HOUSTON, TX — (Marketwired) — 11/18/14 — Aly Energy Services, Inc. (“Aly Energy”) (OTCQB: ALYE) today reported results for the third quarter of 2014. Revenues for the third quarter of 2014 increased by 206.8% to $13.5 million compared to $4.4 million for the third quarter of 2013 and Adjusted EBITDA increased 230.0% in the third quarter of 2014 to $3.3 million compared to $1.0 million in the third quarter of 2013. Aly Energy reported record net income available to common stockholders for the third quarter of 2014 of approximately $1.0 million, after preferred stock dividends and accretion aggregating to approximately $0.1 million, compared to a net income available to common stockholders of approximately $39,000, after preferred dividends and accretion aggregating to approximately $62,000, for the same period in 2013.
Revenues for the first nine months of 2014 increased 105.1% to $27.9 million compared to $13.6 million for the first nine months of 2013 and Adjusted EBITDA increased 132.4% in the first nine months of 2014 to $7.9 million compared to $3.4 million for the first nine months of 2013. Aly Energy reported net income available to common stockholders for the first nine months of 2014 of $1.8 million, after preferred stock dividends and accretion aggregating to approximately $0.3 million, compared to a net income available to common stockholders of approximately $0.4 million, after preferred stock dividends and accretion aggregating to approximately $0.2 million, for the first 9 months of 2013.
Revenues, Adjusted EBITDA, and net income available to common stockholders in the third quarter and for the first nine months of 2014 include the results generated from the acquisitions of United Centrifuge, LLC (“United Centrifuge”) and Evolution Guidance Systems Inc. (“Evolution”) beginning on April 15, 2014 and July 1, 2014, respectively.
Pro forma Adjusted EBITDA for the first nine months of 2014, which reflects the results of Aly Energy as if the acquisition of United Centrifuge had occurred on January 1, 2014, was approximately $9.7 million. We have not included results for Evolution prior to July 1, 2014 within the pro forma calculation as the inclusion of such results would not have had a material impact. The pro forma financial information is not necessarily indicative of the results of operations as they would have been had the United Centrifuge transaction been effected on the assumed date of January 1, 2014.
EBITDA and Adjusted EBITDA are non-GAAP financial measures that are not necessarily comparable from one company to another. Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation and amortization, certain non-cash items, such as stock compensation expense, bad debt expense, and fair value adjustments, and certain non-routine items, including transaction costs. Management believes that Adjusted EBITDA is useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the Company–s normal operating results. For a reconciliation of Adjusted EBITDA to net income, please see the tables at the end of this release.
Micki Hidayatallah, Aly Energy–s Chairman and Chief Executive Officer stated, “In the third quarter, Aly Energy generated record revenues, record operating profits and record net income. This was a result of the successful implementation of our growth strategy. During the third quarter of 2014, we expanded our product offerings to include directional drilling and measurement-while-drilling (“MWD”) services.
“We also expanded our operations into the New Mexico Permian Basin, Mississippian Lime and Tuscaloosa Marine Shale, while simultaneously increasing and diversifying our customer base. We continue to strive to increase market share through the product differentiation of our vertical mud circulating tanks, steel drive overs, 450 barrel mud mixing plants and, most importantly, the exclusive design of our centrifuges and our MWD kits which offer longer operating hours with a lower failure rate.
“In the fourth quarter, we anticipate that we will see further growth in revenues, cash flow and profitability generated by increased utilization of personnel and equipment.”
Aly Energy has scheduled a conference call to be held on Tuesday, November 18, 2014 at 9:00am Central Standard Time. Investors and analysts are invited to participate in the call by dialing 1-877-300-8521 or 1-412-317-6026 internationally. Interested parties may also listen by webcast at .
Aly Energy, through its subsidiaries Aly Operating, Inc., Austin Chalk Petroleum Services Corp., Aly Centrifuge Inc. and Evolution Guidance Systems Inc., provides equipment and services including surface rental equipment for mud delivery, solids control, fluid management, and directional drilling and measurement-while-drilling services. Aly Energy has operating yards in Houston, Giddings, San Angelo, Dilley and Celina, Texas from which it services the Eagle Ford shale and the Permian Basin, as well as other strategic fields. Aly Energy–s primary products include mud-circulating tanks (400 and 500 barrel capacity), mud pumps (diesel and electric), oil skimming systems, secondary containment systems and stairs, mud mixing plants, centrifuge units and shakers, and MWD kits with exclusive technology. Aly Energy fabricates several of these products in-house.
This press release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Aly Energy–s business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release.
Although forward-looking statements in this press release reflect the good faith judgment of our management, such statements can only be based on facts and factors that our management currently knows. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which Aly Energy operates, competition, obsolescence of products and services, the ability to obtain financing to support operations, environmental and other casualty risks, and the effect of government regulation.
Further information about the risks and uncertainties that may affect our business are set forth in our most recent filings on Form 10-K (including without limitation in the “Risk Factors” section) and in our other SEC filings and publicly available documents. We urge readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Aly Energy undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.
Lauren Wilde
713-333-4000 x102