A series of acquisitions helped strengthen the bottom line for Deep Down, Inc (OTCBB: DPSW). The sub-sea pipeline infrastructure company has generated revenues of $14.2 million so far this year, compared to $7.2 million for the same 6-month period last year.
Deep Down’s statement shows that acquisitions of Mako ($2.7 million of the increase), Floatation Technologies ($1.5 million) and ElectroWave ($900,000) accounted for $5.1 million of the increase. The core business saw a revenue decrease (-$200,000) due to customer’s delaying scheduled projects, the company said. In addition, the company wrote off $800,000 in two bad debts. One was the result of a customer’s declared bankruptcy.
Contract revenues were up 25%, and rentals were up 47%. The quarterly report, currently unaudited, was filed with the SEC August 15. Deep Down did have an operating loss for the six months ended June 30 of $1.5 million, compared to operating income of $800,000 for the same prior year period. Net loss for the six months ended June 30, was $5.0 million compared to net income of $800,000 for the same annual period.
“Income was impacted by one-time interest expense and loss on debt extinguishment expenses totaling $2.6 million related to the early payoff of our secured credit agreement,” the release stated.
“I am pleased to report this quarter that Deep Down continues to improve its financial position,” Chairman Robert E. Chamberlain, Jr. said. “The company is now essentially debt free and has retired all of its remaining preferred shares. Liquidity is strong with unrestricted cash and equivalents of $4.1 million and a current ratio of 3.8.
“Our working capital position is $10.8 million. Stockholders’ equity has improved dramatically and is now $52.9 million compared to $12.6 million on December 31, 2007,” he concluded.
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