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 Form 10-Q with the Securities and Exchange Commission reporting results for the three months ended March 31, 2014.
During fiscal 2013 and continuing throughout the first three months of 2014, oil and gas service companies, which are our clients, reduced their drilling and work-over operations in Canada, Pennsylvania and Louisiana which continues to have an overall negative impact on our revenues. Our revenues for the three months ended March 31, 2014 were approximately $1,267,000 compared to $1,804,000 during the three months ended March 31, 2013, a decrease of $537,000. We expect our revenues in North America and Canada to continue to be impacted by and to follow the trends in natural gas drilling activities for the remainder of 2014. As discussed below, we are in the process of advancing our technology and global participation in Mexico, South America and Asia to take advantage of the growing coil tubing demands. We have implemented the following strategies:
- We are entering into Master Service agreements and joint ventures with multinational oil and gas service companies to integrate and update their coil tubing service capabilities;
- We are expanding our product lines using new technology we have developed which has been field tested and approved for use by our customers; and
- We are refocusing our sales targets to include sales of our coil tubing products to large integrated oil companies.
We believe increasing the availability of our proprietary product lines to our customers is critical to our profitability. Therefore, we will focus on initiatives to drive quarter over quarter sales growth for our existing and new products emphasizing:
- Expedited delivery time, training and enhanced service at the customers’ sites;
- Focusing on the higher margin coil tubing products to be integrated into our customers current and long-term demands; and
- Marketing our new product lines to our prospective international customers.
The summary of our financial results are as follows:
- We had a net loss of $473,000 for the three months ended March 31, 2014, compared to net loss of $66,000 for the three months ended March 31, 2013, an increase in net loss of $407,000 or 617% from the prior period. The increase in net loss was attributable to a decrease in total revenue and an increase in certain operating expenses, for the three months ended March 31, 2014, compared to the three months ended March 31, 2013.
- Primary and fully-diluted net loss per share for the three months ended March 31, 2014 and 2013 was ($0.03) and ($0.00), respectively. The Company reported a gross profit of $517,000 for the three months ended March 31, 2014, as compared to a gross profit of $950,000 for the three months ended March 31, 2013; a decrease of $433,000 or 46%.
- The Company reported a decrease in operating expenses of $41,000 or 4%, principally related to lower compensation which was offset by higher litigation expenses, for the three months ended March 31, 2014, as compared to the three months ended March 31, 2013.
- The Company's working capital was $1,844,000 at March 31, 2014. Additionally, the Company’s operations continue to provide cash flow which totaled $521,000 for the three months ended March 31, 2014.
- Lastly, the Company used $282,000 of cash in investing activities during the three months ended March 31, 2014, primarily for the purchase of tools and equipment.
Mr. Jason Swinford, CEO of the Company, commented, "During 2014, we introduced new coiled tubing technology that permits operators with more extended reach capabilities in lateral operations. We believe that these new capabilities combined with our current tool technology will increase our revenue streams throughout the remainder of the year. As previously disclosed, we have met with potential international companies to expand our markets and are currently evaluating these distribution channels. We believe this diversification will provide our company with new markets and revenue in fiscal 2014.”
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.