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 Quarterly Report on Form 10-Q with the Securities and Exchange Commission reporting results for the three and nine months ended September 30, 2014.
During the third quarter of 2014, the Company realized net income of $256,000 which was a direct result of tool sales to an oil & gas service company in Mexico. Our revenues for the three months ended September 30, 2014 were approximately $2,160,000 compared to $1,610,000 during the three months ended September 30, 2013, an increase of $550,000. Our overall revenues for the nine months ended September 30, 2014 and 2013 were $5,073,000 and $4,855,000, respectively. For the nine months we invested an additional $771,000 in new tools and machinery in order to expand our product lines and meet the demands of our international oil service companies. Our customers who are international service companies are currently developing South American opportunities (in addition to Mexico) which we believe will positively impact our revenue growth throughout the remainder of 2014 and into next year.
The summary of our financial results are as follows:
- We had a net income of $256,000 for the three months ended September 30, 2014, compared to a net loss of $178,000 for the three months ended September 30, 2013, an increase in net income of $434,000, representing a 244% improvement from the prior period. The increase in third quarter net income was mainly attributable to a $709,000 or 1,611% increase in product sales during this quarter. For the nine months ended September 30, 2014 and 2013, our net losses were $324,000 and $418,000, respectively. This overall decrease of $94,000 in net loss is related to an increase in product sales.
- Basic and diluted net income (loss) per share for the three months ended September 30, 2014 and 2013 were $0.02 and ($0.01), respectively. Basic and diluted net loss per share for the nine months ended September 30, 2014 and 2013 were ($0.02) and ($0.03), respectively.
- The Company reported a gross profit of $1,178,000 for the three months ended September 30, 2014, as compared to a gross profit of $770,000 for the three months ended September 30, 2013; an increase of $408,000 or 53%. For the nine months ended September 30, 2014 and 2013, gross profit was $2,454,000 and $2,384,000, respectively, an increase of $70,000 or 3%. This increase mainly reflects an increase in the sale of our coil tubing products.
- For the three months ended September 30, 2014 as compared to the same period in 2013, the Company reported a decrease in operating expenses of $34,000 or 4%, principally related to lower commission expenses which was offset by higher litigation expenses. For the nine months ended September 30, 2014 as compared to the same period in 2013, operating expenses decreased by $55,000 or 2%.
- The Company's working capital was $2,523,000 at September 30, 2014. For the nine months ended September 30, 2014, cash flow provided by operations was $817,000. During the nine months ended September 30, 2014, the Company’s principal investing activity was the purchase of rental tools and equipment costing $771,000.
Mr. Jason Swinford, CEO of the Company, commented, "We are beginning to see a positive trend in demand for our coil tubing products with our international service customers in Mexico. The new innovations in our coil tubing products have been designed to meet the needs of both on and off shore drilling opportunities and work over projects. We will continue to invest in the development of new coil tubing tools for our customers and concurrently expand into new sales territories.”
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.