HOUSTON - November 13, 2013 (Investorideas.com Newswire) HII Technologies, Inc. (the "Company"), symbol HIIT (
OTCBB/OTCQB: HIIT),
an oilfield services company headquartered in Houston, Texas, with
operations in Texas, Oklahoma, Ohio and West Virginia today announced it
has acquired Aqua Handling of Texas LLC, an oilfield frac water
transfer service company located in the Eagle Ford Shale area of South,
Texas that operates under the name "AquaTex". The purchase price was
$1.3 million consisting of $300,000 in cash, $500,000 in notes and
1,443,696 shares of the Company's common stock ($500,000 value based on
the trailing 30-day average of the Company's common stock prior to
closing).
AquaTex is engaged in the business of high volume water transfer
services through above-ground mobile piping solutions with
environmentally safe, no-leak systems designed to support the millions
of gallons typically needed for hydraulic fracturing in hydrocarbon
reservoirs. AquaTex's co-founder, Mr. Chris George, entered into a three
year employment agreement in connection with the acquisition serving as
General Manager and Vice President. Mr. George has extensive experience
in the treatment, handling and logistics of frac water management.
Previously, Mr. George served as Stallion Oilfield Services' Waterline
Operations Manager for their Texas Water Transfer Division.
AquaTex has contracts with nationally recognized exploration &
production companies in the Eagle Ford Shale and South Texas areas,
which will augment the Company's existing customer base and is expected
to result in additional revenues. For the nine months ended September
30, 2013, AquaTex's preliminary unaudited revenues and net income were
approximately $1.6 million and $18,000, respectively, which included
start-up costs. For the month of September 2013, AquaTex's preliminary
unaudited revenues and net income were approximately $238,000 and
$80,000, respectively.
"HII Technologies is pleased to bring on board AquaTex and Chris
George's significant management expertise for our water transfer
business," said Matt Flemming, HII Technologies' CEO. "We anticipate an
increase in South Texas market share from this immediately accretive
acquisition and anticipate growth through our customer
cross-fertilization program now underway."
Mr. Brent Mulliniks, AES Water Solutions President, added, "AquaTex
is an excellent acquisition for our existing water transfer business
and will fit nicely with AES expanding our market share in the South
Texas area. AquaTex has a good customer base some of which is strategic
to our Company."
"AquaTex is excited to join with HII Technologies, and AES Water
Solutions to be a part of the water group of the Company and to grow the
water transfer and frac water treatment business" stated Chris George,
AquaTex General Manager and Vice President. "With the assistance of HII
Technologies and AES Water Solutions, we look forward to expanding our
water management and treatment services in South Texas and benefiting
from any future oilfield technologies the Company may commercialize."
The acquisition requires an audit of AquaTex financial statements
for the period January through September 30, 2013 which will be reported
in an Amendment to our Current Report on Form 8-K by January 25, 2014.
The Company anticipates filing its Quarterly Report on Form 10-Q by
November 14, 2013 which will not include results from AquaTex.
About HII Technologies, Inc.
HII Technologies, Inc. is a Houston, Texas based oilfield services
company with operations in Texas, Oklahoma, Ohio and West Virginia. The
Company is positioned to take advantage of the significant anticipated
growth in horizontal drilling and hydraulic fracturing within the United
States' active shale and unconventional "tight oil" plays by deploying
new oilfield related technologies to enhance the value of services it
offers its customers. The Company's frac water supply services
subsidiary does business as AES Water Solutions, its onsite oilfield
contract safety consultancy does business as AES Safety Services, and
its mobile oilfield power subsidiary does business as South Texas Power
(STP). The holding company, HII Technologies' objective is to bring
proven technologies to these operating divisions to build a long-term
competitive advantage. Read more at
www.HIITinc.com,
www.AESwatersolutions.com and
www.Oilfield-Generators.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Any
statements as to matters that are not of historic fact are
forward-looking statements. These forward-looking statements are based
on HII's current expectations, estimates and projections about HII, its
industry, its management's beliefs and certain assumptions made by
management, and include statements regarding estimated capital
expenditures, future operational and activity expectations,
international growth, and anticipated financial performance in 2013. No
assurance can be given that such expectations, estimates or projections
will prove to have been correct. Whenever possible, these
"forward-looking statements" are identified by words such as "expects,"
"believes," "anticipates" and similar phrases.
Readers are cautioned that any such forward-looking statements are
not guarantees of future performance and are subject to certain risks,
uncertainties and assumptions that are difficult to predict, including,
but not limited to: risks that HII will be unable to achieve its
financial, capital expenditure and operational projections, including
quarterly and annual projections of revenue and/or operating income and
risks that HII's expectations regarding future activity levels, customer
demand, and pricing stability may not materialize (whether for HII as a
whole or for geographic regions and/or business segments individually);
risks that fundamentals in the U.S. oil and gas markets may not yield
anticipated future growth in HII's businesses, or could further
deteriorate or worsen from the recent market declines, and/or that HII
could experience further unexpected declines in activity and demand for
its hydraulic frac related water transfer business, its safety
consultancy business or its generator and related equipment rental
service businesses; risks relating to HII's ability to implement
technological developments and enhancements; risks relating to
compliance with environmental, health and safety laws and regulations,
as well as actions by governmental and regulatory authorities; risks
that HII may be unable to achieve the benefits expected from acquisition
and disposition transactions, and risks associated with integration of
the acquired operations into HII's operations; risks, in responding to
changing or declining market conditions, that HII may not be able to
reduce, and could even experience increases in, the costs of labor,
fuel, equipment and supplies employed and used in HII's businesses;
risks relating to changes in the demand for or the price of oil and
natural gas; risks that HII may not be able to execute its capital
expenditure program and/or that any such capital expenditure
investments, if made, will not generate adequate returns; and other
risks affecting HII's ability to maintain or improve operations,
including its ability to maintain prices for services under market
pricing pressures, weather risks, and the impact of potential increases
in general and administrative expenses.
Because such statements involve risks and uncertainties, many of
which are outside of HII's control, HII's actual results and performance
may differ materially from the results expressed or implied by such
forward-looking statements. Given these risks and uncertainties, readers
are cautioned not to place undue reliance on such forward-looking
statements. Other important risk factors that may affect HII's business,
results of operations and financial position are discussed in its most
recently filed Annual Report on Form 10-K, recent Quarterly Reports on
Form 10-Q, recent Current Reports on Form 8-K and in other Securities
and Exchange Commission filings. Unless otherwise required by law, HII
also disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions to the
forward-looking statements made here. However, readers should review
carefully reports and documents that HII files periodically with the
Securities and Exchange Commission.
Contact:
Matthew Flemming, HII Technologies, Inc. +1-713-821-3157.
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