Here's the press release: I briefly spoke to Don Barber this morning and he said draft figures indicate they will likely show a profit in the traditionally slow first quarter. He said he was surprised. Those figures will be released before the end of October.
WENZEL DOWNHOLE TOOLS LTD.
ASE SYMBOL: WZL
SEPTEMBER 23, 1999
Wenzel Downhole Announces Operating Results
CALGARY, ALBERTA--Management of Wenzel Downhole Tools Ltd. is
pleased to announce the operating results for the year ended May
31, 1999.
During 1998, the oil and gas industry experienced a drop in
commodity prices that produced the lowest crude oil prices in over
twenty years. This created a very difficult business climate for
service companies because many drilling projects were cancelled or
put on hold and many companies reported significant drops in
revenue and net income. DESPITE THOSE HARSH ECONOMIC REALITIES,
THE COMPANY CONTINUED THE TREND OF INCREASING SALES, ASSETS AND
EARNINGS PER SHARE FOR THE YEAR ENDED MAY 31, 1999.
Revenue increased by 43 percent, EPS increased by 28 percent, and
EBITDA per share increased by 76 percent for the year ended May
31, 1999. The Corporation's general and administrative expenses
as a percentage of sales remained at 8 percent.
/T/
1999 1998
(000's) (000's)
Revenue $ 18,478 $ 12,944
Net After Tax Earnings $ 5,352 $ 3,146
EBITDA $ 11,243 $ 5,855
EBITDA per share $ 0.37 $ 0.21
Basic EPS $ 0.22 $ 0.15
Fully Diluted EPS $ 0.18 $ 0.14
/T/
In January of 1999, the Company signed a distribution agreement
with Smith International Inc. (NYSE - SII) whereby the Smith
Drilling and Completions unit will distribute the Wenzel shock
tool throughout their worldwide locations. This agreement expands
Wenzel's ability to distribute our products worldwide.
The Company's local market share increased during 1998/99. This
was due to aggressive marketing, high service standards and a
concentration on straight hole drilling. In 1999, we became the
first motor manufacturer to guarantee the number of hours a tool
would operate.
The Company has increased its exposure in the construction market.
This market includes river crossings, fiber optics installation
and mining. As with the acquisition of the Wenzel technology,
this new market is one that can be mixed with our existing
business with little additional expense. This is a business where
we can demonstrate why our products are superior and how we can
help our customers increase their earnings.
With the onset of significantly higher oil prices, a strong gas
market and new areas of business, the Company expects continued
growth in our revenues and net income. |
