Hyduke Resources Ltd.
9305 – 27th Avenue
Edmonton, Alberta
T6N1C9
OPERATING DIVISIONS: B.W. RIG REPAIR & SUPPLY
RELIABLE AIRFLOW SALES & SERVICE
CANWEST CRANE AND EQUIPMENT LTD
MCO INDUSTRIES LTD.
December 11, 2000
Hyduke Resources Ltd. Announces Second Quarter Results
Hyduke Resources Ltd. of Edmonton, Alberta reports that for the second quarter ended October 31, 2000, it generated a consolidated net income from operations of $0.2 million ($0.023 per common share) from consolidated revenues of $ 7.1 million. This compares to a consolidated net loss of $0.1 million (($0.014) per common share) from revenues of $ 4.2 million for the quarter ended October 31, 1999. The Company is very pleased with the improved financial performance made during this reporting period. These improvements resulted from an increased demand for products and services.
The consolidated revenues for the six month period ended October 30, 2000 totaled $13.7 million and resulted in a net profit of $0.3 million ($0.04 per common share) as compared to revenues of $7.4 million and a net loss of $0.3 million (($0.04) per common share for the six months ended October 31, 1999.
As a result of increasing revenues and improved profitability, the Company reported cash flows of $0.6 million for the six months ended October 31, 2000 compared to a cash flow loss of $0.03 million for the six months ended October 31, 1999.
Interest expenses increased to $226,793 in the first six months of 2000 as compared to $152,620 in the first six months of 1999. This increase reflects the annualized effect of acquiring MCO Industries Inc. in June of 1999 and the further consequence of increased bank operating lines.
The Company had a 95% net working capital increase, from operations, since October 31, 1999. Working capital at the end of that period was $2.4 million, which includes all borrowings from operating lines of credit.
Full financial disclosure can be obtained from the SEDAR web site at sedar.com or the Company’s web site at hyduke.com.
FINANCIAL HIGHLIGHTS
Thousands of Cdn. Dollars (unless noted)
Three Months Six Months
Ended Ended
October 31 October 31
2000 1999 2000 1999
Revenue 7,113 4,180 13,756 7,411
Gross Margin 810 447 1,639 860
Income from Operations 439 126 830 95
EBITDA 480 125 912 95
EBITDA per share $0.06 $0.02 $0.11 $0.01
Net Earnings (loss) 191 (116) 307 (296)
Per share $0.023 ($0.014) $0.04 ($0.04)
Working Capital 2,429 1,247
Outlook
With sustained oil and gas commodity prices at current and forecasted levels, energy analysts are calling for record drilling activity in Canada for the balance of 2000 and 2001. As a result of this, the reinvestment of capital, by drilling and well servicing companies, for drilling and the development of oil and gas reserves ins expected to accelerate into a strong demand for the goods and services provided by Hyduke in the coming months.
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.
For further information, please contact John Babic, CEO or Bob Ardiel, CFO at (780) 463-8686, by fax at (780) 988-5768 or by e-mail at jbabic@hyduke.com.
The Canadian Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
