Business
Bri-Chem Corp. announces significant improvement in 2010 first quarter results
Bri-Chem Corp. announces significant improvement in 2010 first quarter results
About this update from Bri-chem Corp.
[{"type":"text","content":"\n\n\n\n May 19, 2010 (Canada NewsWire Group) -- TSX Venture Exchange Symbol "BRY"\n\n Bri-Chem Corp. ("Bri-Chem") (TSX Venture Exchange: BRY) a leading Canadian wholesale distributor of industrial drilling fluids, steel products and services, announced today its financial results for the first quarter ended March 31, 2010. The first quarter of 2010 saw a modest recovery of drilling activity in Western Canada as drilling rig utilization rates have improved from the depressed levels of 2009. As in the past, Bri-Chem has continued to remain committed to operating efficiently by servicing its customers, controlling costs and managing inventory levels. Notwithstanding only a modest recovery of industry activity in Q1, Bri-Chem achieved significant improvement in both revenue (44.9% increase) and net earnings (195.2% increase) over the comparable quarter in 2009.\nThe first quarter 2010 results demonstrate how quickly Bri-Chem's scalable operational structure can return to profitability as a result of its low operating overhead even with only a modest recovery of drilling activity. Consolidated revenues in Q1 were $43,964,826, a 44.9% increase over the prior period amount of $30,337,102. Earnings before interest, taxes, amortization, and stock-based compensation ("EBITDAC") was $4,216,279 or $0.30 per share, an increase of $1,773,240 or 72.6% compared to the same period last year. Net earnings increased 195.2% to $2,538,848 or $0.18 diluted earnings per share as compared to earnings of $859,983 or $0.06 diluted earnings per share from the same period last year.\nThe fluids division led the way in Q1 with a 104.4% sales increase due to increased Western Canadian drilling rig activity as global energy markets began to recover. Fiscal 2010 Q1 drilling rig utilization rates averaged 53.6%, representing a 16.5% increase from the same period last year, when drilling rig activity averaged only 37.1%. The Alberta and Saskatchewan markets largely contributed to the increase in revenues as both markets experienced an increase in activity.\nThe steel products division generated revenues of $10,842,754 as compared to $14,134,350, a 23.3% decrease for the comparable first quarter ended March 31, 2009. The steel products division sells primarily to the oil and gas industry and demand for oil country tubular goods (&qu...