Management to Host Conference Call and Webcast Tomorrow at 4:15 PM ET
HOUSTON, May 20 /PRNewswire-FirstCall/ -- Best Energy Services, Inc. (OTC
Bulletin Board: BEYS), a U.S. energy production equipment and services
provider, today announced its first quarter 2009 results for the three
month-period ended March 31, 2009.
Highlights for the Three Months Ended March 31, 2009 Compared to the Three
Months Ended April 30, 2008:
- Total revenues were $2.83 million, a 34% decrease from $4.29 million.
- Well service revenues declined 52% to $1.88 million from $3.87
million due largely to the general economic downturn affecting the
domestic oil and gas industry.
- Drilling service revenues climbed 175% to $829,000 from $301,000.
- Geological service revenues, reflecting combined sales of mud
logging services and housing accommodations, rose 8.6% to $120,000
from $111,000.
- Due largely to continued cost-cutting initiatives and strict expense
discipline, total operating costs and expenses decreased 34% to $3.90
million, down from $5.85 million.
- General and administrative expenses declined 64% to $679,000 from
$1.88 million. Included in the $679,000 was $353,000 of non-cash
stock-based compensation.
- Business unit operating expenses fell 58% to $540,000 from $1.28
million.
- Net loss totaled $1.40 million, or $0.07 loss per basic and diluted
share, a 68% decrease from $4.41 million, or $0.26 loss per basic and
diluted share.
- Net cash provided by Best's operating activities totaled $1.39
million, as compared to $1.68 million in net cash used by the
Company's operating activities.
Mark Harrington, Chairman and CEO of Best Energy Services, stated, "As
covered during our April conference call held to discuss our 2008 year-end
results, the economic downturn in the domestic workover services market took a
harsh toll starting in January of this year and has been slow to recover.
Conversely, our drilling services division enjoyed a very good first three
months of this year, helping to mitigate the negative financial impact we
would have otherwise suffered. Through continued execution of our 'Management
by Competence' initiative, our business units are closely collaborating to
optimize our marketing activities and to capitalize on further increasing our
market share in the regions and industries we serve."
Continuing, Harrington said, "It should be noted that late in the first
quarter, we were hampered by inclement weather in Kansas, which continued into
much of April. More recently, however, we have been encouraged by several
indications that point to the workover services market strengthening and our
financial performance improving in the coming quarters."
The Company will host a teleconference tomorrow, Thursday, May 21, 2009,
beginning at 4:15 PM Eastern, and invites all interested parties to join
management in a discussion regarding the first quarter financial results, key
growth strategies and other meaningful developments at Best Energy. The
conference call can be accessed via telephone by dialing toll free
1-877-941-1427 or via the web at www.BEYSinc.com. For those unable to
participate at that time, a replay of the webcast will be available for 90
days on www.BEYSinc.com.
FOR MORE INFORMATION, PLEASE CONTACT
Elite Financial Communications Group/Elite Media Group
Dodi B. Handy, President and CEO
407-585-1080 or via email at BEYS@efcg.net
FINANCIAL CHARTS TO FOLLOW
Best Energy Services, Inc.
Consolidated Balance Sheets
(Unaudited)
ASSETS March 31, December 31,
2009 2008
Current assets
Cash $109,246 $249,330
Accounts receivable, net of
allowance for doubtful accounts
of $105,485 and $106,237,
respectively 1,950,462 3,602,118
Prepaid and other current assets 158,083 123,053
Total current assets 2,217,791 3,974,501
Property and equipment, net 29,946,306 30,877,472
Deferred financing costs, net 194,454 -
Goodwill and other intangible assets 7,557,309 7,557,309
TOTAL ASSETS 39,915,860 $42,409,282
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities
Accounts payable and accrued
liabilities $221,129 $678,834
Bank overdraft 48,974 -
Current portion of accrued officer
compensation 135,000 140,000
Preferred stock dividends payable 1,021,014 765,761
Current portion of loans payable 1,417,705 21,802,193
Total current liabilities 2,843,822 23,386,788
Accrued officer compensation,
net of current portion 380,000 410,000
Loans payable, net of current portion 19,403,006 134,836
Deferred income taxes 8,569,508 8,708,454
TOTAL LIABILITIES 31,196,336 32,640,078
STOCKHOLDERS' EQUITY
Series A Preferred Stock, 2,250,000
shares authorized, 1,458,592 shares
issued and outstanding, at
redemption value of $10 per share 14,585,920 14,585,920
Common stock, $0.001 par value per
share; 90,000,000 shares
authorized; 20,967,109 and
20,891,366 shares issued and
outstanding, respectively 20,967 20,891
Additional paid-in capital 2,549,772 2,452,350
Retained deficit (8,437,135) (7,289,957)
Total stockholders' equity 8,719,524 9,769,204
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $39,915,860 $42,409,282
Best Energy Services, Inc.
Consolidated Statements of Operations
For the three months ended March 31, 2009 and April 30, 2008
(Unaudited)
Three months ended
March 31, April 30,
2009 2008
Revenues
Well service revenue $1,877,389 $3,873,798
Drilling service revenue 828,559 301,087
Geological services revenue 120,411 110,842
Total revenue 2,826,359 4,285,727
Costs and expenses:
Direct cost of revenue 1,735,940 1,973,668
Business unit operating expenses 540,200 1,278,657
Depreciation and amortization 934,017 719,521
General and administrative expense 679,306 1,881,667
Total operating costs and expenses 3,889,463 5,853,513
Loss from operations (1,063,104) (1,567,785)
Other income (expense):
Interest income 752 19,111
Interest expense (223,773) (2,857,487)
Loss before provision for income taxes (1,286,125) (4,406,161)
Income tax - -
Deferred income tax benefit 138,947 -
Net loss (1,147,178) (4,406,161)
Preferred stock dividend (255,254) -
Net loss attributable to common
shareholders $(1,402,432) $(4,406,161)
Net loss per share - basic and
diluted $(0.07) $(0.26)
Weighted average common shares
outstanding - basic and diluted 20,942,971 16,956,702
About Best Energy Services, Inc.
Based in Houston, Texas, Best Energy Services, Inc. is a leading well
service, drilling and ancillary services provider to the domestic oil, gas,
water and mining industries. Through its subsidiaries, Best Well Service,
Inc. and Bob Beeman Drilling Co., and its Housing Accommodations and
Geological Services operations, the Company is actively engaged in supporting
the exploration, production and recovery of oil, gas, water and mineral
resources in Arizona, Colorado, Kansas, New Mexico, Nevada, Oklahoma, Texas,
Utah and Wyoming. For more information, please visit www.BEYSinc.com.
Certain statements contained in this press release, which are not based on
historical facts, are forward-looking statements as the term is defined in the
Private Securities Litigation Reform Act of 1995, and are subject to
substantial uncertainties and risks in part detailed in the respective
Company's Securities and Exchange Commission filings, that may cause actual
results to materially differ from projections. Although the Company believes
that its expectations are reasonable assumptions within the bounds of its
knowledge of its businesses, expectations, representations and operations,
there can be no assurance that actual results will not differ materially from
their expectations. Important factors currently known to management that could
cause actual results to differ materially from those in forward-looking
statements include the Company's ability to execute properly its business
model, to raise additional capital to implement its continuing business model,
the ability to attract and retain personnel - including highly qualified
executives, management and operational personnel, ability to negotiate
favorable current debt and future capital raises, and the inherent risk
associated with a diversified business to achieve and maintain positive cash
flow and net profitability. In light of these risks and uncertainties, there
can be no assurance that the forward-looking information contained in this
press release will, in fact, occur.
SOURCE Best Energy Services, Inc.
CONTACT:
Dodi B. Handy, President and CEO of Elite Financial
Communications Group/Elite Media Group
+1-407-585-1080
BEYS@efcg.net
for
Best Energy Services, Inc.
Web Site:
http://www.BEYSinc.com
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