EDMONTON, ALBERTA--March 31, 1999
OPERATING DIVISIONS: B.W. RIG REPAIR & SUPPLY
RELIABLE AIRFLOW SALES & SERVICE
CanWest CRANE AND EQUIPMENT
Hyduke Resources Ltd. announces their financial results for the third quarter of the 1998/1999 fiscal year.
Hyduke reports a net loss of $430,185 equivalent to ($0.0354) Basic Earnings per share for the nine month period compared to a net profit of $1,568,417 and an EPS of $.3671 for the same period in 1998. Revenues for the period were $11, 230,380 compared to $22,870,795 in 1998. The decrease in revenues is largely the result of the general downturn in the services sector of the oil and gas industry. It is significant to note, however, that the company has positive working capital in excess of $1.8 million and that the long-term debt is low and being rapidly retired. The current ratio has improved from 1.2 to 1.3.
John Babic, Chief Executive Officer of Hyduke Resources Ltd. stated that: ''The resurgence of oil prices above $16 U.S. per
barrel has generated a new optimism in the industry which has not been seen for nearly 12 months. Many of our customers have deferred major maintenance of their work-over rig fleets and, at the present time, we are now seeing increasing levels of activity that will result in B.W. Rig's fabrication and repair shop operating at full capacity for at least the next two months. On March 15th, CanWest Crane relocated to a more economical, more visible location in Nisku, which has already resulted in new business inquiries. We continue to have confidence that the company will 'get through' this tough period and be well
positioned to return to high levels of profitability. The company's strong balance sheet will enable us to actively explore
expansion opportunities, related to our core businesses, in the future.''
''While sales for this nine month period are down about 50 percent from last year and the profit margins are also lower than
last years, these results were not unexpected given the financial gridlock that occurs when oil is hovering around $11.00 per
barrel. Hyduke was still able to generate a respectable level of business activity over this slow period. We controlled costs and
expenses, which have been reduced in accordance with the activity levels. The over all profit margins were lower due to
increased competition in the sluggish energy sector. We maintained a high level of service to our customers and our
$11,230,380 in sales enabled us to keep many of our employees actively employed. Hyduke has a very healthy balance sheet.
Our long-term debt is down to $135,000 from $338,743 and our retained earnings for the three years of operations are at
$2,408,534''.
1999 1998
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Sales $ 11,230,380 $ 22,870,795
Cost of sales 10,496,291 19,316,258
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Gross margin 734,089 3,554,537
Expenses (schedule 1) 1,000,681 813,778
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Income (loss) from operations (266,592) 2,740,759
Other income (schedule 2) 35,956 35,607
Other expenses (schedule 3) (392,821) (363,417)
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Net income (loss) before income taxes (623,457) 2,412,949
Income taxes recoverable (payable) 193,272 (844,532)
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NET INCOME (LOSS) FOR THE PERIOD $ (430,185)$ 1,568,417
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Basic earnings (loss) per share
for the period $ (0.0571)$ .2101
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Basic earnings (loss) per share ----------
before taxes $ (0.0827)$ .3232
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Basic earnings (loss) per share ----------
on income from operations $ (0.0354)$ .3671
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Hyduke Resources is an Edmonton based manufacturing, sales and servicing company. Its three major divisions are as follows:
B.W. Rig Repair & Supply
In addition to manufacturing, repairing and rebuilding customized service rigs, B.W. carries a full range of service and drilling rig
parts and supplies through its Edmonton, Lloydminster and Red Deer locations. The division is also experienced in fabricating
and repairing pump trucks, generator buildings, and other equipment for the resource sector. B.W. rig has been operating since
1976 and has a reputation of being one of the premiere supplier and service facility for work-over rigs in the western Canadian
oil patch.
Reliable Airflow Sales & Service
This division manufactures and sells pneumatic controls and equipment. It also repairs air valves, air cylinders, air control panels
and related components. It has been in business since 1984 and has earned its reputation in the resource industry for the quality
of its products and services.
CanWest Crane and Equipment
CanWest started in business in 1992. It sells, repairs, rebuilds and fabricates cranes and log handling equipment used primarily
in the oil and gas, forestry and mining sectors. CanWest carries an extensive parts inventory along with providing service and
repair for all types and models of cranes.
Contact:
Hyduke Resources Ltd.
John Babic
CEO
(780) 463-8686
(780) 988-5768
jbabic@hyduke.com
or
Hyduke Resources Ltd.
Bob Ardiel
CFO
(780) 463-8686
(780) 988-5768
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