Bri-Chem Announces Fourth Quarter and Year End Results

EDMONTON, ALBERTA--(Marketwired - March 31, 2015) -

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Bri-Chem Corp. ("Bri-Chem" or "Company") (TSX:BRY) a leading North American wholesale distributor and blender of oilfield chemicals is pleased to announce its fourth quarter and year end financial results for the year ended December 31, 2014. During the fourth quarter of 2014, Bri-Chem's consolidated revenues from its North American leading oil and gas drilling fluids distribution, blending & packaging businesses ("Continuing Operations") increased 12.0% to $50,291,385 compared to $44,899,246 from the prior period in 2013. This quarter-over-quarter revenue increase is primarily as a result of significant market share growth from Bri-Chem's USA drilling fluids distribution division which experienced record quarterly sales of $22,003,867. Bri-Chem's USA growth momentum continued to drive new records in 2014, with many new milestones being achieved.

For the year ended December 31, 2014, Bri-Chem's consolidated revenues were $184,707,721 compared to $150,039,754 for the comparable year of 2013, an increase of 23.1%. Earnings before interest, taxes, amortization and depreciation, share-based payments expense, and impairment charges ("EBITDA") were $16,832,102 or $0.70 per share for the year ended December 31, 2014, compared to $13,031,442 for the same period in 2013. Adjusted net earnings, net of a one-time impairment charge of goodwill and other intangible assets, for the year ended December 31, 2014 were $6,392,330 or $0.27 diluted earnings per share as compared to net earnings of $4,265,441 for the same period in 2013. As a result of the significant decline in commodity prices in the fourth quarter of 2014 and reduced capital budgets set by oil and gas companies, Bri-Chem tested certain of its assets for impairment. Based on the impairment tests performed, Bri-Chem recorded a write down of goodwill and other intangible asset in the amount of $8,567,921 for the twelve months ended December 31, 2014.