OMNI Energy Services Corp. (OMNI) filed Quarterly Report for the period ended 2009-06-30.
OMNI Energy Services Corp. is an oilfield service company specializing in providing an integrated range of onshore seismic drilling and survey services to geophysical companies operating in logistically difficult and environmentally sensitive terrain in the United States. The company\'s primary market is the marsh swamp shallow water and contiguous dry land areas along the U.S. Gulf Coast primarily in Louisiana and Texas where it is the leading provider of seismic drilling services. OMNI Energy Services Corp. has a market cap of $41.1 million; its shares were traded at around $1.99 with a P/E ratio of 1.3 and P/S ratio of 0.2. OMNI Energy Services Corp. had an annual average earning growth of 54.9% over the past 5 years.
Highlight of Business Operations:
Operating revenues decreased $16.3 million, from $48.9 million for the three months ended June 30, 2008 to $32.6 million for the three months ended June 30, 2009. Operating revenues related to services decreased $11.1 million. Our seismic services segment, other services segment, and fluid and transportation services segment accounted for $6.9 million, $1.8 million and $2.9 million of the decrease, respectively. The decrease in revenues was due to the erosion of production and drilling activity
Direct costs related to services decreased $8.4 million, from $26.7 million for the three months ended June 30, 2008 to $18.3 million for the three months ended June 30, 2009. Direct costs for our seismic services segment, environmental services segment, other services segment, and fluid and transportation services segment enhanced by the BEG acquisition accounted for $5.1 million, $0.1 million, $1.1 million and $2.0 million of the decrease, respectively. The decreases were in response to lower activity levels as described above. Direct costs related to rentals decreased $2.3 million, from $5.4 million for the three months ended June 30, 2008 to $3.1 million for the three months ended June 30, 2009. Of the total decrease in direct costs, $3.0 million relates to repairs and maintenance and cost of parts sold, $2.3 million relates to explosives and down-hole supplies, $2.2 million relates to payroll costs, $1.2 million relates to fuel and oil, $1.1 million relates to third-party contract services, and $0.8 million relates to insurance.
Operating revenues decreased $22.4 million, from $89.9 million for the six months ended June 30, 2008 to $67.5 million for the six months ended June 30, 2009. Operating revenues related to services decreased $17.7 million. Our seismic services segment, other services segment, and fluid and transportation services segment accounted for $12.7 million, $3.2 million and $3.3 million of the decrease, respectively. The decrease in revenues was due to the erosion of production and drilling activity of our customers in the regions in which we operate. Seismic services are driven by the front-end activity in exploration for hydrocarbons. The other services and fluid and transportation services are directly impacted by the number of rigs operating in the United States and the Gulf of Mexico. The rig counts were off sharply compared to the number of rigs operating during the first six months of 2008. These decreases were offset by increases in our environmental services segment of $1.5 million. The increase in environmental services was principally attributable to specialized cleaning projects on client facilities in the Gulf of Mexico. Operating revenues related to our equipment leasing segment, after taking into account the Industrial Lift acquisition effective April 2008, decreased by $4.7 million. This reduction in equipment leasing activity is attributable to the reduction in rigs operated by our customers in the areas we serve.
Direct costs related to services decreased $15.3 million, from $51.8 million for the six months ended June 30, 2008 to $36.5 million for the six months ended June 30, 2009. Direct costs for our seismic services segment, other services segment, and fluid and transportation services segment enhanced by the BEG acquisition accounted for $10.8 million, $2.0 million and $2.3 million of the decrease, respectively. The decreases were in response to lower activity levels as described above. Direct costs related to rentals decreased $2.2 million, from $9.8 million for the six months ended June 30, 2008 to $7.6 million for the six months ended June 30, 2009. Direct costs as a result of the Industrial Lift acquisition accounted for an increase of $0.8 million, offset by decreases in other areas of the equipment leasing segment. Of the total decrease in direct costs, $4.2 million relates to
Effective as of April 24, 2008, we completed a modified $90.0 million credit facility (“Senior Credit Facility”), including a $50.0 million term loan, a $25.0 million working capital revolving line of credit, and a $15.0 million delayed draw term loan available to fund future acquisitions. With the proceeds from the Senior Credit Facility, we (i) repaid approximately $28.7 million of outstanding principal balance under our previous term loan; (ii) repaid approximately $2.1 million of outstanding principal balance under our previous capital expenditure loan; (iii) repaid the balance on the previous line of credit; and (iv) closed the acquisition of Industrial Lift. The balance of the proceeds available under the Senior Credit Facility was used to pay fees and expenses of the aforementioned transaction and to provide additional working capital.
At June 30, 2009, we had approximately $2.2 million in cash and restricted cash compared to $3.0 million in cash and restricted cash at December 31, 2008, and working capital of $2.3 million at June 30, 2009, compared to $4.0 million at December 31, 2008. The decrease in working capital from December 31, 2008 to June 30, 2009 is primarily due to a reduction in prepaid expenses due to the amortization of prepaid insurance costs over the policy terms and a reduction of supply inventory levels. Cash provided by operating activities was $16.9 million for the six months ended June 30, 2009 compared to $15.0 million for the same period in 2008 due, in part, to an increase in non-cash charges related to reserves for uncollectible accounts and non-cash adjustments to deferred income taxes. Cash used in investing activities was $0.4 million for the six months ended June 30, 2009 compared to $27.7 million during the same period in 2008. The difference is due to a $5.3 million reduction in capital expenditures in 2009 and the fact that 2008 included $7.1 million applied to the acquisition of BEG and $13.8 million to the acquisition of Industrial Lift. Cash used in financing activities was $16.7 million for the six months ended June 30, 2009 compared to $1.2 million provided by financing activities for the same period in 2008 due primarily to an increase in payments reducing the revolving line of credit and long-term debt.
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