3rd Quarter Financials
Wednesday Jan 24 2001 News Release
Mr. Daryl Pollock reports
Olympic Resources has provided its results for the third quarter and the nine months ended Nov. 30, 2000. These results for the quarter demonstrate dramatic improvement in the financial performance of the company.
COMPARATIVE STATEMENT OF INCOME AND LOSS
Three months ended Nov. 30
2000
Revenue $444,276
Direct expenses 103,902
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Revenue from operations 340,374
General and admin expenses 84,429
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Net income before other items 255,945
Other items -
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Net income $255,945
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Earnings per share $0.02
COMPARATIVE STATEMENT OF INCOME AND LOSS
Nine months ended Nov. 30
Revenue $583,103 $490,779
Direct expenses 104,306 156,716
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Revenue from
operations 478,797 334,063
General and admin
expenses 292,205 405,362
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Net income before
other items 186,592 (71,299)
Other items 72,996 248,478
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$259,588 $177,179
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Earnings per share $0.02 $0.01
Revenue for the nine months ending November, 2000, generated mainly from the company's California gas wells, was $583,103 as compared with $490,779 for the same period in 1999. This has resulted in year-to-date net income of $259,588, up from $177,179 the previous year. From an operating performance point of view, the improvement is even more dramatic as the previous year net income included a $155,307 gain on the sale of the company's Alberta properties.
The company's decision to divest itself of its Alberta properties and focus on the California gas market has proven successful as gas prices south of the border have seen record highs since November, 2000. Gas production began in earnest last August in conjunction with gas shortages in California and has benefited from the subsequent rise in natural gas prices. Lower operation costs in California have also reduced direct expenses by $52,410 from the previous year when the company operated in Alberta. Over all, corporate and administrative expenses have also been greatly reduced during the current year to date, dropping to $292,205 from $405,362 for the previous year. This is a direct result of management steps to streamline the company's operations and control expenses.
The company also continues to maintain a strong cash position with working capital of $2,373,120 at Nov. 30, 2000. This is down from $3,208,119 for the same period last year reflecting funds deployed in the company's successful exploration activity in the California gas market and the $888,000 investment in MI Vascular Innovations Inc.
"Management is delighted with the company's results for the third quarter," says Daryl Polluck, chief executive officer. "We began to establish ourselves in the California gas market two years ago and its starting to pay off. During the the past two years we have created some significant relationships in California which has provided the company with several exciting opportunities. Building on past successes, we are now set to proceed with more aggressive gas explorations through 2001 and capitalize on record high gas prices which we expect to continue for some time to come. Our strategy has been, and will continue to strike a balance between low-risk cash flow exploration opportunities in combination with higher risk, high reward oil and gas prospects. This investment strategy is coupled with, of course, potentially explosive growth through early stage investment in biotech opportunities such as that provided by MI Vascular." |
