Monday, T-3 Energy Services, Inc. (TTES), a provider of oilfield products and services, reported a loss for the fourth quarter, hurt primarily by a goodwill impairment charge. On an adjusted basis, earnings from continuing operations rose year-on-year and surpassed analysts' estimates.
The Houston, Texas-based company's net loss for the quarter was $8.72 million, or $0.69 per share, compared to a net income of $8.38 million, or $0.66 per share, last year.
Results for the quarter included a goodwill impairment charge of $23.5 million, or $1.62 per share, and a tax benefit of $0.9 million, or $0.07 per share, related to the pursuit of strategic alternatives.
Loss from continuing operations was $8.69 million, or $0.69 per share, compared to a net income of $8.47 million, or $0.67 per share, for the year-ago quarter.
Excluding the goodwill impairment charge and strategic alternatives costs tax benefit, net income from continuing operations rose to $10.94 million, or $0.86 per share, from a net income of $8.47 million, or $0.67 per share. On average, nine analysts polled by Thomson Reuters expected the company to post earnings of $0.81 per share. Analysts' estimates typically exclude special items.
Quarterly revenues rose 22% to $78.63 million from $64.37 million in the prior year, and beat analysts' estimate of $76.20 million.
For the full year, net income declined to $13 million, or $1.02 per share, from $25.25 million, or $2.08 per share, last year.
Net income from continuing operations for the year was $13.05 million, or $1.02 per share, compared to net income from continuing operations of $26.51 million, or $2.19 per share.
Adjusted net income from continuing operations increased to $36.63 million, or $2.86 per share, from $28.44 million, or $2.35 per share, and beat analysts' estimate of $2.64 per share.
Yearly revenues increased 31% to $285.33 million from $217.43 million, and came in above analysts' estimate of $282.38 million.
Backlog increased 17% to $76.1 million at December 31, 2008, compared to $64.8 million at December 31, 2007.
Going forward, chairman, president and chief executive officer Gus Halas said, "_. While 2008 was operationally a very good year for T-3 Energy Services, 2009 will present many challenges due to macroeconomic conditions and decreased customer spending."
TTES ended Friday's trading at $11.01 on the Nasdaq.
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