Here's the release for any one who didn't already look for it <grin>
All the best,
Margie
Dynatec Reports Second Quarter Earnings
RICHMOND HILL, ONTARIO--Dynatec Corporation ("Dynatec") today
announced that for the second quarter ended June 30, 1998, revenue
increased 5 percent to $42.9 million from pro forma revenue of
$41.0 million for the same period of 1997.
EBITDA increased in the second quarter of 1998 to $5.4 million
compared to pro forma EBITDA of $3.3 million for the same period
of 1997.
Net earnings for second quarter ended June 30, 1998 were $1.9
million or $0.017 per share compared to a pro forma loss of $0.2
million for the same period of 1997.
Revenue for the first six months of 1998 increased 12 percent to
$85.5 million, from pro forma revenue of $76.0 million for the
same period of 1997.
EBITDA for the first six months of 1998 was $11.0 million compared
to pro forma EBITDA of $6.4 million for the same period of 1997.
Net earnings for the six months ended June 30, 1998 were $3.8
million or $0.033 per share compared to a pro forma loss of $0.2
million for the same period of 1997.
"We are encouraged with the results in the second quarter despite
low metal prices and the general slowdown in mining activity" said
W. Robert Dengler, President and CEO. He added, "We continue to
review a number of acquisition and investment opportunities and
are pleased to report that on July 28, 1998 Dynatec was awarded
the Midas Joint Venture Mining and Milling contract work in
Nevada."
Dynatec Corporation, based in Richmond Hill, Ontario is a widely
held Canadian public company that provides a broad range of
services, principally to mineral exploration, mining and refining
companies in North America and internationally. Its business is
comprised of three divisions: mining services, drilling services
and metallurgical technologies.
Dynatec trades on both the Toronto Stock Exchange ("TSE") and the
Montreal Exchange ("ME") under the symbol "DY".
/T/
DYNATEC CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
(unaudited)
Pro forma
June 30, 1998 June 30, 1997 June 30, 1997
---------------------------------------------
ASSETS
Current assets:
Cash $ 27,992 $ 24,509 $ 4,983
Accounts receivable 21,383 23,544 1,643
Inventories 17,956 18,269 --
Prepaid expenses
and other assets 2,669 1,490 --
Due from related
parties -- -- 1,395
--------------------------------------------
70,000 67,812 8,021
Capital assets 40,513 47,161 1,775
Other assets 293 1,035 --
--------------------------------------------
$ 110,806 $ 116,008 $ 9,796
--------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank indebtedness $ 6,239 $ 11,846 $ --
Accounts payable
and accrued
liabilities 15,053 14,834 --
Income taxes
payable 3,384 994 994
Deferred revenue 744 2,421 --
Current portion of
long-term debt 2,610 6,016 --
Due to related
parties -- -- 4,066
-------------------------------------------
28,030 36,111 5,060
Deferred revenue 315 2,930 --
Long-term debt 10,592 12,216 --
Deferred income
taxes 1,954 2,882 --
-------------------------------------------
40,891 54,139 5,060
-------------------------------------------
SHAREHOLDERS' EQUITY:
Capital stock 59,489 58,759 1,843
Cumulative foreign
translation
adjustments 1,160 -- --
Retained earnings 9,266 3,110 2,893
-------------------------------------------
69,915 61,869 4,736
-------------------------------------------
$ 110,806 $ 116,008 $ 9,796
--------------------------------------------------------------
The accompanying note is an integral part of these financial
statements.
DYNATEC CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands of dollars - except for per share amounts)
(unaudited)
Six Months Pro Forma Six Six Months
Ended Months Ended Ended
June 30, 1998 June 30, 1997 June 30, 1997
---------------------------------------------
Revenue
Contract revenue $ 85,472 $ 76,030 $ 12,133
Contract expenses 67,400 64,398 9,506
---------------------------------------------
18,072 11,632 2,627
Other revenue 541 1,055 5
---------------------------------------------
18,613 12,687 2,632
Expenses:
General and
administrative 7,515 6,240 252
Depreciation and
amortization 3,751 4,190 53
Interest 1,084 1,049 --
---------------------------------------------
12,350 11,479 305
Earnings before
income taxes 6,263 1,208 2,327
Income taxes 2,505 1,367 1,036
---------------------------------------------
Net earnings $ 3,758 $ (159) $ 1,291
--------------------------------------------------------------
Earnings per common share:
Basic earnings $0.033 -- --
Fully diluted $0.031 -- --
--------------------------------------------------------------
Weighted average
number of shares
outstanding
(thousands) 113,571 113,528 --
--------------------------------------------------------------
DYNATEC CORPORATION
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(In thousands of dollars)
(unaudited)
Six Months Ended
June 30,
1998 1997
Retained earnings at beginning
of period $ 5,508 $ 1,602
Net earnings 3,758 1,291
-----------------------------------------
Retained earnings at end of period $ 9,266 $ 2,893
--------------------------------------------------------------
DYNATEC CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(In thousands of dollars)
(unaudited)
Three months Six Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
------------------------------------------
Cash provided by (used for):
Operations:
Net earnings 1,924 427 $ 3,758 1,291
Items not involving cash
Depreciation and
amortization 1,797 26 3,751 53
Deferred income
taxes (458) -- (1,161) --
------------------------------------------
3,263 453 6,348 1,344
Change in non-cash
operating working
capital 5,291 (2,349) 6,824 (3,330)
------------------------------------------
8,554 (1,896) 13,172 (1,986)
------------------------------------------
Financing:
Warrants exercised -- -- 37 --
Increase in long-term
debt 108 -- 491 --
Repayment of
long-term debt (1,093) -- (2,740) --
------------------------------------------
(985) -- (2,212) --
------------------------------------------
Investments:
Additions to capital
assets (904) (974) (1,708) (974)
Proceeds on sale of
capital assets 373 -- 897 --
------------------------------------------
(531) (974) (811) (974)
------------------------------------------
Increase (decrease)
in cash 7,038 (2,870) 10,149 (2,960)
Cash at beginning of
period 14,715 7,853 11,604 7,943
------------------------------------------
Cash at end of
period 21,753 4,983 $ 21,753 $ 4,983
--------------------------------------------------------------
Cash is comprised of cash and bank indebtedness
DYNATEC CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands of dollars - except for per share amounts)
(unaudited)
Three Pro Forma Three
Months Three Months
Ended Months Ended
June 30, 1998 Ended June June 30,
30, 1997 1997
-------------------------------------------
Revenue
Contract revenue $ 42,934 $ 40,991 $ 5,725
Contract expenses 33,867 34,476 4,804
-------------------------------------------
9,067 6,515 921
Other revenue 315 199 (4)
-------------------------------------------
9,382 6,714 917
Expenses:
General and
administrative 4,006 3,392 125
Depreciation and
amortization 1,797 2,091 26
Interest 370 591 --
-------------------------------------------
6,173 6,074 151
Earnings before
income taxes 3,209 640 766
Income taxes 1,285 857 339
-------------------------------------------
Net earnings (Loss) $ 1,924 $ (217) $ 427
--------------------------------------------------------------
Earnings per common share:
Basic earnings $0.017 -- --
Fully diluted $0.016 -- --
--------------------------------------------------------------
Weighted average
number of shares
outstanding
(thousands) 113,593 113,528 --
--------------------------------------------------------------
DYNATEC CORPORATION
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. Basis of Presentation
On September 30, 1997, Sherritt International Consultants Inc.
("SICI") was reorganized through a series of transactions and
acquired all of the outstanding shares of Dynatec
International Ltd. ("Old Dynatec"). Immediately after the
acquisition of Old Dynatec, SICI was renamed Dynatec
Corporation.
The consolidated balance sheets are at June 30, 1998 and 1997
and the statements of earnings and statements of changes in
financial position are for the three month and six month
periods then ended.
The pro forma balance sheet gives effect to the reorganization
as of the date indicated and the pro forma statement of
earnings gives effect to the reorganization as at the
beginning of the period indicated.
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Dynatec Corporation
Alex Daschko
General Counsel
(905) 780-1980
or
Dynatec Corporation
Penny Lipsett
Investor/Media Relations
(416) 364-0107 or (905) 780-1980
dynatec.ca |
