TSX Venture Exchange
EDMONTON, Aug. 26 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture
Exchange: BRY) a leading Canadian wholesale distributor of industrial drilling
fluids, products and services, today announced its financial results for the
second quarter ended June 30, 2008. During the quarter, Bri-Chem's revenue
improved by 74% while net earnings increased 202% over the same period last
year. A complete copy of Bri-Chem's report is available on the Internet at
The second quarter 2008 results reflect Bri-Chem's continued growth in
market size over the last year as consolidated revenues were $10,658,262 for
the second quarter of 2008, an increase of 74% when compared to $6,135,841
from the same period last year. Net earnings from operations for the three
months ended June 30, 2008 is $103,706 or $0.01 diluted earnings per share an
increase of 202% when compared to a loss of $101,791 from the same period last
year. Earnings before interest, taxes, depreciation and amortization (EBITDA)
is $702,462, an increase of $365,743 or 109% compared to the same period last
Net earnings from operations for the six months ended June 30, 2008 are
$1,368,481 or $0.11 diluted earnings per share an increase of 71.3% when
compared to $798,714 from the same period last year. Earnings before interest,
taxes, depreciation and amortization for the same period are $3,278,577 an
increase of $1,628,861 or 99% compared to the same period last year.
Consolidated revenues were $32,858,795, an increase of 70.4% when compared to
$19,272,097 from the same period in 2007.
Bri-Chem's operating performance remains strong for this time of the
year, despite drilling activity, based on drilling operating days, being down
13.9% in the first half of 2008 compared to the same period of 2007 and
drilling rig utilization rates declining to 56% from 61%. The overall increase
in financial performance is due to Bri-Chem's strong customer relationships,
strategic geographic locations, particularly in southeastern Saskatchewan and
increased market share through the acquisition of Millennium in July 2007.
Bri-Chem's continued market penetration in core geographic regions of Northern
British Columbia and the increased activity in southeastern Saskatchewan have
also contributed to the sales growth.
Bri-Chem remains optimistic that drilling activity will continue to
improve in the second half of 2008 and into 2009. As a result, the Company
will strengthen prospects for growth in revenue, EBITDA and net income for the
second half of 2008. The second quarter is traditionally the slowest quarter
of the year due to seasonal factors however; as industry activity in the
second half of 2008 and beyond continues to improve, the Company's near term
growth offers vast up-side potential.
The Company recently announced the proposed acquisition of Weifang Steel
Canada Ltd., a Western Canadian-based master wholesale distributor of steel
products to the oil and gas and construction industries. This acquisition will
allow both Bri-Chem and Weifang access to new geographic markets.
Bri-Chem operates out of its head office located in Acheson, Alberta and
its principal activity is the wholesale/distribution blending and packaging of
drilling fluid supplies for the oil and gas industry. Bri-Chem provides over
100 domestic and foreign products to customers throughout Alberta, British
Columbia and Saskatchewan.
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
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)