Kelman Announces Q3 2009 Operating Results

    
    -------------------------------------------------------------------------
                                               Three Months Ended
    -------------------------------------------------------------------------
                                       September     September
                                        30, 2009      30, 2008        Change
    -------------------------------------------------------------------------
    Operating revenue               $  4,953,581  $  7,529,144  $ (2,575,563)
    Operating expenses              $  5,426,400  $  6,591,807  $ (1,165,407)
    -------------------------------------------------------------------------
    EBITDA                          $   (472,819) $    937,337  $ (1,410,156)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income (loss)               $ (1,904,082) $     32,942  $ (1,937,024)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income (loss)
     per share
      (basic and diluted)           $      (3.73) $       0.06  $      (3.79)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                               Nine Months Ended
    -------------------------------------------------------------------------
                                       September     September
                                        30, 2009      30, 2008        Change
    -------------------------------------------------------------------------
    Operating revenue               $ 17,267,546  $ 20,447,423  $ (3,179,877)
    Operating expenses              $ 19,147,644  $ 18,571,329  $    576,315
    -------------------------------------------------------------------------
    EBITDA                          $ (1,880,098) $  1,876,094  $ (3,756,192)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income (loss)               $ (5,535,212) $   (845,179) $ (4,690,033)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income (loss)
     per share
      (basic and diluted)           $     (10.84) $      (1.62) $      (9.22)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

CALGARY, Nov. 17 /CNW/ - Kelman Technologies Inc ("Kelman") (TSXV: KTI) today announced a loss of $1.9 million, $3.73 per share, for Q3 2009. For the nine months ended September 30, 2009 the loss was $5.5 million, $10.84 per share. Capital expenditures during the nine months ended September 30, 2009 were $555 thousand, down 82 percent compared to the same period in 2008. The Company ended the quarter with working capital of $5.9 million, an increase of 10 percent from the year ended December 31, 2008.

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 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)

    -------------------------------------------------------------------------
                                                  September 30,  December 31,
                                                          2009          2008
    -------------------------------------------------------------------------

    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
      -----------------------------------------------------------------------
                                                     8,231,892    12,341,629

    Property and equipment                           4,838,413     6,786,271

    Other assets                                         1,423         5,694
    -------------------------------------------------------------------------
                                                  $ 13,071,728  $ 19,133,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    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
      -----------------------------------------------------------------------
                                                     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)
      -----------------------------------------------------------------------
                                                     4,594,493     9,315,380
    -------------------------------------------------------------------------
                                                  $ 13,071,728  $ 19,133,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



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

    -------------------------------------------------------------------------
                              Three Months Ended           Nine Months Ended
                                 September 30,               September 30,
                              2009          2008          2009          2008
    -------------------------------------------------------------------------

    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)
    -------------------------------------------------------------------------
                         6,857,663     7,496,202    22,802,758    21,292,602

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

    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)
    -------------------------------------------------------------------------
    Deficit, end of
     period           $(11,336,409) $ (6,618,106) $(11,336,409) $ (6,618,106)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Income (loss)
     per share,
     basic and
     diluted          $      (3.73) $       0.06  $     (10.84) $      (1.62)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    KELMAN TECHNOLOGIES INC.
    Consolidated Statements of Cash Flows
    (Unaudited)
    -------------------------------------------------------------------------
                              Three Months Ended           Nine Months Ended
                                 September 30,               September 30,
                              2009          2008          2009          2008
    -------------------------------------------------------------------------

    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)
      -----------------------------------------------------------------------
                          (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
      -----------------------------------------------------------------------
                          (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             -
    -------------------------------------------------------------------------
                           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
    -------------------------------------------------------------------------
                          (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
    -------------------------------------------------------------------------
    (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
    -------------------------------------------------------------------------
    Cash, end of
     period          $     829,702  $  3,177,213  $    829,702  $  3,177,213
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

SOURCE KELMAN TECHNOLOGIES INC.

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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