SERVICE SECTOR / NQL Drilling Tools Inc. Reports Second Quarter and
Six Month Results for the Period Ended February 28, 1998
TSE SYMBOL: NQL.A
APRIL 28, 1998
NISKU, ALBERTA--SECOND QUARTER REVENUES of $17.3 million, up 112
percent; NET INCOME of $2.9 million, up 132 percent; and CASH FLOW
of $4.9 million, up 115 percent.
SIX MONTHS REVENUES of $30.9 million, up 87 percent; NET INCOME of
$6.3 million, up 145 percent; and CASH FLOW of $9.4 million, up
114 percent.
/T/
For The Three Months Ended
(Canadian $) Feb. 28, Feb. 28, Percent
(Dollars in thousands, 1998 1997 Change
except per share figures)
Revenues $17,325 $8,163 + 112
Income From Continuing Operations $2,617 $1,395 + 88
- Per Share $0.18 $0.13 + 38
Net Income $2,873 $1,240 + 132
- Per Share $0.20 $0.12 + 67
Cash Flow From
Continuing Operations $4,746 $2,349 + 102
- Per Share $0.33 $0.22 + 50
Net Cash Flow $4,902 $2,284 + 115
- Per Share $0.34 $0.21 + 62
Average Shares Outstanding 14,475,605 10,909,869 + 33
For The Six Months Ended
(Canadian $) Feb. 28, Feb. 28, Percent
(Dollars in thousands, 1998 1997 Change
except per share figures)
Revenues $30,852 $16,527 + 87
Income From Continuing Operations $5,901 $2,629 + 124
- Per Share $0.41 $0.24 + 71
(x) Net Income $6,291 $2,564 + 145
- Per Share $0.44 $0.24 + 83
Cash Flow From
Continuing Operations $9,005 $4,372 + 106
- Per Share $0.62 $0.40 + 55
(x) Net Cash Flow $9,395 $4,494 + 109
- Per Share $0.65 $0.41 + 59
Average Shares Outstanding 14,475,605 10,909,869 + 33
(x) includes $0.03 per share gain from the disposition of
Prairie Lube Ltd. and an unusual charge of $0.03 per share
resulting from a retroactive wage increase in Venezuela.
/T/
NQL Drilling Tools Inc. is pleased to announce financial results
for the Second Quarter ended February 28, 1998. REVENUES
increased approximately 112 percent to $17.3 compared to $8.2
million in the corresponding period for the previous year.
Similarly, NET INCOME grew by approximately 132 percent to $2.9
million ($0.20 per share) from $1.2 million ($0.12 per share) and
CASH FLOW improved approximately 115 percent to $4.9 million
($0.34 per share) from $2.3 million ($0.21 per share).
For the six months ended February 28, 1998 REVENUES improved
approximately 87 percent to $30.9 million compared to $16.5
million for the same period in fiscal 1997. Similarly, NET INCOME
increased 145 percent to $6.3 million ($0.44 per share) from $2.6
million ($0.24 per share) and CASH FLOW grew by 109 percent to
$9.4 million ($0.65 per share) from $4.5 million ($0.41 per share)
for the same period in fiscal 1997.
The strong Second Quarter results reflect continued growth through
this period as well as strong demand for the Company's downhole
tool products and technology.
The Company has now completed its acquisition of P&T Servicios
Petroleros, C.A., a Venezuelan company with three service
facilities (in Ojeda, Anaco, and Barinas, Venezuela) and is
actively involved in stocking of these facilities with its
products. This acquisition, together with the now fully
operational Louisiana and Wyoming facilities, should ensure
continued growth for the Company during the remainder of the year.
The disposition of the Quick Lube Division has now been completed
and this will permit management to focus on its Downhole Tool
Division's international expansion for the remainder of fiscal
1998.
NQL Drilling Tools Inc. shares are traded on the Toronto Stock
Exchange under the symbol "NQL.A".
THE COMPANY
NQL Drilling Tools Inc. is an industry leader in providing
downhole tools and technology used primarily in drilling
applications in the oil and gas, environmental and utility
industries on a worldwide basis. Black Max(TM) is a registered
trademark of Black Max Downhole Tool Ltd. Beaver(TM) is a
registered trademark of NQL Drilling Tools Inc.
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