TSX Symbol "BRY"
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Three months ended | Twelve months ended | |||||||||||||
Change | Change | |||||||||||||
(in '000s except per share amounts) | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||
Sales | $ | 21,307 | $ | 27,705 | $ | (6,398) | (23%) | $ | 91,726 | $ | 121,436 | $ | (29,710) | (24%) |
Adjusted EBITDA(1) | (38) | 580 | (618) | (107%) | 2,944 | 3,512 | (568) | (16%) | ||||||
Adjusted EBITDA as a % of revenue | 0% | 2.1% | 3.2% | 2.9% | ||||||||||
Adjusted operating income (1) | 252 | 1,840 | (1,588) | (86%) | 1,727 | 4,213 | (2,486) | (59%) | ||||||
Adjusted net loss (1) | (687) | (657) | (30) | 5% | (1,215) | (515) | (700) | (136%) | ||||||
Net loss | $ | (3,104) | $ | (5,570) | $ | 2,466 | (44%) | $ | (3,656) | $ | (9,355) | $ | 5,699 | 61% |
Diluted per share | ||||||||||||||
Adjusted EBITDA | $ | (0.00) | $ | 0.02 | $ | (0.03) | 107% | $ | 0.12 | $ | 0.15 | $ | (0.02) | 16% |
Adjusted net loss | $ | (0.03) | $ | (0.03) | $ | (0.00) | (5%) | $ | (0.05) | $ | (0.02) | $ | (0.03) | (136%) |
Net loss | $ | (0.13) | $ | (0.23) | $ | 0.10 | 44% | $ | (0.15) | $ | (0.39) | $ | 0.24 | 61% |
Total assets | $ | 45,198 | $ | 71,616 | $ | (26,418) | (37%) | |||||||
Working capital | 15,470 | 17,977 | (2,507) | (14%) | ||||||||||
Long-term liabilities | 8,300 | 8,777 | (477) | (5%) | ||||||||||
Shareholders equity | $ | 15,998 | $ | 20,153 | $ | (4,155) | (21%) |
Key Q4 2019 & year end highlights include:
- Consolidated sales for the three months ended
December 31, 2019 were 23% lower as compared to the same quarter last year. The decrease was the result of a 29% decrease in the number of wells drilled inWestern Canada during the fourth quarter as a result of global economic factors and lack of access to markets. In addition, in the past few quarters,the United States drilling market has experienced a decline in rig activity which resulted in less demand for drilling fluid products in that region. Sales for the year endedDecember 31, 2019 were$91.7 million a 24% decrease year over year; - Adjusted EBITDA for the fourth quarter was
($38) thousand versus$580 thousand in the comparable period in 2018. The decline is mainly due to weaker performance in all divisions with the exception of theUSA Fluids Blending and Packaging Division. - Adjusted operating income was
$252 thousand for the three months endedDecember 31, 2019 compared to income of$1.8 million in the prior year comparable quarter, representing a 86% decrease. Year over year, adjusted operating income is down 59%; Bri-Chem reported an adjusted net loss of$687 thousand or$0.03 diluted loss per share compared to an adjusted net loss of$700 thousand or$0.03 diluted loss per share in Q4 2018. Adjusted net loss for the twelve months endedDecember 31, 2019 was$1.2 million ;- Working capital, as at
December 31, 2019 , was$15.5 million compared to$18.0 million atDecember 31, 2018 , a decrease of 14%. Throughout 2019, management reduced inventory levels given the level of activity negatively impacted by Canadian pipeline constraints and access to markets. Management continued to adjust its infrastructure to coincide with market demands, which included reducing personnel, relocating warehouses to lower overheads and move closer to resource plays and aggressive collection of its accounts receivable. - The Company recognized one-time non-cash assets impairments and restructuring charges of
$2.4 million in 2019 due to uncertainty related to the Coronavirus pandemic, political, regulatory and market access in theNorth America oil and gas industry. This uncertainty has negatively impacted operating and financial outlook for the North American oilfield industry and certain components ofBri-Chem business activities.
Summary for the three and twelve months ended
Adjusted EBITDA was
OUTLOOK
As the Company moved into 2020, it was cautiously optimistic on its business and was seeing signs of increased activity by its customers. However, the recent outbreak of the COVID-19 virus and turmoil in global oil markets have led to a sharp decline in oil prices and are expected to result in lower industry activity levels in the near term. The Company believes these emerging issues will have a negative impact on demand for its product and services and the full extent of these issues are still unfolding and remain uncertain. The Company is reacting quickly to the emerging market challenges and will continue to monitor the markets on a day by day basis. At this stage, it is too early to tell what impact the decline in crude oil prices may have on activity levels in the oil and gas industry in 2020. This will likely result in producers curtailing capital spending which will negatively impact the demand for our products.
Over the long-term, the Company continues to be optimistic about the impact that LNG Canada's
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SOURCE
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