Bri-Chem Announces 2025 First Quarter Financial Results
- Adjusted EBITDA improved to $465,000 (2% of revenue) from -$443,000 (-2%) in Q1 2024 - Operating loss decreased to $23,000 from $144,000 - Net loss improved to $412,000 ($0.02 per share) from $1.5 million ($0.06 per share) - Working capital declined 29% to $10.3 million from $14.7 million
The revenue decline was primarily attributed to decreased US drilling activity, with US fluid distribution sales down 15%. Canadian operations remained relatively stable, while US blending and packaging sales increased by $552,000. The company maintains a cautious outlook due to commodity price volatility and political uncertainty in both US and Canadian markets.
- L'EBITDA rettificato è migliorato a 465.000 dollari (2% dei ricavi) rispetto a -443.000 dollari (-2%) nel primo trimestre 2024
- La perdita operativa è diminuita a 23.000 dollari da 144.000 dollari
- La perdita netta si è ridotta a 412.000 dollari (0,02 dollari per azione) da 1,5 milioni di dollari (0,06 dollari per azione)
- Il capitale circolante è sceso del 29% a 10,3 milioni di dollari da 14,7 milioni
Il calo dei ricavi è stato principalmente attribuito alla diminuzione dell'attività di perforazione negli Stati Uniti, con vendite di distribuzione di fluidi statunitensi in calo del 15%. Le operazioni canadesi sono rimaste relativamente stabili, mentre le vendite di miscelazione e confezionamento negli Stati Uniti sono aumentate di 552.000 dollari. La società mantiene una prospettiva prudente a causa della volatilità dei prezzi delle materie prime e dell'incertezza politica nei mercati statunitense e canadese.
- El EBITDA ajustado mejoró a 465,000 dólares (2% de los ingresos) desde -443,000 dólares (-2%) en el primer trimestre de 2024
- La pérdida operativa se redujo a 23,000 dólares desde 144,000 dólares
- La pérdida neta mejoró a 412,000 dólares (0,02 dólares por acción) desde 1,5 millones de dólares (0,06 dólares por acción)
- El capital de trabajo disminuyó un 29% a 10,3 millones de dólares desde 14,7 millones
La disminución de ingresos se atribuyó principalmente a la reducción de la actividad de perforación en EE. UU., con ventas de distribución de fluidos en EE. UU. bajando un 15%. Las operaciones en Canadá se mantuvieron relativamente estables, mientras que las ventas de mezcla y envasado en EE. UU. aumentaron en 552,000 dólares. La compañía mantiene una perspectiva cautelosa debido a la volatilidad de los precios de las materias primas y la incertidumbre política en los mercados de EE. UU. y Canadá.
- 조정 EBITDA는 2024년 1분기 -44만 3천 달러(-2%)에서 46만 5천 달러(매출의 2%)로 개선
- 영업손실은 14만 4천 달러에서 2만 3천 달러로 감소
- 순손실은 150만 달러(주당 0.06달러)에서 41만 2천 달러(주당 0.02달러)로 개선
- 운전자본은 1,470만 달러에서 1,030만 달러로 29% 감소
매출 감소는 주로 미국 내 시추 활동 감소에 기인하며, 미국 내 유체 유통 매출은 15% 감소했습니다. 캐나다 사업은 비교적 안정적이었으며, 미국 내 혼합 및 포장 매출은 55만 2천 달러 증가했습니다. 회사는 원자재 가격 변동성과 미국 및 캐나다 시장의 정치적 불확실성으로 인해 신중한 전망을 유지하고 있습니다.
- L'EBITDA ajusté est passé à 465 000 dollars (2 % du chiffre d'affaires) contre -443 000 dollars (-2 %) au premier trimestre 2024
- La perte d'exploitation a diminué à 23 000 dollars contre 144 000 dollars
- La perte nette s'est améliorée à 412 000 dollars (0,02 dollar par action) contre 1,5 million de dollars (0,06 dollar par action)
- Le fonds de roulement a diminué de 29 % à 10,3 millions de dollars contre 14,7 millions
La baisse du chiffre d'affaires est principalement due à la diminution de l'activité de forage aux États-Unis, avec une baisse de 15 % des ventes de distribution de fluides aux États-Unis. Les opérations canadiennes sont restées relativement stables, tandis que les ventes de mélange et d'emballage aux États-Unis ont augmenté de 552 000 dollars. L'entreprise adopte une perspective prudente en raison de la volatilité des prix des matières premières et de l'incertitude politique sur les marchés américains et canadiens.
- Das bereinigte EBITDA verbesserte sich auf 465.000 US-Dollar (2 % des Umsatzes) gegenüber -443.000 US-Dollar (-2 %) im ersten Quartal 2024
- Der Betriebsverlust verringerte sich auf 23.000 US-Dollar von 144.000 US-Dollar
- Der Nettoverlust verbesserte sich auf 412.000 US-Dollar (0,02 US-Dollar pro Aktie) von 1,5 Millionen US-Dollar (0,06 US-Dollar pro Aktie)
- Das Working Capital sank um 29 % auf 10,3 Millionen US-Dollar von 14,7 Millionen
Der Umsatzrückgang wurde hauptsächlich auf die geringere Bohrtätigkeit in den USA zurückgeführt, wobei der Verkauf von Fluiden in den USA um 15 % zurückging. Die kanadischen Aktivitäten blieben relativ stabil, während die Umsätze im US-amerikanischen Misch- und Verpackungsgeschäft um 552.000 US-Dollar zunahmen. Das Unternehmen behält aufgrund der Volatilität der Rohstoffpreise und der politischen Unsicherheiten in den US- und kanadischen Märkten eine vorsichtige Prognose bei.
- Adjusted EBITDA improved significantly by $908,000 to $465,000 in Q1 2025
- Operating loss decreased by 84% to $23,000 from $144,000
- Net loss improved by 73% to $412,000 from $1.5 million
- Long-term debt reduced by 3% to $6.49 million
- Consolidated sales declined 7% to $19.9 million
- Working capital decreased 29% to $10.3 million
- US drilling fluids distribution sales dropped 15%
- Total assets decreased 18% to $54.2 million
- Shareholders equity declined 13% to $19.0 million
Edmonton, Alberta--(Newsfile Corp. - May 15, 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 2025 first quarter financial results.
| Three months ended | ||||||||||||
| March 31 | Change | |||||||||||
| (in '000s except per share amounts) | 2025 | 2024 | $ | % | ||||||||
| Financial performance | ||||||||||||
| Sales | $ | 19,909 | $ | 21,371 | $ | (1,462 | ) | ( | ||||
| Adjusted EBITDA(1) | 465 | (443 | ) | 908 | ( | |||||||
| As a % of revenue | - | |||||||||||
| Operating (loss) | (23 | ) | (144 | ) | 121 | ( | ||||||
| Adjusted net (loss) (1) | (618 | ) | (1,767 | ) | 1,149 | ( | ||||||
| Net (loss) | $ | (412 | ) | $ | (1,506 | ) | $ | 1,094 | ( | |||
| Per diluted share | ||||||||||||
| Adjusted EBITDA (1) | $ | 0.02 | $ | (0.02 | ) | $ | 0.04 | ( | ||||
| Adjusted net (loss) (1) | $ | (0.02 | ) | $ | (0.07 | ) | $ | 0.05 | ( | |||
| Net (loss) | $ | (0.02 | ) | $ | (0.06 | ) | $ | 0.04 | ( | |||
| Financial position | ||||||||||||
| Total assets | $ | 54,247 | $ | 66,224 | $ | (11,977 | ) | ( | ||||
| Working capital | 10,341 | 14,666 | (4,324 | ) | ( | |||||||
| Long-term debt | 6,493 | 6,668 | (174 | ) | ( | |||||||
| Shareholders equity | $ | 19,041 | $ | 21,809 | $ | (2,767 | ) | ( | ||||
(1) Non-GAAP financial measure. Refer to "Non-GAAP Financial Measures" in this press release.
Key Q1 2025 highlights include:
- Consolidated sales for the three months ended March 31, 2025 were
$19.9 million , which is a7% 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 March 31, 2025 decreased by
$385 thousand 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 first quarter 2025 increased by
$908 thousand when compared to the same period in the prior year and operating earnings increased by$121 thousand for the three months ended March 31, 2025 compared to the prior year due to an increase in foreign exchange gain.
- Adjusted net loss per diluted share for the three months ended March 31, 2025 was
$0.02 per share compared to adjusted net loss of$0.07 per diluted share for same period last year.
- Working capital, as at March 31, 2025, was
$10.3 million compared to$14.7 million at March 31, 2024, a decrease of29% . The decrease in working capital relates to a significant decrease in accounts receivables and inventory which was offset by increased bank indebtedness.
Summary for the three months ended March 31, 2025:
Consolidated sales for the three months ended March 31, 2025 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 March 31, 2025 was
OUTLOOK
During the first quarter of 2025, we observed continued volatility in commodity prices, alongside a restrained pace of new drilling activity across North America. These market dynamics, combined with the political and regulatory uncertainty stemming from both U.S. and Canadian election cycles, have contributed to a cautious outlook for the near term.
The outcome of the 2024 U.S. Presidential election has introduced policy shifts that has affected cross-border trade, including tariffs on Canadian crude oil and natural gas exports to the United States. Amidst this uncertainty, there are emerging signals Canada may strengthen collaboration on energy independence and infrastructure development which could pave the way for accelerated approvals of domestic projects and create longer-term growth prospects within Canada.
Looking ahead to the remainder of 2025, our rig count expectations reflect a cautiously optimistic view, contingent on sustained commodity pricing and improving customer balance sheets. Our approach remains focused on agility and resilience. We will continue to closely monitor macroeconomic, geopolitical, and industry-specific trends and adjust our strategies accordingly. Capital discipline, operational efficiency, and risk mitigation will remain our top priorities. At the same time, we will remain alert to strategic opportunities that could position us for new growth as the industry navigates this transitional period.
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 Net (Loss) 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 Earnings"). Adjusted Net (Loss) 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 (loss) 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:
| Three months ended | ||||||
| March 31 | ||||||
| (in 000's) | 2025 | 2024 | ||||
| Net (loss) / earnings | $ | (412 | ) | $ | (1,506 | ) |
| Less: | ||||||
| Deferred tax (recovery) | (206 | ) | (261 | ) | ||
| Adjusted net (loss) / earnings | (618 | ) | (1,767 | ) | ||
| Add: | ||||||
| Financing costs | 726 | 985 | ||||
| Income tax expense | 31 | 7 | ||||
| Depreciation and amortization | 328 | 332 | ||||
| Adjusted EBITDA | $ | 465 | $ | (443 | ) | |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/252272
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