TSX Venture Exchange
EDMONTON, Aug. 26 /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 second quarter ended June 30, 2009. During the quarter, Bri-Chem's revenue
was down nominally (5.1%) as compared to the same period last year while
recording a diluted loss of ($0.06) per share. A complete copy of Bri-Chem's
report is available on the Internet at www.sedar.com.
Consolidated revenues were $10,118,467 for the second quarter of 2009, a
decrease of 5.1% when compared to $10,658,262 from the same period last year.
Net loss from operations for the three months ended June 30, 2009 is $847,643
or ($0.06) diluted loss per share compared to earnings of $103,706 from the
same period last year. Earnings before interest, taxes, depreciation and
amortization (EBITDA) is ($296,383), a decrease of $998,845 or 142.2% compared
to the same period last year.
Net earnings from operations for the six months ended June 30, 2009 are
$12,340 or $0.00 diluted earnings per share a decrease of 99.0% when compared
to $1,368,481 from the same period last year. Earnings before interest, taxes,
depreciation and amortization for the same period are $2,110,156 a decrease of
$1,168,421 or 35.6% compared to the same period last year. Consolidated
revenues were $40,455,569, an increase of 23.1% when compared to $32,858,795
from the same period in 2008.
The decline in Company revenues and operating performance is the result
of the dramatic decrease in oil and natural gas drilling activity and the
North American overstock of steel products. During the second quarter,
drilling activity, based on drilling operating days, was down 38.5% and 42.8%
respectively for the three and six months ended June 30, 2009 compared to the
same periods of 2008. Drilling rig utilization rates experienced a decline of
8.0% with average rig utilization of 10.7% for the three months ended June 30,
2009 compared to 18.7% for the same period of 2008. For the six months ended
June 30, 2009 average rig utilization was 23.9% a decline of 13.6% compared to
the same period in 2008.
Bri-Chem continued to have increased sales growth for the six months
ended June 30, 2009 of 23.1%, despite operating cautiously due to the current
economic instability that exists. It is uncertain what the short-term impact
of this instability will have on industries and the Company. With volatile
commodity prices and the weakened demand for products, the Company is focused
on managing inventory and controlling costs through this decline. Throughout
2009 we will remain focused on finding opportunities to maximize cash flow and
continue to monitor our debt levels. The second half of the year, we
anticipate sales and earnings to improve relative to the first half of the
year, however given the global economic instability it will remain a challenge
to achieve similar results reported in the third and fourth quarters of 2008.
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)