Kelman Announces Q3 2009 Operating Results
------------------------------------------------------------------------- Three Months Ended ------------------------------------------------------------------------- September September 30, 2009 30, 2008 Change ------------------------------------------------------------------------- Operating revenue $ 4,953,581 $ 7,529,144 $ (2,575,563) Operating expenses $ 5,426,400 $ 6,591,807 $ (1,165,407) ------------------------------------------------------------------------- EBITDA $ (472,819) $ 937,337 $ (1,410,156) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income (loss) $ (1,904,082) $ 32,942 $ (1,937,024) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income (loss) per share (basic and diluted) $ (3.73) $ 0.06 $ (3.79) ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Nine Months Ended ------------------------------------------------------------------------- September September 30, 2009 30, 2008 Change ------------------------------------------------------------------------- Operating revenue $ 17,267,546 $ 20,447,423 $ (3,179,877) Operating expenses $ 19,147,644 $ 18,571,329 $ 576,315 ------------------------------------------------------------------------- EBITDA $ (1,880,098) $ 1,876,094 $ (3,756,192) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income (loss) $ (5,535,212) $ (845,179) $ (4,690,033) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net income (loss) per share (basic and diluted) $ (10.84) $ (1.62) $ (9.22) ------------------------------------------------------------------------- -------------------------------------------------------------------------
In commenting on the results Rene VandenBrand, President and CEO of Kelman said, "I believe that most indications within our industry point to the fact that the significant decline in market activity may be coming to an end. There is increased optimism that activity will begin to improve in the latter half of 2010 but the remainder of 2009 and early 2010 will continue to be a difficult period for seismic processing services for North American activity."
Kelman Technologies Inc. is a publicly traded Canadian company listed on the TSX Venture Exchange under the trading symbol "KTI". With offices in
To the extent this press release includes forecasts or forward looking statements about future performance of the company such forecasts or statements are believed to be reasonable by the company but are based upon assumptions in respect of commodity pricing and oil and gas exploration activity. Although Kelman believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and Kelman undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
Neither 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. KELMAN TECHNOLOGIES INC. Consolidated Balance Sheets (Unaudited) ------------------------------------------------------------------------- September 30, December 31, 2009 2008 ------------------------------------------------------------------------- Assets Current assets: Cash $ 829,702 $ 2,563,311 Accounts receivable 4,901,700 6,586,727 Work in progress 1,947,940 2,665,747 Prepaid expenses and deposits 552,550 525,844 ----------------------------------------------------------------------- 8,231,892 12,341,629 Property and equipment 4,838,413 6,786,271 Other assets 1,423 5,694 ------------------------------------------------------------------------- $ 13,071,728 $ 19,133,594 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 1,707,841 $ 3,130,522 Current portion of capital leases 203,848 263,609 Preferred shares 343,008 3,622,520 ----------------------------------------------------------------------- 2,254,697 7,016,651 Long-term debt 6,222,538 1,863,311 Preferred shares - 938,252 Shareholders' equity: Share capital 13,149,594 13,125,325 Equity component of preferred shares 59,810 812,706 Warrants 849,740 204,740 Equity component of long-term debt 141,250 - Contributed surplus 1,730,508 973,806 Deficit (11,336,409) (5,801,197) ----------------------------------------------------------------------- 4,594,493 9,315,380 ------------------------------------------------------------------------- $ 13,071,728 $ 19,133,594 ------------------------------------------------------------------------- ------------------------------------------------------------------------- KELMAN TECHNOLOGIES INC. Consolidated Statements of Operations, Comprehensive Loss and Deficit (Unaudited) ------------------------------------------------------------------------- Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ------------------------------------------------------------------------- Revenue $ 4,953,581 $ 7,529,144 $ 17,267,546 $ 20,447,423 Expenses: Operating 5,426,400 6,591,807 19,147,644 18,571,329 Depreciation and amortization 777,945 860,275 2,449,665 2,538,236 Interest and financing charges 284,303 200,566 804,804 495,888 Foreign exchange loss (gain) 369,015 (147,817) 401,386 (301,017) Interest income - (8,629) (741) (11,834) ------------------------------------------------------------------------- 6,857,663 7,496,202 22,802,758 21,292,602 ------------------------------------------------------------------------- Net income (loss) and comprehensive income (loss) (1,904,082) 32,942 (5,535,212) (845,179) Deficit, beginning of period $ (9,432,327) $ (6,651,048) $ (5,801,197) $ (5,772,927) ------------------------------------------------------------------------- Deficit, end of period $(11,336,409) $ (6,618,106) $(11,336,409) $ (6,618,106) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income (loss) per share, basic and diluted $ (3.73) $ 0.06 $ (10.84) $ (1.62) ------------------------------------------------------------------------- ------------------------------------------------------------------------- KELMAN TECHNOLOGIES INC. Consolidated Statements of Cash Flows (Unaudited) ------------------------------------------------------------------------- Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 ------------------------------------------------------------------------- Cash provided by (used in): Operations: Net income (loss) from operations $ (1,904,082) $ 32,942 $ (5,535,212) $ (845,179) Items not involving cash: Depreciation and amortization 777,945 860,275 2,449,665 2,538,236 Foreign exchange loss (gain) 369,015 (147,817) 401,386 (301,017) Accretion of preferred shares 3,661 45,621 214,395 100,211 Accretion of debentures 56,667 15,200 88,671 15,200 Loss on disposal of property and equipment (790) - 52,790 - Amortization of other assets 1,423 1,423 4,270 4,270 Stock-based compensation expense 1,269 10,506 3,807 37,572 Lease inducement benefit (7,836) (7,836) (23,509) (23,509) ----------------------------------------------------------------------- (702,728) 810,314 (2,343,737) 1,525,784 Change in non-cash working capital items related to operations 258,941 893,926 936,347 1,598,463 ----------------------------------------------------------------------- (443,787) 1,704,240 (1,407,390) 3,124,247 Financing: Debenture 500,000 - 500,000 1,850,000 Increase (decrease) in demand loan - - 500,000 (487,500) Repayment of capital leases (66,531) (61,546) (195,769) (181,104) Financing charges (9,078) - (367,013) - Change in non-cash working capital items (173,703) - 117,795 - ------------------------------------------------------------------------- 250,688 (61,546) 555,013 1,181,396 Investing: Proceeds on disposal of property and equipment 790 - 790 - Expenditures on property and equipment (209,902) (1,610,723) (555,387) (3,143,983) Change in non-cash working capital items (22,199) 422,187 (133,342) 321,709 ------------------------------------------------------------------------- (231,311) (1,188,536) (687,939) (2,822,274) Foreign exchange gain (loss) on cash held in foreign currency (97,079) (11,272) (193,293) 30,892 ------------------------------------------------------------------------- (Decrease) increase in cash (521,489) 442,886 (1,733,611) 1,514,261 Cash, beginning of period 1,351,191 2,734,327 2,563,311 1,662,952 ------------------------------------------------------------------------- Cash, end of period $ 829,702 $ 3,177,213 $ 829,702 $ 3,177,213 ------------------------------------------------------------------------- -------------------------------------------------------------------------
For further information: please visit our web site at http://www.kelman.com/ or contact Mr. Rene VandenBrand, President and CEO at (281) 293-0537, or by email to [email protected]
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