Oilfield Services Company Reports Record Revenues of $3.2 Million for the Quarter Ended June 30, 2013, Up More Than 600% From 2nd Quarter 2012 on a Pro Forma Basis
HOUSTON, Aug. 14, 2013 (GLOBE NEWSWIRE) — HII Technologies, Inc. (the “Company”), symbol HIIT (OTCBB/OTCQB), an oilfield services company headquartered in Houston, Texas, today announced financial results for the second quarter ended June 30, 2013.
As stated in the Company’s Quarterly Report on Form 10-Q filed on August 14, 2013, second quarter 2013 revenues were $3,226,437, which generated a gross profit of $865,128. For the six months ended June 30, 2013, revenues were $5,836,210 and gross profit was $1,397,420. Increased revenues came from continued growth of AES Water Solutions’ frac water supply business and rising revenue contributions from the South Texas Power and the AES Safety Services divisions, which were launched in late December 2012 and January 2013, respectively. AES Water Solutions generated revenues of $449,737 for the second quarter 2012 and $986,108 for the six months ended June 30, 2012. Accordingly, this represents revenue growth of more than 600% for the second quarter 2013, and 490% for the six months ended June 30th, from the comparable periods in 2012. This is a pro forma revenue comparison, as the Company purchased AES in September 2012, and its income statement is illustrated separately within the Quarterly Report on Form 10-Q.
For the second quarter ended June 30, 2013, the Company had Adjusted EBITDAS of approximately $394,539, (EBITDAS defined as earnings before interest, taxes, depreciation, amortization, non-cash stock option expenses, and one-time non-operational expense items), a non-GAAP measure. A reconciliation table of the Adjusted EBITDAS is provided below. The Net Loss for the second quarter 2013 was $373,527. The EBITDAS results were impacted by increased revenues and improved sequential quarter to quarter gross margins offset by in-field testing for new frac water recycling technologies and the costs associated with organic territory expansion particularly in West Texas and the Permian Basin.
In terms of the Balance Sheet, total Current Assets grew from $1,743,568 at year end 2012 to $2,849,689 at June 30, 2013. Net Equipment totaled $537,881 at year end 2012 and was $372,526 at June 30, 2013, the reduction primarily resulting from the sale of our truck fleet and establishment of national truck lease line program as well as accumulated depreciation. Total Assets also grew from $4,182,551 at year end 2012 to $5,182,945 at June 30, 2013. Total Liabilities grew from $3,311,580 to $4,393,867 for the same period which included $934,200 outstanding on a new $2 million revolving line of credit closed during the second quarter 2013. Previous to this, all growth had been funded from existing cash flow. The line of credit provides additional liquidity to the Company as needed.
Brent Mulliniks, President of AES Water Solutions stated, “We are pleased with AES’ continued growth during the quarter. The testing of new onsite produced and frac water flow back recycling technologies was an additional cost during the quarter. These high volume, relatively low operating cost mobile water recycling systems may provide a significant sustained advantage for AES. We are diligently focused on several systems that are being tested in the oilfield today to provide best-in-class solutions as water recycling techniques may vary in different locations. The existing frac water supply business grew in South Texas and maintained a strong position in its North Texas and Oklahoma operations. The expenses associated with new operations in the Permian Basin and the Cline Shale in West Texas as well as the Eagle Ford Shale in South Texas are paying off.” Mr. Mulliniks concluded.
Matthew Flemming, CEO of HII Technologies stated, “Strong revenue growth across all three divisions of Water, Safety and Power validated our strategy of focusing on core oilfield market segments where demand is anticipated to remain strong. We have avoided a diluted, unfocused, all-category strategy where equipment and personnel utilization become a challenge. Our management team, people in the field and customized oilfield equipment should continue to fuel organic growth in our focused areas. We continue to review new technologies and potential acquisitions in an effort to further accelerate our growth.”
Second Quarter 2013 Statement of Operations
The table below sets forth the summary of the Company’s Statement of Operations for the second quarter ended June 30, 2013 (in thousands):
|Cost of Revenues||$ 2,361|
|Gross Profit||$ 865|
|Operating Expenses||$ 967|
|Operating Loss||$ (102)|
|Other Expenses||$ (240)|
|Net Loss before taxes||$ (342)|
|Net Loss||$ (373)|
The Company’s second quarter 2013 revenues exceeded preliminary estimates. The full discussion of the Company’s financial results are available within the Company’s Quarterly Report on Form 10-Q filed August 14, 2013.
Adjusted EBITDAS Reconciliation Table
The following is a reconciliation of income from continuing operations attributable to the Company as presented in accordance with United States generally accepted accounting principles (GAAP) to EBITDAS.
|HII Technologies, Inc|
|EBITDAS Reconciliation Table|
|For the quarter ended June 30, 2013|
|Net loss||$ (373,527)|
|Non-cash stock expense||$ 323,363|
|One time items||$ 248,287|
For more information, management’s analysis of its financial information and the Company’s risk factors, please read the Company’s Quarterly Reports on Form 10-Q and its 2012 Annual Report on Form 10-K at the Edgar web site at www.SEC.gov and www.HIITinc.com.
About HII Technologies, Inc.
HII Technologies, Inc. is a Houston, Texas based oilfield services company with operations in Texas, Oklahoma, Ohio and West Virginia. The Company is positioned to take advantage of the significant anticipated growth in horizontal drilling and hydraulic fracturing within the United States’ active shale and unconventional “tight oil” plays by deploying new oilfield related technologies to enhance the value of services it offers its customers. The Company’s frac water supply services subsidiary does business as AES Water Solutions, its onsite oilfield contract safety consultancy does business as AES Safety Services, and its mobile oilfield power subsidiary does business as South Texas Power (STP). The holding company, HII Technologies’ objective is to bring proven technologies to these operating divisions to build a long-term competitive advantage. Read more at www.HIITinc.com, www.AESwatersolutions.com and www.Oilfield-Generators.com.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements as to matters that are not of historic fact are forward-looking statements. These forward-looking statements are based on HII’s current expectations, estimates and projections about HII, its industry, its management’s beliefs and certain assumptions made by management, and include statements regarding estimated capital expenditures, future operational and activity expectations, international growth, and anticipated financial performance in 2013. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these “forward-looking statements” are identified by words such as “expects,” “believes,” “anticipates” and similar phrases.
Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, but not limited to: risks that HII will be unable to achieve its financial, capital expenditure and operational projections, including quarterly and annual projections of revenue and/or operating income and risks that HII’s expectations regarding future activity levels, customer demand, and pricing stability may not materialize (whether for HII as a whole or for geographic regions and/or business segments individually); risks that fundamentals in the U.S. oil and gas markets may not yield anticipated future growth in HII’s businesses, or could further deteriorate or worsen from the recent market declines, and/or that HII could experience further unexpected declines in activity and demand for its hydraulic frac related water transfer business, its safety consultancy business or its generator and related equipment rental service businesses; risks relating to HII’s ability to implement technological developments and enhancements; risks relating to compliance with environmental, health and safety laws and regulations, as well as actions by governmental and regulatory authorities; risks that HII may be unable to achieve the benefits expected from acquisition and disposition transactions, and risks associated with integration of the acquired operations into HII’s operations; risks, in responding to changing or declining market conditions, that HII may not be able to reduce, and could even experience increases in, the costs of labor, fuel, equipment and supplies employed and used in HII’s businesses; risks relating to changes in the demand for or the price of oil and natural gas; risks that HII may not be able to execute its capital expenditure program and/or that any such capital expenditure investments, if made, will not generate adequate returns; and other risks affecting HII’s ability to maintain or improve operations, including its ability to maintain prices for services under market pricing pressures, weather risks, and the impact of potential increases in general and administrative expenses.
Because such statements involve risks and uncertainties, many of which are outside of HII’s control, HII’s actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Other important risk factors that may affect HII’s business, results of operations and financial position are discussed in its most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and in other Securities and Exchange Commission filings. Unless otherwise required by law, HII also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. However, readers should review carefully reports and documents that HII files periodically with the Securities and Exchange Commission.
CONTACT: Matthew Flemming, HII Technologies, Inc. +1-713-821-3157.