SPRING, Texas--(BUSINESS WIRE)--Coil Tubing Technology, Inc. (OTCQB:CTBG), a leading provider of enterprise-class coil tubing products and services, announced that the Company has filed its Annual Report on Form 10-K with the Securities and Exchange Commission reporting results for the year ended December 31, 2013.
The Company's financial condition and results of operation for the year ended December 31, 2013 reflects the downturn in natural gas drilling and customer demand for coil tubing products used in horizontal drilling and well work-over services. During 2013, the Company concentrated its efforts in the reduction of on-going overhead and in the development of new coil tubing products. Our financial results reflect this decrease in customer demand as well as the investment in our future coil tubing products. The summary of our financial results are as follows:
- The Company reported revenues of $6,143,000 for the year ended December 31, 2013, as compared to revenues of $7,765,000 for the same period ending December 31, 2012; a decrease of $1,622,000 or 21%. This decrease follows the 2013 decline in demand for coil tubing services from our customers. In order to grow our revenues, we are diversifying our operations with the goal of partnering with service companies in Mexico and South America to meet their coil tubing demands.
- The Company reported a net loss of $866,000 for the year ended December 31, 2013, as compared to net income of $752,000 for the year ended December 31, 2012; a decrease of $1,618,000 or 209% in net income.
- Primary and fully-diluted net income (loss) per share for the twelve months ended December 31, 2013 was ($0.06). Primary and fully-diluted net income per share for the twelve months ended December 31, 2012, was $0.05 and $0.04, respectively.
- The Company reported a gross profit of $2,867,000 for the year ended December 31, 2013, as compared to a gross profit of $4,345,000 for the year ended December 31, 2012; a decrease of $1,478,000 or 34%.
- The Company reported an increase in operating expenses of $125,000 or 4%, principally related to stock compensation and litigation expenses, for the year ended December 31, 2013, as compared to the year ended December 31, 2012.
- The Company's working capital decreased by $153,000 for 2013, as compared 2012. Additionally, the Company’s operations continue to provide cash flow which totaled $694,000 in 2013 as compared to $817,000 in 2012.
- Lastly, the Company used $1,474,000 of cash in investing activities during the year ended December 31, 2013, primarily for the purchase of a building and equipment.
Mr. Jason Swinford, CEO of the Company, commented, "During 2013, we experienced a significant downturn in the demand for our products in Canada and the eastern United States due to a decline in natural gas drilling. We have initiated the development of new products to improve coil tubing efficiencies in the horizontal and work-over services which we have recently deployed to our customers’ operational sites. Also, we are aggressively pursuing international partners to distribute our products and services. We believe this diversification will provide our company with accretive new revenues in fiscal 2014.”
Mr. Jerry Swinford, Chairman of the Company, commented, "During the calendar year 2013, we experienced a downturn in the use of our products and, in turn, a decrease in our profitability. In early 2014, we developed new coil tubing products to meet our recent customer demands. These products are designed to reduce the down hole drilling time. We have deployed these new products in the United States and will engage partners in Mexico and South America to distribute these products in multi-well drilling projects. We will continue to invest in technology to remain a leader in the coil tubing industry."
About Coil Tubing Technology
Coil Tubing Technology, Inc. is a fully reporting public corporation located in Spring, Texas, and is the parent company of Coil Tubing Technology Holdings, Inc., a Nevada corporation, which in turn has three wholly-owned subsidiaries, Total Downhole Solutions, Inc. (“TDS”) and Coil Tubing Technology, Inc. (“CTT Texas”), both Texas corporations and Coil Tubing Technology Canada Inc., an Alberta, Canada corporation (“CTT Canada”). The Company specializes in providing coil tubing products and service solutions to oil and gas clients on a regional, national and international basis. Its principals have been in the tool rental business for more than 40 years. For more information, please visit our website at www.coiltubingtechnology.com or call 281-651-0200.
This press release contains forward-looking statements, including information about management’s view of the Company’s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These risk factors and others are included from time to time in documents the Company files with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on the Company's future results. The forward-looking statements included in this press release are made only as of the date hereof. The Company cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.