Kelman Announces Q2 and First Half 2009 Operating Results



    
    -------------------------------------------------------------------------
                                                Three Months Ended
    -------------------------------------------------------------------------
                                         June 30,      June 30,
                                            2009          2008        Change
    -------------------------------------------------------------------------
    Operating revenue               $  5,387,997  $  6,328,323  $   (940,326)
    Operating expenses              $  6,607,568  $  6,094,221  $   (513,347)
    -------------------------------------------------------------------------
    EBITDA(1)                       $ (1,219,571) $    234,102  $ (1,453,673)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net loss                        $ (2,608,456) $   (845,379) $ (1,763,077)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Per share loss
      (basic and diluted)           $      (0.06) $      (0.02) $      (0.04)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                 Six Months Ended
    -------------------------------------------------------------------------
                                         June 30,      June 30,
                                            2009          2008        Change
    -------------------------------------------------------------------------
    Operating revenue               $ 12,313,965  $ 12,918,279  $   (604,314)
    Operating expenses              $ 13,721,244  $ 11,979,522  $ (1,741,722)
    -------------------------------------------------------------------------
    EBITDA(1)                       $ (1,407,279) $    938,757  $ (2,346,036)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net loss                        $ (3,631,130) $   (878,121) $ (2,753,009)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Per share loss
      (basic and diluted)           $      (0.09) $      (0.02) $      (0.07)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    CALGARY, Aug. 19 /CNW/ - Kelman Technologies Inc ("Kelman") (TSXV: KTI)
today announced a loss of $2.6 million, $0.06 per share, for Q2 2009. For the
first half of 2009 the loss was $3.6 million, $0.09 per share. Capital
expenditures during the first half of 2009 were $345 thousand, down 77 percent
compared to the first half of 2008. The Company ended the quarter with working
capital of $6.3 million, an increase of 18 percent from the year ended
December 31, 2008.
    In commenting on the results Rene VandenBrand, President and CEO of
Kelman said, "All of the markets that we serve in seismic data processing have
been significantly impacted by the reduction in exploration activities. We are
seeing the impact both in terms of a reduction in activity and a reduction in
pricing. Combined, this is creating a financial challenge for Kelman. We are
responding through a variety of cost cutting initiatives, layoffs, and reduced
work weeks. However, Kelman cannot return to profitability in the seismic data
processing business until activity levels significantly improve."

    Kelman Technologies Inc. is a publicly traded Canadian company listed on
the TSX Venture Exchange under the trading symbol "KTI". With offices in
Calgary and Toronto, Canada, Denver, Houston, and Oklahoma City, United
States, 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. Although Kelman believes that the expectations reflected in these
forward-looking statements are reasonable, undue reliance should not be placed
on them as actual results may differ materially from the forward-looking
statements. The forward-looking statements contained in this press release are
made as of the date hereof, and Kelman undertakes no obligation to update
publicly or revise any forward-looking statements or information, except as
required by law.

    
    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.



    KELMAN TECHNOLOGIES INC.
    Consolidated Balance Sheets
    (Unaudited)

    -------------------------------------------------------------------------
                                                       June 30,  December 31,
                                                          2009          2008
    -------------------------------------------------------------------------

    Assets

    Current assets:
      Cash                                        $  1,351,191  $  2,563,311
      Accounts receivable                            5,390,140     6,586,727
      Work in progress                               2,148,961     2,665,747
      Prepaid expenses and deposits                    557,998       525,844
      -----------------------------------------------------------------------
                                                     9,448,290    12,341,629

    Property and equipment                           5,406,456     6,786,271

    Other assets                                         2,847         5,694
    -------------------------------------------------------------------------
                                                  $ 14,857,593  $ 19,133,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity

    Current liabilities:
      Demand loan                                 $    500,000  $          -
      Accounts payable and accrued liabilities       2,070,846     3,130,522
      Current portion of capital leases                253,442       263,609
      Preferred shares                                 339,347     3,622,520
      -----------------------------------------------------------------------
                                                     3,163,635     7,016,651

    Long-term debt                                   5,362,171     1,863,311

    Preferred shares                                         -       938,252

    Shareholders' equity:
      Share capital                                 13,125,325    13,125,325
      Equity component of preferred shares              59,810       812,706
      Warrants                                         849,740       204,740
      Contributed surplus                            1,729,239       973,806
      Deficit                                       (9,432,327)   (5,801,197)
      -----------------------------------------------------------------------
                                                     6,331,787     9,315,380

    -------------------------------------------------------------------------
                                                  $ 14,857,593  $ 19,133,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    -------------------------------------------------------------------------
                              Three Months Ended            Six Months Ended
                           June 30,      June 30,      June 30,      June 30,
                              2009          2008          2009          2008
    -------------------------------------------------------------------------

    Revenue           $  5,387,997  $  6,328,323  $ 12,313,965  $ 12,918,279

    Expenses:
      Operating          6,607,568     6,094,221    13,721,244    11,979,522
      Depreciation and
       amortization        809,813       850,797     1,671,720     1,677,961
      Interest             309,363       169,681       520,501       295,322
      Interest income          (36)          (17)         (741)       (3,205)
      Foreign exchange
       loss (gain)         269,745        59,020        32,371      (153,200)
    -------------------------------------------------------------------------
                         7,996,453     7,173,702    15,945,095    13,796,400

    -------------------------------------------------------------------------

    Net loss and
     comprehensive
     loss               (2,608,456)     (845,379)   (3,631,130)     (878,121)

    Deficit, beginning
     of period        $ (6,823,871) $ (5,805,669) $ (5,801,197) $ (5,772,927)
    -------------------------------------------------------------------------

    Deficit, end of
     period           $ (9,432,327) $ (6,651,048) $ (9,432,327) $ (6,651,048)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Loss per share,
     basic and
     diluted          $      (0.06) $      (0.02) $      (0.09) $      (0.02)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    -------------------------------------------------------------------------
                              Three Months Ended            Six Months Ended
                           June 30,      June 30,      June 30,      June 30,
                              2009          2008          2009          2008
    -------------------------------------------------------------------------

    Cash provided by (used in):

    Operations:
      Net loss from
       operations     $ (2,608,456) $   (845,379) $ (3,631,130) $   (878,121)
      Items not
       involving cash:
        Depreciation
         and
         amortization      809,813       850,797     1,671,720     1,677,961
        Accretion of
         preferred
         shares            162,473        44,355       210,734        54,590
        Loss on
         disposal of
         property and
         equipment          53,580             -        53,580             -
        Accretion of
         debenture          16,167             -        32,004             -
        Amortization
         of other
         assets              1,424         1,424         2,847         2,847
        Stock-based
         compensation
         expense             1,269        13,533         2,538        27,066
        Lease
         inducement
         benefit            (7,837)       (7,837)      (15,673)      (15,673)
        Foreign
         exchange
         loss (gain)       269,745        59,020        32,371      (153,200)
      -----------------------------------------------------------------------
                        (1,301,822)      115,913    (1,641,009)      715,470
      Change in
       non-cash working
       capital items
       related to
       operations          633,267     1,141,497       677,406       704,537
      -----------------------------------------------------------------------
                          (668,555)    1,257,410      (963,603)    1,420,007
    Financing:
      Advances on
       long-term debt            -     1,850,000             -     1,850,000
      Increase
       (decrease) in
       demand loan         500,000      (487,500)      500,000      (487,500)
      Change in
       non-cash working
       capital items       162,250             -       291,498             -
      Repayment of
       capital leases      (65,248)      (60,361)     (129,238)     (119,558)
      Financing charges   (165,791)            -      (357,935)            -
    -------------------------------------------------------------------------
                           431,211     1,302,139       304,325     1,242,942
    Investing:
      Expenditures on
       property and
       equipment           (78,675)     (527,619)     (345,485)   (1,533,260)
      Change in
       non-cash working
       capital items      (126,058)     (356,378)     (111,143)     (100,478)
    -------------------------------------------------------------------------
                          (204,733)     (883,997)     (456,628)   (1,633,738)
    Foreign exchange
     gain (loss) on
     cash held in
     foreign currency     (160,748)       10,300       (96,214)       42,164
    -------------------------------------------------------------------------
    (Decrease) increase
     in cash              (602,825)    1,685,852    (1,212,120)    1,071,375

    Cash, beginning of
     period              1,954,016     1,048,475     2,563,311     1,662,952

    -------------------------------------------------------------------------
    Cash, end of
     period           $  1,351,191  $  2,734,327  $  1,351,191  $  2,734,327
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental
     information:
      Interest paid   $    129,301  $    203,142  $    261,940  $    237,885
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    





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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