SERVICE SECTOR / McCoy Brothers Announces 1997 Results
MCCOY BROS. INC. REPORTS RECORD SALES AND EARNINGS
1998-04-23
EDMONTON, AB
McCoy Bros. Inc. today reported record results for 1997.
* Fourth Quarter Results (three months ended December 31, 1997)
-- Revenues were $16.7 million.
-- Net earnings were $363,000.
-- Earnings per share were $0.05.
Year End Results (12 months ended December 31, 1997 compared with 12
months ended December 31, 1996)
-- Revenues were $63.3 million compared with $46.3 million.
-- Net earnings were $2,045,000 compared with $1,487,000.
-- ** Net earnings per share were $0.30 ($0.28 fully diluted) compared with
$0.23.
Kerry Brown, Chairman and CEO, said that 1997 had been a positive and pivotal
year for the Company. Among the highlights were a 37% growth in sales and
profits, a successful Initial Public Offering which raised $6.6 million,
listing of the Company's shares on the Toronto Stock Exchange, acquisition of
a major partnership interest in Prairie Truck Ltd., in Grande Prairie,
Alberta, and completion of planning for a major expansion of manufacturing
for oil field power tongs.
Mr. Brown noted that earnings in the fourth quarter were somewhat below
normal as a result of adjustments, taken at year end, to reflect the
transition from a private to a public company.
The outlook for 1998 is for continued growth despite some reduction in oil
patch activity partly related to the economic climate and the price of oil
and partly to a warmer than normal winter which adversely affected activity.
The truck service business climate remains buoyant, the trailer manufacturing
backlog is at record levels, the experimental Truck Toys store continues to
grow, the expansion of manufacturing capacity for oil field power tongs is
well advanced and the Company has identified attractive potential
acquisitions and partnership projects which will be examined and advanced as
the year progresses. 1998 should be a good year for McCoy.
McCoy has a profitable history dating back to 1914. The Company's businesses
include truck services and sales as well as the manufacture and distribution
of oil field products. It has four facilities in Edmonton, as well as
operations in Grande Prairie, Calgary, Red Deer and Rancho Cucamonga,
California.
The Company's shares are traded on the Toronto Stock Exchange under the
symbol MCB.
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* Previous period results are not comparable.
** Based on shares outstanding post IPO.
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