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EXHIBIT 99.1
EVI ANNOUNCES THIRD QUARTER RESULTS
October 20, 1997, Houston, Texas - EVI, Inc. (NYSE-EVI) today announced income
from continuing operations of $23,094,000, or $.50 per share, on revenues of
$236,760,000 for the third quarter of 1997 compared to income from continuing
operations of $6,917,000, or $.16 per share, on revenues of $134,376,000 for
the third quarter of 1996. Operating income for the third quarter of 1997 was
$39,938,000 compared to $14,656,000 for the third quarter of 1996. The third
quarter results reflect continued strength in the Company's drilling products
segment as well as marked improvement in the operating performance of the
Company's production equipment segment.
Income from continuing operations for the nine months ended September 30, 1997,
was $56,501,000, or $1.23 per share, on revenues of $612,868,000 compared to
income from continuing operations of $13,710,000, or $.35 per share, on
revenues of $323,639,000 for the nine months ended September 30, 1996.
Operating income for the nine months ended September 30, 1997, was $92,147,000
versus $33,118,000 for the nine months ended September 30, 1996.
Operating income at the Company's drilling products segment increased to
$34,587,000 on revenues of $169,515,000 for the 1997 third quarter up from
$13,866,000 on revenues of $99,549,000 for the 1996 third quarter. Results in
the drilling products segment reflect increased sales of drill pipe and other
drilling tools, continued strength in the premium tubular market and the
Company's third quarter acquisition of XL Systems, the Company's marine
connector division.
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Shipments of the Company's drill pipe and related drilling tools continue to
increase. Compared to the second quarter of 1997, total shipments increased by
approximately 6% in the third quarter of 1997. Premium tubular revenues
increased to approximately $80 million during the 1997 third quarter up from
approximately $52 million for the third quarter of 1996. The increase in
premium tubular revenues reflects continued strength in the Gulf of Mexico and
the April 1997 acquisition of TA Industries. Total revenues at the Company's
recently acquired marine connector business, XL Systems, were approximately $9
million in the 1997 third quarter. The Company believes that XL Systems
technologies provide a high performance and cost effective alternative to
existing technologies currently dominating the marine connector business.
Operating income at the Company's production equipment segment was $7,238,000
for the third quarter of 1997 compared to $2,419,000 for the third quarter of
1996. Operating margins at the division improved to 10.8% in the current
quarter up from 6.9% for the 1996 third quarter and 8.0% in the second quarter
of 1997. Total revenues for the segment nearly doubled from $34,827,000 for
the third quarter of 1996 to $67,245,000 for the third quarter of 1997. The
increase in revenues was primarily attributable to the Company's acquisitions
of Arrow Completion Systems, Griffin Legrand and McAllister Petroleum Services,
all completed during the past nine months. The increase in operating income
and margins reflect the benefits of these acquisitions as well as improvements
in the segment's domestic cost structure. In addition, the Company continues
to benefit from strong growth in the Canadian and South American markets, in
particular for the Company's Corod and progressing cavity pump product lines.
The Company recently announced proposed acquisitions of BMW Monarch and BMW
Pump. These acquisitions when completed will expand the Company's presence in
the Canadian progressing cavity pump market. The Company believes that
progressing cavity pumps, with
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their low initial capital costs, high efficiency rates and overall versatility
are the fastest growing form of artificial lift in the world today. The Company
recently began construction of a new progressing cavity pump manufacturing
facility in Edmonton, Canada, which is expected to be completed during the
fourth quarter of 1998. The Company currently expects that the production from
this plant should have a positive impact on both the manufacturing cost of
progressing cavity pumps and the Company's ability to expand the markets it
currently serves.
This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 concerning, among other
things, EVI's prospects and development for its operations and the integration
of recent and proposed acquisitions, all of which are subject to certain risks,
uncertainties and assumptions. These risks and uncertainties, which are more
fully described in EVI's Annual, Quarterly and Current Reports filed with the
Securities and Exchange Commission, include changes in market conditions in the
oil and gas industry as well as declines in prices of oil and gas. Should one
or more of these risks or uncertainties materialize, or should the assumptions
prove incorrect, actual results may vary in material aspects from those
currently anticipated.
EVI is an international manufacturer of engineered oilfield products. The
Company manufactures drilling tools, premium tubulars, production equipment and
marine connectors.
Contact:
James G. Kiley
Vice President and
Chief Financial Officer
(713) 297-8400
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EVI, Inc.
Consolidated Condensed Statements of Operations
(In 000's Except Per Share Amounts)
Three Months Ended
September 30,
------------------------- %
1997 1996 Change
-------- -------- ------
Net Revenues:
Drilling Products $169,515 $ 99,549 70%
Production Equipment 67,245 34,827 93%
-------- -------- ----
236,760 134,376 76%
-------- -------- ----
Operating Income:
Drilling Products 34,587 13,866 149%
Production Equipment 7,238 2,419 199%
Corporate Expenses (1,887) (1,629) --
-------- -------- ----
39,938 14,656 173%
Other Income (Expense):
Other, Net 505 130
Interest Expense (4,914) (4,145)
-------- --------
Income Before Income Taxes 35,529 10,641
Provision For Income Taxes 12,435 3,724
-------- --------
Income From Continuing Operations 23,094 6,917
Income From Discontinued Operations, Net of Taxes -- 2,842
Extraordinary Charge, Net of Taxes -- --
-------- --------
Net Income $ 23,094 $ 9,759
======== ========
Earnings Per Share:
Income From Continuing Operations $ 0.50 $ 0.16 213%
Income From Discontinued Operations -- 0.07
Extraordinary Charge -- --
-------- --------
Net Income Per Share $ 0.50 $0.23
======== ========
Weighted Average Shares Outstanding 46,460 43,026
======== ========
Depreciation and Amortization:
Drilling Products $ 5,324 $ 3,035
Production Equipment 2,283 1,186
Corporate 27 20
-------- --------
$ 7,634 $ 4,241
======== ========
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EVI, Inc.
Consolidated Condensed Statements of Operations
(In 000's Except Per Share Amounts)
Nine Months Ended
September 30,
-------------------------
1997 1996 Change
-------- -------- ------
Net Revenues:
Drilling Products $439,401 $228,985 92%
Production Equipment 173,467 94,654 83%
-------- -------- ---
612,868 323,639 89%
-------- -------- ---
Operating Income:
Drilling Products 81,953 31,706 158%
Production Equipment 15,590 6,083 156%
Corporate Expenses (5,396) (4,671) --
-------- -------- ---
92,147 33,118 178%
Other Income (Expense):
Other, Net 8,028 238
Interest Expense (13,080) (12,265)
-------- --------
Income Before Income Taxes 87,095 21,091
Provision For Income Taxes 30,594 7,381
-------- --------
Income From Continuing Operations 56,501 13,710
Income From Discontinued Operations, Net of Taxes -- 6,190
Extraordinary Charge, Net of Taxes -- (731)
-------- --------
Net Income $ 56,501 $ 19,169
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Earnings Per Share:
Income From Continuing Operations $ 1.23 $ 0.35 251%
Income From Discontinued Operations -- 0.16
Extraordinary Charge -- (0.02)
-------- --------
Net Income Per Share $ 1.23 $ 0.49
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Weighted Average Shares Outstanding 45,961 39,056
======== ========
Depreciation and Amortization:
Drilling Products $ 13,315 $ 7,421
Production Equipment 6,750 3,848
Corporate 67 63
-------- --------
$ 20,132 $ 11,332
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