HOUSTON, Nov 3, 2009 (GlobeNewswire via COMTEX News Network) --

Oil States International, Inc. (NYSE:OIS) reported net income for the quarter ended September 30, 2009 of $26.6 million, or $0.53 per diluted share on $456.1 million of revenues and $69.0 million of EBITDA (EBITDA is defined as net income plus interest, taxes, depreciation and amortization) compared to net income of $88.1 million, or $1.68 per diluted share, on $814.8 million of revenues and $172.2 million of EBITDA reported in the third quarter of 2008. (A)

"Our long term, oil driven businesses continued to contribute positively to our consolidated financial results," stated Cindy B. Taylor, Oil States' President and Chief Executive Officer. "Year over year increases in revenues and EBITDA in our Offshore Products and Accommodations businesses partially offset a difficult quarter for our North American, natural gas leveraged businesses."

Mrs. Taylor also stated, "We remained diligent in managing our costs and improved our financial position in the third quarter, paying down approximately $48 million on our revolving credit facility. Oil States ended the third quarter with only $193 million in total indebtedness, having reduced the revolver's indebtedness by $261 million since the beginning of 2009. Our total debt to capitalization ratio decreased to 13% at September 30, 2009 from 27% at December 31, 2008."

The Company recognized an effective tax rate of 24.3% in the third quarter of 2009 compared to an effective tax rate of 37.1% in the third quarter of 2008. The year-over-year decrease in the quarterly effective tax rate was primarily driven by increased foreign sourced income which is taxed at lower statutory rates coupled with domestic tax benefits derived from estimated tax losses.

For the nine months ended September 30, 2009, the Company reported revenues of $1.6 billion and EBITDA of $148.1 million which resulted in net income of $19.2 million, or $0.39 per diluted share. The 2009 year-to-date results included a non-cash, pre-tax charge of approximately $94.5 million, or $1.65 per diluted share after-tax, taken in the second quarter related to the goodwill impairment in the rental tool reporting unit. Excluding the goodwill impairment charge taken, the Company reported $242.6 million of Adjusted EBITDA (Adjusted EBITDA is defined as EBITDA excluding the goodwill impairment charges) and $102.0 million of net income, or $2.04 per diluted share, for the nine months ended September 30, 2009. For the first nine months of 2008, the Company reported revenues of $2.0 billion and EBITDA of $418.3 million which resulted in net income of $212.8 million, or $4.10 per diluted share.

BUSINESS SEGMENT RESULTS

(Unless otherwise noted, the following discussion compares the quarterly results from the third quarter of 2009 to the results from the third quarter of 2008.)

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