Bri-Chem Corp. announces Q1 results

About this update from Bri-chem Corp.

[{"type":"text","content":"\n\n\n\nTSX Venture Exchange Symbol "BRY"\n\n\nEDMONTON, May 25 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture\nExchange: BRY) a leading Canadian wholesale distributor of industrial drilling\nfluids, steel products and services, today announced its financial results for\nthe first quarter ended March 31, 2009. During the quarter, Bri-Chem's revenue\nimproved by 36.7% while achieving diluted earnings of $0.06 per share. A\ncomplete copy of Bri-Chem's report is available on the Internet at\nwww.sedar.com.\n\n\nThe first quarter 2009 results demonstrates Bri-Chem's successful\nbusiness model of low operating overheads while maintaining a concentrated\nmarket presence in a declining market. Consolidated revenues were $30,337,102\nfor the first quarter of 2009, an increase of 36.7% when compared to\n$22,200,532 from the same period last year. Net earnings from operations for\nthe three months ended March 31, 2009 is $859,983 or $0.06 diluted earnings\nper share compared to earnings of $1,264,775 from the same period last year.\nEarnings before interest, taxes, depreciation and amortization (EBITDA) is\n$2,406,539, a decrease of $169,575 or 6.6% compared to the same period last\nyear.\n\n\nBri-Chem's operating performance remains positive, despite drilling\nactivity, based on drilling operating days, being down 38.5% for the three\nmonths ended March 31, 2009 compared to the same period of 2008. Drilling rig\nutilization rates experienced a decline of 19.2% with average rig utilization\nof 37.1% for the three months ended March 31, 2009 compared to 56.3%for the\nsame period of 2008. The overall increase in revenues is due to the product\nand geographic diversification through the acquisition of the steel wholesale\ndistributor, Weifang Steel Canada Ltd. ("Weifang").\n\n\nOutlook\n\n\nAlthough we continued to have increased sales growth of 36.7% for Q1, the\nCompany is operating cautiously due to the current economic instability that\nexists in the international credit markets. It is uncertain what the\nshort-term impact of this instability will have on industries and the Company.\nThere is little doubt that we continue to face a more uncertain marketplace\nwhich will challenge our ability to maintain our margins. Throughout 2009 we\nwill remain focused on finding opportunities to maximize cash flow and\...

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