CALGARY, ALBERTA — (Marketwired) — 11/11/14 — Logan International Inc. (TSX: LII) (“Logan” or the “Company”) today reported the results for its third quarter and year-to-date period ended September 30, 2014. The financial reports include the post-acquisition operating results of the Sup-R-Jar product line, which was acquired in April 2013.
Recent highlights include:
Logan recorded revenue of $46.7 million in this year–s third quarter which was level with the revenue reported in last year–s third quarter. For the three month period ended September 30, 2014, Logan earned $4.1 million or $.12 per diluted share, as compared to $4.9 million or $.14 per diluted share in the prior year quarter. Modified EBITDA improved to $11.5 million in this year–s third quarter from $11.3 million in last year–s third quarter. Management utilizes Modified EBITDA to evaluate its operating results because this measurement eliminates the effects of noncash and nonrecurring revenue and cost.
For the quarter ended September 30, 2014, the downhole tool segment, which includes the manufacturing and sales of fishing tools, consumables and completion tools and services recorded revenue of $42.7 million as compared to $43.3 million for the quarter ended September 30, 2013. For the current year quarter, this segment generated EBITDA of $11.3 million as compared to $11.6 million for last year–s third quarter. For the third quarter of 2014, the rental tool segment, which rents drilling, fishing and coiled tubing stroking tools and the Xciter vibration tool, recorded revenue of $4.1 million and EBITDA of $1.4 million as compared to revenue of $3.4 million and EBITDA of $1.2 million in the prior year–s third quarter.
Logan recorded revenue of $132.9 million in the nine month period ended September 30, 2014 and $148.5 million in the nine month period ended September 30, 2013. For the current year-to- date period, Logan earned $9.7 million or $.29 per diluted share, as compared to $14.9 million or $.44 per diluted share, in the prior year period. Modified EBITDA for the current year-to-date period decreased to $29.5 million from $36.6 million in the prior year-to-date period.
The downhole tool segment recorded revenue of $122.9 million and EBITDA of $31.2 million in the nine month period ended September 30, 2014. This segment recorded revenue of $136.9 million and EBITDA $35.9 million in the corresponding period in 2013. The rental tool segment recorded revenue of $10.1 million and EBITDA of $2.4 million in the current year-to-date period as compared to revenue of $11.6 million and EBITDA of $4.9 million in the prior year-to-date period.
David MacNeill, President and Chief Executive Officer, commented, “As we had expressed in prior reports, our quarterly financial performance improved from our first half performance, despite postponements of several orders to Russia and Iraq due to international issues beyond our control. Financial highlights include strong fishing and stroking tool sales and improvement in this group–s gross profit margin, resulting from a recent price increase. Revenue from completion product sales and services also rebounded from the second quarter, as drilling and completion activities in Canada returned after the spring breakup. Rental revenue increased as compared to our second quarter and last year–s third quarter due to increased rentals in both drilling and fishing jars. Finally, the re-alignments of the completions group–s operations and the rental tool operations contributed to the reduction in administrative expenses.”
Looking forward, Mr. MacNeill added, “We expect the revenue and EBITDA growth that began in our third quarter will continue for the remainder of this year. Our backlog, resulting from steady order flow for fishing and stroking tools, PDC inserts and PDC bearings as well as a rebound in international sales of completion products in China and Mexico will provide the foundation for continued solid performance in our downhole tool segment. Our rental tool segment continues to strengthen as confirmed by the increased acceptance of our drilling jars, the increasing demand for our fishing and coiled tubing jars in South Texas and the expansion of the Xciter into the western U.S. We are currently pursuing international opportunities and expect to have Xciter tools deployed in Latin America in the first quarter of 2015. Looking beyond 2014, if commodity prices continue to come under pricing pressures, we may see some softening in our fishing and stroking tools order flow in Q1 as companies may hold back spending. We do not believe this will have a long term impact on our business in 2015 but we are being cautious in our planning for the first half of 2015 and will monitor the situation carefully.”
About Logan
Logan provides specialized downhole tools and services to oilfield service companies, drilling contractors and exploration and production operators. It is organized into three classifications:
Common shares of Logan are traded on the Toronto Stock Exchange (TSX) under the ticker symbol “LII”.
Forward-Looking Statements
This press release contains forward-looking statements. These statements relate to future events or future performance of Logan. When used in this press release, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “propose”, “expect”, “potential”, “continue”, and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect Logan–s current views with respect to certain events, including the previously announced strategic review process and fourth quarter operating results, and are subject to certain risks, uncertainties and assumptions. Although Logan believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Many factors could cause Logan–s actual results, performance, or achievements to materially differ from those described in this press release. Readers are referred to Logan–s Annual Information Form filed on , which identifies significant risk factors that could cause actual results to differ from those contained in the forward-looking statements. Should one or more risks or uncertainties materialize or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Logan does not intend and does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein in any jurisdiction.
For more information about Logan International Inc., please visit our website at .
Contacts:
Logan International Inc.
David MacNeill
Chief Executive Officer
281-617-5300 Houston
Logan International Inc.
Larry Keister
Chief Financial Officer
832-386-2534 Houston