Computalog Announces Second Quarter Operating Results.CALGARY, Alberta--(BUSINESS WIRE)--Aug. 6, 1997--Computalog Ltd. announced today its results from operations for the six month period ended June 30, 1997. -0-
(Thousands of Canadian Dollars except per share data)
Three Months Ended Six Months Ended
June 30 June 30
1997 1996 1997 1996
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Revenues $ 43,278 $ 26,718 $ 98,087 $ 63,728
Operating expenses 32,113 21,634 66,731 45,105
Selling, general
& administration 4,068 2,627 8,418 5,678
Depreciation & amortization 3,465 2,819 6,247 5,100
Research & development 1,434 965 2,839 2,135
Loss (gain) on foreign
exchange (463) (184) (200) (189)
Interest 365 136 600 195
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Net income before income
taxes and minority
interest $ 2,296 (1,279) $ 13,452 $ 5,704
Income tax expense 376 (423) 5,463 2,005
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Net income before
minority interest $ 1,920 $(856) $ 7,989 $ 3,699
Minority interest (2) (87) 0 (75)
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Net Income $ 1,922 $(769) $ 7,989 $ 3,774
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Earnings per share
Basic $ 0.18 $(0.09) $ 0.72 $ 0.43
------ ------ ------ ------
Fully diluted $ 0.15 $(0.09) $ 0.61 $ 0.30
------ ------ ------ ------
Cash flow from operations $ 5,456 $2,050 $ 15,836 $ 8,874
------ ------ ------ ------
Computalog is pleased to report that for the six month period ended June 30, 1997, it generated net income of $7,989 (61 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis) from revenues of $98,087. This compares to a net income of $3,774 (30 cents per share on a fully diluted basis) from revenues of $63,728 for the same period during 1996. The improvement in earnings is primarily attributable to an increased level of Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. drilling activity during the second quarter of 1997 as compared to comparable period of the previous year. During the three month period ended June 30, 1997, Computalog generated net income of $1,922 (15 cents per share on a fully diluted basis) from revenue of $43,278. This compares to a net loss of $769 (9 cents per share on a fully diluted basis) from revenues of $26,718 during the same period of 1996. The Company's revenue for the six month period increased by $34,359, or 54%, as compared to the same period of the prior year as a result of growth in all of Computalog's business lines. Other factors which contributed to Computalog's growth are the acquisitions of Norjet Geotechnologies Inc. and The Bob Fournet Company, both of which occurred during 1996, and the expansion of international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. in India, Argentina and Venezuela. Revenues from Canadian operations totalled $66,434 for the first six months of 1997 as compared to $42,090 during the same period of 1996, an increase of 58%. The Company's Canadian revenues accounted for 66% of consolidated revenue. Improved results were due to increased Canadian drilling activity and Computalog's acquisition of Norjet Geotechnologies Inc. in March 1996. Revenues from United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. operations totalled $17,908 for the first half of 1997 as compared to $12,631 during the same period in 1996, an increase of 42%. The Company's United States revenues accounted for 20% of consolidated revenue. The increase in United States revenues is a result of increased wireline revenue, higher product sales and increased drilling service revenue primarily attributable to the Company's acquisition of The Bob Fournet Company in May 1996. International revenues totalled $13,745 for the first six months of 1997 as compared to $9,007 during the same period of 1996, an increase of 53%. This increase is a result of higher drilling service revenues from India, additional wireline service revenues from new or expanded operations in Argentina and Venezuela and higher export product sales. The Company's international revenues accounted for 14% of consolidated revenue. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the six months ended June 30, 1997 were $66,731, an increase of $21,626, or 48%, as compared to those incurred in 1996. These expenses represent approximately 68% of revenues in the 1997 period as compared to 71% in the 1996 period. Selling, general and administrative expenses increased by $2,740 to $8,418 during the first two quarters of 1997 as compared to the same period in 1996. The 48% increase in these expenses is primarily attributable to the increased activity levels in the Company's Canadian operations. These expenses represent approximately 9% of revenues during both the 1997 and 1996 periods. During the first half of 1997, cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses before working capital changes increased by $6,962 to $15,836 over cash flows generated in the first half of 1996. Increases in working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. resulting from the increased revenues for the period totalled $1,824. Funds used in investing activities totalled $27,462 for the first six months of 1997 and included new asset additions in existing operations and the acquisition of wireline logging Wireline Logging consists of measuring and recording the physical properties of the rocks in oil wells. "Logging" consists of introducing sensors in a borehole via a "wireline", an electromechanical cable. assets and associated goodwill of four United States based wireline companies for a combined purchase price of U.S. $12,100. The acquisitions significantly increase the size of Computalog's United States wireline operations from four stations operating 31 wireline units in three states to 18 stations operating 64 wireline units in eight states. Though these acquisitions provided some increase in revenues for the Company's United States wireline operations, it is believed that they will have a larger impact throughout the remainder of 1997. Additional acquisitions of United States based wireline companies are being negotiated and may occur during the remainder of 1997, although there can be no assurance that any such acquisitions will be consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. . As at June 30, 1997, Computalog had working capital of $16,938, which included bank operating debt of $17,854. At such date, total assets were $160,601, long term debt was $3,451 and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. amounted to $107,213. Computalog is currently in the process of finalizing a definitive agreement related to the issue of U.S. $35,000 in Senior Notes due September 1, 2005 and bearing interest at the rate of 7.78%. The Company anticipates closing this agreement on or about August 15, 1997. Effective at the closing, Computalog will also renegotiate re·ne·go·ti·ate tr.v. re·ne·go·ti·at·ed, re·ne·go·ti·at·ing, re·ne·go·ti·ates 1. To negotiate anew. 2. To revise the terms of (a contract) so as to limit or regain excess profits gained by the contractor. its bank credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities to provide the Company with access to a $15,000 revolving operating loan in Canada and a U.S. $5,000 revolving operating loan in the United States. Computalog provides wellbore knowledge and solutions through its electric wireline and directional drilling Directional drilling (sometimes known as slant drilling outside the oil industry) is the science of drilling non-vertical wells. Directional drilling can be broken down into three main groups: Oilfield Directional Drilling, Utility Installation Directional Drilling (commonly services. These services enable oil and gas producers to manage risk and maximize production. The Company's common shares trade on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (symbol CGH CGH Comparative Genomic Hybridization CGH Changi General Hospital (Singapore) CGH Computer-Generated Hologram CGH Community General Hospital (Syracuse, NY) ) and on the Nasdaq National Market (symbol CLTDF). Certain statements included in this news release may constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, but are not limited to, the impact of recent acquisitions, the, consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. and timing of additional acquisitions currently being negotiated and other factors described in the Company's publicly available Securities and Exchange Commission filings. -0- Computalog Ltd., 2000, 530 - Eighth Avenue S.W., Calgary, Alberta T2P T2P Type-Two Phaser (Star Trek) T2P Transition to Production (computer systems development) 3S8 CONTACT: Mr. Douglas F. Robinson, 403/265-6060 Mr. Leonard A. Cornez, 403/265-6060 |
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