NEW ORLEANS, Nov 12, 2010 (BUSINESS WIRE) -- Blackwater Midstream Corp., (OTCBB: BWMS) announces results for its quarter ended September 30, 2010.
Total Revenues (storage and ancillary) increased by 73% over the comparable 2009 period and increased by 33.5% from the previous quarter: 2nd Quarter 2009 = $1,016,867 1st Quarter 2010 = $1,316,974 2nd Quarter 2010 = $1,759,175 Total Revenue for the 6 months ending September 30, 2010 was $3,076,149 or 74% more than the 6 month period ending September 30, 2009. Gross Profit showed a 76% increase over the comparable 2nd quarter 2009 period and increased by 20% over the 1st quarter of 2010: 2nd Quarter 2009 = $ 665,637 1st Quarter 2010 = $ 975,617 2nd Quarter 2010 = $1,170,639 Gross Profit for the 6 months ending September 30, 2010 was $2,146,256 or 97% more than the 6 month period ending September 30, 2009. Leasable Barrel Utilization went from 71.8% as of September 30, 2009 - to 77% as of June 30, 2010 -- to 82% as of September 30, 2010; an increase in 14% over the comparable annual period and 6.5% over the previous quarter.
Michael Suder, CEO, attributed the Company's continued improvement in its quarter-to-quarter and six-month-to-six month operational results to management's focus on increasing each of its terminal's storage utilization, attracting additional "blue chip" customers; offering more ancillary services to existing customers; and bettering its overall operational efficiencies.
Mr. Suder stated, "We are in an industry where demand for storage outstrips supply, allowing for generous gross profit margins. As an independent developer, operator, and third party provider of bulk liquid storage terminals, we take no commodity price risk and obtain favorable, long-term customer contracts." Suder went on to say that, "Management's focus now is to improve its balance sheet. A major step in this direction was the Company's ability to recently convert short-term debt incurred for capital improvements into long-term financing. Our partnership with JP Morgan Chase Bank has been instrumental in our past achievements and will be in our future successes." Today, the Company has two terminals, one located in Westwego, LA and the other in Brunswick, GA; still its vision is much larger. The Company's vision and strategy is for a continuing program of acquiring under-achieving, under-utilized storage terminals, and applying its proven management formula and results to those operations.
Mr. Suder said, "We have the management and corporate infrastructure in place to create increased revenues and profits, and at the same time build major asset value for our shareholders. We are a young company, with seasoned management, with the goal to become an important industry player." The information in this press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to prospective acquisitions or anticipated future results. Forward-looking statements relate to expectations or forecasts of future events. Blackwater Midstream Corp. does not assume the obligation to update any forward-looking statement. Many factors could cause actual results to differ materially from Blackwater Midstream's forward-looking statements, including market forces, economic factors, the availability of capital and credit, current and future competition and other uncertainties. For further details about these and other factors that may impact the forward-looking statements, see Blackwater Midstream Corp.'s Securities and Exchange Commission filings, including the "Risk Factors" in the Annual Report on Form 10-K. This discussion and analysis should be read in conjunction with our unaudited consolidated financial statements and related notes included in our Quarterly Report on Form 10-Q as of September 30, 2010 and our audited financial statements and notes included in our Annual Report on Form 10-K as of and for the year ended March 31, 2010. For more information, please reference our website at www.BlackwaterMidstream.com.
BLACKWATER MIDSTREAM CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Three Months Six Months Six Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2010 2009 2010 2009 ------------------ ------------------ ------------------ ------------------ Revenue Storage $ 1,480,817 $ 907,317 $ 2,730,864 $ 1,607,894 Other Services 278,358 109,550 345,285 161,621 ---------- ---------- ---------- ---------- Total Revenue 1,759,175 1,016,867 3,076,149 1,769,515 Cost of revenue Labor (186,238 ) (119,609 ) (324,829 ) (237,348 ) General materials (221,308 ) (44,949 ) (277,002 ) (69,032 ) Subcontractors (2,311 ) (30,225 ) (26,098 ) (130,571 ) Depreciation (134,413 ) (75,267 ) (230,181 ) (147,254 ) Other costs of revenue (44,266 ) (81,180 ) (71,783 ) (93,820 ) ---------- ---- ---------- ---- ---------- ---- ---------- ---- Total cost of revenue (588,536 ) (351,230 ) (929,893 ) (678,025 ) GROSS PROFIT 1,170,639 665,637 2,146,256 1,091,490 OTHER OPERATING EXPENSES: Selling, general and administrative 1,129,702 1,102,458 1,842,047 2,484,423 Loss on disposal of assets 150,105 - 173,976 - Depreciation 11,790 9,693 22,118 19,177 ---------- ---------- ---------- ---------- Total other operating expenses 1,291,597 1,112,151 2,038,141 2,503,600 Income (Loss) from operations (120,958 ) (446,514 ) 108,115 (1,412,110 ) Net interest expense (262,624 ) (27,895 ) (380,094 ) (65,843 ) Gain on bargain purchase of assets 100,000 - 100,000 - Gain on insurance settlement - 252,292 - 130,494 ---------- ---------- ---------- ---------- Net loss $ (283,582 ) $ (222,117 ) $ (171,979 ) $ (1,347,459 ) ==== ========== ==== ==== ========== ==== ==== ========== ==== ==== ========== ==== NET LOSS PER COMMON SHARE, BASIC AND DILUTED $ (0.01 ) $ (0.00 ) $ 0.00 $ (0.03 ) Weighted average number of shares outstanding: BASIC AND DILUTED 54,515,420 52,425,969 54,462,574 52,261,252 The accompanying notes are an integral part of these unaudited consolidated financial statements. SOURCE: Blackwater Midstream Corp.
CONTACT: Blackwater Midstream Corp. Michael D. Suder, CEO, 504-340-3000 Cell: 201-290-8369 Copyright Business Wire 2010 -0- KEYWORD: United Kingdom
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Finance SUBJECT CODE: Earnings