Bri-Chem Announces 2024 Annual and Fourth Quarter Financial Results
Bri-Chem Corp. (TSX: BRY) reported its Q4 2024 financial results, showing significant declines across key metrics. Consolidated sales fell 23% to $20.6 million compared to the same period in 2023, primarily due to decreased US drilling activity.
The company's performance was marked by several challenges: consolidated gross margin decreased by $1.6 million, Adjusted EBITDA declined by $3.1 million, and working capital dropped 72% to $4.5 million from $15.9 million in 2023. The company reported an adjusted net loss of $0.08 per diluted share, compared to earnings of $0.02 per share in Q4 2023.
By segment, US drilling fluids distribution sales decreased 26% to $12 million, Canadian drilling fluids distribution fell to $2 million, while Canadian blending and packaging showed a slight increase to $4.7 million. The company received a waiver from its lender on March 24, 2025, for a covenant breach related to term debt annual fixed charge coverage ratio.
Bri-Chem Corp. (TSX: BRY) ha riportato i risultati finanziari per il quarto trimestre del 2024, mostrando significativi cali in vari indicatori chiave. Le vendite consolidate sono diminuite del 23%, scendendo a 20,6 milioni di dollari rispetto allo stesso periodo del 2023, principalmente a causa della diminuzione dell'attività di perforazione negli Stati Uniti.
Le performance dell'azienda sono state caratterizzate da diverse sfide: il margine lordo consolidato è diminuito di 1,6 milioni di dollari, l'EBITDA rettificato è calato di 3,1 milioni di dollari e il capitale circolante è sceso del 72%, passando a 4,5 milioni di dollari rispetto ai 15,9 milioni del 2023. L'azienda ha registrato una perdita netta rettificata di 0,08 dollari per azione diluita, rispetto a un utile di 0,02 dollari per azione nel quarto trimestre del 2023.
Per segmento, le vendite di distribuzione di fluidi per perforazione negli Stati Uniti sono diminuite del 26%, arrivando a 12 milioni di dollari, mentre la distribuzione di fluidi per perforazione in Canada è scesa a 2 milioni di dollari, mentre la miscelazione e il confezionamento in Canada hanno mostrato un lieve aumento a 4,7 milioni di dollari. L'azienda ha ricevuto una deroga dal proprio prestatore il 24 marzo 2025, per una violazione di covenant relativa al rapporto di copertura dei costi annuali del debito a lungo termine.
Bri-Chem Corp. (TSX: BRY) informó sus resultados financieros del cuarto trimestre de 2024, mostrando disminuciones significativas en métricas clave. Las ventas consolidadas cayeron un 23%, alcanzando 20.6 millones de dólares en comparación con el mismo período de 2023, principalmente debido a la disminución de la actividad de perforación en EE. UU.
El desempeño de la empresa estuvo marcado por varios desafíos: el margen bruto consolidado disminuyó en 1.6 millones de dólares, el EBITDA ajustado cayó en 3.1 millones de dólares y el capital de trabajo se redujo en un 72%, pasando a 4.5 millones de dólares desde los 15.9 millones de dólares en 2023. La empresa reportó una pérdida neta ajustada de 0.08 dólares por acción diluida, en comparación con ganancias de 0.02 dólares por acción en el cuarto trimestre de 2023.
Por segmento, las ventas de distribución de fluidos de perforación en EE. UU. disminuyeron un 26%, alcanzando 12 millones de dólares, la distribución de fluidos de perforación en Canadá cayó a 2 millones de dólares, mientras que la mezcla y el empaquetado en Canadá mostraron un ligero aumento a 4.7 millones de dólares. La empresa recibió una exención de su prestamista el 24 de marzo de 2025, por un incumplimiento de covenants relacionado con el ratio de cobertura de costos fijos anuales de la deuda a largo plazo.
Bri-Chem Corp. (TSX: BRY)는 2024년 4분기 재무 결과를 보고하며 주요 지표에서 상당한 감소를 보였습니다. 통합 매출은 2023년 같은 기간에 비해 23% 감소하여 2,060만 달러에 이르렀으며, 이는 주로 미국의 시추 활동 감소 때문입니다.
회사의 성과는 여러 도전 과제로 특징지어졌습니다: 통합 총 마진은 160만 달러 감소했으며, 조정된 EBITDA는 310만 달러 감소했고, 운전 자본은 72% 감소하여 2023년 1,590만 달러에서 450만 달러로 떨어졌습니다. 회사는 조정된 순손실이 희석 주당 0.08달러로 보고되었으며, 이는 2023년 4분기 주당 0.02달러의 이익과 비교됩니다.
세부 부문별로, 미국 시추 유체 유통 매출은 26% 감소하여 1,200만 달러에 이르렀고, 캐나다 시추 유체 유통은 200만 달러로 감소했으며, 캐나다의 혼합 및 포장은 470만 달러로 소폭 증가했습니다. 회사는 2025년 3월 24일에 장기 부채의 연간 고정 비용 커버리지 비율과 관련된 약정 위반에 대해 대출자로부터 면제를 받았습니다.
Bri-Chem Corp. (TSX: BRY) a annoncé ses résultats financiers pour le quatrième trimestre 2024, montrant des baisses significatives dans plusieurs indicateurs clés. Les ventes consolidées ont chuté de 23%, atteignant 20,6 millions de dollars par rapport à la même période en 2023, principalement en raison de la baisse de l'activité de forage aux États-Unis.
La performance de l'entreprise a été marquée par plusieurs défis : la marge brute consolidée a diminué de 1,6 million de dollars, l'EBITDA ajusté a baissé de 3,1 millions de dollars et le fonds de roulement a chuté de 72%, passant à 4,5 millions de dollars contre 15,9 millions de dollars en 2023. L'entreprise a enregistré une perte nette ajustée de 0,08 dollar par action diluée, contre un bénéfice de 0,02 dollar par action au quatrième trimestre 2023.
Par segment, les ventes de distribution de fluides de forage aux États-Unis ont diminué de 26%, atteignant 12 millions de dollars, la distribution de fluides de forage au Canada est tombée à 2 millions de dollars, tandis que le mélange et l'emballage au Canada ont montré une légère augmentation à 4,7 millions de dollars. L'entreprise a reçu une dérogation de son prêteur le 24 mars 2025, pour une violation d'un engagement lié au ratio de couverture des frais fixes annuels de la dette à long terme.
Bri-Chem Corp. (TSX: BRY) hat seine finanziellen Ergebnisse für das 4. Quartal 2024 veröffentlicht, die signifikante Rückgänge bei wichtigen Kennzahlen zeigen. Die konsolidierten Verkaufszahlen sanken um 23% auf 20,6 Millionen Dollar im Vergleich zum gleichen Zeitraum 2023, hauptsächlich aufgrund der verringerten Bohraktivitäten in den USA.
Die Leistung des Unternehmens war von mehreren Herausforderungen geprägt: Die konsolidierte Bruttomarge fiel um 1,6 Millionen Dollar, das bereinigte EBITDA sank um 3,1 Millionen Dollar und das Working Capital fiel um 72% auf 4,5 Millionen Dollar von 15,9 Millionen Dollar im Jahr 2023. Das Unternehmen berichtete über einen bereinigten Nettoverlust von 0,08 Dollar pro verwässerter Aktie, verglichen mit einem Gewinn von 0,02 Dollar pro Aktie im 4. Quartal 2023.
Nach Segmenten betrachtet, sanken die Verkaufszahlen im Bereich der Vertriebsflüssigkeiten für Bohrungen in den USA um 26% auf 12 Millionen Dollar, die Vertriebsflüssigkeiten für Bohrungen in Kanada fielen auf 2 Millionen Dollar, während die Mischung und Verpackung in Kanada einen leichten Anstieg auf 4,7 Millionen Dollar zeigten. Das Unternehmen erhielt am 24. März 2025 eine Ausnahmegenehmigung von seinem Kreditgeber wegen eines Vertragsbruchs in Bezug auf das Verhältnis der jährlichen Fixkostenabdeckung für langfristige Schulden.
- Canadian blending and packaging division sales increased by $360,000 due to higher cementing activities
- Company secured waiver from lender for covenant breach
- Consolidated sales decreased 23% to $20.6 million
- Operating loss of $1.5 million compared to $1 million earnings in prior year
- Adjusted EBITDA turned negative at -$1.2 million from positive $1.9 million
- Working capital decreased 72% to $4.5 million
- Net loss of $0.08 per share versus $0.02 earnings per share
- US drilling fluids distribution sales declined 26%
- Covenant breach on term debt annual fixed charge coverage ratio
- $1.1 million bad debt expense write-off
Edmonton, Alberta--(Newsfile Corp. - March 31, 2025) - Bri-Chem Corp. (TSX: BRY) ("Bri-Chem" or "Company"), a leading North American oilfield chemical distribution and blending company, is pleased to announce its 2024 annual and fourth quarter financial results.
| Three months ended | Twelve months ended | |||||||||||||||||||||||
| December 31 | Change | December 31 | Change | |||||||||||||||||||||
| (in '000s except per share amounts) | 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | ||||||||||||||||
| Financial performance | ||||||||||||||||||||||||
| Sales | $ | 20,618 | $ | 26,775 | $ | (6,157 | ) | ( | $ | 83,072 | $ | 106,035 | $ | (22,964 | ) | ( | ||||||||
| Adjusted EBITDA(1) | (1,174 | ) | 1,938 | (3,112 | ) | ( | (323 | ) | 6,576 | (6,900 | ) | ( | ||||||||||||
| As a % of revenue | ( | |||||||||||||||||||||||
| Operating (loss) / earnings | (1,525 | ) | 1,034 | (2,559 | ) | ( | (816 | ) | 4,731 | (5,547 | ) | ( | ||||||||||||
| Adjusted net (loss) / earnings (1) | (2,222 | ) | 552 | (2,774 | ) | ( | (5,121 | ) | 1,364 | (6,485 | ) | ( | ||||||||||||
| Net (loss) / earnings | $ | (1,589 | ) | $ | 467 | $ | (2,056 | ) | ( | $ | (3,851 | ) | $ | 909 | $ | (4,761 | ) | ( | ||||||
| Per diluted share | ||||||||||||||||||||||||
| Adjusted EBITDA (1) | $ | (0.04 | ) | $ | 0.07 | $ | (0.11 | ) | ( | $ | (0.01 | ) | $ | 0.25 | $ | (0.26 | ) | ( | ||||||
| Adjusted net (loss) / earnings (1) | $ | (0.08 | ) | $ | 0.02 | $ | (0.10 | ) | ( | $ | (0.19 | ) | $ | 0.05 | $ | (0.24 | ) | ( | ||||||
| Net (loss) / earnings | $ | (0.06 | ) | $ | 0.02 | $ | (0.08 | ) | ( | $ | (0.14 | ) | $ | 0.03 | $ | (0.17 | ) | ( | ||||||
| Financial position | ||||||||||||||||||||||||
| Total assets | $ | 58,166 | $ | 68,372 | $ | (10,206 | ) | ( | ||||||||||||||||
| Working capital | 4,459 | 15,927 | (11,468 | ) | ( | |||||||||||||||||||
| Long-term debt | - | 6,731 | (6,731 | ) | ( | |||||||||||||||||||
| Shareholders equity | $ | 19,608 | $ | 22,542 | $ | (2,935 | ) | ( | ||||||||||||||||
(1) Non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in this press release.
Key Q4 2024 highlights include:
- Consolidated sales for the three months ended December 31, 2024 were
$20.6 million , which is a23% decrease from the prior year. The decrease is primarily due to decreased US drilling activity, driven by a lower average rig count.
- Consolidated gross margin for the three months ended December 31, 2024 decreased by
$1.6 million compared to the same period last year. The gross margin dollar decrease is primarily related to the decrease in sales in the fluid distribution division.
- Adjusted EBITDA for the fourth quarter 2024 decreased by
$3.1 million when compared to the same period in the prior year and operating earnings decreased by$2.6 million for the three months ended December 31, 2024 compared to the prior year due to decreased sales and increased bad debt expense.
- Adjusted net loss per diluted share for the three months ended December 31, 2024 was
$0.08 per share compared to adjusted net earnings of$0.02 per diluted share for same period last year.
- Working capital, as at December 31, 2024, was
$4.5 million compared to$15.9 million at December 31, 2023, a decrease of72% . The decrease in working capital relates to a change in loan classification from long-term liabilities into current liabilities as the company was not in compliance with the term debt annual fixed charge coverage ratio at December 31, 2024. Effective March 24, 2025, the Company received a waiver from the lender for the covenant breach.
Summary for the three months ended December 31, 2024:
Consolidated sales for the three months ended December 31, 2024 were
Bri-Chem's Canadian drilling fluids distribution division generated sales of
Bri-Chem's Canadian blending and packaging division generated sales of
Operating loss for the three months ended December 31, 2024 was
OUTLOOK
The oil and gas industry continues to face a challenging environment marked by volatile commodity prices and restrained growth in North American drilling activity. The consequences of the 2024 presidential election in the US and the related changes in government policies, including potential tariffs on Canadian crude oil and natural gas exports to the US, as well as the impending change in Canadian government policies resulting from a federal election in 2025, creates uncertainty for the Canadian oil and gas industry. The exact duration and range of the potential adverse impacts remains uncertain at this time. Some optimism may arise from the US tariff threats, as it may help realign the Canadian provinces on the importance of independence from the US, which could result in more energy projects receiving approval in Canada. Looking ahead, if commodity prices stabilize for an extended period, we expect our US customers to strengthen their balance sheets, which would likely lead to increased drilling activity. Our approach will be to remain adaptable, closely monitoring market conditions, and adjusting our strategies accordingly. We will continue to focus on mitigating risks while also seeking out new opportunities that could arise from the evolving landscape.
About Bri-Chem
Bri-Chem has established itself, through a combination of strategic acquisitions and organic growth, as the North American industry leader for wholesale distribution and blending of oilfield drilling, completion, stimulation and production chemical fluids. We sell, blend, package and distribute a full range of drilling fluid products from 25 strategically located warehouses throughout Canada and the United States. Additional information about Bri-Chem is available at www.sedarplus.ca or at Bri-Chem's website at www.brichem.com.
To receive Bri-Chem news updates send your email to ir@brichem.com.
For further information, please contact:
Tony Pagnucco CPA, CA
Bri-Chem Corp.
CFO
T: (780) 571-8587
E: tpagnucco@brichem.com
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information or forward-looking statements (collectively, "forward-looking statements"). These statements relate to future events or future performance. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking statements and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially.
Although the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. By their nature, such forward-looking statements are subject to various risks and uncertainties, which could cause actual results to differ materially from the anticipated results or expectations expressed herein. These risks and uncertainties, include, but are not limited to general economic conditions, prevailing and anticipated industry conditions, access to debt and equity financing on acceptable terms, levels and volatility of commodity prices, maintained demand for drilling fluids, market forces, ability to achieve geographic expansion through new warehouse locations, anticipated impact of new warehouse locations, ability to obtain equipment from suppliers, ability to maintain negotiating power with suppliers and customers, ability to obtain and retain skilled personnel, competition from other industry participants and regulatory conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release or otherwise. Except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Non-GAAP Financial Measures
Bri-Chem uses certain measures in this press release which do not have any standardized meaning as prescribed by International Financial Reporting Standards ("IFRS"). These measures, which are derived from information reported in the Company's financial statements, may not be comparable to similar measures presented by other reporting issuers. Investors are cautioned that these measures should not be construed as an alternative to net earnings and operating earnings determined in accordance with IFRS, and these measures should not be considered to be more meaningful than IFRS measures in evaluating the Company's performance. These measures have been described and presented in this press release in order to provide shareholders and potential investors with additional information regarding the Company. These Non-IFRS measures are identified and defined as follows:
Adjusted Net Earnings, Adjusted Net Earnings per share, Adjusted EBITDA, and Adjusted EBITDA per share.
Adjusted Net Earnings are defined as net earnings/(loss) before non-recurring events, net of corporate income taxes ("Adjusted Net Earnings"). Adjusted Net Earnings per share is defined as Adjusted Net Earnings divided by diluted weighted average common shares. Management believes that in addition to net earnings, Adjusted Net Earnings and Adjusted Net Earnings per share are useful supplemental measures that represent normalized net earnings from the business so that financial statement users can make insightful comparisons between current periods and historical results.
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, impairment charges, share-based payments, and non-recurring events ("Adjusted EBITDA"). Adjusted EBITDA per share is defined as Adjusted EBITDA divided by diluted weighted average common shares. Management believes that in addition to net earnings, Adjusted EBITDA and Adjusted EBITDA per share are useful supplemental measures of operating performance that normalize financing, depreciation, income tax, and other non-recurring charges which are not controlled at the operating level. The following table provides a reconciliation of Net Earnings under IFRS, as disclosed in the interim financial statements, to Adjusted Net Earnings and Adjusted EBITDA:
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| December 31 | December 31 | |||||||||||
| (in 000's) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net (loss) / earnings | $ | (1,589 | ) | $ | 467 | $ | (3,851 | ) | $ | 909 | ||
| Less: | ||||||||||||
| Deferred tax (credit) / expense | (633 | ) | 85 | (1,270 | ) | 454 | ||||||
| Adjusted net (loss) / earnings | (2,222 | ) | 552 | (5,121 | ) | 1,363 | ||||||
| Add: | ||||||||||||
| Financing costs | 704 | 1,001 | 3,373 | 3,881 | ||||||||
| Income tax expense / (recovery) | 31 | 52 | 147 | 43 | ||||||||
| Depreciation and amortization | 313 | 333 | 1,278 | 1,288 | ||||||||
| Adjusted EBITDA | $ | (1,174 | ) | $ | 1,938 | $ | (323 | ) | $ | 6,576 | ||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246850
FAQ
What caused Bri-Chem's (BRYFF) revenue decline in Q4 2024?
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