SERVICE SECTOR - EARNINGS / CE Franklin First Quarter Report
CE FRANKLIN LTD.
TSE SYMBOL: CFT
AMEX SYMBOL: CFK
APRIL 23, 1998
CE Franklin Ltd. First Quarter Sales Increase 25.9
Percent Net Income Increase 22.7 Percent (Results are in
Canadian Dollars)
CALGARY, ALBERTA--CE FRANKLIN LTD. (TSE.CFT, AMEX.CFK) today
reported results for the first quarter ended March 31, 1998.
Sales for the first quarter were $115.3 million, an increase of
$23.7 million or 25.9 percent from March 31, 1997. The increase
is due mainly to an increase in market penetration and the 1997
acquisitions of Domino Machine Company Ltd., Hoyle Ennotek Ltd.,
Brittania Compressor Sales Ltd. and BWM Supply and Services Ltd.
Net income increased by $0.6 million or 22.7 percent from the
first quarter of 1997 and earnings per share were $0.18 an
increase of $0.03 from the first quarter of 1997.
"We are encouraged by our first quarter results considering the
recent market conditions in Canada," commented Chairman and Chief
Executive Officer, John Gilbank. "In a quarter where the number
of wells drilled was down 6 percent, we have been able to increase
our sales over 25 percent. Also, we have successfully integrated
our acquisitions from last year and they are all contributing to
the bottom line. As for the second quarter, we expect the normal
seasonal dip in drilling activity to take place while our relative
strength in the industry continues to grow."
Other activities in the quarter include the combining the former
operations of Domino Machine and Brittania Compressors into a
subsidiary of CE Franklin called CEF Technologies, the opening of
a new service center location in Sarnia, Ontario and the launching
of a major project improvement initiative.
CE Franklin is Canada's largest distributor of supplies to the oil
and gas drilling and production industry. Through its 45
locations across Canada, the Company sells pipe, valves, pumps,
fittings, and maintenance supplies and provides complete customer
inventory procurement and management services. The Company also
manufactures and packages specialized products for the energy
industry. For more information visit our Web Site at
cefranklin.com.
Shareholders are invited to attend CE Franklin Ltd.'s Annual
General and Special Meeting on Thursday, April 30, 1998 at 3:00 pm
(Calgary time) in the Viking Room of the Calgary Petroleum Club.
CE Franklin's common stock trades on The Toronto Stock Exchange
under the symbol CFT and on the American Stock Exchange under the
symbol CFK.
CE Franklin Ltd.
Summary of Financial Data
(Canadian Dollars)
Quarter Ended March 31,
------------------------
1998 1997
---- ----
Statement of Income Data:
Sales $115,258,967 $91,528,564
Operating Income 6,694,970 5,051,002
Net Income 3,060,480 2,493,779
Net Income Per Share - Basic 0.19 0.16
- Fully Diluted 0.18 0.15
Weighted Average Number of
Shares Outstanding 16,424,363 15,898,728
Selected Balance Sheet Data:
Working Capital 72,899,828 44,586,957
Total Assets 160,595,051 113,140,339
Long Term Debt 46,438,064 17,681,946
Total Liabilities 108,787,321 74,891,861
Shareholders' Equity 51,807,730 38,248,478
|
