SERVICE SECTOR / Bonus Resource Services reports 1st 3 Months Results
CALGARY, May 8 /CNW/ - Tom Alford, President and Chief Operating Officer,
is pleased to announce the first quarter results of Bonus Resource Services
Corp. Revenues for the quarter ended March 31, 1998 increased 108 percent to
$44.3 million compared to $21.3 million for the comparable period in 1997.
This increase is reflective of the continuing high demand for services rigs
and the increase in the Company's fleet from 76 rigs at March 31, 1997 to 167
rigs at March 31, 1998.
Net earnings and funds from operations followed the increase in revenues
and were up 51 percent and 39 percent year over year. Net earnings and funds
from operations were $4.2 million ($0.10/share) and $7.3 million ($0.17/share)
respectively for the three months ended March 31, 1998, while the figures for
the comparable period in 1997 were $2.8 million ($0.11/share) and $5.3 million
($0.20/share) respectively. Mr. Alford commented that ''the dilutive effect of
not having fully invested a large portion of the cash associated with the
issue of 7.9 million common shares in late 1997 was the primary cause of the
reduction in per share amounts.'' Mr. Alford further stated that ''Bonus
intends to invest this available cash in the service rig business however, we
will not make investment for the sake of growth, but rather in a prudent
manner to ensure our shareholders earn an adequate return over the
longer-term.''
During the first quarter Bonus did utilize a portion of the cash proceeds
from the 1997 equity offering to complete two further acquisitions. The first
involved purchasing control over seven rigs in Australia while the second was
a 13 rig acquisition from Canuck Well Servicing Ltd. The Australian
acquisition provides Bonus with a low risk entrance to the international
market while the Canuck acquisition further strengthens Bonus' position in the
northern Alberta market. As these acquisitions were made during the quarter,
the full financial effect will be seen through the remainder of 1998.
Overall, industry activity remained strong during the quarter as the
company posted a utilization rate of 112 percent compared to 120 percent in
the year prior. Mr. Alford noted that ''the fundamentals of Bonus' business
remain strong and we expect the demand for our services to continue at higher
than historical levels during the remainder of 1998.''
Bonus is the largest provider of service rigs to the Canadian oilpatch
operating 160 rigs in western Canada and seven in Australia. Bonus trades on
The Toronto Stock Exchange under the symbol BOU.
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Bonus Resource Services Corp.
Financial and Operating Highlights
Three Months Ended March 31, 1998 March 31, 1997
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Financial Results ($000s)
Revenue 44,299 21,315
Net earnings 4,230 2,793
Net earnings per share 0.10 0.11
Funds from operations 7,347 5,291
Funds from operations per share 0.17 0.20
Weighted average shares outstanding (000s) 44,495 26,454
March 31, 1998 December 31, 1997
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Financial Position ($000s)
Total assets 210,207 202,035
Long-term debt 38,842 40,433
Shareholders' equity 131,373 126,590
Working capital 30,948 50,643
Three Months Ended March 31, 1998 March 31, 1997
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Operating Statistics
Number of rigs (end of quarter) 167 76
Canadian rig operating hours 109,032 61,642
Canadian rig utilization (%) 112 120
Gross margin as percentage of revenue (%) 34 38
G&A as percentage of revenue (%) 10 7
Employees (end of quarter) 1,201 559
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Consolidated Statements of Earnings and Retained Earnings
For the Three Months Ended March 31, 1998 and 1997
Thousands of Canadian Dollars Except Per Share Data (Unaudited)
1998 1997
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Revenue $ 44,299 $ 21,315
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Expenses
Operating 29,336 13,142
General and administrative 4,564 1,464
Interest on long-term debt 1,091 302
Depreciation and amortization 2,151 1,309
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37,142 16,217
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Earnings from operations 7,157 5,098
Other income 388 -
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Earnings before income taxes 7,545 5,098
Income taxes 3,315 2,305
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Net earnings for the period 4,230 2,793
Retained earnings, beginning of the period 12,279 1,744
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Retained earnings, end of the period $ 16,509 $ 4,537
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Net earnings per share $ 0.10 $ 0.11
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Weighted average number of
shares outstanding (000s) 44,495 26,454
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Bonus Resource Services Corp.
Consolidated Balance Sheets
As at March 31, 1998 and December 31, 1997
Thousands of Canadian Dollars (Unaudited)
March 31, 1998 December 31, 1997
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ASSETS
Current assets $ 59,202 $ 74,883
Capital assets 148,376 124,439
Deferred financing charges 2,243 2,303
Other assets 386 410
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$ 210,207 $ 202,035
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LIABILTIES
Current liabilities $ 28,254 $ 24,240
Long-term debt 38,842 40,433
Deferred income taxes 11,738 10,772
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78,834 75,445
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SHAREHOLDERS' EQUITY
Share capital 114,864 114,311
Retained earnings 16,509 12,279
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131,373 126,590
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$ 210,207 $ 202,035
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Consolidated Statements of Changes in Financial Position
For the Three Months Ended March 31, 1998 and 1997
Thousands of Canadian Dollars Except Per Share Data (Unaudited)
1998 1997
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Cash provided by (used in) operations:
Net earnings for the period $ 4,230 $ 2,793
Add non-cash items
Depreciation and amortization 2,151 1,309
Deferred income taxes 966 1,189
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Funds from operations 7,347 5,291
Net change in non-cash working
capital items (5,476) (6,843)
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1,871 (1,552)
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Cash provided by (used in) financing:
Long-term debt (1,312) 1,074
Issuance of share capital 553 448
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(759) 1,522
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Cash used in investing:
Acquisition of businesses (21,575) -
Purchase of capital assets (4,493) (3,170)
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(26,068) (3,170)
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Decrease in cash position for the period (24,956) (3,200)
Cash (bank indebtedness),
beginning of the period 42,932 (5,206)
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Cash (bank indebtedness),
end of the period $ 17,976 $ (8,406)
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Funds from operations per share $ 0.17 $ 0.20
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