Bri-Chem Announces 2024 Third Quarter Financial Results
Bri-Chem Corp reported Q3 2024 financial results showing significant declines. Sales decreased 18% to $22 million compared to $26.8 million in Q3 2023, primarily due to reduced US drilling activities. Adjusted EBITDA fell 44% to $587,000, while operating earnings dropped 80% to $234,000. The company reported an adjusted net loss of $549,000 ($0.02 per share) compared to a loss of $293,000 ($0.01 per share) in Q3 2023. Working capital decreased 14% to $13.7 million. The US drilling fluids division saw a 24% sales decline, while Canadian blending and packaging division increased sales by $682,000.
Bri-Chem Corp ha riportato i risultati finanziari del terzo trimestre 2024, mostrando significativi cali. Le vendite sono diminuite del 18%, scendendo a 22 milioni di dollari rispetto ai 26,8 milioni nel terzo trimestre 2023, principalmente a causa della riduzione delle attività di perforazione negli Stati Uniti. EBITDA rettificato è calato del 44% a 587.000 dollari, mentre gli utili operativi sono scesi dell'80% a 234.000 dollari. L'azienda ha segnalato una perdita netta rettificata di 549.000 dollari (0,02 dollari per azione) rispetto a una perdita di 293.000 dollari (0,01 dollari per azione) nel terzo trimestre 2023. Il capitale circolante è diminuito del 14% a 13,7 milioni di dollari. La divisione dei fluidi di perforazione negli Stati Uniti ha registrato un calo delle vendite del 24%, mentre la divisione canadese di miscelazione e imballaggio ha visto un aumento delle vendite di 682.000 dollari.
Bri-Chem Corp reportó los resultados financieros del tercer trimestre de 2024, mostrando declives significativos. Las ventas disminuyeron un 18% a 22 millones de dólares en comparación con 26,8 millones en el tercer trimestre de 2023, principalmente debido a la reducción de las actividades de perforación en EE. UU. EBITDA ajustado cayó un 44% a 587,000 dólares, mientras que las ganancias operativas cayeron un 80% a 234,000 dólares. La compañía reportó una pérdida neta ajustada de 549,000 dólares (0,02 dólares por acción) en comparación con una pérdida de 293,000 dólares (0,01 dólares por acción) en el tercer trimestre de 2023. El capital de trabajo disminuyó un 14% a 13,7 millones de dólares. La división de fluidos de perforación en EE. UU. vio una disminución del 24% en ventas, mientras que la división canadiense de mezcla y empaquetado aumentó sus ventas en 682,000 dólares.
Bri-Chem Corp는 2024년 3분기 재무 결과를 보고하며 상당한 감소세를 나타냈습니다. 매출은 18% 감소하여 2260만 달러로, 2023년 3분기의 2680만 달러와 비교됩니다. 이는 주로 미국의 시추 활동 감소 때문입니다. 조정된 EBITDA는 44% 하락하여 58만 7000달러에 이르렀고, 운영 수익은 80% 감소하여 23만 4000달러였습니다. 회사는 2023년 3분기의 29만 3000달러(주당 0.01달러) 손실에 비해 조정된 순손실이 54만 9000달러(주당 0.02달러)라고 보고했습니다. 운전 자본은 14% 감소하여 1370만 달러가 되었습니다. 미국 시추 유체 부문은 24%의 매출 감소를 경험했고, 캐나다 혼합 및 포장 부문은 68만 2000달러 증가했습니다.
Bri-Chem Corp a annoncé les résultats financiers du troisième trimestre 2024, montrant des baisses significatives. Les ventes ont diminué de 18% pour atteindre 22 millions de dollars, contre 26,8 millions de dollars au troisième trimestre 2023, principalement en raison de la réduction des activités de forage aux États-Unis. EBITDA ajusté a chuté de 44% pour s'établir à 587 000 dollars, tandis que les bénéfices d'exploitation ont chuté de 80% à 234 000 dollars. L'entreprise a déclaré une perte nette ajustée de 549 000 dollars (0,02 dollar par action) contre une perte de 293 000 dollars (0,01 dollar par action) au troisième trimestre 2023. Le fonds de roulement a diminué de 14% pour atteindre 13,7 millions de dollars. La division des fluides de forage aux États-Unis a connu une baisse des ventes de 24%, tandis que la division canadienne de mélange et d'emballage a augmenté ses ventes de 682 000 dollars.
Bri-Chem Corp gab die finanziellen Ergebnisse des dritten Quartals 2024 bekannt, die erhebliche Rückgänge zeigen. Die Verkäufe fielen um 18% auf 22 Millionen Dollar im Vergleich zu 26,8 Millionen Dollar im dritten Quartal 2023, was hauptsächlich auf reduzierte Bohraktivitäten in den USA zurückzuführen ist. Bereinigtes EBITDA fiel um 44% auf 587.000 Dollar, während die Betriebserträge um 80% auf 234.000 Dollar sanken. Das Unternehmen meldete einen bereinigten Nettoverlust von 549.000 Dollar (0,02 Dollar pro Aktie) im Vergleich zu einem Verlust von 293.000 Dollar (0,01 Dollar pro Aktie) im dritten Quartal 2023. Das working capital sank um 14% auf 13,7 Millionen Dollar. Die US-Division für Bohrflüssigkeiten verzeichnete einen Verkaufsrückgang von 24%, während die kanadische Misch- und Verpackungsdivision die Verkäufe um 682.000 Dollar steigern konnte.
- Canadian blending and packaging division sales increased by $682,000 compared to Q3 2023
- Canadian drilling rig count increased 10% compared to same period last year
- Long-term debt decreased by 3% to $6,564,000
- Overall sales decreased 18% to $22 million in Q3 2024
- Adjusted EBITDA declined 44% to $587,000
- Operating earnings fell 80% to $234,000
- US drilling fluids division sales dropped 24%
- Working capital decreased 14% to $13.7 million
- Adjusted net loss increased to $549,000 from $293,000 in Q3 2023
Edmonton, Alberta--(Newsfile Corp. - November 14, 2024) - 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 third quarter financial results.
| Three months ended | Nine months ended | ||||||||||||||||||||||||||
| September 30 | Change | September 30 | Change | ||||||||||||||||||||||||
| (in '000s except per share amounts) | 2024 | 2023 | $ | % | 2024 | 2023 | $ | % | |||||||||||||||||||
| Financial performance | |||||||||||||||||||||||||||
| Sales | $ | 21,975 | $ | 26,830 | $ | (4,855) | ( | $ | 62,452 | $ | 79,260 | $ | (16,808) | ( | |||||||||||||
| Adjusted EBITDA(1) | 587 | 1,051 | (464) | ( | 851 | 4,638 | (3,788) | ( | |||||||||||||||||||
| As a % of revenue | |||||||||||||||||||||||||||
| Operating earnings | 234 | 1,185 | (951) | ( | 710 | 3,698 | (2,988) | ( | |||||||||||||||||||
| Adjusted net (loss) / earnings (1) | (549) | (293) | (256) | (2,900) | 812 | (3,712) | ( | ||||||||||||||||||||
| Net (loss) / earnings | $ | (269) | $ | (376) | $ 107 | ( | $ | (2,263) | $ | 442 | $ | (2,705) | ( | ||||||||||||||
| Per diluted share | |||||||||||||||||||||||||||
| Adjusted EBITDA (1) | $ | 0.02 | $ | 0.04 | $ | (0.02) | ( | $ | 0.03 | $ | 0.17 | $ | (0.14) | ( | |||||||||||||
| Adjusted net (loss) / earnings (1) | $ | (0.02) | $ | (0.01) | $ | (0.01) | $ | (0.11) | $ | 0.03 | $ | (0.14) | ( | ||||||||||||||
| Net (loss) / earnings | $ | (0.01) | $ | (0.01) | $ - | $ | (0.09) | $ | 0.02 | $ | (0.11) | ( | |||||||||||||||
| Financial position | |||||||||||||||||||||||||||
| Total assets | $ | 57,101 | $ | 70,532 | $ | (13,431) | ( | ||||||||||||||||||||
| Working capital | 13,740 | 16,012 | (2,271) | ( | |||||||||||||||||||||||
| Long-term debt | 6,564 | 6,771 | (208) | ( | |||||||||||||||||||||||
| Shareholders equity | $ | 21,248 | $ | 22,780 | $ | (1,532) | ( | ||||||||||||||||||||
(1) Non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in this press release.
Key Q3 2024 highlights include:
- Consolidated sales for the three months ended September 30, 2024 were
$22 million , which is an18% decrease from the prior year. The decrease is primarily due to decreased US drilling activities, driven by a lower average rig count.
- Consolidated gross margin for the three months ended September 30, 2024 decreased by
$1.1 million compared to the same period last year. The gross margin dollar decrease is primarily related to the decrease in sales in the US divisions.
- Adjusted EBITDA for the third quarter 2024 decreased by
$464 thousand when compared to the same period in the prior year and operating earnings decreased by$951 thousand for the three months ended September 30, 2024 compared to the prior year.
- Adjusted net loss per diluted share for the three months ended September 30, 2024 was
$0.02 per share compared to adjusted net loss of$0.01 per diluted share for same period last year.
- Working capital, as at September 30, 2024, was
$13.7 million compared to$16 million at September 30, 2023, a decrease of14% . The decrease in working capital relates to an increase in accounts payable. Decreases in accounts receivable and inventory were offset by a decrease in bank indebtedness.
Summary for the three months ended September 30, 2024:
Consolidated sales for the three months ended September 30, 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 earnings for the three months ended September 30, 2024 was
OUTLOOK
In the near term, the main challenges facing the oil and gas industry are volatile commodity prices and the restrained growth in USA drilling activity due to a preference of major oil and gas companies returning cash to shareholders rather than focusing on growing production. If commodity prices stabilize for an extended period, then we expect customers to strengthen their balance sheets which in turn will increase new drilling activity. As we move into fiscal 2025, we remain optimistic about our outlook given the recent US election results and the prospect for more favorable oil and gas drilling policies. We will continue to navigate current industry challenges, and will closely monitor future market conditions and adjust our strategies as necessary to mitigate risks and explore new opportunities.
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 (Loss) Earnings, Adjusted (Loss) Net Earnings per share, Adjusted EBITDA, and Adjusted EBITDA per share.
Adjusted Net (Loss) Earnings are defined as net earnings/(loss) before non-recurring events, net of corporate income taxes ("Adjusted Net (Loss) Earnings"). Adjusted Net Earnings per share is defined as Adjusted Net (Loss) Earnings divided by diluted weighted average common shares. Management believes that in addition to net earnings, Adjusted Net (Loss) Earnings and Adjusted Net (Loss) 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 (Loss) Earnings under IFRS, as disclosed in the interim financial statements, to Adjusted Net Earnings and Adjusted EBITDA:
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| September 30 | September 30 | ||||||||||||||
| (in 000's) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net (loss) / earnings | $ | (269) | $ | (376) | $ | (2,263) | $ | 442 | |||||||
| Less: | |||||||||||||||
| Deferred tax (credit) / expense | (280) | 83 | (637) | 369 | |||||||||||
| Adjusted net (loss) / earnings | (549) | (293) | (2,900) | 812 | |||||||||||
| Add: | |||||||||||||||
| Financing costs | 788 | 1,005 | 2,670 | 2,880 | |||||||||||
| Income tax expense / (recovery) | 41 | 19 | 116 | (9) | |||||||||||
| Depreciation and amortization | 307 | 320 | 965 | 955 | |||||||||||
| Adjusted EBITDA | $ | 587 | $ | 1,051 | $ | 851 | $ | 4,638 |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230013
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