Boots & Coots Reports Third Quarter Results

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HOUSTON--(Business Wire)--
Boots & Coots, Inc. (NYSE: WEL), announced revenues of $40.3 million for the
quarter ended September 30, 2009 compared to $56.5 million for the same quarter
of 2008. Net income for the quarter was $0.8 million or $0.01 per diluted share,
compared to $5.4 million or $0.07 per diluted share for the 2008 third quarter.
EBITDA (earnings before interest, income taxes, depreciation and amortization;
see the reconciliation and rationale for this non-GAAP financial measure below)
was $6.6 million or 16.5% of revenues for the quarter, compared to $10.2 million
or 18.0% of revenues for the third quarter of 2008.

For the nine months ended September 30, 2009, Boots & Coots reported revenues of
$142.0 million compared to $153.4 million for 2008. Net income for the 2009
period was $3.5 million or $0.04 per diluted share, compared to $16.7 million or
$0.21 per diluted share for the prior nine month period. EBITDA was $18.4
million for the nine months ended September 30, 2009 compared to $29.3 million
for the 2008 period.

For the quarter ended September 30, 2009, the effective income tax rate was
65.6% of pre-tax income compared to 23.3% of pre-tax income in the quarter ended
September 30, 2008. The effective tax rate for the 2009 nine month period was
44.1% of pre-tax income compared to 19.2% for the same period in 2008. The
Company`s estimated annual effective tax rate reflects, among other items, our
best estimates of operating results across various tax jurisdictions. A change
in the mix of forecasted annual pretax income across these various jurisdictions
had a significant negative impact on the Company`s effective tax rate.

"Our strategic direction toward the international market and domestic shale
plays protected us from the falling rig count in North America. That along with
conservatively managing our costs helped to significantly improve EBITDA margins
from the second quarter," said Jerry Winchester, chief executive officer of
Boots & Coots. "Although we`ve not been immune to certain projects being pushed
back both domestically and internationally, our strategy has proven it is the
right one to pursue in this market."

"Furthermore, all our business segments reported revenue increases and margin
improvements in September," continued Mr. Winchester. "Even though it`s too
early to tell if September`s higher activity levels are the result of an
industry recovery, those levels have remained through October and are expected
to positively affect fourth quarter revenues and margins. We are encouraged by
this trend, but will continue to conservatively manage our business."

Business Segment Results

Pressure Control

For the quarter ended September 30, 2009, the Pressure Control segment generated
revenues of $14.9 million and EBITDA of $3.2 million, compared to revenues of
$28.3 million and EBITDA of $7.3 million for the third quarter of 2008. The 2008
third quarter results include a non-recurring well control salvage and secure
project in India. For the nine months ended September 30, 2009, the Pressure
Control segment generated revenues of $64.5 million and EBITDA of $8.5 million,
compared to revenues of $65.3 million and EBITDA of $16.5 million for the 2008
nine month period. The decrease in results was primarily due to a decrease in
higher margin response revenue and the non-recurring project in India, partially
offset by an increase in revenue from prevention and risk management projects.

Well Intervention

For the quarter ended September 30, 2009, the Well Intervention segment
generated revenues of $18.7 million and EBITDA of $1.1 million, compared to
revenues of $23.6 million and EBITDA of $2.2 million for the third quarter of
2008. Lower utilization rates in Venezuela and the Middle East, as well as the
slowdown in the domestic regions of the Gulf of Mexico and Rocky Mountains were
offset by improved results in the Northeast and Southeast regions of the U.S.
and continued expansion in North Africa. For the nine months ended September 30,
2009, the Well Intervention segment generated revenues of $57.8 million and
EBITDA of $3.5 million, compared to revenues of $73.6 million and EBITDA of $9.5
million for the 2008 nine month period. The changes in revenues and EBITDA were
primarily due to the temporary suspension of services in Venezuela during the
second quarter and continued low levels of North America drilling activity,
offset by continued expansion in North Africa. Also included in the 2008 nine
month results is a non-recurring project in Bangladesh that occurred in early
2008.

Equipment Services

For the quarter ended September 30, 2009, the Equipment Services segment
generated revenues of $6.7 million and EBITDA of $2.4 million, compared to
revenues of $4.6 million and EBITDA of $0.7 million for the third quarter of
2008. For the nine months ended September 30, 2009, the Equipment Services
segment generated revenues of $19.7 million and EBITDA of $6.5 million, compared
to revenues of $14.5 million and EBITDA of $3.3 million for the 2008 nine month
period. The increases in revenues and EBITDA were primarily due to the continued
growth in demand for our equipment and services since its inception in August
2007.

Conference Call

Boots & Coots will discuss 2009 third quarter and nine month results via a
conference call and Web cast today at 10:00 a.m. Central Time (11:00 a.m.
Eastern Time). The dial-in number for the call is 866-362-5158, passcode `Boots
& Coots`. To listen to the live Web cast, log on to
www.boots-coots.com/investorrelations and click on the `2009 Third Quarter
Earnings Web Cast` link. A replay of the Web cast will be available on the
investor relations page of the Company`s Website within 24 hours of the call.
The call will also be available for replay for 30 days by dialing 888-286-8010,
passcode 61568985.

About Boots & Coots

Boots & Coots, Inc., with its headquarters in Houston, Texas, provides a suite
of integrated pressure control services to onshore and offshore oil and gas
exploration companies around the world. Boots & Coots` products and services
include well intervention services designed to enhance production for oil and
gas operators. These services consist primarily of hydraulic workover and
snubbing services. Boots & Coots` equipment services segment provides high
pressure, high temperature rental tools. The company`s pressure control services
are designed to reduce the number and severity of critical events such as oil
and gas well fires, blowouts or other incidences due to loss of control at the
well. This segment consists primarily of the company`s Safeguard prevention and
emergency response services. Additional information can be found at
www.boots-coots.com.

Certain statements included in this news release are intended as
"forward-looking statements" under the Private Securities Litigation Reform Act
of 1995. Boots & Coots cautions that actual future results may vary materially
from those expressed or implied in any forward-looking statements. More
information about the risks and uncertainties relating to these forward-looking
statements are found in Boots & Coots' SEC filings, which are available free of
charge on the SEC's web site at www.sec.gov.

(Tables to follow)

BOOTS & COOTS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except share and per share amounts)

(Unaudited)

Three Months Ended Nine months Ended
September 30,
September 30,
2009 2008 2009 2008

REVENUES $ 40,317 $ 56,452 $ 142,027 $ 153,371

COST OF SALES, excluding depreciation and amortization 26,132 36,158 94,357 95,369
OPERATING EXPENSES 5,537 7,681 21,604 20,821
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 2,017 2,381 7,432 7,714
FOREIGN CURRENCY TRANSLATION (10 ) 55 185 155
DEPRECIATION AND AMORTIZATION 3,270 2,383 9,223 6,657

OPERATING INCOME 3,371 7,794 9,226 22,655

INTEREST EXPENSE 960 694 2,895 2,005
OTHER (INCOME) EXPENSE, net 21 (6 ) 89 (2 )

INCOME BEFORE INCOME TAXES 2,390 7,106 6,242 20,652
INCOME TAX EXPENSE 1,568 1,658 2,755 3,974

NET INCOME $ 822 $ 5,448 $ 3,487 $ 16,678

Basic Earnings per Common Share $ 0.01 $ 0.07 $ 0.05 $ 0.22

Weighted Average Common Shares Outstanding - Basic 77,202,000 76,203,000 76,895,000 75,577,000

Diluted Earnings per Common Share $ 0.01 $ 0.07 $ 0.04 $ 0.21

Weighted Average Common Shares Outstanding - Diluted 78,700,000 78,859,000 78,219,000 78,041,000

Information concerning operations in different business segments for the three
months and nine months ended September 30, 2009 and 2008 is presented below.
Certain reclassifications have been made to the prior periods to conform to the
current presentation.

(Unaudited)
Three Months Ended Nine months Ended
September 30, September 30,
2009 2008 2009 2008
(in thousands) (in thousands)
Revenues
Pressure Control $ 14,860 $ 28,270 $ 64,481 $ 65,300
Well Intervention 18,743 23,589 57,827 73,597
Equipment Services 6,714 4,593 19,719 14,474
$ 40,317 $ 56,452 $ 142,027 $ 153,371
EBITDA (a)
Pressure Control $ 3,152 $ 7,267 $ 8,475 $ 16,532
Well Intervention 1,112 2,175 3,478 9,496
Equipment Services 2,377 735 6,496 3,284
$ 6,641 $ 10,177 $ 18,449 $ 29,312
Depreciation and Amortization (b)
Pressure Control $ 161 $ 178 $ 468 $ 818
Well Intervention 2,200 1,800 6,412 4,879
Equipment Services 909 405 2,343 960
$ 3,270 $ 2,383 $ 9,223 $ 6,657
Operating Income (Loss) (b)
Pressure Control $ 2,991 $ 7,089 $ 8,007 $ 15,714
Well Intervention (1,088 ) 375 (2,934 ) 4,617
Equipment Services 1,468 330 4,153 2,324
$ 3,371 $ 7,794 $ 9,226 $ 22,655

(a) EBITDA represents earnings before interest, income taxes, depreciation and amortization. See the reconciliation and rationale for this non-GAAP financial measure below.
(b) Operating expenses and depreciation and amortization have been charged to each segment based upon specific identification of expenses and an allocation of remaining non-segment specific expenses pro rata between segments based upon relative revenues.

BOOTS & COOTS, INC.

RECONCILIATION BETWEEN CONSOLIDATED STATEMENTS OF

INCOME AND EARNINGS BEFORE INTEREST, INCOME TAXES, DEPRECIATION AND AMORTIZATION

(in thousands)

(Unaudited)

Three Months Ended Nine months Ended
September 30, September 30,
2009 2008 2009 2008
Net Income $ 822 $ 5,448 $ 3,487 $ 16,678

Income Tax Expense $ 1,568 $ 1,658 $ 2,755 $ 3,974

Interest Expense and Other, net $ 981 $ 688 $ 2,984 $ 2,003

Depreciation and Amortization $ 3,270 $ 2,383 $ 9,223 $ 6,657

Earnings Before Interest, Income Taxes, Depreciation $ 6,641 $ 10,177 $ 18,449 $ 29,312
and Amortization (EBITDA) (a)

(a) Earnings before interest, income taxes, depreciation and amortization ("EBITDA") is a non-GAAP financial measure, as it excludes amounts or is subject to adjustments that
effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with GAAP in financial statements. "GAAP" refers to
generally accepted accounting principles in the United States of America. Non-GAAP financial measures disclosed by management are provided as additional information to
investors in order to provide them with an alternative method for assessing our financial condition and operating results. These measures are not in accordance with, or a
substitute for, GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Pursuant to the requirements of Regulation G,
whenever we refer to a non-GAAP financial measure, we also present the most directly comparable financial measure and present it in accordance with GAAP, along with a
reconciliation of the differences between the non-GAAP financial measure and such comparable GAAP financial measure. Management believes that EBITDA may provide
additional information with respect to the Company`s performance or ability to meet its debt service and working capital requirements.

BOOTS & COOTS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)
September 30, December 31,
2009 2008
(unaudited)

Current Assets $ 87,596 $ 90,707

Current Liabilities $ 42,083 $ 50,538

Total Working Capital (a) $ 45,513 $ 40,169

Total Assets $ 194,589 $ 184,973

Long-Term Debt and Notes Payable, net of current maturities $ 38,580 $ 26,175

Total Liabilities $ 88,018 $ 83,212

Total Stockholders` Equity $ 106,571 $ 101,761

(a) The Company defines Working Capital as all current assets, including cash, less all current liabilities which includes current maturities of long-term debt.

Boots & Coots, Inc.
Investor Contact:
Jennifer Tweeton, 281-931-8884
jtweeton@boots-coots.com

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