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EXHIBIT 99.1
EVI ANNOUNCES RECORD FOURTH QUARTER RESULTS
February 2, 1998, Houston, Texas - EVI, Inc. (NYSE-EVI) today announced income
from continuing operations of $27,194,000, or $.58 per basic share ($.57
diluted), on revenues of $279,396,000 for the fourth quarter of 1997 compared
to income from continuing operations of $10,795,000, or $.24 per basic share
($.23 diluted), on revenues of $154,381,000 for the fourth quarter of 1996.
Operating income for the fourth quarter of 1997 was $47,727,000 compared to
$13,169,000 for the fourth quarter of 1996. Operating profit margins more than
doubled year over year in each of the Company's business segments. The results
of the quarter reflect the positive impact of acquisitions completed during the
past two years, significant increases in drilling tool volume and the effect of
cost reduction programs initiated in 1996.
Income from continuing operations for the year ended December 31, 1997 was
$83,695,000, or $1.81 per basic share ($1.77 diluted), on revenues of
$892,264,000 compared to income from continuing operations of $24,505,000, or
$.60 per basic share ($.59 diluted), on revenues of $478,020,000 for the year
ended December 31, 1996.
Operating income at the Company's drilling products segment increased to
$39,727,000 on revenues of $179,454,000 for the 1997 fourth quarter up from
$12,688,000 on revenues of $113,545,000 for the 1996 fourth quarter. The
drilling products segment benefited from revenue increases in each of its main
product lines. Total drill pipe shipped in the 1997 quarter totaled 2,483,000
feet, a 34% increase from 1996 levels. With a current backlog in excess of
$320 million, the Company expects to ship between 2.4 million and 2.7 million
feet of drill pipe in each quarter of 1998. Revenues from the engineered
connection product line increased by approximately $36,000,000 from the fourth
quarter of 1996 to the fourth quarter of 1997. The improvement in engineered
connection revenues is attributed to strength in Gulf of Mexico activity as
well as the 1997 acquisition of TA Industries, the Company's premium accessory
business.
Operating income at the Company's production equipment segment was $9,913,000
for the fourth quarter of 1997 compared to $2,154,000 for the fourth quarter of
1996. The improvement in operating income is a result of manufacturing cost
saving programs initiated at its domestic artificial lift operations, revenue
increases in the Corod product line and the impact of five significant
acquisitions completed during the year. The Company expects that operating
margins will continue to show improvement year-on-year due to the ongoing
integration of acquisitions, the positive impact of productivity enhancing
capital expenditures, and the recent start-up of a new continuous rod plant in
Canada and a packer facility in Brazil. For 1998, product line rationalization
and manufacturing consolidation will dominate the activities of the production
equipment segment. The Company is focused on successfully integrating all 1997
acquisitions by the end of 1998.
In December 1997, the Company completed a tender for its $120,000,000 Senior
Notes due 2004. The Company was successful in repurchasing 99.9% of the Senior
Notes outstanding. The prepayment of the Senior Notes resulted in an
extraordinary charge, net of taxes, of $9,010,000, or $.19 per basic share in
the fourth quarter.
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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 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 the effect of changes 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, engineered connections, subsea equipment
and production tools.
Contact:
James G. Kiley
Vice President and
Chief Financial Officer
(713) 297-8440
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EVI, Inc.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In 000's Except Per Share Amounts)
Three Months Ended
December 31,
---------------------- %
1997 1996 Change
--------- --------- ------
Net Revenues:
Drilling Products $ 179,454 $ 113,545 58%
Production Equipment 99,942 40,836 145%
--------- --------- ---
279,396 154,381 81%
--------- --------- ---
Operating Income:
Drilling Products 39,727 12,688 213%
Production Equipment 9,913 2,154 360%
Corporate Expenses (1,913) (1,673) --
--------- --------- ---
47,727 13,169 262%
Other Income (Expense):
Other, Net 1,756 1,475
Interest Expense (7,924) (4,189)
--------- ---------
Income Before Income Taxes 41,559 10,455
Provision (Benefit) For Income Taxes 14,365 (340)
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Income From Continuing Operations 27,194 10,795
Income From Discontinued Operations, Net of Taxes -- 1,278
Gain on Disposal of Discontinued Operations, Net of Taxes -- 66,924
Extraordinary Charge, Net of Taxes (9,010) --
--------- ---------
Net Income $ 18,184 $ 78,997
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Basic Earnings Per Share:
Income From Continuing Operations $ 0.58 $ 0.24 142%
Income From Discontinued Operations -- 0.03
Gain on Disposal of Discontinued Operations -- 1.46
Extraordinary Charge (0.19) --
--------- ---------
Net Income Per Share $ 0.39 $ 1.73
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Basic Weighted Average Shares Outstanding 47,087 45,634
========= =========
Diluted Earnings Per Share:
Income From Continuing Operations $ 0.57 $ 0.23 148%
Income From Discontinued Operations -- 0.03
Gain on Disposal of Discontinued Operations -- 1.43
Extraordinary Charge (0.19) --
--------- ---------
Net Income Per Share $ 0.38 $ 1.69
========= =========
Diluted Weighted Average Shares Outstanding 48,111 46,609
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Depreciation and Amortization:
Drilling Products $ 6,296 $ 3,625
Production Equipment 3,201 1,794
Corporate 25 20
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$ 9,522 $ 5,439
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EVI, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In 000's Except Per Share Amounts)
Year Ended
December 31,
---------------------- %
1997 1996 Change
--------- --------- ------
Net Revenues:
Drilling Products $ 618,855 $ 342,530 81%
Production Equipment 273,409 135,490 102%
--------- --------- ---
892,264 478,020 87%
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Operating Income:
Drilling Products 123,810 44,394 179%
Production Equipment 25,503 8,237 210%
Corporate Expenses (7,309) (6,344) --
--------- --------- ---
142,004 46,287 207%
Other Income (Expense):
Other, Net 9,784 1,713
Interest Expense (23,134) (16,454)
--------- ---------
Income Before Income Taxes 128,654 31,546
Provision For Income Taxes 44,959 7,041
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Income From Continuing Operations 83,695 24,505
Income From Discontinued Operations, Net of Taxes -- 7,468
Gain on Disposal of Discontinued Operations, Net of Taxes -- 66,924
Extraordinary Charge, Net of Taxes (9,010) (731)
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Net Income $ 74,685 $ 98,166
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Basic Earnings Per Share:
Income From Continuing Operations $ 1.81 $ 0.60 202%
Income From Discontinued Operations -- 0.18
Gain on Disposal of Discontinued Operations -- 1.65
Extraordinary Charge (0.19) (0.02)
--------- ---------
Net Income Per Share $ 1.62 $ 2.41
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Basic Weighted Average Shares Outstanding 46,243 40,706
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Diluted Earnings Per Share:
Income From Continuing Operations $ 1.77 $ 0.59 200%
Income From Discontinued Operations -- 0.18
Gain on Disposal of Discontinued Operations -- 1.62
Extraordinary Charge (0.19) (0.02)
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Net Income Per Share $ 1.58 $ 2.37
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Diluted Weighted Average Shares Outstanding 47,367 41,489
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Depreciation and Amortization:
Drilling Products $ 23,610 $ 11,046
Production Equipment 9,951 5,642
Corporate 92 83
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$ 33,653 $ 16,771
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