Kelman Announces 2007 Operating Results



    
    Stock Symbol: KTI.TSX


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                                             Years Ended December 31,      %
    -------------------------------------------------------------------------
    ($ 000's except per share amounts)           2007           2006  Change
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    Operating revenue                    $     26,112   $     25,911       1
    Operating expenses                   $     21,731   $     21,959      (1)
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    Net earnings (loss)                          (176)  $        239      NA
      Per share (basic and diluted)             (0.00)  $       0.01      NA
    Cash flow from operations            $      3,292   $      3,761     (12)
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    CALGARY, March 11 /CNW/ - Kelman Technologies Inc ("KTI") today announced
a loss of $176 thousand, $0.00 per share, for the year 2007. Capital
expenditures of $3.9 million were up 49 percent when compared to 2006.
Interest expense increased slightly to $600 thousand offset somewhat by
interest earned on short-term deposits of $29 thousand. The Company ended the
year with working capital of $7.1 million a decrease of 2 percent compared to
last year. The 2007 results include a foreign exchange loss of $769 thousand
reflecting the greater than expected weakening of the United States dollar
during the year.
    In commenting on the results Rene VandenBrand, President and CEO of KTI
said, "Improvements in revenue in our Data Management business were offset by
declines in Seismic Processing, principally in Canada. Going forward we
believe that our Data Management business will continue to show significant
growth in 2008."

    (*)  (*)  (*)  (*)  (*)  (*)  (*)

    Kelman Technologies Inc. is a publicly traded Canadian company listed on
the Toronto Stock Exchange under the trading symbol "KTI". With offices in
Calgary and Toronto, Canada, Denver, Houston, and Oklahoma City, United
States, London, United Kingdom and Tripoli, Libya KTI services oil and gas
exploration companies with a full suite of seismic processing and on-line data
management and data archival services.

    To the extent this press release includes forecasts or forward looking
statements about future performance of the company such forecasts or
statements are believed to be reasonable by the company but are based upon
assumptions in respect of commodity pricing and oil and gas exploration
activity levels over the next couple of years. The risks associated with
future events are mitigated where possible by KTI but are uncontrollable and
no guarantee of the accuracy of the forecasts or future financial performance
of the company is offered.


    
    KELMAN TECHNOLOGIES INC.
    Consolidated Balance Sheets

    December 31, 2007 and 2006
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                                                          2007          2006
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    Assets

    Current assets:
      Cash                                        $  1,662,952  $  2,045,785
      Accounts receivable                            5,525,538     5,406,905
      Work in progress                               2,354,399     2,081,447
      Prepaid expenses and deposits                    485,336       423,566
      -----------------------------------------------------------------------
                                                    10,028,225     9,957,703
    Property and equipment                           6,218,057     5,517,916

    Other assets                                        11,387        17,081
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                                                  $ 16,257,669  $ 15,492,700
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    Liabilities and Shareholders' Equity

    Current liabilities:
      Indebtedness                                $   487,500   $    487,500
      Accounts payable and accrued liabilities      1,570,896      1,613,736
      Current portion of capital leases               243,860              -
      Preferred shares                                605,321        605,321
      -----------------------------------------------------------------------
                                                    2,907,577      2,706,557
    Long-term portion of capital leases               450,944              -

    Preferred shares                                3,808,316      3,645,774

    Shareholders' equity:
      Share capital                                13,125,325     13,125,325
      Equity component of preferred shares            812,706        812,706
      Contributed surplus                             925,728        799,512
      Deficit                                      (5,772,927)    (5,597,174)
      -----------------------------------------------------------------------
                                                    9,090,832      9,140,369
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                                                  $16,257,669    $15,492,700
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    KELMAN TECHNOLOGIES INC.
    Consolidated Statements of Operations,
    Comprehensive Income (Loss) and Deficit

    Years ended December 31, 2007 and 2006
    -------------------------------------------------------------------------
                                                         2007           2006
    -------------------------------------------------------------------------
    Revenue                                       $26,112,098    $25,911,148
    Expenses:
      Operating                                    21,730,944     21,958,738
      Depreciation and amortization                 3,216,964      3,189,706
      Foreign exchange loss (gain)                    769,047        (70,222)
      Interest                                        599,620        594,424
      Interest income                                 (28,724)          (655)
    -------------------------------------------------------------------------
                                                   26,287,851     25,671,991
    -------------------------------------------------------------------------
    Net earnings (loss) and
     comprehensive income (loss)                  $  (175,753)   $   239,157

    Deficit, beginning of year                    $(5,597,174)   $(5,836,331)
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    Deficit, end of year                          $(5,772,927)   $(5,597,174)
    -------------------------------------------------------------------------
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    Net earnings (loss) per
     Common Share, basic and diluted              $     (0.00)   $      0.01
    -------------------------------------------------------------------------
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    KELMAN TECHNOLOGIES INC.
    Consolidated Statements of Cash Flows

    Years ended December 31, 2007 and 2006
    -------------------------------------------------------------------------
                                                         2007           2006
    -------------------------------------------------------------------------
    Cash provided by (used in):

    Operations:
      Net earnings (loss)                         $  (175,753)   $   239,157
      Items not involving cash:
        Depreciation and amortization               3,216,964      3,189,706
        Accretion of preferred shares                 162,541        162,541
        Stock-based compensation expense              126,216        241,043
        Amortization of other assets                    5,694          5,694
        Loss on disposal of property and equipment      2,565          3,090
        Lease inducement benefit                      (11,128)         3,313
        Unrealized foreign exchange gain              (35,375)       (84,026)
    -------------------------------------------------------------------------
                                                    3,291,724      3,760,518
      Change in non-cash working capital items       (608,273)      (965,813)
    -------------------------------------------------------------------------
                                                    2,683,451      2,794,705
    Financing:
      Issue of common shares                                -        512,500
      Decrease in indebtedness                              -       (512,500)
      Repayment of capital leases                    (116,714)        (5,779)
      -----------------------------------------------------------------------
                                                     (116,714)        (5,779)
    Investing:
      Expenditures on property and equipment       (3,108,153)    (2,626,130)
      Change in non-cash working capital items        158,583         31,513
    -------------------------------------------------------------------------
                                                   (2,949,570)    (2,594,617)
    -------------------------------------------------------------------------
    Increase (decrease) in cash                      (382,833)       194,309

    Cash, beginning of year                         2,045,785      1,851,476

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    Cash, end of year                             $ 1,662,952    $ 2,045,785
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For further information:

For further information: please visit our web site at
http://www.kelman.com/ or contact Mr. Rene VandenBrand, President and CEO at
(281) 293-0537, or by email to rene@kelman.com

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KELMAN TECHNOLOGIES INC.

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