Business
Bri-Chem Corp. announces Q4 and year end results
TSX Venture Exchange Symbol "BRY" EDMONTON, April 29 /CNW/ - Bri-Chem Corp. (the "Company") (TSX ...
About this update from Bri-chem Corp.
[{"type":"text","content":"\n\n\n\nTSX Venture Exchange Symbol "BRY"\n\n\nEDMONTON, April 29 /CNW/ - Bri-Chem Corp. (the "Company") (TSX Venture\nExchange: BRY) a leading Canadian wholesale distributor of drilling fluids,\nproducts and services, today announced its financial results for the three\nmonths and year ended December 31, 2007. As a result of the reverse take-over\nby amalgamation with Gwelan Supply Ltd. effective January 1, 2007, the\ncomparative financial figures reflect those of consolidated Gwelan Supply Ltd.\noperating as a private company and certain of the prior period's figures have\nbeen reclassified to conform to the presentation of the current period\nconsolidated financial statements. A complete copy of the Company's report is\navailable on the Internet at www.sedar.com.\n\n\nBri-Chem's operating performance in 2007 remained strong, despite a 20%\nreduction in drilling activity, measured in drilling operating days, compared\nto the same period of 2006 and a decline in drilling rig utilization rates to\n39% from 65%.\n\n\nNet earnings from operations for the fiscal year ended December 31, 2007\nare $2,400,520 or $0.19 per share on a fully-diluted basis, and earnings\nbefore interest, taxes, depreciation and amortization are $5,667,840 compared\nto $3,065,922 for the five month period ended December 31, 2006 and $833,986\nfor the twelve month period ended July 31, 2006. Consolidated revenues were\n$59,518,665 for the twelve months ended December 31, 2007.\n\n\nFor the three months ended December 31, 2007, earnings before interest,\ntaxes, depreciation and amortization is $2,179,830 compared to $949,999 for\nthe same period in 2006. Consolidated revenues were $21,357,551 during the\nfourth quarter of 2007, as compared to $13,131,942 for the same period of last\nyear, an increase of $8,225,609 or 62.6%. As part of its year end review, the\nCompany revalued its future income taxes, resulting in an effective income tax\nrate of 68.6% for the fourth quarter, or $931,682 of current and future income\ntaxes expense. Pre-tax earnings for the fourth quarter is $1,358,714 with net\nearnings of $427,032 or $0.03 diluted earnings per share. The Company would\ntypically have had an effective income tax rate of approximately 32%. In\naddition, current income tax expense in the fourth quarter reflects year end\nadjustments resulti...