The following came to me as an e-mail and therefore I cannot simply supply it as a link. I own shares in NQL.
ject:
NQL Drilling Tools Inc. is Pleased to Announce Third Quarter and Nine Month Results for the
Period Ended September 30, 2000
Date:
Thu, 16 Nov 2000 18:13:02 -0500
From:
CCN_HOTW@cdn-news.com
To:
CCN_HOTW@cdn-news.com
===================================================================
Canadian Corporate News --- Hot Off The Wire
===================================================================
NEWS RELEASE TRANSMITTED BY CCN - A NEWSWIRE SERVICE OF ITG
FOR: NQL DRILLING TOOLS INC.
TSE SYMBOL: NQL.A
NOVEMBER 16, 2000 - 18:08 EST
NQL Drilling Tools Inc. is Pleased to Announce Third
Quarter and Nine Month Results for the Period Ended
September 30, 2000
NISKU, ALBERTA--NQL Drilling Tools Inc. is pleased to announce its
third quarter and nine month results for the period ended
September 30, 2000 with comparative figures for the period ended
August 31, 1999.
/T/
(Thousands of Canadian Dollars, except per share figures) (unaudited)
3 Months Ended 3 Months Ended % Change
Sept. 30, 2000 Aug. 31, 1999
Revenues $ 25,002 $ 9,485 + 164 %
Income - before goodwill
amortization $ 4,258 $ (278) + 1632 %
Per share $ 0.23 $ (0.02) + 1250 %
Net Income $ 3,958 $ (363) + 1190 %
Per share - basic $ 0.21 $ (0.02) + 1150 %
Per share - fully diluted $ 0.20 $ (0.02) + 1100 %
Cash flow from operations $ 6,802 $ 1,397 + 387 %
Per share - basic $ 0.36 $ 0.09 + 300 %
Per share - fully diluted $ 0.35 $ 0.09 + 289 %
Average Shares Outstanding 18,758,589 15,461,950 + 21 %
/T/
Note: Due to the change in year-end from August 31 to December
31, the comparative figures being reported are those for the three
months ended August 31, 1999.
The Company recorded revenues of $25.0 million during the third
quarter of fiscal 2000, the highest quarterly revenues in its
history. This represents an increase of 164 percent over revenues
for the three months ended August 31, 1999, which were $9.5
million. Net income for the quarter was $4.0 million ($0.21 per
share), an increase of 1190 percent over the August 31, 1999 net
loss of $0.4 million ($0.02 per share). Cash flow from operations
was $6.8 million ($0.36 per share) versus $1.4 million ($0.09 per
share), an increase of 387 percent.
/T/
(Thousands of Canadian Dollars, except per share figures) (unaudited)
9 Months Ended 9 Months Ended % Change
Sept. 30, 2000 Aug. 31, 1999
Revenues $ 59,303 $25,246 + 135 %
Income - before goodwill
amortization $ 8,370 $ (397) + 2208 %
Per share $ 0.45 $ (0.03) + 1600 %
Net Income $ 7,645 $ (651) + 1274 %
Per share - basic $ 0.41 $ (0.04) + 1125 %
Per share - fully diluted $ 0.40 $ (0.04) + 1100 %
Cash flow from operations $ 14,593 $ 4,180 + 249 %
Per share - basic $ 0.78 $ 0.27 + 189 %
Per share - fully diluted $ 0.75 $ 0.27 + 178 %
Average Shares Outstanding 18,758,589 15,461,950 + 21 %
/T/
Note: Due to the change in year-end from August 31 to December
31, the comparative figures being reported are those for the nine
months ended August 31, 1999.
The Company recorded revenues of $59.3 million for the nine months
ended September 30, 2000, an increase of 135 percent over the
revenues for the nine months ended August 31, 1999, which were
$25.2 million. Net income for the nine months increased to $7.6
million ($0.41 per share), an increase of more than 1200 percent
over the August 31, 1999 net loss of $0.7 million ($0.04 per
share). Cash flow from operations also grew to $14.6 million
($0.78 per share) from $4.2 million ($0.27 per share), an increase
of 249 percent.
The quarterly and year-to-date results primarily portray the
resurgence in activity in the Oil & Gas Industry resulting from
continued strong commodity prices. While the Company experienced
increases in most of its markets, US and Venezuelan operations
were particularly strong during the quarter. The US market was
quite active during the third quarter as revenues grew by 134
percent over the second quarter. This increase was experienced in
most areas of the US in both traditional oil & gas business as
well as the utility market.
The Company's US revenues also reflect the recent acquisition of
Ackerman International Corp., which provided a significant
contribution during the third quarter. Ackerman's revenues of
$4.9 million represented approximately 21 percent of total
consolidated revenues for the quarter.
In Venezuela, the Company's subsidiary, P&T Servicios Petroleros
C.A., showed a 75 percent increase in revenues over the previous
quarter. A reactivation of drilling and work-over rigs in this
market has resulted in an increased demand for P&T's products and
services.
In Canada, while revenues improved over second quarter levels, the
market remained relatively soft during the third quarter.
Unseasonably wet conditions prevented many rigs from moving on
location throughout most of the quarter. We have seen
improvements in activity during September and expect stronger
results from this market during the fourth quarter.
In conjunction with the acquisition of Ackerman International
Corp., the Company now owns 100 percent of ACE Downhole Tools &
Services, its European operation located in Holland. Operations
in this market continued to be particularly strong as revenues
remained consistent with second quarter levels. While this market
has traditionally been driven by utility work, 40 percent of the
revenues now come from the oil and gas industry.
Operations in Bolivia and Argentina remained consistent with
second quarter levels as the Company's products and services
continue to gain recognition in these markets. Revenues in the
Company's Middle East location were down during the third quarter
as the Company attempts to establish a presence in this market.
The Company's other acquisition during the past fiscal year,
CanFish Services Inc., showed increased results during the
quarter, posting $3.2 million in revenues or 13 percent of total
consolidated revenues. With the majority of CanFish's revenues
being derived from the Canadian market, it was also affected by
weather conditions during the third quarter. As with the Canadian
operations of Black Max, CanFish should also see improved results
during the fourth quarter.
The Company's geographic revenue distribution on a year-to-date
basis is now divided as follows: Canada - 41 percent; US - 37
percent; and International - 22 percent. In the third quarter,
this allocation was 30 percent - Canada, 49 percent - US and 21
percent - International.
On the manufacturing side, the Company continued to maintain its
operating margins through in-house machining and manufacturing of
parts, which averaged approximately 76 percent for the nine months
ended September 30, 2000. In order to maintain these margins
going forward, the Company is expanding its manufacturing facility
by adding 30,000 square feet. Over half of this expansion will be
allocated to increased machining and manufacturing capacity. The
remainder of the space will be allocated to research and
development, inventory and shipping. The expansion is expected to
be completed earlier in the first quarter of 2001. The Company's
machine shop in Bolivia has been servicing some of the South
American spare part needs for the past two quarters. The Company
plans to have this facility manufacture 40-50 percent of South
America's spare part requirements within a two-year period. This
will help decrease import costs and reduce the lead-time on
delivery.
Throughout the remainder of fiscal 2000, the Company will continue
to focus on international expansion, especially in South America
and the Middle East. The Company also plans to expand CanFish's
and Ackerman's activities internationally through its already
established network of service facilities. Potential acquisitions
will continue to be evaluated in an effort to increase the
Company's products and services while maintaining operating
margins.
NQL Drilling Tools Inc. shares are traded on the Toronto Stock
Exchange under the symbol: "NQL.A".
THE COMPANY
NQL Drilling Tools Inc. is an industry leader in providing
downhole tools and technology used primarily in drilling
applications in the oil and gas, environmental and utility
industries on a worldwide basis. Black Max(TM) is a registered
trademark of Black Max Downhole Tools Ltd. Beaver(TM) is a
registered trademark of NQL Drilling Tools Inc.
/T/
NQL DRILLING TOOLS INC.
Consolidated Balance Sheet
(Thousands of Canadian $, unaudited)
September 30, December 31,
2000 1999
ASSETS
CURRENT ASSETS
Cash $ 2,386 $ 720
Accounts receivable 28,193 20,697
Income taxes receivable ----- 1,418
Inventory 43,464 29,417
Prepaid expenses 2,847 1,485
------------------------
76,890 53,737
Capital Assets 69,509 54,897
Deferred charges 1,589 605
Goodwill 14,208 2,033
------------------------
$ 162,196 $ 111,272
------------------------
LIABILITIES
CURRENT LIABILITIES
Bank indebtedness $ 20,157 $ 10,731
Accounts payable and accrued liabilities 14,055 9,253
Income taxes payable 3,162 -----
Current portion of long term liabilities 4,813 -----
------------------------
42,187 19,984
Long term liabilities 11,471 -----
Employment benefits payable 521 530
Future income taxes 3,786 4,044
------------------------
57,965 24,558
SHAREHOLDERS' EQUITY
Capital stock 75,572 64,709
Retained earnings 30,857 23,212
Cumulative translation adjustments (2,198) (1,207)
------------------------
104,231 86,714
------------------------
$ 162,196 $ 111,272
------------------------
Approved by Directors:
Dean Livingstone, Director
Walter Stelmaschuk, Director
NQL DRILLING TOOLS INC.
Consolidated Statements of Operations
(Thousands of Canadian $, except per share data, unaudited)
For the nine For the nine For the nine
months ended months ended months ended
Sept. 30, 2000 Aug. 31, 1999 Aug. 31, 1998
REVENUES $ 59,303 $ 25,246 $ 47,762
Direct expenses 26,319 11,574 23,320
----------------------------------------
Income from operations 32,984 13,672 24,442
EXPENSES
General and administrative 10,719 8,833 8,178
Amortization 6,481 4,375 4,077
----------------------------------------
17,200 13,208 12,255
----------------------------------------
Income before interest expense 15,784 464 12,187
Interest expense 1,905 1,412 799
----------------------------------------
Income before income taxes 13,879 (948) 11,388
Income taxes - current 5,767 (753) 3,676
- future (258) 202 1,232
----------------------------------------
5,509 (551) 4,908
----------------------------------------
Income before goodwill
amortization 8,370 (397) 6,480
Goodwill amortization 725 254 254
----------------------------------------
Income before discontinued
operations 7,645 (651) 6,226
Discontinued operations --- --- 163
----------------------------------------
NET INCOME (LOSS) $ 7,645 $ (651) $ 6,389
----------------------------------------
Weighted average number
of shares outstanding 18,758,589 15,461,950 15,103,826
----------------------------------------
EARNINGS (LOSS) PER SHARE
Before goodwill amortization $ 0.45 $ (0.03) $ 0.43
----------------------------------------
After goodwill amortization -
before discontinued operations $ 0.41 $ (0.04) $ 0.41
----------------------------------------
After goodwill amortization -
net $ 0.41 $ (0.04) $ 0.42
----------------------------------------
NQL DRILLING TOOLS INC.
Consolidated Statements of Changes in Financial Position
(Thousands of Canadian $, unaudited)
For the nine For the nine For the nine
months ended months ended months ended
Sept. 30, 2000 Aug. 31, 1999 Aug. 31, 1998
OPERATING ACTIVITIES
Income (loss) from
continuing operations $ 7,645 $ (651) $ 6,226
Add items not requiring cash:
Amortization 6,481 4,375 4,077
Goodwill amortization 725 254 254
Future income taxes (258) 202 1,232
--------------------------------------
Cash flow from continuing
operations 14,593 4,180 11,789
Net change in operating working
capital items
From continuing operations (7,834) (1,198) (13,421)
--------------------------------------
Cash provided by (used in)
operating activities 6,759 2,982 (1,632)
FINANCING ACTIVITIES
Bank indebtedness 7,788 5,401 11,119
Issuance of capital stock 10,863 222 4,578
Long term liabilities 12,663 388 ---
Employment benefits payable (9) 68 7,623
--------------------------------------
Cash provided by financing
activities 31,305 6,079 23,320
INVESTING ACTIVITIES
Business acquisitions (26,403) --- (11,729)
Deferred charges (1,246) (388) (95)
Purchase of capital assets (8,749) (7,457) (15,229)
--------------------------------------
Cash used in investing activities (36,398) (7,845) (27,053)
DISCONTINUED OPERATIONS
Cash provided by discontinued
operations --- --- 2,156
--------------------------------------
Increase (decrease) in cash 1,666 1,216 (3,209)
Cash, beginning of period 720 318 3,665
--------------------------------------
Cash, end of period $ 2,386 $ 1,534 $ 456
--------------------------------------
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
NQL Drilling Tools Inc.
Dean Livingstone
President and CEO
(780) 955-8828
(780) 955-3309 (FAX)
or
NQL Drilling Tools Inc.
Walter Stelmasch |
