Bri-Chem Corp. announces solid Q4 and 2008 year end results



    
    TSX Venture Exchange
    Symbol "BRY"
    

    EDMONTON, April 29 /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 year ended December 31, 2008. During the year, Bri-Chem's revenue improved
by 87% while net earnings increased 86.9% over last year. A complete copy of
Bri-Chem's report is available on the Internet at www.sedar.com.
    The 2008 results reflect Bri-Chem's continued growth in market share over
the last year as consolidated revenues were $111,282,825 for the year ended
December 31, 2008, an increase of 87%, when compared to $59,518,665 from last
year. Net earnings from operations for the year ended December 31, 2008 are
$4,486,788 or $0.33 diluted earnings per share an increase of 86.9% when
compared to earnings of $2,400,520 or $0.19 diluted earnings per share from
last year. Earnings before interest, taxes, depreciation and amortization
(EBITDA) are $9,753,585, an increase of $4,085,746 or 72.1% compared to last
year.
    During the three months ended December 31, 2008, EBITDA was $2,953,760
compared to $2,179,829 for the same period in 2007. Consolidated revenues were
$46,239,576 in the fourth quarter of 2008, compared to $21,357,551, an
increase of $24,882,025 or 116.5%. Net earnings for the fourth quarter rose by
189.2% to $1,234,886 or $0.09 diluted earnings per share as compared to
$427,032 or $0.03 diluted earnings per share.
    "Q4 was an exceptional quarter for Bri-Chem as it capped off a very
strong finish to fiscal 2008." said Don Caron, Bri-Chem's Chairman. "Our
record financial results this past year reflect Bri-Chem's stellar operational
performance and our ability to navigate through these tough economic times."
    Bri-Chem completed an acquisition during the year by acquiring all the
issued and outstanding shares of Weifang Steel Canada Ltd. ("Weifang"), a
master wholesale distributor of steel tubular, casing and other steel products
to the resource and construction industries. The acquisition of Weifang, in
August 2008, contributed $27.9 million of sales for the four months since
being acquired. The Weifang acquisition diversifies Bri-Chem's product
distribution and is anticipated to provide future revenue growth.
    Bri-Chem's 2008 operating performance remained strong, despite drilling
activity, based on drilling operating days, being down 8.2% for the year ended
December 31, 2008. Drilling rig utilization rates remained relatively
consistent at 41% compared to 39% in 2007. The overall increase in financial
performance is due to Bri-Chem's strong customer relationships, strategic
geographic locations, and a diversified product line through the acquisition
of Weifang.

    Outlook

    Despite the decline in oil and natural gas drilling activity and the
current global and financial crisis, Bri-Chem remains well positioned to
manage through this crisis due to its low operating costs and strong customer
relationships. Bri-Chem will continue to focus on its outstanding level of
customer service, while evaluating the opportunities of geographic and product
expansion.

    About Bri-Chem

    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
Corp.

    
    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)
496-9172, dcaron@wacapital.com

Organization Profile

BRI-CHEM CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890