Thursday January 6, 9:08 am Eastern Time
Company Press Release
Hyduke Resources Ltd. Second Quarter Results
CALGARY, ALBERTA--
OPERATING DIVISIONS: B.W. RIG REPAIR & SUPPLY
RELIABLE AIRFLOW SALES & SERVICE
CANWEST CRANE AND EQUIPMENT
MIMCO ENTERPRISES
SECOND QUARTER RESULTS
The second quarter (Q2) results demonstrate a positive impact on the performance of the company. The first nine months of 1999 bore witness to decreased drilling
and well servicing activity levels in the Canadian oil and gas industry. A good portion of Hyduke's revenues are derived from completion and workover related
activities. Despite this trend Hyduke managed to post significant increases in EBITDA during this quarter.
Gross revenues were $4.2 million in Q2 compared to $3.2 million in Q1. This represents an increase of 30% over the previous quarter. The 6 month revenues are
about $900,000 lower than in 1998. which reflected the final stages of a very active run. The slow down in the industry was precipitated as a result of declining oil
prices.
EBITDA for Q2 was $142,000 ($0.02/share) compared to a loss of $18,000 or ($0.002/share) in Q1. EBITDA for Q2 in 1998 was a loss of $151,000
($0.02/share). Net earnings in Q2 reflect a loss of $116,000 ($0.01/share) as compared to a loss of $180,000 ($0.02/share) in Q1. The current results represent a
substantial improvement over the 1998 Q2 loss of $281,000 ($0.04/share). Q2 and Q1 EPS reflects increased amortization and depreciation as a result of the
acquisition of MIMCO effective June 1, 1999.
During the second quarter, Hyduke issued 812,500 shares to Bank of Montreal [NYSE:BMO - news] Capital Corp @ $1.60 per share. From the total placement
of $1,300,000, $900,000 was used to retire a debt associated with the acquisition of Mimco Enterprises Ltd. The remaining balance provided additional working
capital to Mimco.
As a result of our restructuring and cost control efforts, the company has managed to reduce operating expenses by $122,000 or over 27% in Q2 compared to Q1.
Working capital in Q2 was $1.3 million, which represents an improvement of $91,000 over Q1.
Financial Highlights:
Thousands of Cdn. Dollars Q2 Q1 6 months to 6 months to
(unless noted) Oct.31, July 31, Oct.31, Oct 31,
1999 1999 1999 1998
------ ------- ------ ------
Revenue 4,180 3,232 7,412 8,008
EBITDA 142 (18) 124 (151)
EBITDA per share $.017 $(.002) $.015 $(.020)
Net Earnings(loss) (116) (180) (296) (281)
Per share $(.014) $(.023) $(.035) $(.037)
Working Capital 1,268 1,177 1,268 2,225
Long Term Debt 1,218 2,012 1,218 149
In Q3, quotations and confirmed sales orders have been increasing steadily in all of Hydukes's divisions. The corporation is currently hiring trades personnel to
accommodate the increased work, and Mimco will be operating a full second shift in January of 2000.
Overall, based on increasing commodity prices throughout 1999 as compared to 1998 when they were decreasing, Hyduke expects a significantly improved Q3 and
Q4.
Hyduke Resources Ltd. is an integrated oilfield services company specializing in the manufacture, repair and sales of oilfield equipment and supplies. The range of
products include oilfield service rigs, pump trucks, generator & combination buildings, pneumatic controls, various models of truck mounted cranes, oilfield supplies,
drilling tools, machining and fabrication services.
Contact:
Hyduke Resources Ltd.
John Babic
CEO
(780) 463-8686
(780) 988-5768
jbabic@hyduke.com
or
Hyduke Resources Ltd.
Bob Ardiel
CFO
(780) 463-8686 |
