Pason Reports Fourth Quarter & Year End 2009 Results

Stock Exchange: TSX

Symbol: PSI

CALGARY, Feb. 24 /CNW/ - Pason Systems Inc. ("Pason" or "the Company") today announced its 2009 fourth quarter and year end results.

PERFORMANCE DATA

    
    -------------------------------------------------------------------------
                                 Three Months Ended              Years Ended
                                        December 31,             December 31,
                              2009     2008  Change     2009     2008  Change
    -------------------------------------------------------------------------
    (000s, except per           ($)      ($)    (%)       ($)      ($)    (%)
     share data)
     (unaudited)

    Revenue                 41,013   84,617    (52)  145,861  292,528    (50)
    EBITDA (1)              13,620   32,415    (58)   46,651  144,883    (68)
      As a % of revenue       33.2     38.3    (13)     32.0     49.5    (35)
      Per share - basic       0.17     0.40    (58)     0.57     1.78    (68)
      Per share - diluted     0.17     0.40    (58)     0.57     1.77    (68)
    Funds flow from
     operations(1)          12,238   31,287    (61)   41,354  124,726    (67)
      Per share - basic       0.15     0.38    (61)     0.51     1.53    (67)
      Per share - diluted     0.15     0.38    (61)     0.51     1.52    (66)
    Earnings (loss)          2,480   12,639    (80)   (5,510)  61,321      -
      Per share - basic       0.03     0.15    (80)    (0.07)    0.75      -
      Per share - diluted     0.03     0.15    (80)    (0.07)    0.75      -
    Capital expenditures     9,148   12,641    (28)   21,493   56,292    (62)
    Working capital        119,824  152,337    (21)  119,824  152,337    (21)
    Total assets           373,097  427,016    (13)  373,097  427,016    (13)
    Shareholders'
     equity                308,335  354,589    (13)  308,335  354,589    (13)
    Common shares
     outstanding (No.)
      Basic                 81,487   81,799      -    81,476   81,426      -
      Diluted               81,487   81,799      -    81,476   81,936     (1)
    Shares outstanding
     end of period (No.)    81,487   81,456      -    81,487   81,456      -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) EBITDA is defined as earnings before interest expense, income taxes,
        stock-based compensation expense and depreciation and amortization
        expense. Funds flow from operations is defined as earnings adjusted
        for depreciation and amortization expense, stock-based compensation
        expense, future income taxes and other non-cash items impacting
        operations as presented in the Consolidated Statements of Cash Flows.
        These definitions are not recognized measures under Canadian
        generally accepted accounting principles, and accordingly, may not be
        comparable to measures used by other companies.


    SUMMARY DATA

    -------------------------------------------------------------------------
                                 Three Months Ended              Years Ended
                                        December 31,             December 31,
                              2009     2008  Change     2009     2008  Change
    -------------------------------------------------------------------------
    (000s, except per share     ($)      ($)    (%)       ($)      ($)    (%)
     data) (unaudited)

    Revenue
      Drilling recorder
       rentals              14,519   38,288    (62)   56,716  130,645    (57)
      Pit volume totalizer
       rentals               7,151   16,093    (56)   27,632   56,385    (51)
      Communications rentals 5,260    6,952    (24)   15,954   25,890    (38)
      Automatic driller
       rentals               4,486    7,157    (37)   14,966   24,424    (39)
      Geological services    1,232    4,482    (73)    5,927   15,068    (61)
      Total gas rentals      2,784    4,976    (44)   10,110   17,174    (41)
      Instrumentation sales  1,746        -      -     1,746        -      -
      Choke control rentals    861    1,265    (32)    2,613    4,171    (37)
      Service recorder
       rentals                 477      555    (14)    1,491    2,616    (43)
      Hazardous gas alarm
       rentals                 578      742    (22)    2,044    2,193     (7)
      Mobilization income    1,589    2,418    (34)    4,660    8,546    (45)
      Other Income             274    1,206    (77)    1,571    4,012    (61)
      Interest income           56      483    (88)      431    1,404    (69)
    -------------------------------------------------------------------------
      Total revenue         41,013   84,617    (52)  145,861  292,528    (50)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Expenses
      Rental services       18,273   28,653    (36)   66,674   96,948    (31)
      Geological services    1,167    2,602    (55)    5,754    9,652    (40)
      Cost of
       instrumentation sales   714        -      -       714        -      -
      Manufacturing and
       distribution             59      180    (67)      431    2,683    (84)
      Research and
       development           3,736    3,522      6    13,140   12,888      2
      Corporate services     2,190    2,364     (7)    6,722    6,934     (3)
      Local administration   1,442    1,575     (8)    4,889    6,316    (23)
      Stock-based
       compensation            494    3,549    (86)    5,684    7,525    (24)
      Interest                   -       20   (100)        1      209   (100)
      Depreciation and
       amortization         13,713   16,339    (16)   55,842   55,719      -
    -------------------------------------------------------------------------
      Total expenses        41,788   58,804    (29)  159,851  198,874    (20)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Other (income)
     expenses                 (188)  13,306      -       886   12,224    (93)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings (loss)          2,480   12,639    (80)   (5,510)  61,321      -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Per share - basic       0.03     0.15    (80)    (0.07)    0.75      -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Funds flow from
     operations(1)          12,238   31,287    (61)   41,354  124,726    (67)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Per share - basic       0.15     0.38    (61)     0.51     1.53    (67)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Margins
      Rental services          52%      64%    (19)      52%      65%    (20)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Geological services       5%      42%    (88)       3%      36%    (92)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Instrumentation sales    59%        -      -       59%        -      -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) For the purposes of funds flow per share calculations, funds flow
        from operations is defined as earnings adjusted for depreciation and
        amortization expense, stock-based compensation expense, future income
        taxes and other non-cash items impacting operations as presented in
        the Consolidated Statements of Cash Flows. This definition is not a
        recognized measure under Canadian generally accepted accounting
        principles, and accordingly, may not be comparable to measures used
        by other companies.
    

President's Message

The year 2009 produced our first annual loss in 14 years of being a public company with a deficit of $5.5 million compared to a profit of $61.3 million in 2008. Revenue tumbled 50% to $145.9 million from $292.5 million in the prior year. Cash flow, while still positive at $41.4 million was greatly reduced by 67%. Earnings per share were negative $0.07 versus the $0.75 earned in 2008.

In last year's Letter to Shareholders I described the factors of rising natural gas surpluses and slumping drilling rig counts as impacting Pason at the end of 2008. This trend continued unabated until June 2009 but has been slowly improving since then. From the drilling peak in October 2008 until the last spring low we lost almost 80% of our active rig base, mostly due to rigs shutting down. This had a devastating impact on our revenue and earnings. We did react by reducing cash expenses by a significant 27% but that was clearly not enough to offset the revenue reduction. As has occurred in past drilling downturns we could have reduced our expenses even further resulting in somewhat improved earnings, but we have always had the long term view. We are reluctant to cut infrastructure that we believe we will need in the not too distant future. This strategy again proved correct as even the modest rig rebound in the latter half of 2009 strained the depleted service resources of our competitors while we had sufficient service technicians to continue our high level of service. As a result, we had strong market share gains late in the year.

The United States, our largest business unit, sustained the bulk of the earnings drop with a segment loss of $5.2 million down sharply from a profit of $72.9 million in 2008. Our rig count went on a roller coaster ride falling from our peak of 1,200 rigs in the fall of 2008 to 900 at the beginning of 2009, to a low of under 400 rigs five months later and finally climbing back to 700 rigs at year end. This year end balance was aided by the October purchase of Petron Industries which augmented our rig total by about 10%. As announced at the time of purchase, we saw Petron as a strategic acquisition, despite its relatively small size and poor earnings performance. We felt that some of the technology they had developed, their excellent contacts with customers in the southern United States and their network of agents in the eastern hemisphere could all be leveraged to greater advantage from within Pason. The combination of the two companies is still ongoing and we remain very positive about the potential of the Petron purchase.

Our U.S. revenue per Industry day fell by 23% to $186 from the $242 recorded in the prior year. This metric is not directly impacted by variances in industry activity. What caused the decline was intense price pressure applied by drilling customers in the spring of 2009 resulting in some market share losses for Pason, despite significant price reductions made across most of our products. Our market share (defined as percentage of rigs with a Pason electronic drilling recorder installed) peaked at around 62% in 2008, had already fallen to 52% at the beginning of 2009 and bottomed out at 45%. During the last half of the year as the panic of the earlier part of the year gave way to a more typical balanced view where service is important we started to gain back market share. At the end of the year, helped somewhat by Petron installations, we were back to our historical high of about 62%. In 2010, with better market share and expected price increases we hope to meaningfully improve on our revenue per industry day metric.

In Canada we also suffered a major reduction in profitability with segment profit dropping to $13.8 million from the $46.1 million achieved in 2008. Our revenue declined 47% to $57.1 million which was expected when Industry drilling days dropped 42% and we were forced to reduce prices by approximately 12%. Our revenue per industry day declined to $712 compared to $779 in the prior year. We had hoped to partially offset the revenue decline with our new products focusing on drilling optimization and remote directional drilling facilitation, but these products only contributed a disappointing $0.5 million of new revenue. The products fulfill their intended roles but require some change in business practices by customers, which was extremely difficult to affect during the past tumultuous year. We are currently investigating ways to minimize the business practice change and facilitate the customer adoption of the products. Our fourth quarter in Canada was stronger than expected and that activity has continued into the current year. It remains to be seen if this activity is being propelled by the Alberta Government's royalty concessions or a more sustainable interest in oil and gas exploration in Western Canada.

We have had a busy year internationally. Segment revenue increased 27% to $12.6 million, funds flow improved to $7.6 million but segment profit declined 30% to $3.4 million. Significant gains in Mexico, where our activity levels doubled from the prior year, were offset by lower activity in South America. Activity growth in Mexico, due to budget constraints, has now leveled off and may decline somewhat in 2010, but we expect continued strong earnings because our 2009 results in that country were muted by our conservative accounting policy of expensing all freight and duty charges when we move equipment into a new country and non-recurring restructuring costs. With the equipment now largely installed in Mexico, those expenses are behind us allowing for better margins this year. In South America we continue to expand our presence in all oil producing countries except Venezuela, but our market share gains have been offset by declining rig counts. Nevertheless, we are clearly the leading instrumentation provider in that continent as well and look to continuing growth in the future. Late in 2009 we installed EDR's on 4 water well rigs in Saudi and will be soon adding pit volume totalizer's to those rigs.

In the Far East we are working to set up a base in Singapore. From this base we will pursue rentals on land and offshore plus rig component sales in the Singapore shipyards. Finally at the end of the year we bought back our distribution rights in Australia and will be directly managing that business which we believe can show strong growth this year. All of this activity is consistent with our strategy of making Pason the preeminent drilling instrumentation supplier worldwide.

As we look at 2010 the surplus of natural gas continues to weigh on pricing and drilling activity forecasts. There are three factors that seem to commonly arise in predicting natural gas consumption and supply. First, is the strength of the economy and its demand for natural gas. While the North American economy is improving, the current 10% U.S. unemployment rate would indicate that industrial gas demand is far from its peak and not likely to significantly improve in the short term. Global warming (ignoring the issue of how it is actually been created) has been put forth as a negative factor for natural gas consumption in heating. However, the cold winter thus far and especially in Europe, is doing an excellent job in consuming the gas surplus. Finally, the most perplexing issue of all is the shale gas phenomenon where opinions vary widely. At one end of the spectrum there is the view that only a modest number of rigs will be necessary to produce ample natural gas from the plentiful North American shales. At the other end, there is the view that the immense cost of fracturing the formations, the growing environmental concerns and less than forecasted recovery rates, might indicate many shale plays are not economic. How this plays out in the next few years will be interesting to follow.

Further to the growing environmental concerns around oilfield water usage in all types of drilling, Pason continued to invest in Auxsol, a developing company with water cleaning technologies. In the last quarter of 2009 Pason bought out the majority owners and now fully owns Auxsol. The investment to date has been small but is clearly speculative. For 2010, we hope to take the technology from proven field pilots to proof of full scale commercial viability.

Looking forward, even in a world of modest rig activity, we strongly believe Pason can continue to grow with market share gains, geographical expansion and the addition of new products. Our cash reserves of approximately $98.4 million improved about 8% over the year despite our worst ever financial results and the Petron purchase. This will allow us to continue to fund our aggressive marketing, capital equipment and R&D commitments necessary to fuel this growth.

    
    On Behalf of the Board of Directors,

    Jim Hill
    Chairman, President & Chief Executive Officer
    

Fourth Quarter Conference Call

A conference call to review the 2009 fourth quarter and year-end results has been scheduled for 9:00 a.m. (Calgary time) on Thursday, February 25, 2010. The dial-in No. is 1-888-231-8191, Conference ID 48157458 (7-day replay No. 1-800-642-1687 Password 48157458).

Shareholders are also invited to attend the Company's Annual General Meeting on Monday, May 10, 2010 at 3.30 p.m. (Calgary time) in the offices of Pason Systems Inc., 6120 Third Street S.E., Calgary, Alberta.

For additional information, the Company's 2009 Management Discussion and Analysis ("MD&A") and Audited Consolidated Financial Statements have been posted on SEDAR.

Pason is a leading international provider of specialized rental and sold oilfield instrumentation systems for use on land and offshore rigs. Our tightly integrated package of products and services, including data acquisition, wellsite reporting software, remote communications and Internet information management tools, maximizes rig uptime and minimizes operating costs.

Pason's common shares trade on the Toronto Stock Exchange under the symbol PSI. Visit us at www.pason.com to learn about what's new at Pason.

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements.

    
    CONSOLIDATED BALANCE SHEETS

    December 31,                                             2009       2008
    -------------------------------------------------------------------------
    (000s)                                                     ($)        ($)

    ASSETS
    Current
      Cash                                                109,849    100,610
      Accounts receivable                                  39,102     78,568
      Prepaid expenses                                      1,416      2,023
      Income taxes recoverable                              2,928     12,539
      Future income tax assets                              9,037      9,153
    -------------------------------------------------------------------------
                                                          162,332    202,893
    Investments                                                 -      2,802
    Capital assets                                        170,678    207,011
    Intangible assets                                      19,557      8,979
    Future income tax asset                                14,558      5,000
    Goodwill                                                5,972        331
    -------------------------------------------------------------------------
                                                          373,097    427,016
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES
    Current
      Accounts payable and accrued liabilities             29,780     38,123
      Current portion of stock-based compensation
       liability                                            1,320      2,656
      Dividends payable                                    11,408      9,777
    -------------------------------------------------------------------------
                                                           42,508     50,556
    Stock-based compensation liability                        906      1,475
    Future income tax liabilities                          21,348     20,396
    -------------------------------------------------------------------------
                                                           64,762     72,427
    -------------------------------------------------------------------------
    SHAREHOLDERS' EQUITY
    Share capital                                          71,864     71,517
    Contributed surplus                                    14,029      8,834
    Accumulated other comprehensive (loss) income         (22,651)     2,450
    Retained earnings                                     245,093    271,788
    -------------------------------------------------------------------------
                                                          308,335    354,589
    -------------------------------------------------------------------------
                                                          373,097    427,016
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS

                                    Three Months Ended           Years Ended
                                           December 31,          December 31,
                                       2009       2008       2009       2008
    -------------------------------------------------------------------------
    (000's, except per share data)       ($)        ($)        ($)        ($)

    Revenue
      Rental revenue                 37,979     79,652    137,757    276,056
      Geological services             1,232      4,482      5,927     15,068
      Instrumentation sales           1,746          -      1,746          -
      Interest                           56        483        431      1,404
    -------------------------------------------------------------------------
                                     41,013     84,617    145,861    292,528
    -------------------------------------------------------------------------
    Expenses
      Rental services                18,273     28,653     66,674     96,948
      Geological services             1,167      2,602      5,754      9,652
      Cost of instrumentation sales     714          -        714          -
      Manufacturing and distribution     59        180        431      2,683
      Research and development        3,736      3,522     13,140     12,888
      Corporate services              2,190      2,364      6,722      6,934
      Local administration            1,442      1,575      4,889      6,316
      Stock-based compensation          494      3,549      5,684      7,525
      Interest                            -         20          1        209
      Depreciation and amortization  13,713     16,339     55,842     55,719
    -------------------------------------------------------------------------
                                     41,788     58,804    159,851    198,874
    -------------------------------------------------------------------------
    (Loss) earnings before the
     under noted items                 (775)    25,813    (13,990)    93,654
    Other (income) expenses            (188)    13,306        886     12,224
    -------------------------------------------------------------------------
    (Loss) earnings before income
     taxes                             (587)    12,507    (14,876)    81,430
    -------------------------------------------------------------------------
    Income taxes
      Current                           448      1,242      1,796     20,082
      Future                         (3,515)    (1,374)   (11,162)        27
    -------------------------------------------------------------------------
                                     (3,067)      (132)    (9,366)    20,109
    -------------------------------------------------------------------------
    Earnings (loss)                   2,480     12,639     (5,510)    61,321
    Retained earnings, beginning
     of period                      254,021    275,075    271,788    238,599
    Dividends                       (11,408)    (9,777)   (21,185)   (17,964)
    Purchase of common shares             -     (6,149)         -    (10,168)
    -------------------------------------------------------------------------
    Retained earnings, end
     of period                      245,093    271,788    245,093    271,788
    -------------------------------------------------------------------------
    Earnings (loss) per share
      Basic                            0.03       0.15      (0.07)      0.75
      Diluted                          0.03       0.15      (0.07)      0.75



    CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

                                    Three Months Ended           Years Ended
                                           December 31,          December 31,
                                       2009       2008       2009       2008
    -------------------------------------------------------------------------
    (000s)                               ($)        ($)        ($)        ($)

    Earnings (loss)                   2,480     12,639     (5,510)    61,321
    Other comprehensive (loss)
     income, net of tax
      Foreign currency translation
       adjustment                    (4,414)    24,789    (25,101)    32,160
    -------------------------------------------------------------------------
    Total comprehensive (loss)
     income                          (1,934)    37,428    (30,611)    93,481
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

                                    Three Months Ended           Years Ended
                                           December 31,          December 31,
                                       2009       2008       2009       2008
    -------------------------------------------------------------------------
    (000s)                               ($)        ($)        ($)        ($)

    Accumulated other comprehensive
     (loss) income, beginning of
     period                         (18,237)   (22,339)     2,450    (29,710)
    Other comprehensive (loss)
     income, net of tax
      Foreign currency translation
       adjustment                    (4,414)    24,789    (25,101)    32,160
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Accumulated other comprehensive
     (loss) income, end of period   (22,651)     2,450    (22,651)     2,450
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    CONSOLIDATED STATEMENTS OF CASH FLOWS

                                    Three Months Ended           Years Ended
                                           December 31,          December 31,
                                       2009       2008       2009       2008
    -------------------------------------------------------------------------
    (000s)                               ($)        ($)        ($)        ($)

    Cash flows related to the
    following activities:
    Operating
      Earnings (loss)                 2,480     12,639     (5,510)    61,321
      Adjustments for non-cash
       items:
      Depreciation and amortization  13,713     16,339     55,842     55,719
      Stock-based compensation          (96)     2,800      1,894      6,776
      Future income taxes            (3,515)    (1,374)   (11,162)        27
      Gain on sale of investment          -          -          -       (999)
      Unrealized foreign exchange
       loss                            (344)       883        290      1,882
    -------------------------------------------------------------------------
                                     12,238     31,287     41,354    124,726
      Changes in non-cash working
       capital                       (6,369)    (2,540)    43,868     15,031
    -------------------------------------------------------------------------
    Cash flow from operating
     activities                       5,869     28,747     85,222    139,757
    -------------------------------------------------------------------------
    Financing
      Issue of common shares
       under the stock option plan        8        810        274     17,356
      Purchase of common shares           -     (6,639)         -    (10,908)
      Purchase of stock options           -     (1,486)      (240)    (1,486)
      Payment of dividends                -          -    (19,554)   (15,009)
      Repayment of debt              (4,684)         -     (4,684)         -
    -------------------------------------------------------------------------
                                     (4,676)    (7,315)   (24,204)   (10,047)
    -------------------------------------------------------------------------
    Investing
      Additions to capital assets    (8,619)   (10,371)   (18,318)   (52,286)
      Deferred development costs,
       net of investment tax credits
       received                        (529)    (2,270)    (3,175)    (4,006)
      Proceeds on disposal of
       capital assets                    (6)        68        528        292
      Purchase of investment              -     (2,802)         -     (2,802)
      Proceeds on sale of investment      -          -          -      4,003
      Business acquisitions, net of
       cash acquired                (20,934)         -    (20,934)         -
      Changes in non-cash working
       capital                        1,179      1,807     (5,116)    (1,598)
    -------------------------------------------------------------------------
                                    (28,909)   (13,568)   (47,015)   (56,397)
    -------------------------------------------------------------------------
    Effect of exchange rate
     changes on cash                  2,050        630     (4,764)     4,138
    -------------------------------------------------------------------------
    Net (decrease) increase in
     cash and cash equivalents      (25,666)     8,494      9,239     77,451
    Cash and cash equivalents,
     beginning of period            135,515     92,116    100,610     23,159
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period                  109,849    100,610    109,849    100,610
    -------------------------------------------------------------------------
    Represented by:
      Cash                           98,441     90,833     98,441     90,833
      Cash held in trust             11,408      9,777     11,408      9,777
    -------------------------------------------------------------------------
                                    109,849    100,610    109,849    100,610
    -------------------------------------------------------------------------



    SEGMENTED INFORMATION
                                                United      Inter-
                                     Canada     States   national      Total
    -------------------------------------------------------------------------

    (000s)                               ($)        ($)        ($)        ($)

    Year ended December 31, 2009

    Revenue                          57,127     76,173     12,561    145,861
    Operating costs                  21,250     51,828      4,953     78,031
    Depreciation and amortization    22,093     29,511      4,238     55,842
    -------------------------------------------------------------------------
    Segment operating profit (loss)  13,784     (5,166)     3,370     11,988
    ---------------------------------------------------------------
    Research and development                                          13,140
    Stock-based compensation                                           5,684
    Corporate services                                                 6,722
    Manufacturing and distribution                                       431
    Interest                                                               1
    Other expenses                                                       886
    Income tax recovery                                               (9,366)
    -------------------------------------------------------------------------
    Loss                                                              (5,510)
    -------------------------------------------------------------------------
    Goodwill                                     5,972                 5,972
    -------------------------------------------------------------------------
    Total assets                    182,392    167,419     23,286    373,097
    -------------------------------------------------------------------------
    Capital expenditures             11,838      3,687      5,968     21,493
    -------------------------------------------------------------------------

    Year ended December 31, 2008

    Revenue                         107,753    174,905      9,870    292,528
    Operating costs                  36,421     74,046      2,449    112,916
    Depreciation and amortization    25,202     27,916      2,601     55,719
    -------------------------------------------------------------------------
    Segment operating profit         46,130     72,943      4,820    123,893
    ---------------------------------------------------------------
    Research and development                                          12,888
    Stock-based compensation                                           7,525
    Corporate services                                                 6,934
    Manufacturing and distribution                                     2,683
    Interest                                                             209
    Other expenses                                                    12,224
    Income taxes                                                      20,109
    -------------------------------------------------------------------------
    Earnings                                                          61,321
    -------------------------------------------------------------------------
    Goodwill                                       331                   331
    -------------------------------------------------------------------------
    Total assets                    217,075    191,946     17,995    427,016
    -------------------------------------------------------------------------
    Capital expenditures              5,747     44,523      6,022     56,292
    -------------------------------------------------------------------------

    Three Months Ended
     December 31, 2009

    Revenue                          17,378     18,948      4,687     41,013
    Operating costs                   5,075     14,406      2,115     21,596
    Depreciation and amortization     4,700      7,168      1,845     13,713
    -------------------------------------------------------------------------
    Segment operating profit (loss)   7,603     (2,626)       727      5,704
    ---------------------------------------------------------------
    Research and development                                           3,736
    Stock-based compensation                                             494
    Corporate services                                                 2,190
    Manufacturing and distribution                                        59
    Interest                                                               -
    Other income                                                        (188)
    Income tax recovery                                               (3,067)
    -------------------------------------------------------------------------
    Earnings                                                           2,480
    -------------------------------------------------------------------------
    Capital expenditures              8,066       (150)     1,232      9,148
    -------------------------------------------------------------------------

    Three Months Ended
    December 31, 2008

    Revenue                          28,209     53,134      3,274     84,617
    Operating costs                   8,939     22,609      1,282     32,830
    Depreciation and amortization     5,695      9,778        866     16,339
    -------------------------------------------------------------------------
    Segment operating profit         13,575     20,747      1,126     35,448
    ---------------------------------------------------------------
    Research and development                                           3,522
    Stock-based compensation                                           3,549
    Corporate services                                                 2,364
    Manufacturing and distribution                                       180
    Interest                                                              20
    Other expenses                                                    13,306
    Income tax recovery                                                 (132)
    -------------------------------------------------------------------------
    Earnings                                                          12,639
    -------------------------------------------------------------------------
    Capital expenditures              3,275      7,644      1,722     12,641
    -------------------------------------------------------------------------
    

SOURCE Pason Systems Inc.

For further information: For further information: Jim Hill, Chairman, President and CEO, Phone: (403) 301-3401, Fax: (403) 301-3499, E-mail: jim.hill@pason.com; Jim Glasspoole, Chief Financial Officer, Phone: (403) 692-3840, Fax: (403) 301-3499, E-Mail: jim.glasspoole@pason.com


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