WHITE PLAINS, N.Y., May 2, 2016 Steel Excel Inc. (Other OTC:SXCL) (“Steel Excel” or the “Company”), which operates Energy and Sports segments, today announced operating results for the three months ended March 31, 2016.
Steel Excel reported net revenues of $20.0 million for the first quarter of 2016, as compared to $38.9 million for the same period of 2015. The Company incurred a loss before income taxes and equity method income of $9.7 million in the first quarter of 2016, as compared to a loss of $5.9 million in the 2015 period. The net loss attributable to Steel Excel for the first quarter of 2016 was $2.1 million, or $0.18 per diluted common share, as compared to a net loss of $7.3 million, or $0.63 per diluted common share, for the same period in 2015. At March 31, 2016, the Company had cash and marketable securities totaling $143.8 million.
For the first quarter of 2016, net revenues in the Energy segment were $18.0 million as compared to $37.1 million in the 2015 quarter; net revenues in the Sports segment were $2.0 million in the 2016 quarter, as compared to $1.8 million in the comparable 2015 period.
The net loss for the first quarter of 2016 includes an impairment charge of $1.5 million related to marketable securities. The net loss for the first quarter of 2016 also includes a benefit from income taxes of $1.0 million, primarily from the allowable benefit recognizable on unrealized gains on marketable securities included in other comprehensive income.
On March 21, 2016, and April 13, 2016, the Company’s Board of Directors authorized stock repurchase programs to acquire up to an additional 250,000 shares and 1,000,000 shares, respectively, of the Company’s common stock under the previously approved repurchase program. Any repurchases under the repurchase programs will be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market in compliance with applicable laws and regulations. The repurchase programs are expected to continue indefinitely, unless shortened by the Board of Directors. The Company repurchased 471,917 shares of its common stock during the three months ended March 31, 2016. The maximum number of shares that may yet be repurchased under the programs was 1,059,708 as of April 30, 2016.
This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that reflect the Company’s current expectations and projections about its future results, performance, prospects, and opportunities. The Company has tried to identify these forward-looking statements by using words such as “may,” “should,” “expect,” “hope,” “anticipate,” “believe,” “intend,” “plan,” “estimate,” and similar expressions. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause its actual results, performance, prospects, or opportunities in 2016 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include, but are not limited to, our ability to deploy our capital in a manner that maximizes stockholder value; the ability to identify suitable acquisition candidates or business and investment opportunities; the inability to realize the benefits of our net operating losses; the ability to consolidate and manage our newly acquired businesses; fluctuations in the price of oil and other factors resulting in volatility for the demand for our services, especially in our Energy segment; the hazardous nature of operations in the oilfield services industry, which could result in personal injury, property damage or damage to the environment; environmental and other health and safety laws and regulations, including those relating to climate change, and general economic conditions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable and achievable, such statements involve significant risks and uncertainties, and no assurance can be given that the actual results will be consistent with these forward-looking statements. Except as otherwise required by Federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances, or any other reason.