I guess the question in my last post is answered here but I was expecting an acquisition involving a more recognizable name, though $15M+ ain't chicken feed. They have to get off the CDNX and onto the TSE (eg: check out PIL that went from the CDNX to the TSE in the past year) in order to be taken seriously (this is a real company!) cause this puppy don't get no respect volume or share price-wise and definitely deserves better IMO:
Friday January 4, 9:24 am Eastern Time
Press Release
Hyduke Resources Ltd.: October 31, 2001, Second Quarter Results
EDMONTON, ALBERTA--Mr. John Babic reports
That revenues from Hyduke operations for the three months ended October 31, 2001 were $11.6 million compared with $7 million for the same period last year.The net earnings were $0.9 million (10 cents a share), compared with $0.2 million ( 2 cents a share) for the same period in the previous year. The increase in earnings is attributable to a 63% growth in revenues combined with an improvement in EBITDA by 267% compared to the same quarter last year.
FINANCIAL HIGHLIGHTS
Thousands of Cdn. Dollars (unless noted)
Three Months
Ended
October 31
2001 2000
-------------------
Revenue 11,607 7,113
EBITDA 1,805 491
Net Earnings 877 191
EBITDA per share $ 0.21 $ 0.06
EPS (diluted) $ 0.10 $ 0.02
EPS (basic) $ 0.11 $ 0.03
The year to date net earnings for the six month period were $1.4 million (15 cents per share) on revenues of $19.7million compared to $0.3 million (3 cents per share) on revenues of $13.7 million in the same period last year. The Company experienced a decrease in working capital from $2.4 million to $1.3 million due to financing involved in the purchase of Go Getter Welding Limited and T&T Inspections & Engineering Ltd.
Thousands of Cdn. Dollars (unless noted)
Six Months
Ended
October 31
2001 2000
------------------
Revenue 19,704 13,756
EBITDA 2,838 933
Net Earnings 1,405 307
EBITDA per share $ 0.34 $ 0.11
EPS (diluted) $ 0.15 $ 0.03
EPS (basic) $ 0.17 $ 0.04
Working Capital 1,272 2,429
Shareholders'equity 6,905 4,712
Full financial disclosure can be obtained from the SEDAR web site at sedar.com or the Company's web site at hyduke.com.
On December 6, 2001 Hyduke Resources has closed an agreement to acquire all of the issued and outstanding shares of Go Getter Welding Ltd., which specializes in manufacturing drilling rigs and components such as combination buildings and assembly, mud tanks, derricks and substructures
The cost of the shares was $15.85-million and was financed by a combination of debt, surplus working capital and the issuance of 500,000 common shares of Hyduke to the vendor at a price of $1.00 per share. In addition, a further $1.5-million will be paid to the vendor in respect of certain non-compete covenants.
Hyduke also closed an agreement to acquire all of the issued and outstanding shares of T&T Inspections & Engineering Ltd. which specializes in oil field engineering. The cost for the shares was $600,000, which was financed by a combination of debt and vendor take back.
Funds for the acquisitions were provided by two lending institutions. GMAC Commercial Credit Corp. Canada has provided a credit facility of $19.5-million to Hyduke and its subsidiaries. In addition, Bank of Montreal Capital Corp. (BMOCC) has provided a $2-million credit facility to Hyduke and its subsidiaries. BMOCC has requested a seat on the board of directors of Hyduke. In addition, warrants to acquire 175,000 common shares of Hyduke throughout the term of the BMOCC credit facility at a price of 70 cents will be issued to BMOCC.
These credit facilities were also be used to retire certain existing debt and to provide an operating line of credit for Hyduke and its subsidiaries.
The effective date of control by Hyduke for the above two acquisitions was August 1, 2001 and the October 31, 2001 financial statements of the Company reflected 3 months of revenues for both Go Getter and T&T.
Outlook
The third quarter of the 2001 calendar year has seen a decline in activity brought on by the weakening of commodity prices combined with the events of September 11th. This has resulted in a deferral of various drilling orders until sometime in the new year. The Company has been able to minimize the impact of these deferrals by attracting new international sales. The current agreements between the Opec and non Opec producers to cut production by almost 2 million barrels per day has given more confidence to an already jittery market. This is reflected in the new drilling forecasts, provided by First Energy Capital Corp., of 15,000 new wells in western Canada for 2002. In the new year, the Company expects to improve on its established record of being a quality manufacturer of and supplier of oilfield equipment to the world markets.
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 drilling and service rigs, pump trucks, generator & combination buildings, pneumatic controls, various models of truck mounted cranes, oilfield supplies, drilling tools, machining and fabrication services.
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Contact:
Hyduke Resources Ltd.
John Babic
CEO
Phone: (780) 463-8686
Fax: (780) 988-5768
Email: jbabic@hyduke.com
or
Hyduke Resources Ltd.
Bob Ardiel
CFO
Phone: (780) 463-8686
Fax: (780) 988-5768 |
