Deep Down Profit Up

Deep Down has reported net income of $1.2 million, for the third quarter of 2014, or $0.08 per diluted share, compared to net income of $0.4 million, or $0.03 per diluted share, for the third quarter of 2013.

Revenues for the quarter ended September 30, 2014 were $8.5 million, and were relatively flat when compared to revenues of $8.6 million for the quarter ended September 30, 2013. The $0.1 million decrease is the result of customer delays in certain projects due primarily to lower oil prices.

Gross profit as a percentage of revenues for the third quarter of 2014 and 2013 was 41 percent and 29 percent, respectively. The twelve percentage-point increase is due primarily to a loss recognized on a large fabrication project in the third quarter of 2013.

Modified EBITDA was $1.8 million for the third quarter of 2014 versus $1.0 million for the third quarter of 2013. The $0.8 million increase in Modified EBITDA was due to increased gross profit before depreciation expense of $1.0 million. This was offset by a $0.2 million increase in SG&A before share-based compensation expense.

Ronald E. Smith, Chief Executive Officer, stated: “The projects that were delayed in the first half of the year are getting back on track, which is reflected in our financial results. Our backlog remains fairly strong at $28.7 million at September 30, 2014. Our quoting continues to be very strong; however, we are seeing some delays in commitments from our customers, particularly in the deepwater projects. We remain involved in the planning of several major projects and we believe we will continue to grow with the offshore industry.”

Press Release