NEWS RELEASE
(OMNI ENERGY SERVICES CORP. LOGO) Nasdaq: OMNI
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4500 NE Evangeline Thwy o Carencro, LA 70520 o Phone o 337-896-6664
o Fax 337-896-6655
FOR IMMEDIATE RELEASE NO. 04-09
FOR MORE INFORMATION CONTACT: G. Darcy Klug, Chief Financial Officer
PHONE: (337) 896-6664
OMNI'S NET INCOME FROM CONTINUING OPERATIONS UP 225% Revenues
Increase 33%; Cash Flow From Operations Up 30%
CARENCRO, LA - MARCH 25, 2004 - OMNI ENERGY SERVICES CORP. (NASDAQ NM:
OMNI) has reported net income from continuing operations of $3.9 million ($0.44
per diluted share) for the twelve months ended December 31, 2003, on revenues of
$37.1 million, a 225% increase over the $1.2 million ($0.14 per diluted share)
of net income from continuing operations, on revenues of $27.8 million, reported
for the twelve month period ended December 31, 2002. For the year ended 2003,
OMNI also reported operating income plus depreciation and amortization ("cash
flow from operations") of $7.4 million ($0.84 per diluted share), a 30% increase
over cash flow from operations of $5.7 million ($0.65 per diluted share)
reported for the year ended 2002.
With the effects of certain non-GAAP financial measures, as referenced
herein as "pro forma", to assist investors in better understanding the
comparative results of the Company's financial performance, OMNI reported net
income from continuing operations on a pro forma basis of $5.1 million ($0.58
per diluted share, see attached table), on revenues on a pro forma basis of
$46.7 million, with the inclusion of American Helicopters, Inc. for the entire
twelve-month period ended December 31, 2003. Additionally, OMNI reported cash
flow from operations on a pro forma basis of $9.2 million, including American
Helicopters, Inc. for the same twelve-month period ended December 31, 2003. OMNI
acquired American Helicopters, Inc. on November 20, 2003. The 2003 pro forma
results exclude the impact of the Company's recently announced award of a
certain multi-year aviation contract to provide transportation services in the
Gulf of Mexico.
The Company also reported a non-recurring charge of $0.4 million ($0.04
per diluted share) for the twelve months ended December 31, 2003 in connection
with discontinuing its operations in South America until market conditions
improve in that country. After preferred stock dividends of $0.5 million ($0.05
per diluted share), OMNI reported net income applicable to common and common
equivalent shares of $3.0 million ($0.34 per diluted share) in 2003, a 329%
improvement over the $0.7 million reported for 2002. OMNI previously announced
the redemption of substantially all of its Series A and Series B Preferred Stock
during the first quarter of 2004.
For the fourth quarter ended December 31, 2003, OMNI reported revenues
of $10.2 million; a 59% increase over the $6.4 million reported for the
three-month period ended December 31, 2002. From continuing operations, OMNI
reported net income of $1.0 million, or $0.10 per diluted share, for the three
months ended December 31, 2003, as compared to a loss of $(0.6) million, or
$(0.07) per diluted share, for the three months quarter ended December 31, 2002.
Cash flow from operations totaled $1.0 for the fourth quarter of 2003, as
compared to $0.3 for the fourth quarter of December 31, 2002.
"Our impressive 2003 performance resulted from continued attention to
our operating costs and administrative expenses and improved market conditions
in our core business segment, seismic drilling in the Transition Zone,"
commented James C. Eckert, Chief Executive Officer. "2003 was also marked with
crucial milestones in our aviation division. Through internal growth and
acquisitions, we have aggressively increased this core business segment. Our
objective is to develop this business segment into OMNI being recognized as a
leading provider of aviation transportation services in the shallow, offshore
waters of the Gulf of Mexico. Our efforts have been rewarded with the recent
signing of a five-year, $7 million contact to provide aviation transportation
services for an oil and gas company operating in the Gulf of Mexico.
"By restructuring and reshaping our balance sheet, realigning our
senior debt, and maximizing the use of our continually improving cash flow, we
are not only capable of capitalizing on strategic business opportunities, but we
anticipate reducing debt with excess cash flow. Further, by increasing our
profitability, OMNI's net operating tax loss carryforwards in excess of $30
million are becoming an increasingly valuable asset by reducing income taxes and
preserving cash. 2003 was a challenging year for OMNI. Our management team rose
to the occasion and has postured the company for continued stockholder value
enhancement. We are pleased with the market's reaction to our business
strategy," continued Eckert.
"The market remains difficult to accurately project future business
activity. Accordingly, we must remain focused on our original objective of
profitability and operating cash flow. To do this, we will maintain cost
constraints, maximize asset utilization and concentrate on employee efficiency,"
added Eckert. "We must continue expanding the services we provide to our
customers requiring us to pursue various strategic business opportunities. In
doing so, we will methodically explore and evaluate transactions, that not only
expand and complement our core businesses, but also add value and enhance these
same business segments. Certain opportunities are currently under consideration
which could present exciting opportunities for OMNI. We are committed to
continue as a leading provider of integrated services to the oil and gas
industry. By doing so, we believe we will provide the maximum, long-term value
for our stockholders," concluded Eckert.
Headquartered in Carencro, LA, OMNI Energy offers a broad range of
integrated services to geophysical companies engaged in the acquisition of
on-shore seismic data and through its aviation division, transportations
services to oil and gas companies operating in the shallow, offshore waters of
the Gulf of Mexico. The company provides its services through several business
units: Seismic Drilling, Helicopter Support, Permitting and Seismic Survey.
OMNI's services play a significant role with geophysical companies who have
operations in marsh, swamp, shallow water and the U.S. Gulf Coast also called
transition zones and contiguous dry land areas also called highland zones.
Forward-looking statements in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that all forward-looking statements involve risks
associated with OMNI's ability to close the new facilities referred to above,
OMNI's dependence on activity in the oil and gas industry, labor shortages,
international expansion, dependence on significant customers, seasonality and
weather risks, competition, technological evolution and other risks detailed in
the Company's filings with the Securities and Exchange Commission.
OMNI ENERGY SERVICES CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2001, 2002 AND 2003
<Table>
<Caption>
2001 2002 2003
------------- ------------- -------------
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Operating revenue ......................................................... $ 23,686 $ 27,796 $ 37,055
Operating expense ......................................................... 20,893 22,142 28,741
------------- ------------- -------------
Gross profit (loss) ....................................................... 2,793 5,654 8,314
General and administrative expense ........................................ 3,126 3,771 5,232
Asset impairment and other charges ........................................ 632 -- --
------------- ------------- -------------
Operating income (loss) ................................................... (965) 1,883 3,082
Interest expense .......................................................... 1,300 1,079 999
Other (income) expense .................................................... (7,929) (4) (167)
------------- ------------- -------------
Income (loss) before taxes ................................................ 5,664 808 2,250
Income tax benefit ........................................................ -- (400) (1,600)
------------- ------------- -------------
Net income (loss) from continuing operations .............................. 5,664 1,208 3,850
Discontinued operations ................................................... -- -- (367)
------------- ------------- -------------
Net income (loss) ......................................................... 5,664 1,208 3,483
Accretion of preferred stock and preferred stock dividends ................ (726) (484) (484)
------------- ------------- -------------
Net earnings (loss) applicable to common and common equivalent shares ..... $ 4,938 $ 724 $ 2,999
============= ============= =============
Basic income (loss) per common share:
Income from continuing operations ................................ $ 0.63 $ 0.14 $ 0.44
(Loss) from discontinued operations .............................. -- -- $ (0.04)
Net Income ....................................................... $ 0.63 $ 0.14 $ 0.40
Net Income applicable to common and common equivalent shares ..... $ 0.55 $ 0.08 $ 0.34
Diluted income (loss) per common share:
Income from continuing operations ................................ $ 0.58 $ 0.14 $ 0.44
(Loss) from discontinued operations .............................. -- -- $ (0.04)
Net Income ....................................................... $ 0.58 $ 0.14 $ 0.39
Net Income applicable to common and common equivalent shares ..... $ 0.50 $ 0.08 $ 0.34
Number of shares used in calculating earnings (loss) per share:
Basic ......................................................... 9,015 8,739 8,772
Diluted ....................................................... 9,844 8,745 8,828
</Table>
Set forth below is a reconciliation to GAAP measures of non-GAAP measures used
herein. These non-GAAP financial measures may not be comparable to similarly
titled measurements used by other companies and should not be used as a
substitute for net income, earnings per share or other GAAP operating
measurements. The results shown below for American Helicopters, Inc. ("AHI")
include results for January 1, 2002 through December 31, 2002 in the pro forma
information for December 31, 2002. The results shown below for American
Helicopters, Inc. ("AHI") include results for January 1, 2003 through
acquisition date of November 20, 2003 in the pro forma information for December
31, 2003.
RECONCILIATION OF HISTORICAL
GAAP BASIS RESULTS TO HISTORICAL
NON-GAAP BASIS INFORMATION:
(in thousands, except per share data)
<Table>
<Caption>
Unaudited
Twelve Months Ended
December 31,
2002 2003
------------- -------------
GAAP Revenues ........................................................ $ 27,796 $ 37,055
Plus: AHI Revenues .................................................. 8,815 9,599
------------- -------------
Pro Forma Revenues ................................................... $ 36,611 $ 46,654
============= =============
GAAP Net Income from Continuing Operations ........................... $ 1,208 $ 3,850
Plus: AHI Net Income from Continuing Operations ..................... 575 1,261
------------- -------------
Pro Forma Net Income from Continuing Operations ...................... $ 1,783 $ 5,111
============= =============
Pro Forma Earnings Per Share - Diluted ............................... $ 0.20 $ 0.58
============= =============
GAAP Net Income ...................................................... $ 1,208 $ 3,483
Plus: AHI Net Income ................................................ 575 1,261
------------- -------------
Pro Forma Net Income ................................................. $ 1,783 $ 4,744
============= =============
Pro Forma Earnings Per Share - Diluted ............................... $ 0.20 $ 0.54
============= =============
GAAP Cash Flow from Operations ....................................... $ 5,667 $ 7,381
Plus: AHI Cash Flow from Operations ................................. 993 1,793
------------- -------------
Pro Forma Cash Flow from Operations .................................. $ 6,660 $ 9,174
============= =============
Diluted Shares ....................................................... 8,745 8,828
</Table>