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ESTec announces year end results for fiscal
2002
- A successful year of growth: ESTec introduces
new Top Drive, diversifies operations with the addition of rental
units and increases revenues by 55% -
ESTec Systems Corp. (CDNX: ESE, www.estec.ca)
today announced financial results for its 2002 fiscal year, ended
June 30, 2002. The Company has performed remarkably well, and has
successfully achieved its primary 2002 goals of introducing its
new IntegraLine Top Drive and diversifying its revenue sources.
This year was an outstanding year for ESTec, one that has set the
stage for a breakthrough year in 2003 and well beyond," said
Mr. Anthony Nelson, President and CEO of ESTec Systems. "Our
founding division, Allan R. Nelson Engineering (1997) Inc., has
continued to be profitable. In turn, this has enabled us to fund
expansion of our engineering business, launch our IntegraLine 150iH
Top Drive, and fund continuing research in the software division
of ESTec Systems, Inc."
Concluded Mr. Nelson, "We are very pleased with our financial
results and that we were able to deliver substantial shareholder
value. While engineering will remain a core function of our business,
our manufacturing division may soon supersede it at the center of
our investments, developments, and marketing, and may well become
the chief contributor of sales, income, and profitability for the
Company. ESTec has a proven, diverse business model and we expect
to continue to deliver significant growth next year."
Fiscal 2001/2002
Fiscal 2001/2002 revenues were $2.10 million, representing an increase
of 55.2% over revenues of $1.35 million in fiscal 2000/2001. Increased
revenues, coupled with the required manufacturing expenses associated
with the launch of the 150iH Top Drive, reduced net earnings to
($88,500), or a loss of $(0.008) per share - a $130,900 decline
from 2000 net earnings of $42,400, or US$0.004 per share.
Gross margin for the year ended June 30, 2002 was $1.39 million
(66.3% margin), as compared to $1.24 million (91.6% margin) for
the same period in 2000/2001.
Operational Highlights
Launch of the IntegraLine 150iH Top Drive. During the past
year, the ESTec Oilfield division successfully introduced the IntegraLine
150iH Top Drive. The first unit was sold to Nabors Drilling, one
of the largest drilling companies in the world, and went into service
at the end of February 2002.
First Top Drive Rental Contract. Our second 150iH Top Drive
was unveiled at the Calgary Oil Show in June, resulting in the Company's
first rental contract. This Top Drive entered into service in Texas
in August, and its revenue is expected to add significantly to the
bottom line of next year's financial statements.
Financing Alternatives to Increase Manufacturing Capabilities.
Management has explored, and is currently assessing, several financing
alternatives that would enable the Company to increase the number
of Top Drives in our rental fleet. This is desirable since a Top
Drive rental is capable of generating enough income to recover cost
of manufacturing within the first year. In the short term, we expect
sales of Top Drives to exceed rentals. In the long term, however,
the profitability of rentals promises to be higher than that of
sales.
Expansion of Sales and Marketing Team. In June, ESTec Oilfield
hired Gary Hanke as product line sales manager for the IntegraLine
Top Drives. He successfully closed our first rental contract, and
has generated significant interest in both unit purchases and rentals,
which are expected to close over the coming months.
ESTec Systems Corp: 2001/2002
Fiscal Year End Results
Selected Financial Information
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Twelve Months Ended
June 30, 2002 |
Twelve Months
Ended
June 30, 2001 |
| Revenue |
2,095,590 |
1,349,905 |
| Direct Expenses |
|
|
| Cost of Goods
Sold |
556,554 |
- |
| Travel and
Automotive |
72,297 |
100,521 |
| Consulting |
56,057 |
- |
| Supplies |
21,893 |
13,035 |
| Total Direct Expenses |
706,801 |
113,556 |
| Gross Profit |
1,388,789 |
1,236,349 |
| Selling, General and
Admin Expenses |
1,282,517 |
1,123,720 |
| Amortization |
149,539 |
54,066 |
| Loss on Disposal of
Property & Equip. |
10,371 |
- |
| Earnings (Loss) before
Income Taxes |
(53,638) |
58,563 |
| Income Taxes |
34,900 |
16,215 |
| Net Earnings (Loss)
for the Year |
(88,538) |
42,348 |
|
|
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| Basic & Diluted
Earnings (Loss) per Share |
(0.008) |
0.004 |
| Weighted Average #
of Shares Outstanding |
10,625,939 |
9,565,314 |
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As at June 30,
2002 |
As at June 30,
2001 |
| Total Assets |
1,978,484 |
1,618,412 |
| Total Liabilities |
1,245,273 |
1,013,143 |
| Shareholders' Equity |
733,211 |
605,269 |
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About ESTec Systems Corp.
ESTec Systems Corp. is an Edmonton-based public company with two
operating subsidiaries: Allan R. Nelson Engineering (1997) Inc.,
which delivers mechanical and forensic engineering services, and
ESTec Oilfield Inc., which designs and manufactures innovative oilfield
equipment. ESTec Oilfield has successfully developed and launched
the smallest Top Drive system in the world, specifically designed
for double or extended single rigs. ESTec Systems trades on the
TSX Venture Exchange, under the symbol ESE.
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