Ryan Energy Technologies Inc. Announces Results for the Six Months Ended June 30, 2002.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)--Aug. 15, 2002 Ryan Ryan may refer to: Places
Alberta Report was a Canadian right-of-center magazine which has now ceased to exist. that for the six months ended June June: see month. 30, 2002, it generated a consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net loss from operations of $3.1 million (($0.14) per common share) from consolidated revenue of $27.5 million. This compares to consolidated net earnings from operations of $3.4 million ($0.15 per common share) from consolidated revenue of $49.6 million for the six months ended June 30, 2001. The decline in the Company's financial performance is attributed to the reduction in drilling activity levels in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. . Ryan has responded to changing industry conditions by temporarily reducing staffing levels for its horizontal horizontal /hor·i·zon·tal/ (hor?i-zon´t'l) 1. parallel to the plane of the horizon. 2. occupying or confined to a single level in a hierarchy. horizontal parallel to the plane of the horizon. 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 and Tru Vu( Well Site Data Management operations, as well as reducing planned capital expenditures and general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . Management Discussion and Analysis Ryan generated $27.5 million in revenue for the six months ended June 30, 2002 as compared to $49.6 million during the six months ended June 30, 2001, a decrease of $22.1 million or 45 percent. Ryan's revenue for the first half of 2002 was comprised of $22.0 million from the provision of MWD/LWD and horizontal and directional drilling services and $5.5 million from the provision of Tru Vu( Well Site Data Management services, equipment sales and licenses ("Tru Vu( WDM (1) (Wavelength Division Multiplexing) A technology that uses multiple lasers and transmits several wavelengths of light (lambdas) simultaneously over a single optical fiber. "). This compares to $45.9 million from the provision of MWD/LWD and horizontal and directional drilling services and $3.7 million from the provision of Tru Vu( WDM services, equipment sales and licenses during the first half of 2001. Ryan's consolidated revenue for the six months ended June 30, 2002 of $27.5 million was generated $14.5 million (53 percent) from the 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. , $10.6 million (38 percent) from 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 $2.4 million (9 percent) from Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. . This compares to consolidated revenue for the six months ended June 30, 2001 of $49.6 million that was generated $24.4 million (49 percent) from the United States, $22.5 million (45 percent) from Canada and $2.7 million (6 percent) from Venezuela. Exploration and development expenditures by oil and natural gas companies in the United States and western Canada
Western Canada, commonly referred to as the West decreased during the first half of 2002 as compared to 2001. As a result, demand for drilling related services decreased and competitive pressures increased in both the United States and Canada. Ryan has reduced its staffing levels by 19 percent, lowered its general and administrative support functions, reduced discretionary spending and lowered its anticipated level of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. for 2002 to $2.5 million. These actions reduced the Company's expenses by $0.4 million per month and have resulted in restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $0.5 million during the first two quarters of 2002. Ryan's concurrent At the same time. It implies that multiple processes are taking place simultaneously. See concurrent operation. job capacity as of June 30, 2002 is twenty-four horizontal and directional In one direction. Contrast with omnidirectional. jobs and seventy-five Tru Vu( WDM jobs. This compares to forty-six horizontal and directional jobs and one hundred ten Tru Vu( WDM jobs as of December December: see month. 31, 2001. With equipment available for a concurrent job capacity of forty-six horizontal and directional jobs and one hundred ten Tru Vu( WDM jobs, the Company is positioned to respond to anticipated increases in demand for capacity as drilling activity levels improve in the United States and Canada. Revenue from the Company's operation in the United States was $14.5 million for the first six months of 2002 as compared to $24.4 million for the first six months of 2001, a decrease of $9.9 million or 41 percent. Ryan's United States operation is concentrated in the region surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. and in the northeastern north·east n. 1. Abbr. NE The direction or point on the mariner's compass halfway between due north and due east, or 45° east of due north. 2. An area or region lying in the northeast. 3. region of the United States. In the region surrounding the Gulf of Mexico it provides services to the offshore and on-shore markets adjoining the Gulf. During the first six months of 2002, oil and natural gas companies drilled 1,716 horizontal and directional wells in the United States as compared to 2,152 during the first six months of 2001, representing a 20 percent decrease in the number of horizontal and directional wells drilled. Ryan's United States average revenue per activity day decreased by 16 percent over the average revenue per activity day achieved during the same period of 2001. In response to lower activity and reduced revenues the Company temporarily adjusted horizontal and directional drilling staffing levels in the United States from a twenty job capacity in the fourth quarter of 2001 to ten jobs as of June 30, 2002. The Company is currently capable of deploying thirty-five Tru Vu( WDM systems as of June 30, 2002, though it continues to own sixty-four Adj. 1. sixty-four - being four more than sixty 64, lxiv cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" Tru Vu( WDM systems. Revenue from Ryan's 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. operation decreased to $10.6 million for the first six months of 2002 from $22.5 million for the first six months of 2001, a decrease of $11.9 million or 53 percent. During the first six months of 2002, oil and natural gas companies drilled 1,904 horizontal and directional wells in Canada as compared to 2,465 during the first six months of 2001, representing a 23 percent decrease in the number of horizontal and directional wells drilled. Ryan's average revenue per activity day in Canada decreased by 6 percent over the average revenue per activity day achieved during the same period of 2001. In response to lower activity levels, the Company temporarily adjusted its horizontal and directional drilling staffing levels in Canada from a twenty-two job capacity in the fourth quarter of 2001 to ten jobs as of June 30, 2002. The Canadian operation has twelve Tru Vu( WDM systems available to provide services in underbalanced drilling ''This article refers to the procedure in oil drilling. For University of Brunei Darussalam, a university in Brunei, please refer to Universiti Brunei Darussalam Underbalanced drilling applications, unchanged from December 31, 2001. The Company's Venezuela revenue decreased by $0.3 million to $2.4 million for the six months ended June 30, 2002 as compared to the same period in 2001. Ryan continues to view Venezuela as a means to leverage its technology and improve the utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of its MWD/LWD and Tru Vu( equipment and personnel. MWD/LWD system rentals were 76 percent lower in the first six months of 2002, as compared to the first six months of 2001, as a result of lower oil and natural gas drilling activity in Venezuela. This was offset by Tru Vu( WDM revenues having increased 188 percent during the first six months of 2002, as compared to 2001, as a result of market share improvements. As of June 30, 2002, Ryan had a concurrent job capability of four MWD/LWD systems and thirty-four Tru Vu( WDM systems in Venezuela, as compared to twenty-eight systems as of December 31, 2001. Direct costs comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise field related expenses as well as costs directly attributed to the provision of the Company's services such as sustaining engineering, well planning and coordination coordination /co·or·di·na·tion/ (ko-or?di-na´shun) the harmonious functioning of interrelated organs and parts. co·or·di·na·tion n. 1. The harmonious adjustment or interaction of parts. , and related facility costs. These expenditures amounted to $23.0 million for the six months ended June 30, 2002 as compared to $33.1 million for the six months ended June 30, 2001, a decrease of $10.1 million or 31 percent. Direct costs represented 84 percent of revenue during the first six months of 2002 and 67 percent of revenue during the first six months of 2001. This resulted in a gross profit of 16 percent of revenue during the first six months of 2002 as compared to 33 percent for the same period in 2001. The reduced gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. is a result of lower activity, a reduction in rates for the Company's services and excess job capacity both within Ryan and within the industry. General, administrative and marketing expenses for the six months ended June 30, 2002 were $0.5 million below the expenses for the first six months of 2001 and totaled $4.7 million. As a percentage of revenue these expenses increased from 10 percent of revenue for the six months ended June 30, 2001 to 17 percent of revenue for the six months ended June 30, 2002 as a result of lower revenues generated during the first quarter of 2002 as compared to the same period in 2001. Restructuring charges of $0.5 million were incurred during the first six months of 2002 and related primarily to severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when payments. The amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and property, plant and equipment increased to $4.3 million for the six months ended June 30, 2002 as compared to $3.7 million for the six months ended June 30, 2001. Capital expenditures of $12.4 million incurred during the year ended December 31, 2001 and $1.0 million incurred during the first six months of 2002 accounted for the increase in this expense. The amortization of goodwill, net of income taxes, during the first six months of 2001 was $0.3 million. During the first quarter of 2002, the Company adopted the new provisions of the Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. accounting standard for Goodwill and Intangible Assets. The adoption of this new accounting standard changed the Company's definition of intangible assets and goodwill, modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. the level in the organization at which the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of goodwill is assessed for potential impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and required the Company to adopt a business valuation approach for assessing the carrying value of goodwill. These changes reduced the Company's amortization expense by $0.3 million during the first six months of 2002. As of January January: see month. 1, 2002, these changes also increased the carrying value of intangible assets by $0.7 million, reduced the carrying value of goodwill by $5.9 million, reduced the liability for future income taxes by $0.4 million and reduced 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. by $4.8 million. During the first quarter of 2002, the Company also adopted the new provisions of the Canadian Institute of Chartered Accountants accounting standards for accounting for Stock Based Compensation. The adoption of this new accounting standard did not effect the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of earnings for the six-month period ended June 30, 2002. Liquidity and Capital Resources During the first six months of 2002, the Company generated $1.4 million in 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 , incurred $1.0 million in capital expenditures and received $1.3 million in proceeds from the disposal of certain assets. In anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of the current industry conditions the Company renegotiated its debt facilities to provide greater operational flexibility and reduce the annual repayments. The Company reduced its long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. by $0.2 million during the first six months of 2002. As of June 30, 2002 the Company had working capital of $13.3 million, long-term debt of $10.9 million and shareholder's equity of $50.7 million. As of June 30, 2002 the Company was in compliance with all the provisions of its borrowing obligations. The ability of the Company to remain in compliance with its borrowing covenants is dependant upon Adj. 1. dependant upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, contingent upon, dependant on, dependent on, dependent upon, depending on, contingent future industry conditions. Business Outlook The number of horizontal and directional wells drilled during the first six months of 2002 was 20 percent lower in the United States and 23 percent lower in Canada as compared to the first six months of 2001, as a result of lower prices for oil and natural gas, uncertainty with respect to economic activity and recent changes in financial markets. These factors impacted Ryan's customers' cash flows and influenced their exploration and development expenditures. Future changes in these factors will continue to affect Ryan's customers' cash flows and may adversely affect their ability to fund their operations, which may in turn adversely affect the Company and its foreign operations. The oil and natural gas service industry, of which horizontal and directional drilling and well site data management are a part, is dependent upon these exploration and development expenditures for its revenue sources. Oil and natural gas prices have exhibited considerable volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the over time and are expected to continue to be volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. in the future. It is management's belief that the overall level of drilling activity in the market places in which Ryan operates will remain lower in 2002 than those levels experienced during 2001. Management also believes that the Company's focus on improving market share combined with future improvements in the level of drilling activity will result in improvements in the Company's United States and Canadian operations. The Company responds to changing market conditions by managing its concurrent job capacity, capital expenditures and overhead levels to reflect changes in the level of activity. As drilling activity improves, Ryan has retained the ability to increase its concurrent job capacity back to the levels present at December 31, 2001, without significant capital investment. Agreement with Nabors Industries Nabors Industries Ltd. (NYSE: NBR) founded in 1968 as Anglo Energy, Ltd. (formerly AMEX: AEL), and currently based in Hamilton, Bermuda, is an S&P 500 oil, natural gas and geothermal drilling contractor operating on land throughout the Americas, the Middle East, Ltd. On August 12, 2002, the Company entered into a Plan of Arrangement transaction with Nabors Industries Ltd. (Nabors) pursuant to which Nabors will offer $1.85 for each common share of Ryan. Under this arrangement Ryan's shareholders will have the option to elect to receive this consideration in either cash or in exchangeable shares of a Canadian subsidiary of Nabors which are exchangeable into common shares of Nabors. The Plan of Arrangement is subject to approval of the shareholders and optionholders of Ryan, the approval of the Court of Queen's Bench of Alberta The Court of Queen's Bench of Alberta is the superior court of the Canadian province of Alberta. Structure
The Anglo-American common-law tradition is built on the doctrine of Stare Decisis ("stand by decided . If the transaction is completed and depending on the comparative value, at closing, of Nabors common shares to the offer of $1.85 for each Ryan common share, a potential impairment in the value of a portion of the goodwill carried on the balance sheet of Ryan could occur. As the existence and determination of such impairment, if any, relies on future events no provision for such future impairment has been recorded.
CONSOLIDATED BALANCE SHEETS
(stated in thousands of Canadian dollars)
As at As at
June December
30, 2002 31, 2001
(unaudited) (audited)
-------------------------
Assets
Current assets
Cash and cash equivalents $ 1,563 $ 1,494
Accounts receivable 13,649 24,328
Corporate income taxes receivable 3,866 644
Inventory 4,177 5,183
Prepaid expenses and other assets 1,170 594
------------------------
24,425 32,243
Property, plant and equipment - net 39,647 45,072
Intangible assets - net 4,852 4,473
Goodwill - net 9,019 15,303
-------------------------
$ 77,943 $ 97,091
-------------------------
-------------------------
Liabilities
Current liabilities
Accounts payable 3,124 7,685
Accrued liabilities:
Salaries and wages 682 1,188
Other 2,942 6,686
Current portion of long-term debt 4,376 4,711
-------------------------
11,124 20,270
Deferred credits 237 301
Long-term debt 10,932 11,494
Future income taxes 4,996 4,984
-------------------------
27,289 37,049
-------------------------
Shareholders' equity
Share capital 38,274 38,207
Retained earnings 9,661 17,518
Cummulative translation adjustment 2,719 4,317
-------------------------
50,654 60,042
-------------------------
$ 77,943 $ 97,091
-------------------------
-------------------------
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(stated in thousands of Canadian dollars,
except earnings per share)
For the three months For the six months
ended June 30, ended June 30,
(unaudited) 2002 2001 2000 2002 2001 2000
-----------------------------------------------------------------
Revenue $ 11,309 $ 22,510 $ 10,655 $ 27,534 $ 49,553 $ 25,881
Direct
costs 9,034 15,697 8,331 22,952 33,097 18,818
-----------------------------------------------------
Gross profit 2,275 6,813 2,324 4,582 16,456 7,063
General,
administrative
and marketing
expenses 2,090 2,645 1,802 4,743 5,165 3,355
Bad debt expense 11 30 - 11 30 654
Research and
development
expenses 74 395 195 279 573 323
Amortization 2,209 1,941 1,358 4,278 3,735 2,627
Interest expense:
Short-term 19 7 43 28 18 58
Long-term 253 373 60 505 675 127
---------------------------------------------------
(Loss) earnings
from continuing
operations before
income taxes and
goodwill
amortization (2,381) 1,422 (1,134) (5,262) 6,260 (81)
----------------------------------------------------
Income tax
(recovery)
expense from
continuing
operations
Current (1,076) 691 (406) (2,732) 2,541 (42)
Future (51) (112) 7 550 (17) 31
------------------------------------------------------
(1,127) 579 (399) (2,182) 2,524 (11)
------------------------------------------------------
Net (loss) earnings
from continuing
operations before
goodwill
amortization (1,254) 843 (735) (3,080) 3,736 (70)
Goodwill
amortization,
net of
income taxes - 153 95 - 305 188
------------------------------------------------------
(1,254) 690 (830) (3,080) 3,431 (258)
Loss from
discontinued
operations - - (88) - - (594)
Net (loss)
earnings
for the
period (1,254) 690 (918) (3,080) 3,431 (852)
Retained
earnings,
beginning of
period 10,915 14,461 9,537 17,518 11,720 9,987
Adjustment for
change in
accounting
policy - - - (4,777) - (516)
-----------------------------------------------------
Retained earnings,
end of
period $ 9,661 15,151 $ 8,619 $ 9,661$ 15,151 $ 8,619
-----------------------------------------------------
Net (loss)
earnings per
common share
from
continuing
operations $ (0.06) $ 0.03 $ (0.04) $ (0.14) $ 0.15 $ (0.01)
Net (loss)
earnings per
common share
from
discontinued
operations - - - - - (0.03)
(Loss)
earnings
per common
share
- Basic $ (0.06) $ 0.03 $ (0.04) $ (0.14) $ 0.15 $ (0.04)
------------------------------------------------------
(Loss)
earnings
per common
share
- Diluted $ (0.06) $ 0.03 $ (0.04) $ (0.14) $ 0.15 $ (0.04)
------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(stated in thousands of Canadian dollars)
For the three months ended June 30,
2002 2001 2000
(unaudited) (unaudited) (unaudited)
-------------------------------------------------------------------
-------------------------------------------------------------------
Cash (used in)
provided by operating
activities
Net (loss) earnings
from continuing
operations $ (1,254) $ 690 $ (830)
Add (deduct) items not
affecting cash:
Amortization 2,209 2,155 1,476
Gain on sale of
property, plant and
equipment (63) (144) 1
Future income taxes (51) (94) 13
Other (136) (38) -
-------------------------------------------------------------------
Cash flow from
continuing operations 705 2,569 660
Net change in non-cash
working capital
balances 2,567 (4,149) 3,457
Cash used in
discontinued
operations - - (509)
-------------------------------------------------------------------
3,272 (1,580) 3,608
-------------------------------------------------------------------
Cash provided by (used
in) investing
activities
Proceeds on sale of
property, plant and
equipment 212 382 96
Acquisition of
property, plant and
equipment (150) (1,700) (1,405)
Acquisition of
intangible assets (154) (157) (457)
Business acquisition - (155) -
-------------------------------------------------------------------
(92) (1,630) (1,766)
-------------------------------------------------------------------
Cash provided by (used
in) financing
activities
Share capital, net of
issue costs 66 135 6
Increase in deferred
credits - - -
Repayment of long-term
debt (1,673) (1,054) (363)
Increase in long-term
debt - 1 560
-------------------------------------------------------------------
(1,607) (918) 203
-------------------------------------------------------------------
Increase (decrease) in
cash and cash
equivalents during the
year 1,573 (4,128) 2,045
Cash and cash
equivalents, beginning
of period (10) 2,366 (2,165)
-------------------------------------------------------------------
Cash and cash
equivalents, end of
period $ 1,563 $(1,762) $ (120)
-------------------------------------------------------------------
-------------------------------------------------------------------
Cash and cash
equivalents is defined
as:
Cash $ 2,893 $ 1,388 $ 593
Bank loan (1,330) (3,150) (713)
-------------------------------------------------------------------
$ 1,563 $ (1,762) $ (120)
-------------------------------------------------------------------
-------------------------------------------------------------------
Supplemental
information:
Interest paid $ 294 $ 303 $ 47
Net income taxes paid
(recovered) $ (325) $ 292 $ 674
For the six months ended June 30,
2002 2001 2000
(unaudited) (unaudited) (unaudited)
-------------------------------------------------------------------
-------------------------------------------------------------------
Cash (used in)
provided by operating
activities
Net (loss) earnings
from continuing
operations $ (3,080) $ 3,431 $ (258)
Add (deduct) items not
affecting cash:
Amortization 4,278 4,161 2,862
Gain on sale of
property, plant and
equipment (170) (357) (94)
Future income taxes 550 19 43
Other (171) (72) -
-------------------------------------------------------------------
Cash flow from
continuing operations 1,407 7,182 2,553
Net change in non-cash
working capital
balances (1,495) (4,558) 1,873
Cash used in
discontinued
operations - - (779)
-------------------------------------------------------------------
(88) 2,624 3,647
-------------------------------------------------------------------
Cash provided by (used
in) investing
activities
Proceeds on sale of
property, plant and
equipment 1,301 697 275
Acquisition of
property, plant and
equipment (645) (4,715) (4,628)
Acquisition of
intangible assets (363) (289) (881)
Business acquisition - (15,737) -
-------------------------------------------------------------------
293 (20,044) (5,234)
-------------------------------------------------------------------
Cash provided by (used
in) financing
activities
Share capital, net of
issue costs 67 138 6
Increase in deferred
credits - 80 -
Repayment of long-term
debt (16,105) (2,383) (725)
Increase in long-term
debt 15,902 17,767 560
-------------------------------------------------------------------
(136) 15,602 (159)
-------------------------------------------------------------------
Increase (decrease) in
cash and cash
equivalents during the
year 69 (1,818) (1,746)
Cash and cash
equivalents, beginning
of period 1,494 56 1,626
-------------------------------------------------------------------
Cash and cash
equivalents, end of
period $ 1,563 $ (1,762) $ (120)
-------------------------------------------------------------------
-------------------------------------------------------------------
Cash and cash
equivalents is defined
as:
Cash $ 2,893 $ 1,388 $ 593
Bank loan (1,330) (3,150) (713)
-------------------------------------------------------------------
$ 1,563 $ (1,762) $ (120)
-------------------------------------------------------------------
-------------------------------------------------------------------
Supplemental
information:
Interest paid $ 453 $ 616 $ 129
Net income taxes paid
(recovered) $ 431 $ (728) $ 674
Ryan Energy Technologies Inc. is an industry leader in the development and provision of horizontal and directional drilling technology and services including Measurement While Drilling Measurement while drilling (MWD) tools are used by drilling rigs to transmit information in real time from the tool, located near the drill bit, to the surface. Types of information sent Directional information (MWD MWD Metropolitan Water District of Southern California MWD Measurement While Drilling (oil drilling) MWD Morgan Stanley Dean Witter (stock symbol) MWD Molecular Weight Distribution MWD Military Working Dog ), Logging While Drilling Logging While Drilling is a technique of measuring geological formation properties in real-time while drilling an oil well. Description Logging While Drilling (LWD (LWD LWD Labor and Workforce Development (State of New Jersey) LWD Logging While Drilling (oil drilling industry) LWD Large Woody Debris LWD Little White Dress LWD Life With Derek ), Downhole Drilling Motors and Well Site Data Management (WDM) services. Ryan Energy Technologies Inc. provides these services to major, intermediate, and junior oil and natural gas companies in Canada, the United States and Venezuela. Certain statements included herein 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. " with the meaning of certain securities legislative measures. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such risks include, but are not limited to, fluctuations of energy commodity prices, changes in levels of drilling activity, weather patterns, economic and political uncertainties in foreign jurisdictions, the impact of recent acquisitions and other factors described in the Company's publicly available securities filings. Ryan Energy Technologies Inc. Trading Symbol Trading symbol See: Ticker symbol "RYN RYN Reply with Yes or No RYN Read Your Note RYN Return Your Note " on the TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). The leader in UNDERGROUND INTELLIGENCE(TM) |
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