SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  For example, here is how to disable FireFox ad content blocking while on Silicon Investor.

   Gold/Mining/EnergyUFAB - oil drilling deck fabrication


Previous 10 Next 10 
To: WWS who wrote (322)6/24/1999 6:33:00 PM
From: Brian
   of 337
 
UFAB reports a 12 cent loss this quarter!!!

Thursday June 24, 3:18 pm Eastern Time

Company Press Release

UNIFAB International Reports Fourth Quarter Results

NEW IBERIA, La.--(BUSINESS WIRE)--June 24, 1999--UNIFAB International, Inc. (NASDAQ:UFAB - news) today reported net income of $6.3 million ($1.06 per share, basic and diluted) on revenue of $103.9 million for the fiscal year ended March 31, 1999 compared to net income of $7.2 million ($1.39 per share, basic and diluted) on revenue of $109.2 million for the fiscal year ended March 31, 1998. Operating results for the year ended March 31, 1999 were reduced by ($0.10) per share due to non-recurring acquisition expenses of $442,000 and a one time charge of $525,000 related to the cumulative deferred income taxes resulting from the acquisition of Allen Tank, Inc. The Company reported backlog of approximately $27.1 million at March 31, 1999.

Net loss for the fourth quarter was ($710,000) (($0.12) per share, basic and diluted) on revenue of $17.4 million compared to net income of $2.1 million ($0.36 per share, basic and diluted) on revenue of $29.4 for the fourth quarter of fiscal year ended March 31, 1998. Operating results for the quarter ended March 31, 1999 were reduced by losses of ($750,000) pretax, or ($0.08) per share, at the Lake Charles facility, which is currently undergoing development. ''It is possible we could have made some severe cuts in our work force in the March quarter to size it to the current level of business, but with oil prices stabilizing in the $18-$19 per barrel range and gas prices in the $2.30-$2.50 per Mcf range, we believe this would have severely impacted out ability to remain viable for the turnaround we now anticipate,'' said Dailey Berard, UNIFAB International, Inc.'s President, CEO and Chairman of the Board.

Pro forma net income for the year ended March 31, 1999 was $5.3 million ($0.89 per share) compared to pro forma net income of $6.5 million ($1.26 per share) for the year ended March 31, 1998. Pro forma net income consists of the Company's historical net income, adjusted to reflect income taxes as if Allen Tank, Inc. had operated as a C Corporation for all periods. This calculation excludes the one time charge of $525,000 related to the cumulative deferred income taxes resulting from the conversion to a C Corporation on July 24, 1998.

''This has been a year of tremendous growth for UNIFAB,'' noted Mr. Berard. ''We significantly increased the size and capabilities of the Company with the acquisition of Allen Process Systems, we are developing our deep water facility at Lake Charles and, most recently, we acquired Oil Barges, Inc. which gave us design and fabrication capabilities in the drilling rig industry. While overall bidding activity has improved from the level experienced last summer, many awards have been delayed, in particular in the international market where we anticipated higher award activity. Pricing is fiercely competitive and profit margins on new work are well below levels in fiscal 1998. While our operating results for the year are in line with our expectations, we are disappointed with the operating results of the March quarter. The decrease in revenue from prior quarters and when compared to the March quarter last year reflects the relatively lower level of activity in the industry. In particular, the anticipated completion date for the development of our deep-water facility in Lake Charles has been delayed well beyond our
original plans, to late November-early December. That delay, coupled with the drop off in utilization and demand for repair work on drilling rigs, resulted in our being unable to meet expected operating goals for that facility this year. Recent contract awards, in particular those at Allen Process Systems, are in the design phase and did not have much of an impact in the current fiscal year. As a result, productive man hours in the March quarter were lower than expected. We do not expect to see a significant increase in activity in the near-term, but anticipate it as we near the end of the calendar year.

''We continue to believe that our deep water facility in Lake Charles will be the Company's cornerstone in the future. The addition of Oil Barges, Inc. in April, 1999 brought experience and capabilities in the design, repair and refurbishment of drilling rigs that is vital to the development of that facility. Our focus remains to aggressively market our Total Project Capabilities to the industry. We continue position the Company for increased participation in the market through acquisition, as well as through facilities enhancements.''

UNIFAB International, Inc. is an industry leader in the custom fabrication of topsides facilities, equipment modules and other structures used in the development and production of oil and gas reserves. In addition, the Company designs and manufactures specialized process systems, refurbishes and retrofits existing jackets and decks, provides design, repair, refurbishment and conversion services for oil and gas drilling rigs and performs offshore piping hook-up and platform maintenance services. Dailey Berard serves as a commissioner on a number of committees and task forces that are working to improve training and education of the workforce in Louisiana.

Statements made in this news release regarding UNIFAB's expectations as to future operations of UNIFAB and other statements included herein that are not statements of historical fact are forward-looking statements that depend upon the following factors, among others: continued demand for the services provided by UNIFAB, availability of skilled employees, and UNIFAB's ability to integrate and manage acquired businesses. Should any of these factors not continue as anticipated, actual results and plans could differ materially from those expressed in the forward-looking statements.

UNIFAB
Condensed Consolidated Statements of Income
Amounts in thousands, except per share data

Three months ended Year ended
March 31 March 31
--------------------- ---------------------
1999 1998 1999 1998
--------------------- ---------------------
Revenue $ 17,388 $ 29,393 $ 103,866 $ 109,170
Cost of Revenue 16,440 23,975 85,311 91,778
--------- --------- --------- ---------
Gross Profit 948 5,418 18,555 17,392

Selling, General and
Administrative expense 2,124 2,317 9,058 6,807
--------- --------- --------- ---------
Income (loss)
from operations (1,176) 3,101 9,497 10,585
Other income (expense):
Other income (expense) 27 (91) (302) 67
Interest expense (238) (232) (893) (1,059)
Interest income 144 208 306 522
--------- --------- --------- ---------
Income (loss) before
income taxes (1,243) 2,986 8,608 10,115
Income tax (benefit)
provision (533) 865 2,264 2,896
--------- --------- --------- ---------
Net income (loss) (710) 2,121 6,344 7,219
========= ========= ========= =========
Basic and diluted
earnings per share $ (0.12) $ 0.36 $ 1.06 $ 1.39
========= ========= ========= =========
Basic and diluted
earnings per share
weighted average
shares 6,004 5,938 5,972 5,192
========= ========= ========= =========
Pro forma data:
Income (loss) before
income taxes, as
reported above, $ (1,243) $ 2,986 $ 8,608 $ 10,115
Current tax (benefit)
provision (533) 865 1,739 2,896
Pro forma provision for
income taxes related
to S Corporation
operations -- 700 1,554 699
--------- --------- --------- ---------

Pro forma net income $ (710) $ 1,421 $ 5,315 $ 6,520
========= ========= ========= =========
Pro forma basic and
diluted earnings per
share $ (0.12) $ 24.00 $ 0.89 $ 1.26
========= ========= ========= =========
Depreciation and
amortization included
in expense above $ 566 $ 486 $ 2,081 $ 1,265
========= ========= ========= =========

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Brian who wrote (323)6/25/1999 9:29:00 AM
From: Roebear
   of 337
 
Brian,
The question is how hard will UFAB fall? If it holds 8 or perhaps 7 1/2 it has a very nice inverse H&S on its chart with a target of 24-27. Would guess 6-18 months to get there. Has all the bad news been factored in now that earnings are out?
This is a long term hold for me but I have a rule with delayed earnings releases with no news or explanation - cut holdings, so I did by 2/3. Normally I cut 50% but they never returned my phone call so I upped it to 2/3 (with a small profit) <VBG>.
I'm seeing gap support under yesterdays levels.

Lake Charles facility obviously important to their future, anyone have any news or opinions on it?

Roebear

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Roebear who wrote (324)6/28/1999 6:05:00 PM
From: Brian
   of 337
 
UFAB seems to be holding up ok, and they are still in an acquisition mood!
Monday June 28, 5:12 pm Eastern Time

Company Press Release

UNIFAB International, Inc. Acquires Compression Engineering Services, Inc.

NEW IBERIA, La.--(BUSINESS WIRE)--June 28, 1999--UNIFAB International, Inc. (NASDAQ:UFAB - news) announced today that it has completed its acquisition of Compression Engineering Services, Inc. (CESI). CESI provides compressor project engineering from inception through commissioning, including project studies and performance evaluation of new and existing systems, on-site supervision of package installation, and equipment sourcing and inspection. CESI recognized
revenue and pretax income of $814,000 and $187,000, respectively, for the year ended December 31, 1998. The purchase price was 60,000 shares of UNIFAB International, Inc. common stock. CESI will operate as a division of Allen Process Systems, a wholly-owned subsidiary of UNIFAB International, Inc.

In addition to compressor project design and engineering services, CESI provides daily monitoring of the performance of reciprocating gas compressors using a proprietary software program named COPA (Compressor Operational Performance Analysis). COPA detects deviations in equipment performance, which can then be addressed minimizing repair costs and down time. CESI has also developed TEMMP, a preventive maintenance management tool for equipment. These products and the other services offered by CESI can be seen at the CESI website www.comprenger.com

''Compression Engineering Services, Inc. broadens UNIFAB's base as a single-source supplier,'' said Dailey J. Berard, President, Chairman and CEO. ''Bill Adams, President of CESI and a Petroleum Engineer, is well known for his expertise in evaluations, engineering design and project management of various gas compression systems. He also teaches technical training courses in the design and operation of reciprocating compression systems. The expert project management and proprietary technology Mr. Adams and CESI bring to the UNIFAB Family are well recognized in the industry. The addition of CESI will allow Allen Process Systems to complete the process train by now having the capabilities of designing and manufacturing gas compression systems. Adding Mr. Adams to the team and adding the services offered by CESI to those already offered by the growing UNIFAB family of companies, enhances our ability to provide complimentary specialized services to our customers.''

UNIFAB fabricates and assembles jackets, decks, topside facilities, quarters buildings, drilling rigs and equipment for installation and use offshore in the production, processing and storage of oil and gas. Through its wholly owned subsidiary, Allen Process Systems, LLC, the Company designs and manufactures specialized process systems such as oil and gas separation systems, gas dehydration and treatment systems, and oil dehydration and desalting systems, and other production equipment related to the development and production of oil and gas reserves. Allen Process Systems, LLC also provides a full complement of engineering and field commissioning services related to production systems. Through a wholly owned subsidiary, Oil Barges, Inc., the Company offers design and fabrication of drilling rigs. The Company's main fabrication facilities are located in the Port of Iberia in New Iberia, Louisiana. Through a wholly owned subsidiary, UNIFAB International West, LLC, in Lake Charles, Louisiana, the Company provides repair, refurbishment and conversion services for oil and gas drilling rigs and industrial maintenance services. Through a wholly owned subsidiary, Allen Process Systems, Ltd., headquartered in Wimbledon, England, the Company provides engineering and project management services primarily in Europe and the Middle East. Dailey J. Berard serves on the Louisiana Workforce Commission and other task forces that are working to improve the training and education of the workforce in Louisiana.

Share RecommendKeepReplyMark as Last ReadRead Replies (2)


To: Brian who wrote (325)6/29/1999 4:34:00 AM
From: Roebear
   of 337
 
Brian,
Best defense a good offense and good for UNIFAB!

TTYL

Roebear

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Roebear who wrote (326)6/29/1999 11:36:00 AM
From: andrew r harwood
   of 337
 
well it comes as no great surprise that unifab had a poor quarter .if you go back and look at previous notes made on the subject .in my opinion unifab will continue to do poorly and is one of the worst investments in the oil service sector.it will recover last and probable the least . as you will observe global industries has tripled from its bottom and over the long run will do well since it is a larger and much better run company .unifab in my judgement will continue to languish and do poorly despite the protestations of management .the oil service sector continues to be in a deep slump and the recovery in prices in my opinion has been too far too fast and likely there will be other negative earnings surprises .with the price of oil and gas holding up fairly well right now there is a glimmer of hope on the horizon but right now all these companies are suffering severely .
unifab in my opinion is still expensive at 8 ,it might be a buy below 6$ a share but just for trading purposes not for a long term buy .just my personal opinion of course .arh

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: andrew r harwood who wrote (327)7/2/1999 6:32:00 PM
From: Roebear
   of 337
 
andrew,
You really are ignoring the chart on this one, which has a beauty of a base and an inverse H & S with a measurement in the 20's.

R U sure its not sour grapes?:

Message 8921381

You missed that run up, don't miss the next one. It was important for UFAB to test and hold its support and it did.

Drilling is just beginning to ramp up...

Share RecommendKeepReplyMark as Last Read


To: Brian who wrote (325)7/2/1999 6:35:00 PM
From: Roebear
   of 337
 
Brian,
BTW, I bought back my 2/3 stake high 7's and 8. My only concern is the anemic volume, but it also shows few sellers at these prices.

To me it is not a question of if UFAB will run up, merely when.

Have a great weekend,

Roebear

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Roebear who wrote (329)7/4/1999 2:48:00 PM
From: SargeK
   of 337
 
Roebear,

At least one analyst agrees with us long term. Following a modest drop to $.85 this FY ending 03/00, one analyst has Unifab earning $2.85 FY ending 03/01. In addition to the acquistions, the Lake Charles (LC) facility will be fully developed and it appears the analyst believes the Company Chairman when he says " LC will be the cornerstone to future growth". This is consistent with what Pete Roman has been saying all along.

investor.msn.com

investor.msn.com

By the way, some YoYo cretin on YAHOO thinks you are me since I seldom post and you have positive things to say about UFAB.

I'll continue to do some modest trading but will hold the majority of my UFAB shares for the BIG payoff.

Good luck all,

SargeK

Share RecommendKeepReplyMark as Last ReadRead Replies (3)


To: SargeK who wrote (330)7/4/1999 8:13:00 PM
From: Roebear
   of 337
 
SargeK,
Yeah, I saw the pervert on Yahoo, what a creep. Guess that he thinks you and I are the same is an example of his analytical skills as in zip, zero, nonexistant.
Did you check out the chart R Thomas has on securitytrader.com for UFAB. Its a beauty, you'll like it.
It was suggested btw by mois, Roebear, along with the FGI chart. They are on the trading room at the bottom under long term holds.

Later, its time for fireworks,

Roebear

Share RecommendKeepReplyMark as Last Read


To: SargeK who wrote (330)7/5/1999 10:46:00 AM
From: Roebear
   of 337
 
Sarge,
Of interest IQ has gone bullish to OSX 92. Ike mostly plays indexes and techs but does dabble in oils and is usually correct when he does.

Message 10380834

Message 10383497

Happy days!

Share RecommendKeepReplyMark as Last Read
Previous 10 Next 10