TSX Venture Exchange Symbol "BRY"
EDMONTON, May 25 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture
Exchange: BRY) a leading Canadian wholesale distributor of industrial drilling
fluids, steel products and services, today announced its financial results for
the first quarter ended March 31, 2009. During the quarter, Bri-Chem's revenue
improved by 36.7% while achieving diluted earnings of $0.06 per share. A
complete copy of Bri-Chem's report is available on the Internet at
The first quarter 2009 results demonstrates Bri-Chem's successful
business model of low operating overheads while maintaining a concentrated
market presence in a declining market. Consolidated revenues were $30,337,102
for the first quarter of 2009, an increase of 36.7% when compared to
$22,200,532 from the same period last year. Net earnings from operations for
the three months ended March 31, 2009 is $859,983 or $0.06 diluted earnings
per share compared to earnings of $1,264,775 from the same period last year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) is
$2,406,539, a decrease of $169,575 or 6.6% compared to the same period last
Bri-Chem's operating performance remains positive, despite drilling
activity, based on drilling operating days, being down 38.5% for the three
months ended March 31, 2009 compared to the same period of 2008. Drilling rig
utilization rates experienced a decline of 19.2% with average rig utilization
of 37.1% for the three months ended March 31, 2009 compared to 56.3%for the
same period of 2008. The overall increase in revenues is due to the product
and geographic diversification through the acquisition of the steel wholesale
distributor, Weifang Steel Canada Ltd. ("Weifang").
Although we continued to have increased sales growth of 36.7% for Q1, the
Company is operating cautiously due to the current economic instability that
exists in the international credit markets. It is uncertain what the
short-term impact of this instability will have on industries and the Company.
There is little doubt that we continue to face a more uncertain marketplace
which will challenge our ability to maintain our margins. Throughout 2009 we
will remain focused on finding opportunities to maximize cash flow and
continue to monitor our debt levels. We anticipate Q2 2009 to be challenging
but still remain optimistic for the remainder of 2009.
Bri-Chem operates out of its head office located in Acheson, Alberta and
its principal activity is the wholesale/distribution of drilling fluids, steel
products and services to the resource, industrial and construction industries
in North America.
Forward Looking Statements
Certain statements contained in this press release, including statements
which may contain words such as "could", "should", "expect", "anticipate",
"believe", "will", and similar expressions and statements relating to matters
that are not historical facts are forward looking statements. Such forward
looking statements involve known and unknown risks and uncertainties which may
cause the actual results, performances or achievements of Bri-Chem Corp. to be
materially different from any future results, performances or achievements
expressed or implied by such forward looking statements. Such factors include,
but are not limited to, fluctuations in oil and gas activity levels, political
and economic conditions, and the demand for products provided by Bri-Chem
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Don Caron, T: (780) 420-6885, F: (780)