EARNINGS / Otatco Q1 Results
OTATCO ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
CALGARY, June 4 /CNW/ - OTATCO Inc. is pleased to announce continued
growth in revenues and cash flow for the first quarter ended March 31, 1998.
Financial Highlights
Three-Months Ending March 31
<<
1998 1997
$ $ % Change
------------------------------------------------
Revenue 4,323,580 1,796,099 +141
Loss (227,087) (202,166) +12
Loss per share (0.01) (0.01) -
Cash flow (deficit) 433,869 (31,575) +1347
Working capital 2,940,556 3,368,715 -13
>>
Consolidated revenues for the three-month period ending March 31, 1998
were $4,323,580 (versus $1,796,099 in 1997), an increase of 141 percent for
the same period last year. The dramatic growth in revenues was due primarily
to increased sales as a result the acquisition of Premier Sea & Land Pte Ltd.
and Premier Sea and Land Limited. The effective date of the acquisitions is
January 1, 1998. Total consideration paid for the two companies was six
million Class A Common Shares of OTATCO, $US 10,000 cash, plus a percentage of
profits from international business activities for the next five years.
Premiers' management will remain with OTATCO.
Based in Singapore and Hong Kong, Premier Sea & Land Pte. Inc. and
Premier Sea and Land Limited have established operations in southeast Asia,
primarily in the areas of oilfield equipment sales, servicing, rentals,
trading and procurement for customers in Malaysia, Australia, Thailand, China,
Vietnam, Myanmar and Indonesia. Assets and infrastructure include drilling
and production tools, rental equipment, warehousing, and equipment servicing
facilities.
Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) for
the three-month period ending March 31, 1998 was $561,315 compared with $5,781
for the same period last year.
The loss for the three-month period ending March 31, 1998 was $227,087
compared with a loss of $202,166 for the same period last year. Cash flow
from operations for the three-month period ending March 31, 1998 was $433,869
compared with a deficit of $31,575 for the same period in 1997, an increase of
1,347%.
Working capital at March 31, 1998 was $2,940,556 compared with
$3,368,715, down by 13% for the same period in 1997.
OTATCO is an oilfield production services and technology company listed
on the Alberta Stock Exchange (symbol: OTI). The Alberta Stock Exchange has
neither approved nor disapproved of the information contained herein.
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For further information: David L. Yager, President & Chief Executive
Officer, (403) 298-9880, or Robert R. Dunstan, Chief Financial Officer, (403)
298-9877
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