CALGARY, Alberta, May 30, 2019 (GLOBE NEWSWIRE) — CORDY OILFIELD SERVICES INC. (the “Corporation” or “Cordy”) (CKK: TSX-V) released today its first quarter 2019 results.
|Three months ended March 31,|
|($ 000’s)||2019||2018||($) Change|
|Direct operating expenses|
|General and administrative expenses|
|Gain on disposal||–||(18||)||18|
|Earnings before tax||291||195||96|
|Income tax expense||–||–||–|
FIRST QUARTER ENDED MARCH 31, 2019
For the three month period ended March 31, 2019, Cordy’s consolidated revenues increased by one percent, from the comparative period in 2018. Cordy’s consolidated operating earnings increased $0.2 million or 26 percent from the comparative period. Cordy’s net income was $0.3 million for the three months ended March 31, 2019, as compared to $0.2 million for the three months ended March 31, 2018, representing a 49% increase over the prior period. Cordy’s improving results and cost conscious culture continue to improve operating results.
The Environmental Services segment saw a marginal increase in revenue for the three month period ended March 31, 2019, from the comparative period in 2018. Cordy’s diversification strategy is coming to fruition, as Cordy continues to see expansion in municipal and industrial demand, this increase has been partially offset by decrease demand from Cordy’s oilfield customers. Cordy’s revenue consisted of 57 percent industrial and municipal (2018 – 36 percent) and 43 percent oilfield (2018 – 54 percent). As a percentage of revenue, operating earnings was 23 percent in 2019 as compared to 18 percent in 2018.
Cordy’s results for the current quarter were consistent with our expectations and demonstrate Cordy’s efforts focusing on diversification are beginning to yield results. In the quarter Cordy benefited directly from increased activity from our non oilfield customers, this increase was offset by decreased demand from our oil and gas customers.
Cordy anticipates the year over year trend experienced in 2018 to carry into 2019. Cordy expects 2019 will continue to surpass 2018 numbers, while management continues to scrutinize costs, improve margins and adjust the equipment fleet. Current trends in the oil and gas sector will continue to be a concern, however Cordy will continue to push for increased market share as our competitors fail to withstand the prolonged downturn. Cordy believes it has positioned itself through its diversified customer base, debt structure, service offerings and lean cost base to be a major player in the municipal, industrial and oilfield market for the foreseeable future.
While remaining focused on operational and financial performance, Cordy will continue to seek out acquisitions and or consolidation opportunities that complement its diversification strategy and provide platforms for organic growth. Cordy is actively reviewing numerous opportunities, however Cordy will remain committed to ensuring any acquisition meets our strategic initiatives and financial thresholds. Cordy will continue to consider multiple avenues to reach strategic objectives and provide shareholder value.
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Chief Executive Officer
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.
This News Release contains certain statements that constitute forward-looking statements. These statements relate to future events or the Corporation’s future performance. All statements, other than statements of historical fact, that address activities, events or developments that the Corporation or a third party expects or anticipates will or may occur in the future, are forward-looking statements. These include the Corporation’s future growth, results of operations, performance and business prospects and opportunities; prevailing economic conditions; commodity prices; sourcing, pricing and availability of raw materials, components and parts, equipment, suppliers, facilities and skilled personnel; dependence on major customers; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; regional competition; and other factors, many of which are beyond the Corporation’s control. These other factors include future prices of oil and natural gas and oil and natural gas industry activity, including the effect of changes in commodity prices on oil and natural gas exploration and development activity, the ability to complete strategic acquisitions and realize the anticipated benefits of any acquisitions that are completed, the Corporation’s outlook regarding the competitive environment it operates in, and the assumptions underlying any of the foregoing. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Corporation’s control, including those discussed under “Risks and Uncertainties” and elsewhere in this News Release, that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those 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 News Release should not be unduly relied upon. These statements speak only as of the date of this News Release. The Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws. The forward-looking statements contained in this News Release are expressly qualified by this cautionary statement.