, Inc.
Consolidated Statements of Operations
For the three months ended March 31, 2009 and April 30, 2008
(Unaudited)
Three months ended | |||||||||
March 31, 2009 | April 30, 2008 | ||||||||
Revenues | |||||||||
Well service revenue | $ | 1,877,389 | $ | 3,873,798 | |||||
Drilling service revenue | 828,559 | 301,087 | |||||||
Geological services revenue | 120,411 | 110,842 | |||||||
Total revenue | 2,826,359 | 4,285,727 | |||||||
Costs and expenses: | |||||||||
Direct cost of revenue | 1,735,940 | 1,973,668 | |||||||
Business unit operating expenses | 540,200 | 1,278,657 | |||||||
Depreciation and amortization | 934,017 | 719,521 | |||||||
General and administrative expense | 679,306 | 1,881,667 | |||||||
Total operating costs and expenses | 3,889,463 | 5,853,513 | |||||||
Loss from operations | (1,063,104 | ) | (1,567,785 | ) | |||||
Other income (expense): | |||||||||
Interest income | 752 | 19,111 | |||||||
Interest expense | (223,773 | ) | (2,857,487 | ) | |||||
Loss before provision for income taxes | (1,286,125 | ) | (4,406,161 | ) | |||||
Income tax | - | - | |||||||
Deferred income tax benefit | 138,947 | - | |||||||
Net loss | (1,147,178 | ) | (4,406,161 | ) | |||||
Preferred stock dividend | (255,254 | ) | - | ||||||
Net loss attributable to common shareholders | $ | (1,402,432 | ) | $ | (4,406,161 | ) | |||
Net loss per share – basic and diluted | $ | (0.07 | ) | $ | (0.26 | ) | |||
Weighted average common shares outstanding – basic and diluted | 20,942,971 | 16,956,702 |
About Best Energy Services, Inc.
Based in Houston, Texas, Best Energy Services, Inc. is a leading well service, drilling and ancillary services provider to the domestic oil, gas, water and mining industries. Through its subsidiaries, Best Well Service, Inc. and Bob Beeman Drilling Co., and its Housing Accommodations and Geological Services operations, the Company is actively engaged in supporting the exploration, production and recovery of oil, gas, water and mineral resources in Arizona, Colorado, Kansas, New Mexico, Nevada, Oklahoma, Texas, Utah and Wyoming. For more information, please visit www.BEYSinc.com.
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
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