SERVICE SECTOR / Computalog Ltd reports 1st 3 months Results
(Thousands of Canadian Dollars except per share data)
CALGARY, April 30 /CNW/ - Computalog Ltd. announced today its results
from operations for the three month period ended March 31, 1998. All amounts
are expressed in thousands of Canadian dollars, except per share data.
1998 1997
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Revenues $ 74,224 $ 54,809
Operating expenses 44,388 33,752
Selling, general & administration 6,552 5,085
Depreciation & amortization 4,695 2,782
Research & development 2,144 1,536
Loss (gain) on foreign exchange (333) 263
Interest 1,168 235
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Net income before income taxes
and minority interest $ 15,610 $ 11,156
Income tax expense 8,278 5,087
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Net income before minority interest $ 7,332 $ 6,069
Minority interest 14 2
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Net Income $ 7,318 $ 6,067
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Earnings per share
Basic $ 0.57 $ 0.54
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Fully diluted $ 0.55 $ 0.46
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Cash flow from operations $ 12,768 $ 10,380
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Computalog reports that for the three month period ended March 31, 1998,
it generated net income of $7,318 (55 cents per share on a fully diluted
basis) from revenues of $74,224. This compares to a net income of $6,067 (46
cents per share on a fully diluted basis) from revenues of $54,809 for the
same period during 1997.
The net income for the period increased by $1,251, or 21%, as compared to
the same period of the prior year as a result of continued strength in the
Canadian Market and Computalog's acquisition of six independant wireline
companies located in the United States.
Revenues from Canadian operations totalled $51,835 for the first quarter
of 1998 as compared to $40,730 during the same period of 1997, an increase of
27%. The Company's Canadian revenues accounted for 70% of consolidated
revenues. Improved results were from increased western Canadian drilling
activity and the continued growth of United GeoCom, a joint venture performing
directional drilling services in North America. The first quarter of the year
has historically been the Canadian market's strongest period.
Revenues from United States operations totalled $15,399 for the first
three months of 1998 as compared to $7,367 during the same period in 1997, an
increase of 109%. The Company's United States revenues accounted for 21% of
consolidated revenues. The increase in United States revenues was a result of
higher product sales and increased wireline service revenues primarily
attributed to the Company's acquisition of six independant wireline companies
during 1997.
International revenues totalled $6,990 for the first three months of 1998
as compared to $6,712 during the same period of 1997, an increase of 4%. This
increase is a result of higher drilling service revenues from international
markets and additional wireline service revenues in Argentina. These increases
were offset by lower export product sales. Though improvements have been noted
in most international operations of the Company, Venezuela continues to be
effected by lower than anticipated activity levels. The Company's
international revenues accounted for 9% of consolidated revenues.
Operating expenses for the first quarter of 1998 were $44,388, an
increase of $10,636, or 32%, as compared to those incurred in 1997. These
expenses represent approximately 60% of revenues in 1998 and 62% in 1997.
Selling, general and administrative expenses increased by 29% to $6,552
during the first quarter of 1998 as compared to the first quarter of 1997. The
$1,467 increase in these expenses is primarily attributed to the increased
activity levels in the Company's Canadian operations, and the expansion of
Computalog's United States sales efforts. These expenses are approximately 9%
of revenue during both 1998 and 1997.
During the first quarter of 1998, cash flow from operations before
working capital changes increased by 23% to $12,768 over cash flows generated
in the first quarter of 1997. Increases in working capital requirements
resulting from the increased revenues for the period totalled $18,287.
Funds used in investing activities totalled $12,598 for the first quarter
of 1998 and included the acquisition of wireline logging assets and associated
goodwill of a United States based wireline company with a purchase price of
approximately U.S. $1,575 and new asset additions in existing operations.
Additional acquisitions of United States based wireline companies are being
investigated and may occur during the remainder of 1998.
As at March 31, 1998, Computalog has working capital of $67,867, which
includes cash and cash equivalents of $18,542 net of any short term borrowing
on the Company's bank facilities. Total assets are $233,480, long term debt is
$48,836 and shareholder's equity amounts to $127,609.
Computalog provides wellbore knowledge and solutions through its electric
wireline and directional drilling services. These services enable oil and gas
producers to manage risk and maximize production. The Company's common shares
trade on the Toronto Stock Exchange (symbol CGH) and the Nasdaq National
Market (symbol CLTDF).
Certain statements included in this news release may constitute
''forward-looking statements'' within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that may
cause the actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements.
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