HOUSTON and KEMAH, Texas, Nov. 15, 2010 (GLOBE NEWSWIRE) -- Delta Seaboard International, Inc. (OTCBB:HMDI) ("Delta") reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $172,519, or $0.00 per share, for the three months ended September 30, 2010, compared to EBITDA of $151,919, or $0.00 per share for the three months ended September 30, 2009. Our net income of $42,894, or $0.00 per share, for the three months ended September 30, 2010 included interest expense, taxes, and depreciation and amortization of $31,726, $885, and $97,014, respectively. Our net loss of $29,919, or $0.00 per share, for the three months ended September 30, 2009 included interest expense, taxes, and depreciation and amortization of $63,317, $5,271, and $113,250, respectively.
EBITDA for the nine months ended September 30, 2010 reflected a loss of $333,919, or $0.01 per share, compared to EBITDA for the nine months ended September 30, 2009, which reflected a loss of $89,849, or $0.00 per share. Our net loss of $759,396, or $0.01 per share, for the nine months ended September 30, 2010 included interest expense, taxes, and depreciation and amortization of $116,991, $11,161, and $297,325, respectively. Our net loss of $627,171, or $0.01 per share, for the nine months ended September 30, 2009 included interest expense, taxes, and depreciation and amortization of $177,920, $16,947, and $342,455, respectively.
During the three months ended September 30, 2010, Delta had revenues of $2,424,500, compared to $2,151,180 during the three-month period ended September 30, 2009, representing an increase of $273,320, or 12.7%. During the nine months ended September 30, 2010, Delta had revenues of $6,708,240, compared to $6,946,305 during the nine-month period ended September 30, 2009, representing a decrease of $238,065, or 3.4%. Rig service revenues decreased for the three and nine months ended September 30, 2010, compared to the same period in the prior year by $455,100 and $1,481,148, respectively. Rig service revenues have decreased due to major maintenance on two rigs during 2010. This was offset by an increase in pipe sales for the three and nine months ended September 30, 2010, compared to the same period in the prior year, of $728,420 and $1,243,083 respectively.
Operating expenses increased by $237,444, to $2,357,629 for the three months ended September 30, 2010, compared to operating expenses of $2,120,185 for the three months ended September 30, 2009. Operating expenses increased due to higher cost of sales associated with the increase in pipe sales. This was offset by lower general and administrative expenses associated with the decline in rig service revenues. Operating expenses increased by $736,949, to $8,146,553 for the nine months ended September 30, 2010, compared to operating expenses of $7,409,604 for the nine months ended September 30, 2009. Cost of sales for the nine months ended September 30, 2010 was $3,571,789, compared to $2,736,250 during the same period in the prior year, an increase of $835,539. The increase in cost of sales was due to the increase in pipe sales during the nine months ended September 30, 2010. General and administrative expenses were $4,574,764 for the nine months ended September 30, 2010, compared to $4,673,354 for the nine-month period ended September 30, 2009, a decrease of $98,590 from the prior period. General and administrative expenses include non-cash stock-based compensation of $858,790 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 operating income of $66,871 during the three months ended September 30, 2010, compared to $30,995 during the three months ended September 30, 2009, an increase of $35,876 from the prior period. Delta had an operating loss of $1,438,313 during the nine months ended September 30, 2010, compared to $463,299 during the nine months ended September 30, 2009, an increase of $975,014 from the prior period.
Other expenses during the three-month period ended September 30, 2010 were $23,092, compared to $55,643 during the same period in the prior year, a decrease of $32,551 from the prior period, primarily due to a decrease in interest expense of $31,591. Other income during the nine-month period ended September 30, 2010 was $690,078, compared to other expenses of $146,925 during the same period in the prior year, an increase in other income of $837,003 from the prior period. Other income increased for the nine months ended September 30, 2010 compared to the prior period, 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 September 30, 2010 Form 10-Q filing with the SEC, which was filed on November 15, 2010.
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.