Deep Down Reports Second Quarter 2017 Results

HOUSTON, Aug. 14, 2017 /PRNewswire/ -- Deep Down, Inc. (OTCQX: DPDW) ("Deep Down" or the "Company"), an oilfield services company specializing in complex deepwater and ultra-deepwater oil production distribution system support services, today reported financial results for the quarter ended June 30, 2017.   

OPERATING RESULTS

For the second quarter of 2017, Deep Down reported net income of $0.5 million, or $0.03 per diluted share, compared to a net loss of $0.5 million, or ($0.03) loss per diluted share for the second quarter of 2016.

Revenues for the quarter ended June 30, 2017 were $5.4 million compared to revenues of $6.0 million for the quarter ended June 30, 2016.  The $0.6 million (11 percent) decrease is primarily a result of fewer jobs in process during the second quarter of 2017 compared to 2016.

Gross profit for the quarter ended June 30, 2017 was $2.7 million, or 50 percent of revenues, compared to $1.9 million, or 33 percent of revenues, for the quarter ended June 30, 2016.  Despite the lower revenues in 2017, gross profit increased by $0.7 million, or 17 percent increase in gross profit percentage, due to a larger portion of higher margin service work and resolution of an outstanding customer issue. 

The Company's management evaluates its financial performance based on a non-GAAP measure, Modified EBITDA, which consists of earnings (net income or loss) available to common shareholders before net interest expense, income taxes, depreciation and amortization, and other non-cash and non-recurring charges.  Modified EBITDA for the quarter ended June 30, 2017 was $0.9 million compared to a Modified EBITDA loss of $0.03 million for the quarter ended June 30, 2016.  The $0.9 million increase in Modified EBITDA was primarily attributable to our increase in gross profit, as mentioned above. 

At June 30, 2017, we had working capital of $11.1 million, including cash of just under $7.2 million.

Ronald E. Smith, Chief Executive Officer, stated, "We are pleased with our performance during the first half of the year, especially in light of the challenges across the industry.  However, while we were able to realize markedly improved gross margins during the first half of the year, delays in contract executions will likely hamper our performance during the latter part of the year. 

"We therefore anticipate focusing more on service projects, and feel confident that our strong balance sheet, and continuous organizational optimization efforts, will enable us to continue being a preferred solution provider, as we continue creating the most value for our customers, shareholders and employees."

EARNINGS CONFERENCE CALL

In connection with this earnings release, Deep Down will host its quarterly conference call on Tuesday, August 15, 2017 at 4:30 PM Eastern Time (3:30 PM Central Time). Interested investors are invited to dial the toll free number at (877) 303-6187 and provide the Conference ID: 53529591.

At the conclusion of the call, a replay will be available until August 29, 2017.  To access the replay of the call dial (855) 859-2056 and provide the same Conference ID.

The call can also be accessed via the web by going to the Investor Relations section of the Company's website at www.deepdowninc.com.

About Deep Down, Inc.

Deep Down, Inc. is an oilfield services company serving the worldwide offshore exploration and production industry. Deep Down's proven services and technological solutions include distribution system installation support and engineering services, umbilical terminations, loose-tube steel flying leads (LSFL), installation buoyancy, ROVs and tooling, marine vessel automation, control, and ballast systems. Deep Down supports subsea engineering, installation, commissioning, and maintenance projects through specialized, highly experienced service teams and engineered technological solutions. The company's primary focus is on more complex deepwater and ultra-deepwater oil production distribution system support services and technologies, used between the platform and the wellhead. More information about Deep Down is available at www.deepdowninc.com.

Forward-Looking Statements

Any forward-looking statements in the preceding paragraphs of this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties in that actual results may differ materially from those projected in the forward-looking statements. In the course of operations, we are subject to certain risk factors, competition and competitive pressures, sensitivity to general economic and industrial conditions, international political and economic risks, availability and price of raw materials and execution of business strategy. For further information, please refer to the Company's filings with the Securities and Exchange Commission, copies of which are available from the Company without charge.

View original content with multimedia:http://www.prnewswire.com/news-releases/deep-down-reports-second-quarter-2017-results-300503459.html

SOURCE Deep Down, Inc.