HOUSTON and KEMAH, Texas, March 31, 2011 (GLOBE NEWSWIRE) -- Delta Seaboard International, Inc. (OTCBB:HMDI) ("Delta") reported an increase in revenues of $233,320 to $9,023,129 for the year ended December 31, 2010, compared to $8,789,809 for the year ended December 31, 2009. Pipe sales for the year ended December 31, 2010 were $5,878,377 compared to $4,208,215 for the year ended December 31, 2009, representing an increase of $1,670,162, or 39.7%. Pipe sales increased primarily due to significantly increased drilling activities during 2010. Additionally, 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 decreased for the year ended December 31, 2010 by $1,436,842, or 31.4%, to $3,144,752 compared to $4,581,594 for the year ended December 31, 2009. Rig service revenues have decreased due to major maintenance on two rigs during 2010.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the year ended December 31, 2010 reflected a loss of $420,611, or $0.01 per share, an improvement of $267,567, compared to EBITDA for the year ended December 31, 2009, which reflected a loss of $688,178, or $0.02 per share. Our net loss of $904,039, or $0.02 per share, for the year ended December 31, 2010 included interest expense, a tax benefit, and depreciation and amortization of $146,452, $55,630, and $392,606, respectively. Our net loss of $1,296,629, or $0.03 per share, for the year ended December 31, 2009 included interest expense, taxes, and depreciation and amortization of $132,883, $21,474, and $454,094, respectively.
Operating expenses increased by $704,527, or 7.1%, to $10,676,449 for the year ended December 31, 2010, compared to operating expenses of $9,971,922 for the year ended December 31, 2009. Cost of sales for the year ended December 31, 2010 was $4,701,810, compared to $3,583,773 during the year ended December 31, 2009, an increase of $1,118,037, or 31.2%. The increase in cost of sales was due to the increase in pipe sales during the year ended December 31, 2010. General and administrative expenses were $5,974,639 for the year ended December 31, 2010, compared to $6,388,149 for the year ended December 31, 2009, representing a decrease of $413,510, or 6.5%. General and administrative expenses include non-cash stock-based compensation of $858,750 primarily to the executive officers of Delta Seaboard in consideration for extending their employment agreements. This was offset significantly by lower operating expenses associated with the decline in rig service revenues.
Delta had an operating loss of $1,653,320 during the year ended December 31, 2010, compared to $1,182,113 during the year ended December 31, 2009, an increase of $471,207 from the prior period.
Other income during the year ended December 31, 2010 was $693,651, compared to other expenses of $93,042 during the year ended December 31, 2009, an increase in other income of $786,693 from the prior period. Other income increased for the year ended December 31, 2010 compared to the prior year, mainly due to the receipt of a $700,000 cash settlement for its claims in an insurance lawsuit and $76,710 for a bankruptcy settlement with one of Delta's customers.
For more detailed information, please refer to our December 31, 2010 Form 10-K filing with the SEC, which was filed on March 31, 2011.
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: firstname.lastname@example.org