SERVICE SECTOR / OTATCO Inc reports 1997 Results
CALGARY, April 22 /CNW/ - OTATCO Inc. (''OTATCO'') is pleased to announce
continued growth in revenues and cash flow for the fiscal year ending December
31, 1997.
Financial Highlights
Twelve-Months Ending December 31
1997 1996
$ $ % Change
-----------------------------------
Revenue 7,227,245 4,996,940 +45
Loss (1,281,631) (1,683,156) -22
Loss per share (0.04) (0.06) -33
Cash flow (deficit) (199,992) (420,677) -52
Working capital 2,393,126 3,469,210 -31
Consolidated revenues for the twelve month period ended December 31, 1997
were $7,227,245 (versus $4,996,940 in 1996), an increase of 45 percent for the
same period last year. The growth in revenues was due primarily to increases
in sales of oil tools and instruments, as well as oil and gas well diagnostic
and engineering services.
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) for
the twelve month period ended December 31, 1997 was negative $165,200 compared
with negative $250,177 for the same period last year.
Cash flow from operations for the period was a deficit of $199,992
compared with a deficit of $420,677 for the same period in 1996. This
reduction in the overall deficit by 52 percent was attributable to higher
revenues, a slightly higher gross margin and lower levels of interest on
long-term debt during the year.
The loss for the period was $1,281,631 ($0.04 per share) compared with
$1,638,156 ($0.06 per share) for the same period in 1996, a 22 percent
improvement.
Working capital at December 31, 1997 was $2,393,126 compared with
$3,469,210, down by 31 percent for the same period in 1996. The bulk of this
outlay was used to fund expenditures on business acquisitions as well as
deferred development costs from technology research and development.
OTATCO has received approval from the holders of 66 23/% of its 11%
Convertible Debentures to extend the maturity date of the debentures by two
years from April 30, 1998 to April 30, 2000. In addition, the debenture
holders have given their approval to increase the total amount of 11%
debentures outstanding from $1.4 million to up to $3 million at management's
discretion. Debentures outstanding at March 31, 1998 totaled $941,800.
OTATCO continues to make progress closing the acquisition of the shares
and/or assets of Premier Sea & Land Pte Ltd. of Singapore, Premier Sea & Land
Limited of Hong Kong, and Westlink International Marketing Inc. of Calgary,
Alberta effective January 1, 1998. These acquisitions were announced by
OTATCO on March 23, 1998. Once completed, these transactions will have a
significant impact on OTATCO's revenue, earnings and international market
reach.
OTATCO Inc. is an oilfield production, services and technology company
listed on the Alberta Stock Exchange (symbol: OTI). The Alberta Stock
Exchange has neither approved nor disapproved the information contained
herein. |
