HOUSTON and KEMAH, Texas, May 13, 2011 (GLOBE NEWSWIRE) -- Delta Seaboard International, Inc. (OTCBB:HMDI) ("Delta")reported an increase in revenues of $384,041 to $2,622,699 for the three months ended March 31, 2011, compared to $2,238,658 for the three months ended March 31, 2010. Pipe sales increased by $215,604 for the three months ended March 31, 2011, compared to the same period in the prior year. The cost of steel products decreased, allowing Delta to be more competitive in the pipe market. More pipe was sold to end-users, affording Delta larger pipe orders with higher margins. Rig service revenues increased by $168,437 for the three months ended March 31, 2011, compared to the same period in the prior year. Rig service revenues have increased due to major maintenance on two rigs during 2010. Drilling activities have significantly increased during the three months ended March 31, 2011, compared to the same period in the prior year.
Delta had net income of $16,700, or $0.00 per share, for the three months ended March 31, 2011, compared to a net loss of $667,722, or $0.01 per share, for the three months ended March 31, 2010. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three months ended March 31, 2011 was $156,060, or $0.00 per share, an improvement of $674,716, compared to EBITDA for the three months ended March 31, 2010, which reflected a loss of $518,656, or $0.01 per share. Our net income of $16,700 for the three months ended March 31, 2011 included interest expense, taxes, and depreciation and amortization of $39,835, $6,376, and $93,149, respectively. Our net loss of $667,722 for the three months ended March 31, 2010 included interest expense, taxes, and depreciation and amortization of $40,366, $5,398, and $103,302, respectively.
Operating expenses decreased by $1,008,329 or 28.1%, to $2,574,960 for the three months ended March 31, 2011, compared to operating expenses of $3,583,289 for the three months ended March 31, 2010. Cost of sales for the three months ended March 31, 2011 was $1,066,511, compared to $1,367,577 during the three months ended March 31, 2010, a decrease of $301,066, or 22.0%. Margins on pipe sales were 34% for the three months ended March 31, 2011, compared to 2% for the three months ended March 31, 2010. The increase in margins was due to the sale of high-priced pipe from inventory during the three months ended March 31, 2010. General and administrative expenses were $1,508,449 for the three months ended March 31, 2011, compared to $2,215,712 for the three months ended March 31, 2010, representing a decrease of $707,263, or 31.9%, primarily due to a decrease in stock-based compensation. General and administrative expenses for the three months ended March 31, 2011 included non-cash stock-based compensation of $127,500, compared to $847,750 during the three months ended March 31, 2010, which was for the executive officers of Delta Seaboard in consideration for extending their employment agreements.
Delta had operating income of $47,739 during the three months ended March 31, 2011, compared to an operating loss of $1,344,631 during the three months ended March 31, 2010, an improvement of $1,392,370 from the prior period.
Other expenses were $24,663 during the three-month period ended March 31, 2011, compared to other income of $682,307 during the three-month period ended March 31, 2010. Other income for the three months ended March 31, 2010 included the receipt of a $700,000 cash settlement for its claims in an insurance lawsuit. Interest expense was $39,835 during the three-month period ended March 31, 2011, compared to $40,366 during the same period in the prior year.
For more detailed information, please refer to our March 31, 2011 Form 10-Q filing with the SEC, which was filed on May 13, 2011.
Forward-Looking Statements:
This press release may contain forward-looking statements, including information about management's view of the Company's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate reflected by our subsidiaries' operations include without limitations, growth in the energy sector and in the oil and gas service industry, increased levels of competition, new products and technology changes, and the market for pipes, the rules of regulatory authorities and risks associated with any potential acquisitions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.
CONTACT: Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: amin@americanii.com