SERVICE SECTOR / Bonus Resource Services releases Financial Results
CALGARY, Feb. 26 /CNW/ - Bonus Resource Services Corp. (''Bonus'') is
pleased to release its financial results for the year ending December 31,
1997. The financial results include results of operations of Bonus and its
wholly-owned subsidiaries.
The Company's strategy of growth and consolidation, which started in
1996, continued in 1997 with the acquisition of Beta Well Service Inc. in
addition to other smaller acquisitions. The Company's fleet increased from 76
rigs at the beginning of the year to 146 rigs at the end of 1997, for an
approximate 19% share of the western Canadian well servicing sector. At
December 31, 1997 the Company owned 140 service rigs and six swabbing units,
and employed in excess of 900 people at locations throughout Alberta, British
Columbia and Saskatchewan.
Revenue increased to $107.4 million (or $3.35 per share) in 1997 compared
to $19.5 million (or $1.42 per share) in 1996 for a 451% increase (136% on a
per share basis). Net earnings were $10.5 million (or $0.33 per share) in
1997 compared to $1.2 million (or $0.09 per share) in 1996 for a 779%
increase (267% on a per share basis). The earnings include only partial
results from the assets acquired in 1997 as most of the acquisitions were made
in the last half of the year. Earnings also do not include the results from
the acquisitions of Superior Well Servicing Pty. Ltd. and Canuck Well
Servicing Ltd., both of which took place subsequent to year-end. Funds from
operations were $22.1 million (or $0.69 per share) in 1997 compared to $4.7
million (or $0.34 per share) in 1996 for a 374% increase (103% on a per share
basis).
Net earnings for the quarter ending December 31, 1997 were $4.2 million
(or $0.11 per share) compared to $263,000 for the quarter ending December 31,
1996 (or $0.01 per share) for a 1514% increase (1000% on a per share basis).
Funds from operations for the quarter ending December 31, 1997 were $7.1
million (or $0.18 per share) compared to $2.5 million for the quarter ending
December 31, 1996 (or $0.12 per share) for a 184% increase (50% on a per share
basis).
The strong demand for the Company's services continued throughout 1997.
The utilization rate for the Company's service rigs was 106.9% in 1997
compared to 92.8% in 1996.
The Company continued to expand and strengthen its balance sheet in 1997
by issuing $46 million of additional equity and by increasing its long-term
credit facilities to $47 million. At December 31, 1997 the Company had $43
million in cash earmarked for future acquisitions, of which some portion has
been utilized in the Superior and Canuck acquisitions.
Management's objective remains to position Bonus as the dominant presence
in the well servicing industry in western Canada. The Company's focus for
1998 will be to maximize the use of its existing fleet and to continue its
growth through acquisitions.
Bonus is Canada's largest service rig operator. The recent Superior
acquisition in Australia marks the expansion of the Company into the
international arena. Bonus currently operates 153 services rigs and seven
swabbing units in western Canada and seven service rigs in Australia for a
total fleet of 167 rigs. Bonus trades on the Toronto Stock Exchange under the
symbol BOU. |
