NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: STERNE STACKHOUSE INC.
ASE SYMBOL: SSX
JUNE 24, 1999
Sterne Stackhouse Inc. Announces Financial Results for
the Second Quarter Ended April 30th, 1999
CALGARY, ALBERTA--Sterne Stackhouse Inc. ("SSX:ASE") today
announced its (unaudited) financial results for the second quarter
ended April 30th, 1999.
Revenues for the quarter increased 90 percent over the same
quarter last year, while expenses increased by 48 percent.
/T/
Financial Results
Second quarter ended April 30, 1999
Three months ended Six months ended
April 30 April 30 April 30 April 30
1999 1998 1999 1998
$ $ $ $
--------------------------------------------------------------
Revenue $769,794 $405,786 $2,045,843 $1,112,976
Operating expenses 691,423 468,863 1,812,689 1,011,010
Depreciation &
amortization 114,300 87,300 228,600 170,951
Earnings (loss)
before tax 78,371 (63,077) 233,154 101,966
Deferred income
taxes 36,000 - 107,000 42,000
Net income (loss) 42,371 (63,077) 126,154 59,966
Earnings per share 0.008 (0.011) 0.022 0.011
Outstanding
shares 5,640,496 5,564,496 5,640,496 5,564,496
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/T/
The foregoing results will be the last time the expenses
associated with our generic industry Labrador(R) Intelligence
initiative will be commingled with the oil and gas expenses and
revenue generated by our Petro-LAB(TM) software.
Although profitable as an integrated presentation, we believe it
is now appropriate to record the company's oil and gas division as
separate from the client server and internet-based versions of
Business-LAB(TM), scheduled for release in the 4th Quarter of
1999. Shareholders will see that the Petro-LAB(TM)division is
quite profitable, and should not be continuing to underwrite
generic Labrador(R). Since its beginning, Labrador(R) has been
developed to query and report data for all types of businesses.
Revenue growth has been progressing nicely despite the fact that
the joint venture with IHS Energy Canada has not moved as quickly
as we had hoped, and quarterly reporting in the oil industry, in
general, still tends to be volatile. On the other hand, our
software development is right on target, opening very substantial
opportunities in the U.S. oil and gas business that we are
actively pursuing. Similarly, Business-LAB(TM) will soon allow
other industries to "plug" their businesses into the extensive
querying and reporting infrastructure we have built for the oil
and gas industry.
Our internet-based version of Labrador(R) is now attracting other
web-based technology companies, and serious joint-venture
discussions are currently underway. This is combining with a
quickly evolving acquisitions strategy as we are evaluating
well-run companies that offer attractive synergies with the
Labrador(R) technology platform. In short, we are aggressively
pursuing dynamic growth opportunities.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Sterne Stackhouse Inc.
Darryl Stackhouse
President and Chief Financial Officer
(403) 263-6325
The Alberta Stock Exchange has neither approved nor disapproved of
this release.
INDUSTRY: SOF
SUBJECT: ERN
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