(OMNI ENERGY SERVICES CORP. LOGO) NEWS RELEASE Nasdaq: OMNI
- --------------------------------------------------------------------------------
4500 NE Evangeline Thwy o Carencro, LA 70520
Phone 337-896-6664 o Fax 337-896-6655
FOR IMMEDIATE RELEASE NO. 04-15
FOR MORE INFORMATION CONTACT: G. Darcy Klug, Chief Financial Officer
PHONE: (337) 896-6664
OMNI REPORTS FIRST QUARTER PROFIT
Revenues Jump 85%, Cash Flow From Operations Up 70% Despite Start-Up Costs and
Poor Weather Conditions
CARENCRO, LA - MAY 17, 2004 - OMNI ENERGY SERVICES CORP. (NASDAQ NM:
OMNI), reported today net income of $0.1 million ($0.01 per diluted share) on
revenues of $11.5 million for the three month period ended March 31, 2004. This
compares to a net loss of $0.01 million, or ($0.01) per diluted share, for the
three month period ended March 31, 2003 on revenues of $6.2 million. Cash flow
from operations (operating income plus depreciation and amortization) totaled
$1.7 million, a 70% improvement over the $1.0 million of operating cash flow
reported for the same three month period ended March 31, 2003.
Including preferred stock dividends of $0.5 million, OMNI reported a
net loss applicable to common and common equivalent shares of ($0.04) per
diluted share for the first quarter of 2004. There were no preferred stock
dividends for the same three-month period ended March 31, 2003. The Company
previously announced the redemption of all of its Series A Preferred Stock and
most of its Series B Preferred Stock.
OMNI's improved first quarter operating results were partially offset
by substantial "start-up" costs associated with the commencement of the
Company's aviation contract with W&T Offshore. The Company also reported its
improved results were achieved in spite of abnormally poor weather conditions
during a significant portion of the quarter. The first quarter is generally the
Company's most difficult operating period due to normally poor weather
conditions and the shorter working days of the winter months.
"We are very pleased with our first quarter results in spite of poor
weather conditions and higher than normal operating expenses," said James C.
Eckert, Chief Executive Officer. "Shorter work days and the normal permit delays
associated with the winter months make the first quarter generally our slowest
and most difficult three month operating period. This quarter was no exception -
February was as 'wet' a month as we've experienced in a long time," continued
Eckert. "Reporting a first quarter operating profit with impressive revenue
increases in each of our business segments and strong cash flow bodes well for
OMNI," added Eckert. "Our seismic drilling backlog remains strong. Our aviation
division has commenced the long awaited W&T Offshore contract and now, we've
received certification from the Federal Aviation Administration to transport
'ten (10) or more' passengers . This new approval significantly enhances our
aviation revenue base by dramatically extending the services we can offer our
customers," said Eckert. "By coupling our strong operating results with our
increased liquidity, we remain confident we will achieve the record levels of
profitability and cash flows previously anticipated for 2004. Further, we are
well positioned to decrease debt and capitalize on a number of significant
strategic business opportunities, which are now presenting themselves for
imminent consideration," concluded Eckert. "As I have stated in earlier
comments, OMNI is poised for strong strategic growth which should provide added
shareholder value as we move through 2004. Our management team is confident of
its abilities and the needed dynamics to accomplish our operating goals."
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 dependence on activity in the oil and gas industry, labor
shortages, international expansion, dependence on significant customers,
seasonality and weather risks, competition, technological evolution, the outcome
of the pending litigation and other risks detailed in the Company's filings with
the Securities and Exchange Commission.
OMNI ENERGY SERVICES CORP.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
<Table>
<Caption>
Three Months Ended March 31,
-------------------------------
2004 2003
----------- -----------
(unaudited) (unaudited)
Operating revenue $ 11,496 $ 6,207
Operating expenses 9,490 5,158
-------- --------
Gross profit 2,006 1,049
General and administrative expenses 1,477 1,060
-------- --------
Operating income (loss) 529 (11)
Interest expense 415 210
Other income (expense) (29) 6
-------- --------
Income (loss) before taxes 85 (215)
Income taxes -- (100)
-------- --------
Net income (loss) 85 (115)
Preferred stock dividends (485) --
-------- --------
Net loss applicable to common and common equivalent shares $ (400) $ (115)
======== ========
Basic earnings (loss) per common share:
Net income (loss) $ 0.01 $ (0.01)
Net loss applicable to common and common equivalent shares $ (0.04) $ (0.01)
Diluted earnings (loss) per common share:
Net income (loss) $ 0.01 $ (0.01)
Net loss applicable to common and common equivalent shares $ (0.04) $ (0.01)
Weighted average shares outstanding:
Basic 9,966 8,740
Diluted 10,666 8,740
</Table>