In the following release there was mention of a Q4 large international contract to be acquired. Is this the reason for the move? Anyone know more??
WENZEL DOWNHOLE TOOLS LTD ("WZL-T;WENDF-0") - Second Quarter Results and International Contract
The Management of Wenzel Downhole Tools Ltd. is pleased to announce both the Companies second quarter results and the long promised International sale that will bring operating margins in line with historical performance. Having changed the corporate year-end at December 31, 2000, the current six-month period ended June 30, 2001 has been compared to the six months ended May 31, 2000.
Comparison
Total revenue for the six-month period ended June 30, 2001 was 8% higher than the period ended May 31, 2000. Once again the mix between sales and rental was significantly different than the comparative period. * Canadian revenues were 121% higher in the six months ended June 30, 2001 than in the period ended May 31, 2000. * United States revenues were 232% higher in the period ended June 30, 2001 than in the period ended May 31, 2000. * International sales were once again significantly lower than the comparable prior period.
Outlook
The Company has been issued a purchase order for a large International contract that will be delivered in the fourth quarter of the current year. This one contract should add $0.08 per share to the current year's earnings per share. * Wenzel has re-organized its sales team in both Canada and the United States. These changes are designed to take advantage of the Company's expanded fleet of drilling tools. * The United States is expected to increase its contribution to oil and gas based revenues while continuing to expand in the utility markets. * The Company has many exciting new drilling technologies in development. While no new drilling technique is proven until it has successfully performed downhole, management believes the new products will increase market share in conventional markets and create new markets for our existing product lines.
Actual results for the six months ended June 30, 2001 were:
June 30 May 31
2001 2000
unaudited unaudited
Revenue
Canada $12,036,133 $ 5,431,607
United States 3,411,297 1,025,544
International 1,334,379 9,116,093
Total Revenue $16,781,809 $15,573,244
Gross Profit $ 7,789,083 $ 9,824,905
Net After tax earnings $ 1,555,265 $ 4,877,749
Fully diluted Earnings per Share $ 0.05 $ 0.16
TEL: (403) 215-5979 Mr. Scott Koyich, Wenzel Downhole Tools Ltd. Toll-Free: 1-877-434-3388 Email: investor.info@home.com Website: www.downhole.com
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