HOUSTON, May 15, 2015 /PRNewswire/ -- Deep Down, Inc.
(OTCQX: DPDW) ("Deep Down" or the "Company"), an oilfield services
company specializing in complex deepwater and ultra-deepwater oil
production distribution system support services, today reported
financial results for the quarter ended March 31, 2015.
OPERATING RESULTS
For the first quarter of 2015, Deep Down reported a net loss of
$0.3 million, or $0.02 loss per diluted share, compared to net
income of $0.4 million, or
$0.02 income per diluted share for
the first quarter of 2014.
Revenues for the quarter ended March 31,
2015 were $6.8 million
compared to revenues of $6.2 million
for the quarter ended March 31, 2014.
The $0.6 million (10 percent)
increase is due primarily to mobilization, assembly and rental
revenues earned by with respect to our 3,500 MT carousel.
Gross profit for the quarter ended March
31, 2015 was $2.2 million, or
32 percent of revenues, compared to gross profit of $2.3 million, or 37 percent of revenues, for the
quarter ended March 31, 2014.
The five percentage-point decrease in gross profit is primarily
attributable to additional losses sustained on one of our large
fixed-price basis fabrication projects.
The Company's management evaluates its financial performance
based on a non-GAAP measure, Modified EBITDA, which consists of
earnings (net income or loss) available to common shareholders
before net interest expense, income taxes, depreciation and
amortization, and other non-cash and non-recurring charges.
Modified EBITDA for the quarter ended March
31, 2015 was $0.3 million
compared to Modified EBITDA of $1.0
million for the quarter ended March
31, 2014. The $0.7
million decrease is primarily attributable to a $0.4 million decrease in gain on sale of
property, plant and equipment and a $0.3
million increase in operating expenses before depreciation,
amortization and share-based compensation expense. At
March 31, 2015, we had working
capital of $12.3 million, including
cash of $5.7 million.
Ronald E. Smith, Chief Executive
Officer, stated, "During a time when the industry is going through
a substantial drop in oil prices and having a very negative impact
on most oilfield service companies' operations, we are pleased to
report that our backlog continues to be at all-time highs. I
am also pleased that our customers continue to work with us while
providing innovative solutions to reduce their costs during these
difficult times."
EARNINGS CONFERENCE CALL
In connection with this earnings release, Deep Down will
host its quarterly conference call on Monday, May 18, 2015 at 4:30 PM Eastern Time (3:30
PM Central Time). Interested investors are invited to dial
the toll free number at (877) 303-6187 and provide the Conference
ID: 48769415.
At the conclusion of the call, a replay will be available until
May 23, 2015. To access the
replay of the call dial (855) 859-2056 and provide the same
Conference ID.
The call can also be accessed via the web by going to the
Investor Relations section of the Company's website at
www.deepdowninc.com.
About Deep Down, Inc.
Deep Down, Inc. is an oilfield services company serving the
worldwide offshore exploration and production industry. Deep Down's
proven services and technological solutions include distribution
system installation support and engineering services, umbilical
terminations, loose-tube steel flying leads (LSFL), installation
buoyancy, ROVs and tooling, marine vessel automation, control, and
ballast systems. Deep Down supports subsea engineering,
installation, commissioning, and maintenance projects through
specialized, highly experienced service teams and engineered
technological solutions. The company's primary focus is on more
complex deepwater and ultra-deepwater oil production distribution
system support services and technologies, used between the platform
and the wellhead. More information about Deep Down is available at
www.deepdowncorp.com.
Forward-Looking Statements
Any forward-looking statements in the preceding paragraphs of
this release are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties in that actual results may differ materially from
those projected in the forward-looking statements. In the course of
operations, we are subject to certain risk factors, competition and
competitive pressures, sensitivity to general economic and
industrial conditions, international political and economic risks,
availability and price of raw materials and execution of business
strategy. For further information, please refer to the Company's
filings with the Securities and Exchange Commission, copies of
which are available from the Company without charge.
DEEP DOWN,
INC.
|
SUMMARY FINANCIAL
DATA
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
(in thousands,
except per share amounts)
|
|
|
|
Results of
operations data:
|
|
|
|
Revenues
|
$
6,839
|
|
$
6,163
|
Cost of
sales
|
4,604
|
|
3,895
|
Gross
profit
|
2,235
|
|
2,268
|
Total operating
expenses
|
2,465
|
|
2,199
|
Operating (loss)
income
|
(230)
|
|
69
|
Total other income
(expense)
|
(61)
|
|
312
|
(Loss) income before
income taxes
|
(291)
|
|
381
|
Income tax
expense
|
(6)
|
|
(9)
|
Net (loss)
income
|
$
(297)
|
|
$
372
|
Net (loss) income per
share, basic and diluted
|
$
(0.02)
|
|
$
0.02
|
Weighted-average
shares outstanding, basic and diluted
|
15,131
|
|
15,238
|
|
|
|
|
Modified EBITDA
data:
|
|
|
|
Net (loss)
income
|
$
(297)
|
|
$
372
|
Add back interest
expense, net
|
61
|
|
61
|
Add back depreciation
and amortization
|
379
|
|
410
|
Add back income tax
expense
|
6
|
|
9
|
Add back share-based
compensation
|
126
|
|
135
|
Modified
EBITDA
|
$
275
|
|
$
987
|
|
|
|
|
Cash flow
data:
|
|
|
|
Cash provided by
(used in):
|
|
|
|
Operating
activities
|
$
(322)
|
|
$
(46)
|
Investing
activities
|
(170)
|
|
624
|
Financing
activities
|
838
|
|
(547)
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
|
|
|
Balance sheet
data:
|
|
|
|
Cash
|
$
5,658
|
|
$
5,312
|
Current
assets
|
23,086
|
|
22,015
|
Current
liabilities
|
10,779
|
|
9,754
|
Working
capital
|
12,307
|
|
12,261
|
Total
assets
|
35,574
|
|
34,720
|
Total debt
|
6,453
|
|
5,615
|
Total
liabilities
|
10,779
|
|
9,754
|
Stockholders'
equity
|
24,795
|
|
24,966
|
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SOURCE Deep Down, Inc.