SERVICE SECTOR / Destiny Resource Service Cp. 1st Qtr Report
DESTINY RESOURCE SERVICES CORP. REPORTS FIRST QUARTER REVENUE AND
EARNINGS
Date: 9/30/98 9:09:17 AM
Dateline: CALGARY, AB
Stock Symbol: DSC
Destiny Resource Services Corp. today announced their financial
and operating results for the three months ended August 31, 1998.
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THREE MONTHS ENDED AUGUST 31 1998 1997 Change
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(thousands, except per share amounts) $ $ %
OPERATING RESULTS
Revenue
Canada 8,701 3,623 + 140
International 9,469 6,436 + 47
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Total revenue 18,170 10,059 + 81
Direct expenses 14,600 7,672 + 90
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Gross margin 3,570 2,387 + 50
Other expenses (income)
General and administrative 749 675 + 11
Depreciation, amortization and depletion 1,058 383 + 176
Interest 240 103 + 133
Other (277) (80) + 246
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1,770 1,081 + 64
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Income before income taxes 1,800 1,306 + 38
Income taxes 505 414 + 22
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Net income 1,295 892 + 45
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EBITDA 3,098 1,792 + 73
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Earnings per share
Basic 0.13 0.12 + 8
Fully diluted 0.10 0.09 + 11
Cash flow from operations per share
Basic 0.24 0.16 + 50
Fully diluted 0.17 0.13 + 31
Weighted average shares outstanding (000s)
Basic 10,198 7,660 + 33
Fully diluted 14,136 10,113 + 40
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THREE MONTHS ENDED AUGUST 31 1998 1997 Change
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(thousands, except per share amounts) $ $ %
BALANCE SHEET
Current assets
Cash 4,808 735 + 554
Receivables 14,657 8,251 + 78
Other 2,018 1,440 + 40
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Total current assets 21,483 10,426 + 106
Capital assets 22,729 8,181 + 178
Goodwill 5,812 --
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Total assets 50,024 18,607 + 169
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Current liabilities
Bank indebtedness 497 1,744 - 72
Accounts payable and
accrued liabilities 12,551 5,134 + 144
Income taxes payable 1,169 650 + 80
Current portion of long-term debt 3,150 790 + 299
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Total current liabilities 17,367 8,318 + 109
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Long-term debt 9,067 1,368 + 563
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Deferred income taxes 211 --
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Convertible debentures -- 645
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Share capital 16,328 4,481 + 264
Retained earnings 7,051 3,795 + 86
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23,379 8,276 + 182
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Total liabilities and
shareholders' equity 50,024 18,607 + 169
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For the three months ended August 31, 1998, revenue increased 81
percent to $18.2 million compared to $10.1 million a year ago.
Net earnings for the first quarter increased 45 percent to $1.3
million in fiscal 1999 compared with $892,000 in fiscal 1998. The
Company's basic earnings per share increased to $0.13 from $0.12
a year ago, while fully diluted earnings per share increased to
$0.10 from $0.09.
During the first quarter of fiscal 1999, Destiny recorded a 92
percent gain in cash flow from operations, before net change in
non-cash working capital, to $2.4 million from $1.3 million a
year ago. Basic cash flow per share was $0.24 compared to $0.16
a year ago, while fully diluted cash flow per share increased to
$0.17 from $0.13.
As at August 31, 1998, working capital increased to $4.1 million
from $2.1 million last year and shareholders' equity grew 182
percent to $23.4 million.
Mr. Adrian Erickson, President and Chief Executive Officer of
Destiny, stated "Through the diversification of our Domestic
activities and expanding year-round international operations,
Destiny is working to achieve what very few service companies
have - balanced, profitable and growing operations, which
mitigate the seasonality and the cyclical nature inherent to the
energy industry. Our first quarter results reflect the success of
our strategy."
Destiny Resource Services Corp. is a Calgary-based exploration
service company providing essential integrated services to the
seismic, exploration and production industries in Canada, the
United States, Central and South America, the Middle East, Africa
and Southeast Asia.
Neither The Toronto Stock Exchange nor the Alberta Stock Exchange
has approved or disapproved of the information contained herein. |
