SERVICE SECTOR / Pason Systems Corp reports 1st 3 months Results
CALGARY, May 8 /CNW/ - Pason reports first quarter earnings of $1,983,000
up 156% from earnings of $774,000 for the comparable quarter in 1997. Earnings
per share for the quarter were $0.124 a share (basic) versus $0.56 in 1997.
(all numbers in '000's except per share amounts)
<< Three Months
1998 1997 Chg. %
Revenue $7,369 $2,507 +194
Cash Flow $2,766 $1,138 +143
Net Income $1,983 $774 +156
Basic
Avg. Shares O/S 15,990 13,779
Earnings Per Share $0.124 $0.056
Fully Diluted
Avg. Shares O/S 17,426 15,109
Earnings Per Share $0.114 $0.049
>>
(for more detailed financial information visit Pason's website at
www.pason.com)
Pason continued to invest heavily in new electronic drilling recorder
(EDR) and pit volume totalizer (PVT) systems during the quarter with the
following numbers manufactured and available for rental at quarter end:
<<
Canada United States Total
EDR systems 236 46 282
PVT systems 171 29 200
>>
Despite Pason's record financial results in the first quarter, the
financial contribution from the United States (Pason RMGE) was negligible.
This was due to the first quarter in the United States generally being that
market's slowest quarter plus the US subsidiary made a significant investment
in the hiring and training of new fieldmen to install and service Pason's EDR
and PVT products. This resulted in an increase in rental expenses which will
not generate returns until the third quarter. Pason continues to be optimistic
about the potential in the United States as during and immediately subsequent
to the quarter, Pason RMGE commenced test jobs for its equipment on four new
major US drilling contractors. These tests are proceeding favourably and the
Company hopes to begin large scale installations during the third quarter.
The Canadian active rig count in April and May has been only half of the
unusually busy levels recorded in 1997. The Industry view is that last year
was an anomaly and that this year's lower levels reflect a normal spring
breakup and not the affects of lower commodity prices on Operators' drilling
budgets. Due to a very dry spring it appears that drilling activity will
rebound strongly in June. Should this occur, and with the improving
contribution from Pason RMGE, the Company expects a solid second quarter.
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