UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) March 22, 2000
SUPERIOR ENERGY SERVICES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 0-20310 75-2379388
(STATE OR OTHER JURISDICTION (COMMISSION (IRS EMPLOYER
OF INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
1105 Peters Road, Harvey, Louisiana 70058
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(504) 362-4321
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
<PAGE>
ITEM 5. OTHER EVENTS.
On February 29, 2000, Superior Energy Services, Inc. issued the press
release attached hereto as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99 Press release issued by Superior Energy Services, Inc. on
February 29, 2000 announcing results for the fourth quarter
and twelve months ended December 31, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
SUPERIOR ENERGY SERVICES, INC.
By: /S/ ROBERT S. TAYLOR
Robert S. Taylor
Chief Financial Officer
Dated: March 21, 2000
SUPERIOR ENERGY SERVICES, INC. 1105 Peters Road
Harvey, Louisiana 70058
(504) 362-4321
Fax: (504) 362-1818
NASDAQ:SESI
FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION CONTACT:
Terence Hall, CEO: Robert Taylor, CFO: Guy Cook,
Investor Relations, 504-362-4321
SUPERIOR ENERGY ANNOUNCES FOURTH QUARTER AND 1999 RESULTS
(Harvey, LA, February 29, 2000) Superior Energy Services, Inc. (NASDAQ: SESI)
today announced earnings for the fourth quarter and twelve months ended
December 31, 1999.
On July 15, 1999, Cardinal Holding Corp. merged with and into a wholly-owned
Superior subsidiary. The merger was treated for accounting purposes as an
acquisition of Superior by Cardinal and, accordingly, all historical numbers
presented herein for periods prior to July 15, 1999 represent the results
of Cardinal on a stand alone basis. The results of the fourth quarter ended
December 31, 1999 include three months of Cardinal and Superior as well as two
months of Production Management which was acquired November 1, 1999. The
results for the quarter ended December 31, 1998 are Cardinal alone. The
results for the twelve months ended December 31, 1999 include twelve months of
Cardinal, five and a half months of Superior and two months of Production
Management. The results for the twelve months ended December 31, 1998 are
Cardinal alone. Analyzing prior period results to determine or estimate the
combined operating potential will be difficult at best and perhaps meaningless
given the fact that Cardinal, prior to the merger, incurred substantial non-
cash and extraordinary charges during the last few years associated with a
reorganization and recapitalization. Beginning in the first quarter of 2000,
the Company's financial results will include Superior, Cardinal and Production
Management for the entire quarter.
For the quarter ended December 31, 1999, revenues were $44.1 million resulting
in net income of $1.8 million or $0.03 diluted earnings per share.
For the twelve months ended December 31, 1999, the company generated revenues
of $113.1 million resulting in a loss before extraordinary charges of $2
million or $0.05 diluted loss per share. Assuming the merger had been in
place for the full twelve months ended December 31, 1999 the revenues, income
before extraordinary loss and diluted earnings per share before extraordinary
loss would have been $185.6 million, $920,000 and $0.02, respectively.
Commenting on the results, Terence E. Hall, President and Chief Executive
Officer, stated, "Industry conditions steadily improved in the fourth quarter
until holiday interruptions and adverse weather set in during the last weeks
of December. All of our business segments improved accordingly. We
successfully completed the integration of Cardinal and closed the previously
announced Production Management acquisition. The combined company is heavily
focused on providing a complete package of production related services to our
customers and is well positioned to take advantage of the expected recovery in
2000."
Superior Energy Services, Inc. provides a broad range of specialized oilfield
services and equipment primarily to major and independent oil and gas
companies engaged in the exploration, production and development of oil and
natural gas properties offshore in the Gulf of Mexico and throughout the Gulf
Coast region. These services and equipment include the rental of liftboats,
rental of specialized oilfield equipment, electric and mechanical wireline
services, well plug and abandonment services, coiled tubing services and
engineering services. Additional services provided include contract operating
and supplemental labor, offshore construction and maintenance services,
offshore and dockside environmental cleaning services, the manufacture and
sale of drilling instrumentation and the manufacture and sale of oil spill
containment equipment.
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 which involve
known and unknown risks, uncertainties and other factors. Among the factors
that could cause actual results to differ materially are: volatility of the
oil and gas industry, including the level of exploration, production and
development activity; risks associated with the Company's rapid growth;
changes in competitive factors and other material factors that are described
from time to time in the Company's filings with the Securities and Exchange
Commission. Actual events, circumstances, effects and results may be
materially different from the results, performance or achievements expressed
or implied by the forward-looking statements. Consequently, the forward-
looking statements contained herein should not be regarded as representations
by Superior or any other person that the projected outcomes can or will be
achieved.
<PAGE>
SUPERIOR ENERGY SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(in thousands, except earnings per share amounts)
<TABLE>
<CAPTION>
Three Months Twelve Months
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues $ 44,102 $ 24,567 $ 113,076 $ 82,223
--------- --------- --------- ---------
Costs and expenses:
Cost of services 24,737 11,997 67,364 43,938
Depreciation and amortization 4,400 2,115 12,625 6,522
General and administrative 9,144 4,398 23,071 16,205
--------- --------- --------- ---------
Total costs and expenses 38,281 18,510 103,060 66,665
--------- --------- --------- ---------
Income from operations 5,821 6,057 10,016 15,558
Other income (expense):
Interest expense (2,993) (3,611) (12,969) (13,206)
Interest income 168 -- 308 --
--------- --------- --------- ---------
Income (loss) before income taxes and
extraordinary loss 2,996 2,446 (2,645) 2,352
Income tax provision (benefit) 1,194 1,082 (611) 1,149
Income (loss) before extraordinary loss l,802 1,364 (2,034) 1,203
Extraordinary loss, net of income tax
benefit -- -- (4,514) (10,885)
--------- --------- --------- ---------
Net income (loss) $ 1,802 $ 1,364 $ (6,548) $ (9,682)
========= ========= ========= =========
Basic earnings (loss) per share:
Earnings (loss) before extraordinary
loss $ 0.03 $ 0.05 $ (0.05) $ 0.04
Extraordinary loss -- -- (0.10) (0.36)
--------- --------- --------- ---------
Earnings (loss) per share $ 0.03 $ 0.05 $ (0.15) $ (0.32)
========= ========= ========= =========
Diluted earnings (loss) per share:
Earnings (loss) before extraordinary
loss $ 0.03 $ 0.05 $ (0.05) $ 0.04
Extraordinary loss -- -- (0.10) (0.36)
--------- --------- --------- ---------
Earnings (loss) per share $ 0.03 $ 0.05 $ (0.15) (0.32)
========= ========= ========= =========
Weighted average common shares used
in computing earnings per share:
Basic 59,598 30,240 43,810 30,240
========= ========= ========= =========
Diluted 60,024 30,240 43,810 30,240
========= ========= ========= =========
</TABLE>
CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND 1998
(in thousands)
<TABLE>
<CAPTION>
12/31/99 12/31/98
--------- ---------
<S> <C> <C>
ASSETS
Current assets $ 56,122 $ 26,027
Property, plant and equipment - net 134,723 60,328
Goodwill - net 78,641 17,163
Note receivable 8,898 --
Other assets - net 3,871 4,443
--------- ---------
Total assets $ 282,255 $ 107,961
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities $ 30,917 $ 22,694
Long-term debt, less current portion 117,459 120,210
Deferred income taxes 12,392 4,997
Stockholders' equity (deficit) 121,487 (39,940)
--------- ---------
Total liabilities and stockholders' equity (deficit) $ 282,255 $ 107,961
========= =========
</TABLE>
