Destiny Announces Year End and First Quarter Revenue and Earnings.Business Editors CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta--(BUSINESS WIRE)--May 10, 2000 Destiny Destiny goddess of destiny of mankind. [Gk. Myth.: Kravitz, 78] See : Fate Resource Services Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DSC (1) (Digital Signal Controller) A microcontroller and DSP combined on the same chip. It adds the interrupt-driven capabilities normally associated with a microcontroller to a DSP, which typically functions as a continuous process. See microcontroller and DSP. .) today announced its financial and operating results for the company's seven month period ended December December: see month. 31, 1999 and the first quarter ended March 31, 2000. The timing of the first quarter and seven month period ended term coincide due to the company's decision to change its year end to December 31 from May 31.
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Three Months Seven Month Year
Ended Period Ended
March 31 Ended May 31
Dec. 31
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2000 1999 1999 1999
(unaudited)(unaudited) (audited) (audited)
(thousands, except per
share amounts) $ $ $ $
OPERATING RESULTS
Revenue
Front End 11,019 5,248 27,985 23,926
Surface Preparation 8,742 3,830 13,259 11,365
Post Drilling 8,355 4,330 16,615 15,484
International 2,468 537 7,372 17,121
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Total revenue 30,584 13,945 65,231 67,896
Direct expenses 25,220 14,364 64,343 62,053
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Gross margin 5,364 (419) 888 5,843
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Other expenses (income)
General and
administrative 917 645 1,793 3,831
Depreciation,
amortization and
depletion 1,628 1,772 4,376 6,556
Interest 893 606 2,290 2,343
Write down of Goodwill -- -- 4,290 5,000
Other (50) 963 1,628 573
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3,388 3,986 14,377 18,303
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Income (loss) before
minority interest and
income taxes 1,976 (4,405) (13,489) (12,460)
Minority interest -- -- 38 (38)
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Income (loss) before
income taxes 1,976 (4,405) (13,451) (12,498)
Income taxes (recovery) 26 (156) (423) 677
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Net income (loss) 1,950 (4,249) (13,028) (13,175)
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Cash inflow (outflow)
(before net change in
non-cash working
capital) 3,562 (1,898) (3,825) (834)
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EBITDA 4,497 (2,027) (2,533) 1,439
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Earnings (loss) per share
Basic 0.09 (0.29) (0.61) (0.95)
Fully diluted 0.09 (0.29) (0.61) (0.95)
Weighted average shares
outstanding (000s)
Basic 22,511 14,566 21,453 13,862
Fully diluted 28,408 17,342 26,929 17,666
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AS AT March 31, March 31, December 31, May 31,
2000 2000 1999 1999
Pro-Forma(1) (unaudited) (audited) (audited)
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$ $ $ $
BALANCE SHEET
Current Assets 28,952 28,952 31,337 13,219
Capital assets and
other assets 34,398 34,398 35,026 32,437
Goodwill 4,443 4,443 4,548 8,799
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Total assets 67,793 67,793 70,911 54,455
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Current liabilities 28,841 31,641 36,842 19,617
Long-term debt 11,881 11,881 12,005 9,044
Deferred income taxes 99 99 99 479
Debentures 9,760 9,760 9,503 8,000
Minority interest -- -- -- 147
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50,581 53,381 58,449 37,287
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Share capital 28,302 25,502 25,502 24,792
Retained deficit (11,090) (11,090) (13,040) (7,624)
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17,212 14,412 12,462 17,168
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Total liabilities and
shareholders' equity 67,793 67,793 70,911 54,455
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(1) Assumes receipt of $2.8 million convertible debenture
received April 12, 2000
Destiny Resource Services Corp. ("Destiny") today announced results for the company's seven month period ended December 31, 1999 and first quarter ended March 31, 2000. Highlights Include: For the seven month period ended December 31, 1999: * Write down of goodwill of $4.3 million * Streamlining of our 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 including an asset write down - $1.0 million * Net loss of $13 million or $0.61 per share * Cash outflow of $3.8 million For the first quarter ended March 31, 2000: * 119% increase in revenue * Net income of $1.95 million or $0.09 per share * Cashflow of $3.6 million Results for the Seven Month Period Ended December 31, 1999 Revenue for the seven month period was $65.2 million compared with $67.9 million in revenue generated over the twelve months ending May 31, 1999. The company generated a net loss for the seven month period of $13.0 million or $0.61 per share basic and 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. compared to the loss of $13.2 million or $0.95 per share for the twelve month period ended May 31,1999. The loss for the seven month period included a write down of goodwill of $4.3 million. Management made the decision to write down the goodwill based on poor operating results over the seven month period. In addition to the goodwill write down, the company elected to make provision for the loss on disposal of certain assets of our US operations totalling $1.0 million. Activity in the United States has remained severely depressed and the company made the decision to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose some redundant assets. Cashflow from operations for the seven month period ended December 31, 1999 was an outflow of $3.8 million compared to an outflow of $834,000 for the twelve months ended May 31, 1999. At December 31, 1999, the Company had a working capital deficiency A shortage or insufficiency. The amount by which federal Income Tax due exceeds the amount reported by the taxpayer on his or her return; also, the amount owed by a taxpayer who has not filed a return. of $5.5 million. Mr. Adrian Adrian, Roman emperor Adrian, Roman emperor: see Hadrian. Adrian, city, United States Adrian, city (1990 pop. 22,097), seat of Lenawee co., SE Mich., on the Raisin River; inc. 1836. Erickson Erickson can refer to several persons:
Market in which supply overwhelms demand, leading to weak and lower prices. which resulted in highly competitive pricing for our services. Furthermore, our results were impacted by losses incurred on a large front end services contract in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. which was affected by labour and productivity issues along with disputes with the prime contractor. As well, ongoing losses in the United States prompted management's decision to streamline these operations and dispose of dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. unprofitable assets, while in northern Canada Northern Canada is the vast northernmost region of Canada variously defined by geography and politics. Definitions and usage Also referred to as the Canadian North or (locally) as the North a large roadbuilding project for our surface preparation division incurred significant cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor due to logistical lo·gis·tic also lo·gis·ti·cal adj. 1. Of or relating to symbolic logic. 2. Of or relating to logistics. [Medieval Latin logisticus, of calculation problems associated with continuing wet weather. Expectations for an improvement in the industry, which was buoyed by strong commodity prices did not translate into a significant improvement in the sector, as oil & gas companies chose to strengthen their balance sheets rather than devote cashflow to exploration expenditure." Results for the First Quarter Ended March 31, 2000 Revenue for the first quarter ended March 31, 2000 of $30.6 million increased $16.6 million or 119% over the same period last year. Net Income for the quarter was $2.0 million or $0.09 per share basic and fully diluted compared to a loss of $4.2 million or $0.29 per share basic & fully diluted for the same period last year. Cashflow from operations for the first quarter ended March 31, 2000 was $3.6 million or $0.16 per share basic compared to a cash outflow of $1.9 million or $0.13 per share basic for the same period last year. Working capital at March 31, 2000 was a deficit of $2.7 million, however subsequent to the quarter, as previously announced, the company completed a financing for $2.8 million by way of a convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. . The proceeds of which went to the working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. of the company. "Looking to the first quarter we are pleased to report what signifies the turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. of the industry and improvements in the performance of Destiny's operating divisions, as the company posted strong gains in all segments of its business. Particularly pleasing, were the results of the front end services division, which includes the recent acquisition of Wolf Surveys and Mapping." Mr. Erickson went on to state "The Company's focus has been on integrating its newly acquired businesses and concentrating on internal growth and this will be the company's strategy for the remainder of the year. We want to take advantage of a more buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. market place, to streamline our operating divisions and strengthen our balance sheet for future opportunities." He concluded that "the outlook for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future appears very strong, with unprecedented levels of activity booked for the second quarter, which is traditionally our weakest period which coincides with spring breakup breakup The division of a company into separate parts. The most famous breakup to date was the 1984 division of AT&T (formerly, American Telephone & Telegraph Company). This breakup was intended to increase competition in the communications industry. ." Destiny Resource Services Corp. is a Calgary-based oilfield service company providing essential integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. to the seismic, exploration and production industries in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and internationally. |
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