SERVICE SECTOR / CE Franklin 1997 Results
CE FRANKLIN LTD.
TSE SYMBOL: CFT
AMEX SYMBOL: CFK
FEBRUARY 17, 1998
CE Franklin Ltd. Announces Record Results For 1997 -
Revenue Increases 61 Percent
CALGARY, ALBERTA--CE FRANKLIN LTD. (TSE.CFT, AMEX.CFK) announced
today revenue for the fiscal year ended December 31, 1997 of $417
million, an increase $158 million from the same period last year.
The 61 percent increase in sales out-performed the 30 percent
increase in drilling activity in western Canada in 1997.
Net income for 1997 increased $4.5 million or 66 percent to $11.2
million due mainly to the growth in sales. The increase would
have been greater on a directly comparable basis as the 1996
earnings included non-reoccurring gains from an asset disposal and
tax benefit.
Earnings per share (basic) for 1997 increased 63 percent from 1996
to $0.70 due mainly to growth in net income. Earnings per share
fully diluted were $0.65.
"We are, of course, very happy with the results we were able to
generate for all our stakeholders in 1997," comment John Gilbank,
Chairman and Chief Executive Officer. "We have been able to
continue capturing market share and creating economies of scale as
we have grown to be clearly the supply leader in the Canadian oil
patch. As for 1998, we are looking forward to a good year of
drilling by historical standards, especially in the first and
fourth quarters."
CE Franklin is Canada's largest distributor of supplies to the oil
and gas drilling and production industry. Through its 43
locations across Canada, the Company sells pipe, valves, pumps,
fittings, and maintenance supplies and provides complete customer
inventory procurement and management services. The Company also
manufactures and packages specialized products for the energy
industry. For more information visit our Web Site at
cefranklin.com.
CE Franklin's common stock trades on The Toronto Stock Exchange
under the symbol CFT and on the American Stock Exchange under the
symbol CFK.
This news release includes forward looking statements within the
meaning of section 27A of the United States Securities Act of 1933
and Section 21E of the United States Securities Exchange Act of
1934. Although the Company believes that its expectations are
based on reasonable assumptions, it can give no assurance that
expected results will be achieved. Important factors that could
cause actual results to differ materially from those in the
forward looking statements herein include economic conditions,
seasonality of drilling activity, commodity prices for oil and
gas, currency fluctuations and government regulations, and other
risks and uncertainties as described in the Company's 1996 Annual
Report on Form 20-F as filed with the United States Securities and
Exchange Commission.
CE Franklin Ltd.
Summary of Financial Data
(Canadian Dollars)
Year Ended December 31,
1997 1996
---- ----
Selected Income Statement Data:
Sales $417,270,886 $258,877,400
Net Income 11,217,604 6,741,786
Net Income Per Share - Basic 0.70 0.43
- Fully Diluted 0.65 0.40
Weighted Average Number of 16,058,572 15,727,036
Shares Outstanding
Selected Balance Sheet Data:
Working Capital 75,391,343 37,102,903
Total Assets 162,453,491 87,948,817
Long Term Debt (1) 51,345,983 12,586,271
Total Liabilities 113,855,875 52,404,509
Shareholders' Equity 48,597,616 35,544,308
(1) Long Term Debt includes a 366 day revolving demand operating
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