SERVICE SECTOR / Venture Seismic Announces First Quarter Results;
Revenue and Net Income Up Sharply
NASDAQ SYMBOL: VSEIF
JANUARY 29, 1998
CALGARY, ALBERTA--Venture Seismic Ltd. (NASDAQ NMS-VSEIF) today
reported results for the three months ended Dec. 31, 1997 ("first
quarter of fiscal 1998").
Revenue for the first quarter of fiscal 1998 increased 54 percent
to $8.6 million from revenue of $5.6 million for the same quarter
last year. Net income for the first quarter of fiscal 1998
increased 153 percent to $390,703, or $0.12 per share, compared
with net income of $154,260, or $0.05 per share, for the same
quarter last year.
The company attributed the increase in revenue and income to its
increased base of seismic data acquisition equipment and the
continued growth of U.S. operations. The company's subsidiary,
Boone Geophysical Inc. ("Boone"), accounted for 54 percent of the
company's revenue in the first quarter of fiscal 1998 compared
with 32 percent for the same quarter last year. Brian Kozun,
president and CEO of Venture, stated, "Our improved first quarter
financial performance reflected continued good demand for seismic
services in Canada and increased activity at Texas-based Boone.
We have a larger number of channels available in the United States
and this enhanced capacity, combined with an increase in the
amount of 3D work in progress, has resulted in greater activity in
the first quarter of fiscal 1998."
Venture Seismic Ltd. is traded on the Nasdaq National Market
System and is engaged primarily in the acquisition of land and
wetlands seismic data for use in the exploration for and
development and field management of oil and gas reserves. The
company utilizes both traditional two-dimensional ("2D") and more
technologically advanced three-dimensional ("3D") seismic data
technology to acquire data on possible oil and gas reserves for
its customers, which range from junior exploration companies to
fully-integrated multi-national corporations.
/T/
(All amounts in U.S. dollars)
Three months ended December 31,
1997 1996
Revenue $ 8,627,748 $ 5,584,771
Direct expenses 6,388,399 4,246,748
Gross margin 2,239,349 1,338,023
General &
administrative
expenses 501,444 397,954
Depreciation 702,846 498,604
Amortization of goodwill 44,580 38,580
1,248,870 935,138
Income from operations 990,479 402,885
Other income (expense)
Interest expense (354,417) (138,570)
Gain on sale of
capital assets 32,870 --
Interest and other
income 20,271 5,707
(301,276) (132,863)
Income before income
taxes 689,203 270,022
Income tax provision 298,500 115,762
Net income for the
period $ 390,703 $ 154,260
Net income per common
share (see note)
Basic (Cdn & US GAAP) $0.12 $0.05
Fully diluted (Cdn GAAP) $0.09 $0.05
Fully diluted (US GAAP) $0.10 $0.05
/T/
Note: There is no difference in the calculation of net income or
basic income per share under U.S. and Canadian GAAP for the above
periods. However, there is a difference in the method of
calculating fully-diluted income per share amounts using U.S. and
Canadian GAAP, thus resulting in different fully-diluted income
per share amounts for the period ended Dec. 31, 1997. There is no
difference between basic and fully-diluted income per share
amounts for the period ended Dec. 31, 1996 since the potential
conversion was anti-dilutive during this period.
This news release contains certain forward-looking statements that
involve risks and uncertainties as detailed from time to time in
Venture's SEC filings under "Risk Factors" and elsewhere. Actual
results could differ from those anticipated due to a number of
factors including the capital intensive nature of the company's
business, its need for additional funds for operations and debt
service requirements, seasonal fluctuations in operating results,
dependence upon principal customers and on the activity of the oil
and gas industry, risks associated with international operations
and regulatory, competitive and contractual risks. |
