Kelman Announces Q1 2009 Operating Results



    
    Stock Symbol: KTI.TSX

                                     Three Months Ended March 31,          %
    -------------------------------------------------------------------------
    ($ 000's except per share
     amounts)                                   2009        2008      Change
    -------------------------------------------------------------------------
    Operating revenue                       $  6,926   $   6,590           5
    Operating expenses                      $  7,114   $   5,885          21
    -------------------------------------------------------------------------
    Net loss                                $ (1,023)  $     (33)         NA
      Per share (basic and diluted)         $  (0.03)  $   (0.00)         NA
    Funds from operations                   $   (339)  $     600        (157)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    CALGARY, May 12 /CNW/ - Kelman Technologies Inc ("Kelman") today
announced a loss of $1.0 million, $0.03 per share, for Q1 2009. Capital
expenditures of $267 thousand were down 73 percent when compared to Q1 2008.
The Company ended the quarter with working capital of $4.7 million a decrease
of 12 percent from the year ended December 31, 2008.
    In commenting on the results Rene VandenBrand, President and CEO of
Kelman said, "The first quarter of 2009 was a very difficult quarter,
particularly for our Seismic Data Processing Division. We have seen customers
in every region dramatically cut their capital expenditures. Capital markets
are virtually unavailable to exploration and production customers to raise
equity or debt to fund exploration efforts. As a result, most of our customers
in North America are being forced to live within their cash flow means. This
led to both a decrease in the volume of activity and significant pressure on
pricing. In our Data Management Division, we continue to benefit from several
large multi-year contracts that continue to move forward. We expect to
generate a lower level of revenue from activity for data stored for customers
but this will be offset by a full year of new project work related to the
multi-year contracts."

    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, Kelman 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 KELMAN 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
    (Unaudited)

    -------------------------------------------------------------------------
                                                     March 31,   December 31,
                                                         2009           2008
    -------------------------------------------------------------------------

    Assets

    Current assets:
      Cash                                       $  1,954,016   $  2,563,311
      Accounts receivable                           5,978,688      6,586,727
      Work in progress                              2,327,723      2,665,747
      Prepaid expenses and deposits                   588,055        525,844
      -----------------------------------------------------------------------
                                                   10,848,482     12,341,629

    Property and equipment                          6,191,174      6,786,271

    Other assets                                      196,414          5,694
    -------------------------------------------------------------------------
                                                 $ 17,236,070   $ 19,133,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable and accrued liabilities   $  2,254,294   $  3,130,522
      Current portion of capital leases               268,793        263,609
      Preferred shares                              3,661,204      3,622,520
      -----------------------------------------------------------------------
                                                    6,184,291      7,016,651

    Long-term debt                                  1,809,975      1,863,311

    Preferred shares                                  947,829        938,252

    Shareholders' equity:
      Share capital                                13,125,325     13,125,325
      Equity component of preferred shares            812,706        812,706
      Equity component of debenture                   204,740        204,740
      Contributed surplus                             975,075        973,806
      Deficit                                      (6,823,871)    (5,801,197)
      -----------------------------------------------------------------------
                                                    8,293,975      9,315,380

    -------------------------------------------------------------------------
                                                 $ 17,236,070   $ 19,133,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    KELMAN TECHNOLOGIES INC.
    Consolidated Statements of Operations, Comprehensive Loss and Deficit
    (Unaudited)

    -------------------------------------------------------------------------
                                                  For the Three Months Ended
                                                     March 31,      March 31,
                                                         2009           2008
    -------------------------------------------------------------------------

    Revenue                                      $  6,925,968   $  6,589,956

    Expenses:
      Operating                                     7,113,676      5,885,301
      Depreciation and amortization                   861,907        827,164
      Interest                                        211,137        125,641
      Interest income                                    (705)        (3,188)
      Foreign exchange gain                          (237,373)      (212,220)
    -------------------------------------------------------------------------
                                                    7,948,642      6,622,698

    -------------------------------------------------------------------------
    Net loss and comprehensive loss                (1,022,674)       (32,742)

    Deficit, beginning of period                 $ (5,801,197)  $ (5,772,927)
    -------------------------------------------------------------------------

    Deficit, end of period                       $ (6,823,871)  $ (5,805,669)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net loss per Common Share, basic
     and diluted                                 $      (0.03)  $      (0.00)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    KELMAN TECHNOLOGIES INC.
    Consolidated Statements of Cash Flows
    (Unaudited)

    -------------------------------------------------------------------------
                                                  For the Three Months Ended
                                                     March 31,      March 31,
                                                         2009           2008
    -------------------------------------------------------------------------

    Cash provided by (used in):

    Operations:
      Net loss                                   $ (1,022,674)  $    (32,742)
      Items not involving cash:
        Depreciation and amortization                 861,907        827,164
        Accretion of preferred shares                  48,262         10,235
        Accretion of debenture                         15,838              -
        Amortization of other assets                    1,423          1,423
        Stock-based compensation expense                1,269         13,533
        Lease inducement benefit                       (7,836)        (7,836)
        Foreign exchange gain                        (237,373)      (212,220)
      -----------------------------------------------------------------------
                                                     (339,184)       599,557

      Change in non-cash working capital items        108,669       (563,679)
      -----------------------------------------------------------------------
                                                     (230,515)        35,878

    Financing:
      Change in non-cash working capital items        129,248              -
      Repayment of capital leases                     (63,990)       (59,197)
      Deferred finance charges                       (192,144)             -
      -----------------------------------------------------------------------
                                                     (126,886)       (59,197)
    Investing:
      Expenditures on property and equipment         (266,810)    (1,005,641)
      Change in non-cash working capital items         14,915        414,483
    -------------------------------------------------------------------------
                                                     (251,895)      (591,158)

    -------------------------------------------------------------------------
    Decrease in cash                                 (609,296)      (614,477)

    Cash, beginning of period                       2,563,312      1,662,952

    -------------------------------------------------------------------------
    Cash, end of period                          $  1,954,016   $  1,048,475
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    





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

Organization Profile

KELMAN TECHNOLOGIES INC.

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