Divestco Inc. Announces Operating Results for the First Quarter of 2005
** Company had an even better Q4. Trailing P/e of 7x with growing earnings.
CALGARY, ALBERTA--(CCNMatthews - May 19, 2005) - Divestco Inc. (TSX
VENTURE:DVT) ("Divestco" or the "Company") is pleased to announce it has
earned 6.4 cents per share (diluted) for the first quarter of 2005,
compared to 3.1 cents per share (diluted) for the same period in 2004, a
106% increase year over year. Net income for the current period doubled
to $1.6 million from $0.8 million for the same period in 2004.
Divestco generated record revenue of $8.7 million for the first quarter
of 2005, an increase of $2.5 million or 41% from $6.2 million for the
same period in 2004. Earnings before interest, taxes and amortization
("EBITA") was a record $4.1 million, a $2.6 million or 179% increase
from $1.5 million for the same period in 2004.
Funds from operations were a record $4.2 million (16.7 cents per share -
diluted) for the first quarter of 2005 compared to $1.5 million (5.7
cents per share - diluted) in 2004, an increase of $2.7 million or 184%
compared to the same quarter in 2004.
Mr. Stephen Popadynetz, CEO of Divestco commented: "I am pleased to
report our first quarter results to our shareholders, Board and
employees. Divestco continues to demonstrate its ability to remain a
profitable company with record revenue this quarter and its sixth
consecutive quarter of positive results. The Company continues to focus
on its strategy of integrating products and services from its various
divisions. We look forward to continuing our growth for the remainder of
2005".
/T/
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Selected Financial Information
($000's, except per share amounts)
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Quarter ended March 31
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2004 2003
(unaudited) (unaudited) %change
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Revenue $ 8,715 $ 6,198 41%
Operating expenses $ 4,601 $ 4,722 (3)%
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EBITDA $ 4,114 $ 1,476 179%
Interest $ 63 $ 149 (58)%
Amortization $ 1,598 $ 548 192%
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Operating income $ 2,453 $ 779 215%
Other income (loss) $ (8)$ 24 N/A
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Income before taxes $ 2,445 $ 803 204%
Future income tax expense $ 844 $ - N/A
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Net income $ 1,601 $ 803 99%
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Per share - basic $ 0.065 $ 0.032 103%
Per share - diluted $ 0.064 $ 0.031 106%
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Funds from operations $ 4,157 $ 1,462 184%
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Per share - basic $ 0.168 $ 0.057 195%
Per share - diluted $ 0.167 $ 0.057 193%
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Number of shares outstanding 24,576,186 25,435,100
Weighted average number of
shares outstanding
Basic 24,731,778 25,423,091
Diluted 24,840,465 25,732,120
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/T/
Divestco was formed on September 23, 2003 as a result of the
amalgamation of International Datashare Corporation and Divestco.com
Inc. Divestco is actively involved in the North American oil and gas
software and services industry, and markets over 20 separate software
applications that are widely used in both North America and
International marketplaces. The Company also operates a significant
database containing information relevant to oil and gas exploration.
Additionally, Divestco has an expanding seismic data library and is the
largest broker of seismic data in Canada.
This press release contains forward-looking statements based upon
current expectations that involve a number of business risks and
uncertainties. The use of forward-looking words such as, "may," "will,"
"expect" or similar variations generally identify such statements.
Although management believes that expectations reflected in
forward-looking statements are reasonable, such statements involve risks
and uncertainties. Such factors include fluctuations in the market for
oil and gas and related products and services, competition and the
demand for services provided by the Company.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Divestco Inc.
Mr. Stephen Popadynetz
Chief Executive Officer
(403) 218-6466
or
Divestco Inc.
Mr. Roderick Chisholm
Chief Financial Officer
(403) 218-6450
Website: www.divestco.com
The TSX Venture Exchange has not reviewed nor accepts responsibility for
the adequacy or accuracy of this news release. |
