TSX Venture Exchange Symbol "BRY"
EDMONTON, Dec. 1 /CNW/ - Bri-Chem Corp. ("Bri-Chem") (TSX Venture Exchange: BRY) a leading Canadian wholesale distributor of industrial drilling fluids, steel products and services, today announced its financial results for the third quarter ended September 30, 2008. During the quarter, Bri-Chem's revenue improved by 70.4% while net earnings increased 60.3% over the same period last year. A complete copy of Bri-Chem's report is available on the Internet at www.sedar.com
The third quarter 2008 results reflect Bri-Chem's continued growth in market size over the last year as consolidated revenues were $32,184,454 for the third quarter of 2008, an increase of 70.4% when compared to $18,889,017 from the same period last year. Net earnings from operations for the three months ended September 30, 2008 is $1,883,421 or $0.14 diluted earnings per share an increase of 60.3% when compared to earnings of $1,174,774 from the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) is $3,521,248, an increase of $1,682,954 or 91.6% compared to the same period last year.
Net earnings from operations for the nine months ended September 30, 2008 are $3,251,902 or $0.25 diluted earnings per share an increase of 64.8% when compared to $1,973,488 from the same period last year. Earnings before interest, taxes, depreciation and amortization for the same period are $6,799,825 an increase of $3,311,815 or 94.9% compared to the same period last year. Consolidated revenues were $65,043,249, an increase of 70.4% when compared to $38,161,114 from the same period in 2007.
During the third quarter the Company acquired Weifang Steel Canada Ltd. ("Weifang"), a master wholesale distributor of steel tubular, casing and other steel products to the resource and construction industries. The acquisition of Weifang, in August 2008, contributed one month of sales activity for the quarter. The Weifang acquisition diversifies Bri-Chem's product distribution and is anticipated to provide strong revenue growth in the future.
Bri-Chem's operating performance remains strong, despite drilling activity, based on drilling operating days, being down 8.9% for the nine months ended September 30, 2008 compared to the same period of 2007. Drilling rig utilization rates remained relatively consistent at 40% compared to 39% for the same period of 2007. The overall increase in financial performance is due to Bri-Chem's strong customer relationships, strategic geographic locations, and a diversified product line through the acquisition of Weifang.
Outlook
Bri-Chem remains optimistic that drilling activity levels experienced in the third quarter of 2008 will continue over the remainder of 2008 and into the 2009 winter drilling program. Despite the current credit crisis, the Company is well positioned through diversification of products and geographic locations to continue to gain market share. With Bri-Chem's highly scalable business model, an increase in sales activity will contribute to continued earnings growth.
About Bri-Chem
Bri-Chem operates out of its head office located in Acheson, Alberta and its principal activity is the wholesale/distribution of drilling fluids, steel products and services to the resource, industrial and construction industries in North America.
Forward Looking Statements
Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "anticipate", "believe", "will", and similar expressions and statements relating to matters that are not historical facts are forward looking statements. Such forward looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Bri-Chem Corp. to be materially different from any future results, performances or achievements expressed or implied by such forward looking statements. Such factors include, but are not limited to, fluctuations in oil and gas activity levels, political and economic conditions, and the demand for products provided by Bri-Chem Corp.
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