Boots & Coots International Well Control, Inc. (AMEX: WEL) provides pressure control services to oil and gas exploration companies worldwide. The company's products help to reduce and avoid well fires, blowouts and other well failures. Boot & Coots operates in two business segments - Well Intervention and Response. On May 5, Boots & Coots announced their financial results for the first quarter of 2008. According to the announcement the company's performance has exceded analyst estimates. Reported net income of $5.1 million resulted in $0.07 net income per share instead of estimates of $0.06. As compared to the prior year comparable period, the company's performance increase significantly, with revenue for the first quarter of 2008 at approximately $45 million, which was slightly more than double the $22.3 million reported a year ago. Prior year quarter net income was $500,000 or $0.01 per share.
The Well Intervention segment has yielded revenues of $37.9 million for the first quarter 2008 and response segment added $7.1 million. These figures represent an 82.2% increase in Well Intervention and 407% increase in Response segment revenues compared to the same quarter a year ago.
The president and CEO of Boots & Coots, Jerry Winchester , has expressed positive expectations considering the company's future growth: "Led by two international well intervention projects and higher international response activity, the first quarter generated record revenue for Boots & Coots. Our well intervention business increased 82% compared to the first quarter of last year, and the utilization rate on our hydraulic work over business increased sequentially from 42% at the end of last year's fourth quarter to 50% by the end of the first quarter."
The company's revenues have been increasing steadily for the whole last year. The stock has been on a very strong uptrend since the beginning of March, 2008. Despite the great news in the first quarter, the stock's reaction was somewhat underwhelming. The sharp increase at the open to $2.29 was met with selling pressure and the stock is now only up .04 at $2.19.
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