Deep Down Receives Second $9.0 Million Order for BuoyancyJune 5, 2008 2:20 PM ET advertisement cleDeep Down Inc (DPDW)
All PR Newswire newsHOUSTON, June 5 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC Bulletin Board: DPDW) today announced that it has received a second letter of intent for approximately $9 million from Delba International to supply and install the deepwater marine drilling riser flotation system for the new-build Delba IV semisubmersible drilling rig. The letter of intent is subject to the negotiation of a final purchase order once engineering is completed. The Letters of Intent authorize expenditures for such engineering efforts. Together with the previously announced Letter of Intent for the Delba III, Deep Down now has orders for approximately $18 million of deepwater marine drilling riser flotation systems. Both the Delba III and the Delba IV are rated to drill in 2,400 meters of water but are readily upgradeable to 2,700 meters and have long term contracts to drill in Brazilian waters.
"A Letter of Intent is the first step in a committed process which typically becomes a purchase contract upon completion of joint engineering efforts between us and our clients," commented Ronald E. Smith, Deep Down's president and CEO.
About Deep Down, Inc.
Deep Down specializes in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication and storage management services for the offshore subsea control, umbilical, and pipeline industries. The company fabricates component parts of subsea distribution systems and assemblies that specialize in the development of subsea fields and tie backs. These items include umbilicals, flow lines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems, among others. Deep Down provides these services from the initial field conception phase, through manufacturing, site integration testing, installation, topside connections, and the final commissioning of a project.
The Company's Flotation Technologies subsidiary is a recognized leader in the design and manufacture of deepwater buoyancy systems, specializing in Flotec(TM) syntactic foam and polyurethane elastomer products. With extensive engineering, design, fabrication, and analysis capabilities, Flotation Technologies provides quick turnaround, cost-effective buoyancy and elastomer products to the worldwide oceanographic, offshore energy, seismic, and military markets.
The Company's Mako subsidiary serves the growing offshore petroleum and marine industries with technical support services, and products vital to offshore petroleum production, through rentals of its remotely operated vehicles (ROV), topside and subsea equipment, and diving support systems used in diving operations, maintenance and repair operations, offshore construction, and environmental/marine surveys.
The Company's ElectroWave subsidiary offers products and services in the fields of electronic monitoring and control systems for the energy, military, and commercial business sectors. ElectroWave designs, manufactures, installs, and commissions integrated PLC and SCADA based instrumentation and control systems, including ballast control and monitoring, drilling instrumentation, vessel management systems, marine advisory systems, machinery plant control and monitoring systems, and closed circuit television systems.
The Company's strategy is to become a leading provider of products and services to the offshore industry, including shallow, deep and ultra-deep water applications in oil and gas exploration, development and production activities and maritime operations. Management plans to achieve this strategy through organic growth and strategic acquisitions of complementary businesses with technological advantages in deepwater environments. Deep Down's customers include Acergy, Aker Kvaerner, Amerada Hess, Anadarko Petroleum Corporation, BHP, BP Petroleum, Cabett, Cooper Cameron, Chevron Corporation, Delba International, Dril-Quip, Inc., Devon Energy Corporation, Diamond Offshore, Duco, Exxon Mobil Corporation, Helix, JDR, Kerr-McGee Corporation, Marinette Marine Corporation, Marathon Oil Corporation, Nexans, Inc., Noble Energy Inc., Oceaneering International, Inc., Oil States, Petrobras, Royal Dutch Shell, Statoil, Subsea 7, Inc., Technip, Transocean Offshore, Veolia Environmental Services and Wellstream International, among others. For further company information, please visit http://www.deepdowninc.com, and http://www.flotec.com,http://www.makotechnologies.com and http://www.electrowaveusa.com.
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Completion of Acquisition or Disposition of Assets, Unregistered Sale of Equity S
ITEM 2.01 - Completion of Acquisition or Disposition of Assets. On the 5th day of June we completed the acquisition of 100% of the equity securities of Flotation Technologies, Inc., a Maine corporation, pursuant to the Stock Purchase Agreement entered into April 17, 2008.
The equity interest was acquired from the three individual shareholder members of the same family and related technology was acquired from an entity affiliated with the selling stockholders. No prior material relationship existed between the selling shareholders and Deep Down, any of our affiliates, or any of our directors or officers, or any associate of any of our officers or directors.
The total consideration paid for the equity is $22,100,000 cash, 1,714,286 shares of common stock and 600,000 incentive common stock purchase options issued to employees of Flotation Technologies with an exercise price of $1.15 per share. In addition warrants to purchase 200,000 common shares at $0.70 per share were issued to the affiliated entity for acquisition of the related technology.
Flotation Technologies engineers, designs and manufactures deepwater buoyancy systems using high-strength FlotecTM syntactic foam and polyurethane elastomers. Flotation Technologies' product offerings include distributed buoyancy for flexible pipes and umbilicals, drilling riser buoyance modules, ROV buoyancy, Quick-Loc? cable floats, Hardball umbilical floats, FLOTECT? cable and pipeline protection, Inflex polymer bend restrictors, and installation buoyancy of any size and depth rating.
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I am onboard...I bought in yesterday at $1.20 and it took a hit yesterday, but seems to be making up for it today...Am I too late getting into this stock? I've researched it and I like it, but I also see the steady climb it has taken since March is the run over?
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The thirteen is just my favorite number and is not my age...yes this is my sole stock that i am involved in...I jumped around a little before this one, but I am fairly new to the stock market, and i know the basic fundamentals, but I get lost when you guys start talking about volume and "MM" and all of that stuff.
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LMAO bilgert...! Welcome aboard Greenteam13 Peaser...I am not real sure what the share structure is...I've been playing around with this from about .60 late last summer...up to 2.25 and have flipped it several times...made a little $...if you play it right...there's a little chunk to be made...just don't get to greedy with it...it goes down quciker than it goes up...
Have a good one all!
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!
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quote:Originally posted by Peaser: Anyone have the latest O/S here?
I am guessing 172 mil or so.
Anyone have a more accurate count?
At May 14, 2008, there were 115,846,019 shares of common stock outstanding
On June 5, 2008, Deep Down, Inc. (the “Company”) entered into a Purchase Agreement (the “Purchase Agreement”) with institutional accredited investors (the “Purchasers”) to sell and issue to the Purchasers’ in reliance on the exemption from registration in Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), an aggregate of 57,142,857 shares, or $40,000,000 of shares, of the Company’s Common Stock (the “Shares”) at a price of $0.70 per Share, for net proceeds of approximately $37,125, 000. Completion of the private placement was subject to completion of our previously announced acquisition of Flotation Technologies described in 2.01 above. Dahlman Rose & Company, LLC acted as exclusive placement agent for the financing.
You were pretty much on the money Peaser. Just a few shares shy of 173MM, the private placement is restricted I am sure but still lots out. TMAN...
-------------------- In the end, trust only yourself when trading stocks.
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Don't know? Everything I see makes me beleive this should be going higher. It really is a mystery to me. Just might be that not a lot of people know about this company (yet).
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Deep Down Announces 96% Increase in Revenues
HOUSTON, Aug. 20 /PRNewswire-FirstCall/ -- Deep Down, Inc. (OTC:DPDW) (BULLETIN BOARD: DPDW) announced unaudited results on August 15, 2008, for the three months and six months ended June 30, 2008, on Form 10-Q filed with the U.S. Securities and Exchange Commission.
Deep Down generated revenue of $14.2 million for the six months ended June 30, 2008 compared to $7.2 million for the same period last year, an increase of $7.0 million, or 96%. Our acquisitions accounted for $5.1 million of this increase. Mako was included for the entire period and accounted for $2.7 million of the increase. Flotation Technologies was included for two months and accounted for $1.5 million of the increase. ElectroWave was included for six months and accounted for $0.9 million of the increase, but the six month period in 2007 included only three months revenue for ElectroWave since it was acquired in April 2007. Our existing businesses continued to strengthen with increased revenues of $1.9 million, or 29%, over last year's six month period. Contract revenues were up 25%, and rentals were up 47%. Our offshore market continues to be strong as we continue to expand our customer base.
Deep Down generated revenues of $7.9 million for the three months ended June 30, 2008 compared to $5.1 million for the same period last year, an increase of $2.8 million, or 54%. Our acquisitions represented $3.0 million of the increase in revenue in addition to a slight revenue decrease in the core business of $0.2 million. This slight decrease in revenue was a result of certain customers delaying scheduled projects.
Gross margin for the six months ended June 30, 2008 was $4.8 million compared to $2.7 million in the same prior year period, an increase of $2.1 million, or 79%. $1.4 million of the increase is attributable to the inclusion of the acquisitions in this period. The overall gross margin was 34 % for the first six months of 2008 as compared to 37% for the same period last year. The gross margin is slightly lower due to an increase in personnel.
SG&A for the six months ended June 30, 2008, was $5.4 million compared to $1.8 million for the same period last year, an increase of $3.6 million, or 209%. The acquisitions of Mako and Flotation represented $1.5 million of the increase. Bad debt expense increased by $0.8 million due to the write-off of two accounts, one of which filed for bankruptcy protection during the quarter ($0.2 million of the total bad debt is included in the Mako subsidiary). Personnel and related costs increased by $1.0 million primarily due to an expansion of our businesses, combined with the related costs of administering a public company and complying with reporting requirements. Additionally, we paid approximately $0.7 million in professional, accounting, and legal fees to support our various initiatives during the six months ended June 30, 2008, including the filing of a registration statement, acquisitions and reporting requirements. Stock based compensation related to employee stock options and restricted stock was approximately $0.3 million in the current fiscal year compared to approximately $40,000 for the comparable prior year period.
Operating loss for the six months ended June 30, 2008, was $1.5 million compared to operating income of $0.8 million for the same prior year period. Net loss for the six months ended June 30, 2008, was $5.0 million compared to net income of $0.8 million for the same prior 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 "Credit Agreement"). Earnings before interest, taxes, depreciation, amortization and other non-cash charges ("EBITDA") for the six months ended June 30, 2008, was $0.5 million, compared to $1.0 million, a decrease of $0.5 million over the same prior year period.
Interest expense for the six months ended June 30, 2008, was $3.5 million compared to $1.5 million for the same prior year period. In connection with the early payoff of the Credit Agreement, Deep Down accelerated the remaining deferred financing costs totaling $0.7 million and recorded this charge to interest expense. Additionally, $1.5 million in debt discounts were accelerated and recorded to interest expense, along with early termination fees of approximately $0.5 million. Deep Down paid cash interest related to the Credit Agreement totaling $0.8 million for the six months ended June 30, 2008. For the comparable period last year, $1.4 million of the total interest was related to accretion on the redemption of Series G and Series E Preferred Stock.
"I am pleased to report this quarter that Deep Down continues to improve its financial position. 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. We remain excited and optimistic about the prospects for continued revenue growth and a return to profitability," commented Robert E. Chamberlain, Jr., Deep Down's Chairman.
About Deep Down, Inc.
Deep Down specializes in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication and storage management services for the offshore subsea control, umbilical, and pipeline industries. The company fabricates component parts of subsea distribution systems and assemblies that specialize in the development of subsea fields and tie backs. These items include umbilicals, flow lines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems, among others. Deep Down provides these services from the initial field conception phase, through manufacturing, site integration testing, installation, topside connections, and the final commissioning of a project.
The Company's ElectroWave subsidiary offers products and services in the fields of electronic monitoring and control systems for the energy, military, and commercial business sectors. ElectroWave designs, manufactures, installs, and commissions integrated PLC and SCADA based instrumentation and control systems, including ballast control and monitoring, drilling instrumentation, vessel management systems, marine advisory systems, machinery plant control and monitoring systems, and closed circuit television systems.
The Company's Mako subsidiary serves the growing offshore petroleum and marine industries with technical support services, and products vital to offshore petroleum production, through rentals of its remotely operated vehicles (ROV), topside and subsea equipment, and diving support systems used in diving operations, maintenance and repair operations, offshore construction, and environmental/marine surveys.
Flotation engineers, designs and manufactures deepwater buoyancy systems using high-strength Flotec(TM) syntactic foam and polyurethane elastomers. Flotation's product offerings include distributed buoyancy for flexible pipes and umbilicals, drilling riser buoyance modules, CoreTec(TM) drilling riser buoyancy modules, ROVits(TM) buoyancy, Hydro-Float mooring buoys, Stablemoor(TM) low-drag ADCP deployment solution, Quick-Loc(TM) cable floats, Hardball(TM) umbilical floats, Flotec(TM) cable and pipeline protection, Inflex(TM) polymer bend restrictors, and installation buoyancy of any size and depth rating.
The Company's strategy is to become a leading provider of products and services to the offshore industry, including shallow, deep, and ultra-deep water applications in oil and gas exploration, development and production activities, and maritime operations. Management plans to achieve this strategy through organic growth and strategic acquisitions of complementary businesses with technological advantages in deepwater environments. For further company information, please visit http://www.deepdowninc.com/,http://www.electrowaveusa.com/,http://www.makotechnologies.com/ and http://www.flotec.com/.
One of our most important responsibilities is to communicate with shareholders in an open and direct manner. Comments are based on current management expectations, and are considered "forward-looking statements," generally preceded by words such as "plans," "expects," "believes," "anticipates," or "intends." We cannot promise future returns. Our statements reflect our best judgment at the time they are issued, and we disclaim any obligation to update or alter forward-looking statements as the result of new information or future events. Deep Down urges investors to review the risks and uncertainties contained within its filings with the Securities and Exchange Commission.
DEEP DOWN, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30, December 31, 2008 2007 ASSETS Cash and equivalents $4,085,543 $2,206,220 Restricted cash - 375,000 Accounts receivable, net of allowance of $818,992 and $139,787 respectively 8,614,961 7,190,466 Prepaid expenses and other current assets 710,213 312,058 Inventory 179,343 502,253 Lease receivable, short-term 414,000 414,000 Work in progress 681,790 945,612 Receivable from Prospect, net - 2,687,333 Total current assets 14,685,850 14,632,942 Property and equipment, net 10,651,053 5,172,804 Other assets, net of accumulated amortization of $0 and $54,560 respectively 550,819 1,109,152 Lease receivable, long-term 500 173,000 Intangibles, net 18,745,713 4,369,647 Goodwill 13,001,556 10,594,144 Total assets $57,635,491 $36,051,689
LIABILITIES AND STOCKHOLDER'S EQUITY Accounts payable and accrued liabilities $3,070,105 $3,569,826 Deferred revenue 725,521 188,030 Payable to Mako shareholders - 3,205,667 Current portion of long-term debt 47,477 995,177 Total current liabilities 3,843,103 7,958,700 Long-term debt, net of accumulated discount of $0 and $1,703,258 respectively 919,381 10,698,818 Series E redeemable exchangeable preferred stock, par value $0.01, face value and liquidation preference of $1,000 per share, no dividend preference, authorized 10,000,000 aggregate shares of all series of preferred stock, - 0 - and 500 issued and outstanding, respectively - 386,411 Total liabilities 4,762,484 19,043,929 Temporary equity: Series D redeemable convertible preferred stock, $0.01 par value, face value and liquidation preference of $1,000 per share, no dividend preference, authorized 10,000,000 aggregate shares of all series of preferred stock, - 0 - and 5,000 issued and outstanding, respectively - 4,419,244 Total temporary equity - 4,419,244 Stockholders' equity: Common stock, $0.001 par value, 490,000,000 shares authorized, 174,732,501 and 85,976,526 shares issued and outstanding, respectively 174,733 85,977 Paid-in capital 60,000,402 14,849,847 Accumulated deficit (7,302,128) (2,347,308) Total stockholders' equity 52,873,007 12,588,516 Total liabilities and stockholders' equity $57,635,491 $36,051,689
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Flotation Technologies Named The 27th Fastest Growing Manufacturing Company In The U.S. Monday 09/15/2008 11:03 AM ET - Businesswire
Related Companies Symbol Last %Chg DPDW 0.57 -8.06%
As of 2:30 PM ET 9/15/08 Flotation Technologies, Inc., a Deep Down Inc. company (OTCBB: DPDW) and a world leader in the engineering, design and manufacturing of deepwater buoyancy and polyurethane elastomer products, today announced the company has been named the 27th fastest growing, privately owned manufacturing company in the United States by Inc. magazine. Overall, Flotation Technologies ranked No. 1,006 on the prestigious Inc. 5000 list. These rankings recognize the substantial growth the company has experienced over the past three years, including the doubling of its revenue from 2006 to 2007.
"Being recognized by Inc. magazine for our growth is an honor shared by the management and employees of Flotation Technologies and speaks to our drive and the dedication to the customers and markets we serve," stated David Capotosto, president, Flotation Technologies. "This abiding commitment, fully supported by our new parent company, Deep Down, has and will continue to fuel Flotation Technologies' aggressive growth."
"The growth Flotation Technologies has experienced since 2004 is unparalleled," stated Robert Chamberlain, Jr., chairman and director, Deep Down, Inc. "It is this growth coupled with Flotation Technologies' expertise in the engineering, design and manufacture of subsea products that drew Deep Down to acquire the company in June of 2008. We are extremely proud of Flotation Technologies for receiving this prominent recognition and look forward to the tremendous future of the company."
The Inc. list is a comprehensive look at the most important segment of the economy--America's independent-minded entrepreneurs. Taken as a whole, these companies represent the backbone of the U.S. economy. The 5,000 companies that made the list reported aggregate revenue of $185 billion and median three-year growth of 147 percent. More important, the 2008 Inc. 5000 companies were engines of job growth, having created more than 826,033 jobs since these companies were founded. The 2008 Inc. 5000 list measures revenue growth from 2004 through 2007. Flotation Technologies' revenue in 2004 was $2,873,686 and $13,410,002 in 2007. To qualify, companies must be U.S.-based and privately held, independent--not subsidiaries or divisions of other companies--as of December 31, 2007, and have had at least $200,000 in revenue in 2004, and $2 million in 2007.
About Inc.com
Inc.com, the daily resource for entrepreneurs, delivers how-to guides, advice, tools, breaking news, and rich multi-media to help business owners and CEOs start, run, and grow their businesses. Inc.com offers dynamic marketing solutions to help advertisers effectively reach Inc.com's audience of business leaders. Visit inc.com.
Each year, Inc. magazine and Inc.com celebrate the remarkable achievements of today's entrepreneurial superstars -- the privately held small businesses that drive our economy. The Inc. 500|Inc. 5000 Conference brings together members of the Inc. 5000 community--both a new class of Inc. 5000 honorees and the list's alumni--for three days of powerful networking, inspired learning, and momentous celebration. For the first time ever, this powerful networking event is open to all. Please join us September 18-20, 2008 at the Gaylord National Resort and Convention Center in Washington, D.C. For more information or to register, visit Inc5000Conference.com or call 877-211-0489.
About Flotation Technologies, Inc.
Flotation Technologies, Inc., based in Biddeford, Maine, and a wholly-owned subsidiary of Deep Down Inc., (OTCBB: DPDW), is a world leader in the engineering, design and manufacturing of deepwater buoyancy systems using high-strength Flotec(TM) syntactic foams and polyurethane elastomers. Focused on the offshore oil, oceanographic, seismic and government markets, Flotation Technologies delivers world-class buoyancy products for a host of marine applications such as: distributed buoyancy for flexible pipes and umbilicals, drilling riser buoyancy modules, ROV buoyancy, QuickLoc(TM) cable floats, Hardball(TM) umbilical floats, FLOTECT(TM) cable and pipeline protection, Inflex(TM) polymer bend restrictors and installation buoyancy of any size and depth rating. For more information, visit flotec.com.
About Deep Down, Inc.
Deep Down specializes in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication and storage management services for the offshore subsea control, umbilical, and pipeline industries. The company fabricates component parts of subsea distribution systems and assemblies that specialize in the development of subsea fields and tie backs. These items include umbilicals, flow lines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems, among others. Deep Down provides these services from the initial field conception phase, through manufacturing, site integration testing, installation, topside connections, and the final commissioning of a project.
The Company's ElectroWave subsidiary offers products and services in the fields of electronic monitoring and control systems for the energy, military, and commercial business sectors. ElectroWave designs, manufactures, installs, and commissions integrated PLC and SCADA based instrumentation and control systems, including ballast control and monitoring, drilling instrumentation, vessel management systems, marine advisory systems, machinery plant control and monitoring systems, and closed circuit television systems.
The Company's Mako subsidiary serves the growing offshore petroleum and marine industries with technical support services, and products vital to offshore petroleum production, through rentals of its remotely operated vehicles (ROV), topside and subsea equipment, and diving support systems used in diving operations, maintenance and repair operations, offshore construction, and environmental/marine surveys. For more information, visit deepdowninc.com, electrowaveusa.com and makotechnologies.com.
Forward Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding our strategy, future operations, future financial position, future revenues, acquisitions, projected costs, prospects, plans and objectives of management are forward-looking statements. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. All of the information provided in this release is as of September 15, 2008 and Flotation Technologies, Inc. undertakes no duty to update the information provided herein.
SOURCE: Flotation Technologies, Inc.
McClain Marketing Group Kristen Jensen Phone: 207-761-8372 ext: 209 E-Mail: kjensen*mcclainmarketing.com
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