Boots & Coots Reports 2000 Year End Results

Apr 02, 2001, 01:00 ET from Boots & Coots International Well Control, Inc.

    HOUSTON, April 2 /PRNewswire/ -- Boots & Coots International Well Control,
 Inc. (Amex:   WEL), today reported revenues from continuing operations of
 $23.5 million for the year ended December 31, 2000, compared with revenues
 from continuing operations of $33.1 million for 1999.  This resulted in a net
 loss from continuing operations of $22.7 million, or a basic and diluted loss
 per common share of $(0.70), compared to a 1999 loss from continuing
 operations of $26.5 million, or a basic and diluted loss per common share of
 $(0.81).  After considering a loss from discontinued operations of
 $1.0 million and an extraordinary gain on early debt extinguishment of
 $2.4 million, the Company reported a 2000 net loss of $21.3 million, or a
 basic and diluted loss per share of $(0.66).  The comparable 1999 year net
 loss was $31.1 million, or a basic and diluted loss per common share of
 $(0.94).  The net loss to common shareholders was $22.2 million for the
 current year, compared to $32.4 million in 1999.
     The loss from discontinued operations for 2000 resulted from the sale of
 the assets of the Baylor Company and its subsidiaries.  The loss from
 discontinued operations for 1999 resulted from discontinued operations of its
 wholly-owned subsidiary, ITS Supply Corporation.
     Revenues from continuing operations for the quarter ended December 31,
 2000 were $5.9 million compared with revenues of $5.6 million for the
 comparable quarter in 1999.  For the quarter, this resulted in a net loss of
 $4.5 million, or a basic and diluted loss per common share of $(0.14) compared
 to a 1999 net loss of $19.9 million, or a basic and diluted loss per common
 share of $(0.63).
     The Company has, today, filed its report on Form 10K with the Securities &
 Exchange Commission.  The report discusses the need for the Company to
 continue to establish new sources of financing and/or equity securities in
 order to build sufficient cash flows required to support its operations.  The
 financial restructuring initiative, undertaken during the fourth quarter of
 1999, was mostly completed as evidenced by the achievement of several,
 previously disclosed, milestones.  On September 28, 2000, the Company
 announced that it closed the sale of the assets of the Baylor Company and its
 subsidiaries.  The proceeds from the sale, approximately $29 million cash,
 were utilized to pay the Comerica senior loan facility in full.  Specialty
 Finance Fund I, LLC, a participant in the Comerica Bank facility, remains as
 the senior secured lender.  On December 28, 2000, the Company executed a
 restructuring agreement with the Prudential Insurance Company of America
 ("Prudential").  Prudential's aggregate claims of approximately $41 million
 were resolved by the Company: (i) paying $12 million cash at closing;
 (ii) establishing $7.2 million of new subordinated debt; (iii) issuing
 preferred stock with an independent fair market valuation of $5.45 million.
 All interest payments and dividends are paid in kind and deferred for two
 years from the date of closing.  Additionally, as a component of this
 transaction, Prudential has received newly issued warrants to purchase
 8.8 million shares of the Company's common stock and the Company has agreed to
 reprice the existing common stock purchase warrants held by Prudential.  As a
 result of the transaction, the Company is current in its obligations to
 Prudential and the Company is in full compliance with all loan covenants.
 Furthermore, the Company has the right to repurchase, at a discount to face
 value, all of its debt, stock and warrants issued to Prudential for an agreed
 period.
     Chairman and Chief Executive Officer Larry Ramming, said, "The year 2000
 was a challenging period for our Company.  New programs and proprietary
 products had not fully begun to drive recurring revenues and substantial
 market share gain.  These situations with market and product maturity are now
 correcting.  Despite the difficulty of restructuring our financial
 relationships with Comerica Bank -- Texas and Prudential Insurance Company,
 and in the face of weak industry conditions, we were able to significantly
 deleverage our balance sheet by taking approximately $62 million in total debt
 and related claims to approximately $8 million.  We also raised equity during
 this period from investors who understand and support the Company's unique
 business plan.  These efforts combined with major operational restructuring
 and cost cutting initiatives have allowed the Company to focus on its core
 business opportunities that the reviving exploration and production markets
 provide.  We are moving into our future with these extraneous issues for the
 most part, behind us."
     Jerry Winchester, Boots & Coots' President and COO, stated,
 "Operationally, we are obviously excited about the improved conditions in the
 energy industry and how that translates to increased opportunity for our
 company.  The increased demand for high risk management services coupled with
 our reduction in operating overhead and a refocused effort on our core
 business lines has allowed Boots & Coots to capitalize on strategic
 opportunities, many of which exist outside the United States."
     Boots & Coots International Well Control, Inc., Houston, Texas, is the
 global emergency response company that specializes, through its Well Control
 unit, as an integrated, full-service, emergency-response company with the in-
 house ability to provide its expanded full-service prevention, response and
 restoration capabilities to the global needs of the oil and gas and
 petrochemical industries, including but not limited to, oil and gas well
 blowouts and well fires as well as providing a complete menu of non-critical
 well control services.  Through its Special Services unit, the Company
 continues to respond to marine oil spills and emergencies, refinery, pipeline,
 manufacturing and transportation emergencies, inclusive of hazardous material
 handling.
     Forward-looking statements contained in this release are made pursuant to
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  Investors are cautioned that all forward-looking statements involve
 risks and uncertainties which may cause actual results to differ from
 anticipated results, including risks associated with the timing and
 development of, and market acceptance of, the Company's services and products
 as well as risks of downturns in economic conditions generally, risks
 associated with competition and competitive pricing pressures, and other risks
 detailed from time to time in the Company's filings with the Securities and
 Exchange Commission, including its latest Form 10-K at December 31, 1999.
 
                               (Table to follow)
 
                 BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.
                          SUMMARY OF OPERATING RESULTS
                                 (In Thousands)
 
                             Three Months Ended             Year Ended
                                December 31,               December 31,
                                 Unaudited
                              1999          2000         1999           2000
 
     Revenue                  5,561         5,934       33,095        23,537
     EBITDA                  (7,675)       (4,151)     (12,788)      (12,464)
     Gross Profit            (1,470)       (1,302)       1,124         1,745
     Gross Margin              (26%)        (120%)          3%            7%
     Operating Loss         (13,171)       (6,990)     (19,984)      (11,390)
     * Net Income (Loss)    (19,873)       (4,486)     (31,116)      (21,299)
     Net Income (Loss)
      Applicable to Common
      Stock                 (20,117)       (5,046)     (32,360)      (22,216)
     Income (Loss) Per Share
       -  Basic + Diluted      (.63)         (.14)         (.94)        (.66)
     Weighted Average
      Common Shares
      Outstanding
       -  Basic + Diluted    35,244        31,667       34,352        33,809
 
      *After discontinued operations and extraordinary items.
 
      Company Contact:   Jerry Winchester
                         Boots & Coots Group
                         713-621-7911
 
      Investor Contact:  Barry Gross
                         Gross Capital Associates
                         361-949-4999
 
 

SOURCE Boots & Coots International Well Control, Inc.
    HOUSTON, April 2 /PRNewswire/ -- Boots & Coots International Well Control,
 Inc. (Amex:   WEL), today reported revenues from continuing operations of
 $23.5 million for the year ended December 31, 2000, compared with revenues
 from continuing operations of $33.1 million for 1999.  This resulted in a net
 loss from continuing operations of $22.7 million, or a basic and diluted loss
 per common share of $(0.70), compared to a 1999 loss from continuing
 operations of $26.5 million, or a basic and diluted loss per common share of
 $(0.81).  After considering a loss from discontinued operations of
 $1.0 million and an extraordinary gain on early debt extinguishment of
 $2.4 million, the Company reported a 2000 net loss of $21.3 million, or a
 basic and diluted loss per share of $(0.66).  The comparable 1999 year net
 loss was $31.1 million, or a basic and diluted loss per common share of
 $(0.94).  The net loss to common shareholders was $22.2 million for the
 current year, compared to $32.4 million in 1999.
     The loss from discontinued operations for 2000 resulted from the sale of
 the assets of the Baylor Company and its subsidiaries.  The loss from
 discontinued operations for 1999 resulted from discontinued operations of its
 wholly-owned subsidiary, ITS Supply Corporation.
     Revenues from continuing operations for the quarter ended December 31,
 2000 were $5.9 million compared with revenues of $5.6 million for the
 comparable quarter in 1999.  For the quarter, this resulted in a net loss of
 $4.5 million, or a basic and diluted loss per common share of $(0.14) compared
 to a 1999 net loss of $19.9 million, or a basic and diluted loss per common
 share of $(0.63).
     The Company has, today, filed its report on Form 10K with the Securities &
 Exchange Commission.  The report discusses the need for the Company to
 continue to establish new sources of financing and/or equity securities in
 order to build sufficient cash flows required to support its operations.  The
 financial restructuring initiative, undertaken during the fourth quarter of
 1999, was mostly completed as evidenced by the achievement of several,
 previously disclosed, milestones.  On September 28, 2000, the Company
 announced that it closed the sale of the assets of the Baylor Company and its
 subsidiaries.  The proceeds from the sale, approximately $29 million cash,
 were utilized to pay the Comerica senior loan facility in full.  Specialty
 Finance Fund I, LLC, a participant in the Comerica Bank facility, remains as
 the senior secured lender.  On December 28, 2000, the Company executed a
 restructuring agreement with the Prudential Insurance Company of America
 ("Prudential").  Prudential's aggregate claims of approximately $41 million
 were resolved by the Company: (i) paying $12 million cash at closing;
 (ii) establishing $7.2 million of new subordinated debt; (iii) issuing
 preferred stock with an independent fair market valuation of $5.45 million.
 All interest payments and dividends are paid in kind and deferred for two
 years from the date of closing.  Additionally, as a component of this
 transaction, Prudential has received newly issued warrants to purchase
 8.8 million shares of the Company's common stock and the Company has agreed to
 reprice the existing common stock purchase warrants held by Prudential.  As a
 result of the transaction, the Company is current in its obligations to
 Prudential and the Company is in full compliance with all loan covenants.
 Furthermore, the Company has the right to repurchase, at a discount to face
 value, all of its debt, stock and warrants issued to Prudential for an agreed
 period.
     Chairman and Chief Executive Officer Larry Ramming, said, "The year 2000
 was a challenging period for our Company.  New programs and proprietary
 products had not fully begun to drive recurring revenues and substantial
 market share gain.  These situations with market and product maturity are now
 correcting.  Despite the difficulty of restructuring our financial
 relationships with Comerica Bank -- Texas and Prudential Insurance Company,
 and in the face of weak industry conditions, we were able to significantly
 deleverage our balance sheet by taking approximately $62 million in total debt
 and related claims to approximately $8 million.  We also raised equity during
 this period from investors who understand and support the Company's unique
 business plan.  These efforts combined with major operational restructuring
 and cost cutting initiatives have allowed the Company to focus on its core
 business opportunities that the reviving exploration and production markets
 provide.  We are moving into our future with these extraneous issues for the
 most part, behind us."
     Jerry Winchester, Boots & Coots' President and COO, stated,
 "Operationally, we are obviously excited about the improved conditions in the
 energy industry and how that translates to increased opportunity for our
 company.  The increased demand for high risk management services coupled with
 our reduction in operating overhead and a refocused effort on our core
 business lines has allowed Boots & Coots to capitalize on strategic
 opportunities, many of which exist outside the United States."
     Boots & Coots International Well Control, Inc., Houston, Texas, is the
 global emergency response company that specializes, through its Well Control
 unit, as an integrated, full-service, emergency-response company with the in-
 house ability to provide its expanded full-service prevention, response and
 restoration capabilities to the global needs of the oil and gas and
 petrochemical industries, including but not limited to, oil and gas well
 blowouts and well fires as well as providing a complete menu of non-critical
 well control services.  Through its Special Services unit, the Company
 continues to respond to marine oil spills and emergencies, refinery, pipeline,
 manufacturing and transportation emergencies, inclusive of hazardous material
 handling.
     Forward-looking statements contained in this release are made pursuant to
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  Investors are cautioned that all forward-looking statements involve
 risks and uncertainties which may cause actual results to differ from
 anticipated results, including risks associated with the timing and
 development of, and market acceptance of, the Company's services and products
 as well as risks of downturns in economic conditions generally, risks
 associated with competition and competitive pricing pressures, and other risks
 detailed from time to time in the Company's filings with the Securities and
 Exchange Commission, including its latest Form 10-K at December 31, 1999.
 
                               (Table to follow)
 
                 BOOTS & COOTS INTERNATIONAL WELL CONTROL, INC.
                          SUMMARY OF OPERATING RESULTS
                                 (In Thousands)
 
                             Three Months Ended             Year Ended
                                December 31,               December 31,
                                 Unaudited
                              1999          2000         1999           2000
 
     Revenue                  5,561         5,934       33,095        23,537
     EBITDA                  (7,675)       (4,151)     (12,788)      (12,464)
     Gross Profit            (1,470)       (1,302)       1,124         1,745
     Gross Margin              (26%)        (120%)          3%            7%
     Operating Loss         (13,171)       (6,990)     (19,984)      (11,390)
     * Net Income (Loss)    (19,873)       (4,486)     (31,116)      (21,299)
     Net Income (Loss)
      Applicable to Common
      Stock                 (20,117)       (5,046)     (32,360)      (22,216)
     Income (Loss) Per Share
       -  Basic + Diluted      (.63)         (.14)         (.94)        (.66)
     Weighted Average
      Common Shares
      Outstanding
       -  Basic + Diluted    35,244        31,667       34,352        33,809
 
      *After discontinued operations and extraordinary items.
 
      Company Contact:   Jerry Winchester
                         Boots & Coots Group
                         713-621-7911
 
      Investor Contact:  Barry Gross
                         Gross Capital Associates
                         361-949-4999
 
 SOURCE  Boots & Coots International Well Control, Inc.