Highlights include the following:
•Revenue for the current quarter of
Selected Statement of
Three Months Ended
Total revenue – continuing operations
Gross profit – continuing operations
Gross profit (%)
EBITDAS– continuing operations
First quarter 2014 revenues of
First quarter 2014 gross profit (refer to NON-IFRS MEASURES) of
First quarter 2014 EBITDAS (refer to NON-IFRS MEASURES) was
First quarter 2014 income from continuing operations of
Selected Financial Position Information
Total current assets
Total cash and short term deposits
Total current liabilities
Total bank indebtedness
Total interest bearing debt
Current ratio (current assets divided by
1.96 to 1.00
1.83 to 1.00
Debt to equity ratio (interest bearing debt
divided by shareholders' equity)
0.30 to 1.00
0.31 to 1.00
Total assets of
Total liabilities of
The first quarter of the 2014 fiscal year was characterized by major changes in the direction for the company through the departure of the Chief Executive Officer as well as the President of what has historically been Hyduke's largest operating division.
Thanks to strong business brands in the marketplace, loyal customers, a dedicated staff and management, administrative cost cuts, an enhanced internal focus on business performance, and generally improving conditions for the upstream oil and gas industry in the main market of western
•Core operating units of supply, machining and drilling equipment fabrication performed well with acceptable operating margins. •Business streamlining initiatives resulted in the closing of the
At the Annual General and Special Meeting of Shareholders on
Due to the unpredictability and high sales cost of international revenues, part of the go-forward focus will be on ensuring maximum participation in domestic markets. Activities in the first quarter were congruent with this objective. While Hyduke will participate in international opportunities as they arise, the primary focus of management will be enhancing the performance of the core businesses with positive cashflow and expansion opportunities in domestic markets.
The cumulative impact of the foregoing is that the cash value of the oil and gas produced in
Historically, when oil company clients have the cash to spend they create market conditions favorable to the financial success of Hyduke's client base. This in turn assists Hyduke's business.
Based on the foregoing operational and management activities which took place in the first quarter, new executive leadership and the generally improving market conditions, management is of the view that the cumulative impact of the past and future changes will be a Company built on a more predictable income stream leading to a return to profitability.
The overall objective of Hyduke's Board of Directors and new CEO is to create a less complex business as measured by number and size of operating divisions. Hyduke will focus efforts and capital on businesses in which Hyduke can achieve continued growth, attractive margins, and market leadership. In the simplest terms, Hyduke intends to do fewer things better and in so doing, grow both the bottom line and shareholder value.
Forward Looking Statements
This report contains certain forward-looking statements under the heading "Outlook" and elsewhere concerning future events or the Company's operations, anticipated financial performance, business prospects and strategies of Hyduke. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "expect", "plan", "intend" or similar words suggesting future outcomes or outlooks on, without limitation, estimates of business activity, supply and demand for the Company's products, the estimated amounts and timing of capital expenditures, anticipated future debt levels, or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Readers are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties both general and specific that may cause actual future results to differ materially from those contemplated and contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. These factors may affect anticipated earnings or assets and include, but are not limited to: industry activity levels, market liquidity, customer credit risk, competition, oil and gas prices, product liability, fixed price contracts, development of new products, uninsured and underinsured losses, access to additional financing, source of supply of raw material and third party components, availability of key personnel, agreements and contracts, government regulations, foreign exchange exposure, interest rate risk, international scope of operations, environmental health and safety regulations and Hyduke's anticipation of and success in managing the risks implied by the foregoing. The Company cautions that the foregoing list of important factors is not exhaustive. The Company believes that the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. The forward-looking statements in this report speak only as of the date of this report. Hyduke undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required pursuant to applicable securities legislation.
Hyduke is an integrated oilfield services company with over thirty years experience in the manufacture, repair and distribution of oilfield equipment and supplies in
•Turn-Key Equipment - drilling rig and service rig packages including in-house design, engineering and drafting, major component procurement and overall project management; •Life Cycle Management - inspection, certification, service, repair and supply services throughout the operating life of the drilling or well service rig; and •Single Source Supply - providing new capital equipment, repair and maintenance on existing capital equipment and supply of operating consumables.
During the year, the Company restructured its business operations into two operating segments and one corporate services segment as follows:
Hyduke Rig Equipment: the Hyduke Rig Equipment segment includes the design, manufacture and refurbishment of land-based drilling rigs, workover rigs, drilling and well service support equipment.
Hyduke Supply and Service: the Hyduke Supply and Service segment includes the procurement and distribution of spare parts, equipment components, operating supplies and pneumatic controls to the drilling and well service industries, the service and repair of drilling rig, workover rig, service rig and truck mounted equipment, and the inspection and certification of drilling rig and well service equipment.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.