HOUSTON - November 14, 2013 (Investorideas.com Newswire) HII Technologies, Inc. (the "Company"), symbol HIIT (
OTCBB/OTCQB: HIIT),
an oilfield services company headquartered in Houston, Texas, today
announced financial results for the third quarter ended September 30,
2013.
As stated in the Company's
Quarterly Report
on Form 10-Q filed on November 14, 2013, third quarter 2013 revenues
were $3,931,716, which generated a gross profit of $1,136,887. For the
nine months ended September 30, 2013, revenues were $9,767,926 and gross
profit was $2,534,307. Increased revenues came from continued growth of
AES Water Solutions' frac water transfer business and additional
revenue contributions from our South Texas Power and AES Safety Services
divisions which were launched in late December 2012 and January 2013,
respectively. For comparison, our revenues on a consolidated pro forma
basis for the three and nine month periods ended September 30, 2012
(including revenues of the Company's wholly-owned subsidiary AES Water
Solutions which was acquired in September 2012) were $438,682 and
$1,424,790, respectively. Accordingly, this represents revenue growth of
more than 796% for the third quarter 2013, and 585% for the nine months
ended September 30, 2013 from the pro forma consolidated comparable
periods in 2012.
For the third quarter ended September 30, 2013, the Company had
Adjusted EBITDAS of approximately $78,161, (EBITDAS defined as earnings
before interest, taxes, depreciation, amortization, non-cash stock
option expenses, and one-time or non-operational expense items), a
non-GAAP measure. A reconciliation table of the Adjusted EBITDAS is
provided below. The Net Loss for the third quarter 2013 was $175,211.
The EBITDAS results were driven by increased revenues and improved
sequential quarter to quarter gross margins offset by costs associated
with new technology development and the expenses associated with organic
territory expansion particularly in West Texas and the Permian Basin.
Regarding the Balance Sheet, total Current Assets grew from
$1,743,568 at December 31, 2012 to $2,901,681 at September 30, 2013. Net
Equipment increased from $537,881 at December 31, 2012 to $674,990 at
September 30, 2013. This increase resulted primarily from the sale of
our truck fleet and establishment of a national light-duty truck
operating lease line program offset by the purchase of new flow back
equipment to expand our services offered. Total Assets grew from
$4,182,551 at year end 2012 to $5,533,473 at September 30, 2013. Total
Liabilities grew from $3,311,580 to $4,716,250 for the same period which
included $1,436,273 outstanding on a new $2 million revolving
line of credit
closed during the second quarter 2013. Prior to establishing our line
of credit, most of our growth had been funded from existing cash flow.
The line of credit provides additional liquidity to the Company as
needed.
"AES continued to grow as a result of the increasing demand and
operations for our frac water flow back and water transfer services,"
stated Brent Mulliniks, President of AES Water Solutions. Mr. Mulliniks
continued, "We have expanded our services with new technologies
including forming a strategic alliance with CRS Reprocessing, a global
fluids reprocessing management company. This technology alliance will
broaden and enhance the services provided by AES Water Solutions in the
area of its water and fluids remediation business."
Matthew Flemming, CEO of HII Technologies stated, "Strong revenue
continues to grow across all three divisions of Water, Safety and Power
validating our strategy of focusing on core oilfield market segments
where demand is anticipated to remain from horizontal drilling and
hydraulic fracturing. Our management team, field people and reliable
oilfield equipment should continue to fuel organic growth in our focused
areas. While the Company can not give any assurances, we look forward
to deploying new technologies for our operating units and additional
acquisitions to fuel our future growth."
Third Quarter 2013 Statement of Operations
The table below sets forth the summary of the Company's Statement
of Operations for the third quarter ended September 30, 2013 (in
thousands):
The full discussion of the Company's financial results are
available within the Company's Quarterly Report on Form 10-Q filed
November 14, 2013.
Adjusted EBITDAS Reconciliation Table
The following is a reconciliation of income from continuing
operations attributable to the Company as presented in accordance with
United States generally accepted accounting principles (GAAP) to
EBITDAS.
For more information, management's analysis of its
financial information
and the Company's risk factors, please read the Company's Quarterly
Reports on Form 10-Q and its 2012 Annual Report on Form 10-K at the
Edgar web site at
www.SEC.gov and
www.HIITinc.com.
About HII Technologies, Inc.
HII Technologies, Inc. is a Houston, Texas based oilfield services
company with operations in Texas, Oklahoma, Ohio and West Virginia. The
Company is positioned to take advantage of the significant anticipated
growth in horizontal drilling and hydraulic fracturing within the United
States' active shale and unconventional "tight oil" plays by deploying
new oilfield related technologies to enhance the value of services it
offers its customers. The Company's frac water supply services
subsidiary does business as AES Water Solutions, its onsite oilfield
contract safety consultancy does business as AES Safety Services, and
its mobile oilfield power subsidiary does business as South Texas Power
(STP). The holding company, HII Technologies' objective is to bring
proven technologies to these operating divisions to build a long-term
competitive advantage. Read more at
www.HIITinc.com,
www.AESwatersolutions.com and
www.Oilfield-Generators.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Any
statements as to matters that are not of historic fact are
forward-looking statements. These forward-looking statements are based
on HII's current expectations, estimates and projections about HII, its
industry, its management's beliefs and certain assumptions made by
management, and include statements regarding estimated capital
expenditures, future operational and activity expectations,
international growth, and anticipated financial performance in 2013. No
assurance can be given that such expectations, estimates or projections
will prove to have been correct. Whenever possible, these
"forward-looking statements" are identified by words such as "expects,"
"believes," "anticipates" and similar phrases.
Readers are cautioned that any such forward-looking statements are
not guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict, including,
but not limited to: risks that HII will be unable to achieve its
financial, capital expenditure and operational projections, including
quarterly and annual projections of revenue and/or operating income and
risks that HII's expectations regarding future activity levels, customer
demand, and pricing stability may not materialize (whether for HII as a
whole or for geographic regions and/or business segments individually);
risks that fundamentals in the U.S. oil and gas markets may not yield
anticipated future growth in HII's businesses, or could further
deteriorate or worsen from the recent market declines, and/or that HII
could experience further unexpected declines in activity and demand for
its hydraulic frac related water transfer business, its safety
consultancy business or its generator and related equipment rental
service businesses; risks relating to HII's ability to implement
technological developments and enhancements; risks relating to
compliance with environmental, health and safety laws and regulations,
as well as actions by governmental and regulatory authorities; risks
that HII may be unable to achieve the benefits expected from acquisition
and disposition transactions, and risks associated with integration of
the acquired operations into HII's operations; risks, in responding to
changing or declining market conditions, that HII may not be able to
reduce, and could even experience increases in, the costs of labor,
fuel, equipment and supplies employed and used in HII's businesses;
risks relating to changes in the demand for or the price of oil and
natural gas; risks that HII may not be able to execute its capital
expenditure program and/or that any such capital expenditure
investments, if made, will not generate adequate returns; and other
risks affecting HII's ability to maintain or improve operations,
including its ability to maintain prices for services under market
pricing pressures, weather risks, and the impact of potential increases
in general and administrative expenses.
Because such statements involve risks and uncertainties, many of
which are outside of HII's control, HII's actual results and performance
may differ materially from the results expressed or implied by such
forward-looking statements. Given these risks and uncertainties, readers
are cautioned not to place undue reliance on such forward-looking
statements. Other important risk factors that may affect HII's business,
results of operations and financial position are discussed in its most
recently filed Annual Report on Form 10-K, recent Quarterly Reports on
Form 10-Q, recent Current Reports on Form 8-K and in other
Securities and Exchange
Commission filings. Unless otherwise required by law, HII also
disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions to the
forward-looking statements made here. However, readers should review
carefully reports and documents that HII files periodically with the
Securities and Exchange Commission.
Contact:
Matthew Flemming, HII Technologies, Inc. +1-713-821-3157.
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HIIT disclosure: March 2013: two thousand per month for profile and
news publication, renewed August 2013: five hundred per month for news
publication
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As reported in the Company's 2013 Annual Report on Form 10-K
audited results, Current Assets increased by approximately $2.1 million
to approximately $5.0 million from the previous quarter ended September
30, 2013. The Company's Stockholder's Equity (Total Assets minus Total
Liabilities) increased by approximately $69,000 to approximately
$886,000, sequentially from the previous quarter ended September 30,
2013. These increases were directly attributable to the Company's
acquisition of AquaTex on November 12, 2013 and our operational
performance in the fiscal year 2013.
Adjusted EBITDAS Reconciliation Table
The Company anticipates releasing preliminary first quarter 2014
revenue results in April with further corporate updates and initial 2014
revenue guidance by May 2014.
On November 13 th the Company announced it acquired Aqua Handling
of Texas LLC, an oilfield frac water transfer service company located in
the Eagle Ford Shale area of South, Texas that operates under the name
"AquaTex". The purchase price was $1.3 million consisting of $300,000 in
cash, $500,000 in notes and 1,443,696 shares of the Company's common
stock ($500,000 value based on the trailing 30-day average of the
Company's common stock prior to closing).