Coil Tubing Reports 2014 3rd Quarter Net Income and Financial Results
November 10 2014 - 8:56AM
Business Wire
Coil Tubing Technology, Inc. (OTCQB:CTBG), a leading provider of
enterprise-class coil tubing products and services, announced that
the Company has filed its Quarterly Report on Form 10-Q with the
Securities and Exchange Commission reporting results for the three
and nine months ended September 30, 2014.
During the third quarter of 2014, the Company realized net
income of $256,000 which was a direct result of tool sales to an
oil & gas service company in Mexico. Our revenues for the three
months ended September 30, 2014 were approximately $2,160,000
compared to $1,610,000 during the three months ended September 30,
2013, an increase of $550,000. Our overall revenues for the nine
months ended September 30, 2014 and 2013 were $5,073,000 and
$4,855,000, respectively. For the nine months we invested an
additional $771,000 in new tools and machinery in order to expand
our product lines and meet the demands of our international oil
service companies. Our customers who are international service
companies are currently developing South American opportunities (in
addition to Mexico) which we believe will positively impact our
revenue growth throughout the remainder of 2014 and into next
year.
The summary of our financial results are as follows:
- We had a net income of $256,000 for the
three months ended September 30, 2014, compared to a net loss of
$178,000 for the three months ended September 30, 2013, an increase
in net income of $434,000, representing a 244% improvement from the
prior period. The increase in third quarter net income was mainly
attributable to a $709,000 or 1,611% increase in product sales
during this quarter. For the nine months ended September 30, 2014
and 2013, our net losses were $324,000 and $418,000, respectively.
This overall decrease of $94,000 in net loss is related to an
increase in product sales.
- Basic and diluted net income (loss) per
share for the three months ended September 30, 2014 and 2013 were
$0.02 and ($0.01), respectively. Basic and diluted net loss per
share for the nine months ended September 30, 2014 and 2013 were
($0.02) and ($0.03), respectively.
- The Company reported a gross profit of
$1,178,000 for the three months ended September 30, 2014, as
compared to a gross profit of $770,000 for the three months ended
September 30, 2013; an increase of $408,000 or 53%. For the nine
months ended September 30, 2014 and 2013, gross profit was
$2,454,000 and $2,384,000, respectively, an increase of $70,000 or
3%. This increase mainly reflects an increase in the sale of our
coil tubing products.
- For the three months ended September
30, 2014 as compared to the same period in 2013, the Company
reported a decrease in operating expenses of $34,000 or 4%,
principally related to lower commission expenses which was offset
by higher litigation expenses. For the nine months ended September
30, 2014 as compared to the same period in 2013, operating expenses
decreased by $55,000 or 2%.
- The Company's working capital was
$2,523,000 at September 30, 2014. For the nine months ended
September 30, 2014, cash flow provided by operations was $817,000.
During the nine months ended September 30, 2014, the Company’s
principal investing activity was the purchase of rental tools and
equipment costing $771,000.
Mr. Jason Swinford, CEO of the Company, commented, "We are
beginning to see a positive trend in demand for our coil tubing
products with our international service customers in Mexico. The
new innovations in our coil tubing products have been designed to
meet the needs of both on and off shore drilling opportunities and
work over projects. We will continue to invest in the development
of new coil tubing tools for our customers and concurrently expand
into new sales territories.”
About Coil Tubing Technology
Coil Tubing Technology, Inc. is a fully reporting public
corporation located in Spring, Texas, and is the parent company of
Coil Tubing Technology Holdings, Inc., a Nevada corporation, which
in turn has three wholly-owned subsidiaries, Total Downhole
Solutions, Inc. (“TDS”) and Coil
Tubing Technology, Inc. (“CTT Texas”),
both Texas corporations and Coil Tubing Technology Canada Inc., an
Alberta, Canada corporation (“CTT
Canada”). The Company specializes in providing coil tubing
products and service solutions to oil and gas clients on a
regional, national and international basis. Its principals have
been in the tool rental business for more than 40 years. For more
information, please visit our website at
www.coiltubingtechnology.com or call 281-651-0200.
Forward-Looking Statements
This press release contains forward-looking statements,
including information about management’s view of the Company’s
future expectations, plans and prospects. In particular, when used
in the preceding discussion, the words "believes," "expects,"
"intends," "plans," "anticipates," or "may," and similar
conditional expressions are intended to identify forward-looking
statements. Any statements made in this news release other than
those of historical fact, about an action, event or development,
are forward-looking statements. Although the Company believes that
the expectations reflected in the forward-looking statements are
reasonable, it can give no assurance that its forward-looking
statements will prove to be correct. Such statements are subject to
a number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company. These risk factors and others
are included from time to time in documents the Company files with
the Securities and Exchange Commission, including but not limited
to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or
unpredictable factors also could have material adverse effects on
the Company's future results. The forward-looking statements
included in this press release are made only as of the date hereof.
The Company cannot guarantee future results, levels of activity,
performance or achievements. Accordingly, you should not place
undue reliance on these forward-looking statements. Finally, the
Company undertakes no obligation to update these statements after
the date of this release, except as required by law, and also takes
no obligation to update or correct information prepared by third
parties that are not paid for by the Company.
Coil Tubing Technology, Inc.Mr. Jerry Swinford,
281-651-0200www.coiltubingtechnoloy.com
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