Kelman Announces Q3 2009 Operating Results
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Three Months Ended
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September September
30, 2009 30, 2008 Change
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Operating revenue $ 4,953,581 $ 7,529,144 $ (2,575,563)
Operating expenses $ 5,426,400 $ 6,591,807 $ (1,165,407)
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EBITDA $ (472,819) $ 937,337 $ (1,410,156)
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Net income (loss) $ (1,904,082) $ 32,942 $ (1,937,024)
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Net income (loss)
per share
(basic and diluted) $ (3.73) $ 0.06 $ (3.79)
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Nine Months Ended
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September September
30, 2009 30, 2008 Change
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Operating revenue $ 17,267,546 $ 20,447,423 $ (3,179,877)
Operating expenses $ 19,147,644 $ 18,571,329 $ 576,315
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EBITDA $ (1,880,098) $ 1,876,094 $ (3,756,192)
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Net income (loss) $ (5,535,212) $ (845,179) $ (4,690,033)
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Net income (loss)
per share
(basic and diluted) $ (10.84) $ (1.62) $ (9.22)
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In commenting on the results Rene VandenBrand, President and CEO of Kelman said, "I believe that most indications within our industry point to the fact that the significant decline in market activity may be coming to an end. There is increased optimism that activity will begin to improve in the latter half of 2010 but the remainder of 2009 and early 2010 will continue to be a difficult period for seismic processing services for North American activity."
Kelman Technologies Inc. is a publicly traded Canadian company listed on the TSX Venture Exchange under the trading symbol "KTI". With offices in
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)
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September 30, December 31,
2009 2008
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Assets
Current assets:
Cash $ 829,702 $ 2,563,311
Accounts receivable 4,901,700 6,586,727
Work in progress 1,947,940 2,665,747
Prepaid expenses and deposits 552,550 525,844
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8,231,892 12,341,629
Property and equipment 4,838,413 6,786,271
Other assets 1,423 5,694
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$ 13,071,728 $ 19,133,594
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 1,707,841 $ 3,130,522
Current portion of capital leases 203,848 263,609
Preferred shares 343,008 3,622,520
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2,254,697 7,016,651
Long-term debt 6,222,538 1,863,311
Preferred shares - 938,252
Shareholders' equity:
Share capital 13,149,594 13,125,325
Equity component of preferred shares 59,810 812,706
Warrants 849,740 204,740
Equity component of long-term debt 141,250 -
Contributed surplus 1,730,508 973,806
Deficit (11,336,409) (5,801,197)
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4,594,493 9,315,380
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$ 13,071,728 $ 19,133,594
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KELMAN TECHNOLOGIES INC.
Consolidated Statements of Operations, Comprehensive Loss and Deficit
(Unaudited)
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Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
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Revenue $ 4,953,581 $ 7,529,144 $ 17,267,546 $ 20,447,423
Expenses:
Operating 5,426,400 6,591,807 19,147,644 18,571,329
Depreciation and
amortization 777,945 860,275 2,449,665 2,538,236
Interest and
financing
charges 284,303 200,566 804,804 495,888
Foreign exchange
loss (gain) 369,015 (147,817) 401,386 (301,017)
Interest income - (8,629) (741) (11,834)
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6,857,663 7,496,202 22,802,758 21,292,602
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Net income (loss)
and comprehensive
income (loss) (1,904,082) 32,942 (5,535,212) (845,179)
Deficit, beginning
of period $ (9,432,327) $ (6,651,048) $ (5,801,197) $ (5,772,927)
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Deficit, end of
period $(11,336,409) $ (6,618,106) $(11,336,409) $ (6,618,106)
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Income (loss)
per share,
basic and
diluted $ (3.73) $ 0.06 $ (10.84) $ (1.62)
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KELMAN TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
(Unaudited)
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Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
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Cash provided by (used in):
Operations:
Net income
(loss) from
operations $ (1,904,082) $ 32,942 $ (5,535,212) $ (845,179)
Items not
involving cash:
Depreciation
and
amortization 777,945 860,275 2,449,665 2,538,236
Foreign
exchange
loss (gain) 369,015 (147,817) 401,386 (301,017)
Accretion of
preferred
shares 3,661 45,621 214,395 100,211
Accretion of
debentures 56,667 15,200 88,671 15,200
Loss on
disposal of
property and
equipment (790) - 52,790 -
Amortization
of other
assets 1,423 1,423 4,270 4,270
Stock-based
compensation
expense 1,269 10,506 3,807 37,572
Lease
inducement
benefit (7,836) (7,836) (23,509) (23,509)
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(702,728) 810,314 (2,343,737) 1,525,784
Change in
non-cash working
capital items
related to
operations 258,941 893,926 936,347 1,598,463
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(443,787) 1,704,240 (1,407,390) 3,124,247
Financing:
Debenture 500,000 - 500,000 1,850,000
Increase
(decrease) in
demand loan - - 500,000 (487,500)
Repayment of
capital leases (66,531) (61,546) (195,769) (181,104)
Financing charges (9,078) - (367,013) -
Change in
non-cash working
capital items (173,703) - 117,795 -
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250,688 (61,546) 555,013 1,181,396
Investing:
Proceeds on
disposal of
property and
equipment 790 - 790 -
Expenditures on
property and
equipment (209,902) (1,610,723) (555,387) (3,143,983)
Change in
non-cash working
capital items (22,199) 422,187 (133,342) 321,709
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(231,311) (1,188,536) (687,939) (2,822,274)
Foreign exchange
gain (loss) on
cash held in
foreign currency (97,079) (11,272) (193,293) 30,892
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(Decrease) increase
in cash (521,489) 442,886 (1,733,611) 1,514,261
Cash, beginning of
period 1,351,191 2,734,327 2,563,311 1,662,952
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Cash, end of
period $ 829,702 $ 3,177,213 $ 829,702 $ 3,177,213
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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 [email protected]
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