MIRA
INFORM REPORT
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Report Date : |
22.10.2008 |
IDENTIFICATION DETAILS
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Name : |
T-3 ENERGY SERVICES
INC. |
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Registered Office : |
C/o Capitol Corporate Services, |
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Country : |
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Date of Incorporation : |
21.10.1999 |
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Com. Reg. No.: |
3114616 |
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Legal Form : |
Public Company |
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Line of Business : |
Designs, Manufactures, Repairs, and Services Products used in the Drilling
and Completion of New Oil and Gas Wells |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 10,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Company
Name
T-3 ENERGY SERVICES INC.
Contact Information
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Address |
7135 |
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Telephone |
713-996-4110 |
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Fax |
713-690-9875 |
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Website |
www.t3energyservices.com |
Registration Data
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Date of Registration |
October 21st, 1999 |
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Registration number |
3114616 |
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Legal address |
c/o Capitol Corporate Services
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Legal Form |
Public Company |
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Share Capital |
At August 1, 2008, the registrant had 12,530,791 shares of common
stock outstanding. |
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Other Registration Data |
- |
Shareholders
with Shares
The Company is quoted with the Nasdaq under symbol TTES
99% of the stock is held by institutional and mutual fund owners,
including:
|
ALGER (FRED) MANAGEMENT INC |
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6.71% |
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FMR LLC |
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5.55% |
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TIMES SQUARE CAPITAL MANAGEMENT |
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5.01% |
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Copper Rock Capital Partners LLC |
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4.78% |
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AXA |
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4.75% |
Board/Executive
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Name |
Gus D. HALAS |
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Position within the company |
President and CEO |
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Name |
Keith A. KOPFENSTEIN |
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Position within the company |
Vice President and COO |
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Name |
James MITCHELL |
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Position within the company |
Vice President and CFO |
Changes in
Registration Data
None recorded
Activities
(realistic and officials)
T-3 Energy Services, Inc., together with its subsidiaries, designs,
manufactures, repairs, and services products used in the drilling and completion
of new oil and gas wells, the workover of existing wells, and the production
and transportation of oil and gas primarily in the United States and Canada. It
offers pressure and flow control products, such as blow-out preventers (BOPs),
BOP control systems, elastomer products, high pressure gate valves, manifolds,
and control valves, as well as production, drilling, and well service chokes
that are used in the drilling, completion, production, and workover of onshore
and offshore, and subsea applications. The company also provides wellhead
products, which include wellheads, production chokes, and production valves
used in onshore oil and gas production. In addition, it offers pipeline
products, which include various valves for pipeline applications, including
gate, ball, control, and check valves. Further, the company provides
aftermarket parts and services, such as remanufactured products and parts,
repair, and field services. It markets its products through its direct sales
force to drilling contractors, exploration and production companies, and
pipeline companies.
Staff
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Number of staff employed |
734 |
Export/Import
(Countries, goods and total values for the period)
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Imports From |
Europe, Far East |
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Exports To |
Worldwide |
Facilities
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Owned |
Manufacture, warehouse and office |
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Premises Size |
40,000 sq. feet |
Subsidiaries
and Participation
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Parent Company |
Public Company |
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Subsidiaries |
There are about 50 subsidiaries |
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Affiliates |
- |
Branches
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Address |
There are about 30 branches in the U.S. and worldwide |
Bankers
|
Bank |
Bank of America |
Suppliers,
Partners
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Suppliers |
Not known |
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Partners |
Not known |
Litigation,
Remarks on Payment
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Litigation |
None Recorded |
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Remarks on Payment |
No Complaints |
Financial
Information
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Source |
S.E.C. |
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Figures are |
Declared |
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Currency |
USD |
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PERIOD ENDING |
31-Dec-07 |
31-Dec-06 |
31-Dec-05 |
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Total Revenue |
217,434 |
163,145 |
103,218 |
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Net Income |
25,250 |
18,092 |
4,513 |
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(in thousand dollars)
Reporter Comments
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Comments |
In the interview conducted with James Mitchell assistant, who sent us to
the website.
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Local Reputation |
The company being investigated is believed by local reporters to be a Low Trade Risk and to be fair. According to our credit analysts, during the last 6 months, 93% of
trade experience indicates a regular payment. Payments of imports are currently made with an average of 2 to 5 days
beyond terms. |
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MAX CREDIT |
USD 10,000,000+ |
NEWS
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Date |
October 1st, 2008 |
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Source |
Company News |
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Article |
T-3 Energy Services, Inc. announced that it has recently received
commitments for its new wellhead product line from three strategically targeted
North American natural gas producing companies. In mid September, T-3 Energy
received commitments for approximately $4.3 million between three orders;
T3's new stainless steel dual block wellhead system incorporating its new
Diamond Series production gate valve technology, T-3's new Under-balanced
Drilling Deployment Valve Wellhead System, and a conventional wellhead system
also incorporating T-3's new Diamond Series production gate valves.
T-3 Energy's Diamond Series production gate valves are available in a
variety of sizes, and have been designed to meet a range of service
conditions as demonstrated by their American Petroleum Institute
("API") 6A PR-2 performance verification rating. T-3 Energy's
production gate valve offers low operational torque with a metal-to-metal
bonnet-to-body seal and a unique metal-to-metal seat-to-body seal. These new wellhead product commitments continue to demonstrate T-3
Energy's successful execution of its business strategy to develop its
presence in the oil and gas industry as a major original equipment
manufacturer. The customer response regarding T-3 Energy's responsive service
capabilities, engineering support, competitive pricing, and timely delivery continue
to foster new opportunities and should yield additional commitments from
strategically targeted oil and gas producers for our wellhead production
line. |
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Date |
October 21st, 2008 |
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Source |
Company News |
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Article |
T-3 Energy Services, Inc. announced the impact
of two events, Gulf Coast hurricanes and strategic alternative costs, that reduced
results for the quarter by approximately $0.24 and $0.18 per diluted share,
respectively. The Company has not provided guidance in the past, but wishes
to provide the anticipated impact of these events on the current quarter.
After taking these events into account, the Company anticipates earnings for
the third quarter of 2008 to be in the range of $0.31 and $0.35 per diluted share.
Despite the impact of these events, the Company anticipates record quarterly
revenues of approximately $69.8 million.
Although Hurricanes Gustav and Ike caused minimal direct damage, they negatively
impacted the Company during the quarter through delays in the completion of
sales transactions originally anticipated during the quarter and increased
costs at Company facilities near the Gulf Coast that were temporarily made
idle due to the hurricanes. During the quarter, the Company sustained revenue
reductions of approximately $8.5 million as a result of these hurricanes. The
Company anticipates that these sales delays will be realized in the fourth
quarter of 2008 and the first quarter of 2009. In addition, the Company
incurred costs associated with lost absorption, downtime pay and minimal
property damage, which further reduced third quarter 2008 operating income by
approximately $1.4 million. During the quarter, the Company continued to incur charges related to
its review of strategic alternatives. The Company's quarterly results include
$2.2 million of these costs before tax or $2.3 million after tax. The
Company's tax rate for the quarter was negatively impacted by the amount of
these strategic costs, including those incurred in the previous quarter,
which are not deductible. These year-to-date costs were approximately $4.7
million before tax or $4.0 million after tax. The Company is still in the process of reviewing and evaluating the
quarterly results. Consequently, actual earnings for the quarter could fall
outside the range mentioned above. |
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Date |
August 6, 2008 |
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Source |
Company News |
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Article |
T-3 Energy Services, Inc. reported second quarter 2008 net income from
continuing operations of $7.5 million, or $0.58 per diluted share, up 41% and
32%, respectively, from $5.3 million or $0.44 per diluted share for the
second quarter of 2007. Year to date 2008 net income from continuing
operations of $17.0 million, or $1.32 per diluted share, was up 58% and 40%,
respectively, from $10.8 million, or $0.94 per diluted share, reported during
2007.
The second quarter 2008 financial results include costs, which were $2.5
million before tax and $1.6 million after tax, related to the pursuit of
strategic alternatives for the Company. The second quarter 2007 financial
results include a charge, which was $2.5 million before tax and $1.9 million
after tax, associated with a change of control payment and the immediate
vesting of previously unvested stock options and restricted stock held by Gus
D. Halas, the Company's Chairman, President and Chief Executive Officer,
pursuant to the terms of his then existing employment agreement. Excluding
the impact of these strategic alternatives costs and change of control costs,
T-3 Energy's net income from continuing operations and diluted earnings per
share for the second quarter of 2008 were $9.1 million and $0.70,
respectively, which is an increase of 26% and 17%, respectively, from $7.2
million and $0.60 per diluted share in 2007. Revenues for the second quarter of 2008 increased 30% to $67.7 million
from $51.9 million for the same period in 2007. Year to date 2008 revenues
increased 37% to $136.9 million from $99.8 million for the same period in
2007. The Company's revenues increased primarily due to the acquisitions of
Energy Equipment Corporation ("EEC") and Pinnacle Wellhead, Inc.
("Pinnacle") along with the continued demand for its pressure and
flow control and pipeline original equipment products and services. As a
result of the continued demand for the Company's pressure and flow control
and pipeline products and services, its backlog has increased approximately
31% from $61.8 million at June 30, 2007 to $80.7 million at June 30, 2008. Operating income for the second quarter of 2008 increased 42% to $11.3
million from $7.9 million for the same period in 2007. Year to date 2008
operating income increased 53% to $25.7 million from $16.8 million for the
same period in 2007. The increase in the Company's operating income is
primarily related to increased revenues and gross margins. Gross margins were 40% during the three and six months ended June 30,
2008, compared to 38% and 37% during the three and six months ended June 30,
2007, respectively. This gross margin increase resulted from the sale of
higher margin products and services and operational efficiencies. |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.79 |
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UK Pound |
1 |
Rs.81.27 |
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Euro |
1 |
Rs.63.91 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)