Canadian Oilfield Solutions Corp.: Release of Interim Results and Operations Update
May 23 2014 - 4:41PM
Marketwired Canada
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Canadian Oilfield Solutions Corp. (the "Corporation") (TSX VENTURE:OTS) has
released its financial results for the three months ended March 31, 2014, and
provides the following Operations and Corporate update.
OPERATIONS UPDATE
ARTIFICIAL LIFT
The Corporation remains focused on the introduction of the Linear Motor
technology. The Corporation successfully negotiated an exclusivity agreement for
the technology for Canada, Mexico and for the Oman national company PDO. Designs
were finalized in May 2014 and management expects the first shipment to arrive
in Canada in time for a five well pilot test scheduled for this summer. In
addition, discussions are underway in Mexico to define the parameters of a pilot
test, which is anticipated to occur by the fourth quarter.
Our conventional submersible pump sales continued to experience solid growth,
posting improved year-over-year revenues due to increased market share in
Wyoming. Management expects continued organic growth from this division as it
continues to demonstrate a high quality of service and products.
The submersible electric motor distribution network added modest revenue growth
in the quarter, and higher sales volumes are expected as we enter the busy
agriculture season. Management will continue to focus on expanding its sales
into Canada and through existing relationships within the United States.
CONSTRUCTION
We experienced an increase in activity year-over-year in southern Mexico, with
two significant projects underway in the quarter. Our client continues to work
through a localized civil unrest issue that has led to restricted access to
certain work sites. The client has indicated that a resolution to the unrest is
coming and that work should resume sometime in June. The market continues to
suggest that there is a solid inventory of projects in which to engage.
PIPE SALES & INSTALLATION
The Mexican national oil company Pemex has begun issuing tenders for flexible
pipe work in Northern Mexico. Management will provide updates on the tenders as
the awards become available.
CORPORATE
The Corporation announced a significant debt financing of CAD $5 million in
December 2013, which was fully subscribed including the overallotment as of
March 3, 2014, for gross proceeds of CAD $5.75 million.
RESULTS OF OPERATIONS
Selected Financial Information
(in 000's of USD $ unless otherwise stated)
For the three months ended March 31, 2014 2013
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Revenue $ 1,519 $ 1,295
Cost of sales (898) (829)
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Gross Profit 621 466
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Selling and administrative expense (714) (593)
Net finance (expense) income (312) 298
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(1,026) (295)
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Earnings (loss) before income taxes (405) 171
Income tax expense (242) (153)
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Net earnings (loss) for the period (647) 18
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Net earnings (loss) per share - basic $ (0.01)$ 0.00
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As at March 31, 2014 2013
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Assets
Current assets $ 11,365 $ 13,539
Long-term assets 3,499 1,845
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14,864 15,384
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Liabilities
Current liabilities 6,904 5,157
Long-term liabilities 170 493
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7,074 5,650
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Working capital ratio 1.65 2.63
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Debt (long-term and debentures) to equity ratio 33% 29%
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The Corporation's full March 31, 2014, financial statements and corresponding
management's discussion and analysis have been filed on the SEDAR website at
www.sedar.com.
Headquartered in Calgary, Alberta, Canadian Oilfield Solutions Corp. provides an
array of specialized products and services that are used in the energy, mining,
and industrial & agricultural water industries.
This document contains information that constitutes forward-looking information
under applicable securities legislation. All statements, other than those of
historical fact, which address activities, events, outcomes, results or
developments that the Corporation anticipates or expects may or will occur in
the future (in whole or in part) should be considered forward-looking
information. In some cases, forward-looking information can be identified by
terms such as "forecast", "future", "may", "expect", "anticipate", "believe",
"potential", "enable", "plan", "continue", "contemplate", or other comparable
terminology. In particular, this document contains statements regarding sales
volumes and future operations of the Corporation.
Forward-looking information is based on current expectations, estimates,
projections and assumptions, which the Corporation believes are reasonable but
which may prove to be incorrect and therefore such forward-looking information
should not be unduly relied upon. The forward-looking information in this
document is based upon on various assumptions, including assumptions that the
Corporation's contracts will be completed in accordance with their terms and
according to schedule and that the projects will not be unduly delayed due to
weather or underground conditions at the project sites as well as assumptions
regarding industry activity: the general stability of the economic and political
environment; the effect of market conditions on demand for the Corporation's
products and services; the ability to obtain qualified staff, equipment and
services in a timely and cost efficient manner; the ability to operate its
business in a safe, efficient and effective manner; the performance and
characteristics of various business segments; the effect of current plans; the
timing and costs of capital expenditures; future oil and natural gas prices;
currency, exchange and interest rates; the regulatory framework regarding
royalties, taxes and environmental matters in the jurisdictions in which the
Corporation operates; and the ability of the Corporation to successfully market
its products and services.
Further, there is a multitude of risks that may cause the Corporation's actual
results to differ materially from those contemplated (whether expressly or by
implication) in the forward-looking information in this document. These risks
include, without limitation, risks of counterparties breaching contracts;
construction risks; economic risks; the risk that revenues may not be received
in the timeframe that is projected in this document; uncertainty regarding
underground conditions; financing risks; solvency risks; tax risks; legislative
and regulatory developments; customers' completion of expected work programs;
fluctuating prices for crude oil and natural gas; changes in drilling activity;
general global economic, political and business conditions; weather conditions;
regulatory changes; the successful exploitation and integration of technology;
customer acceptance of technology; success in obtaining issued patents; the
potential development of competing technologies by market competitors;
availability of products, qualified personnel, manufacturing capacity and raw
materials, and the Corporation's successful performance under contracts. Readers
are cautioned that the above list of factors is not exhaustive. Other factors
which could cause actual results, performance or achievements of the Corporation
to differ materially from those contemplated (whether expressly or by
implication) in the forward-looking statements or other forward-looking
information are disclosed in the Corporation's publicly filed disclosure
documents.
The Corporation is not obligated to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as required by applicable laws. Because of these risks, uncertainties and
assumptions, prospective investors should not place undue reliance on these
forward-looking statements. The foregoing statements expressly qualify any
forward-looking information stated in this document.
Neither the 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Oilfield Solutions Corp.
Ken Berg
President and Chief Executive Officer
(403) 543-0060
(403) 543-0069 (FAX)
kberg@cotsoilfield.com
Canadian Oilfield Solutions Corp.
Scott Hamilton
Chief Financial Officer and Corporate Secretary
(403) 543-0060
(403) 543-0069 (FAX)
shamilton@cotsoilfield.com
www.cotsoilfield.com
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