Friday, T-3 Energy Services Inc. (TTES), an oilfield products and services provider, reported lower earnings in the first quarter as revenues declined over 20% and on costs related to severance and acquisition.
The Houston, Texas-based company reported net income for the first quarter of $3.82 million or $0.30 per share, down from $9.51 million or $0.75 per share in the year-ago quarter.
Income from continuing operations dropped to $3.82 million or $0.30 per share from $9.51 million or $0.77 per share in the same quarter last year.
Results for the quarter included pre-tax charges related to severance of $3.9 million or $0.20 per share after tax, and acquisition-related costs of $0.3 million or $0.02 per share after tax.
Excluding items, non-GAAP net income from continuing operations for the quarter were $6.56 million or $0.52 per share, compared to $9.51 million or $0.75 per share for the first quarter of 2008.
On average, eight analysts polled by Thomson Reuters expected the company to earn $0.55 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter decreased 20.2% to $62.79 million from $69.17 million in the prior-year quarter. Five analysts had a revenue consensus of $64.85 million for the first quarter.
Net bookings for the quarter were $46.1 million and backlog decreased to $59.4 million at March 31.
Gross margins were 38% for the first quarter of 2009, compared to 39% for the fourth quarter of 2008.
Commenting on the results, T-3 Energy's Chairman, President and Chief Executive Officer, Steve Krablin said, "We do not expect our markets to improve during 2009, but we intend to stay committed to offering exceptional service and products to our customers and to expanding our product offerings.''
TTES is currently trading at $13.17, down $0.26 or 1.94%, on the Nasdaq.
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