Kelman Technologies Inc ("KTI") announced a net loss of
$2.1 million ($0.05 per share) for the year 2004. An operating loss of
$1.0 million was exacerbated by the write down of $1.1 million of goodwill
from the balance sheet of the wholly owned subsidiary KTI USA. The write down
is a non-cash charge resulting from the acquisition of Seismic Data Processors
in 2000 by KTI USA. Cash flow of $2.0 million was down 40% compared to last
year. Interest expense and depreciation were lower while capital expenditures
of $2.0 million were also down 35% when compared to 2003. The Company ended
the year with working capital of $3.8 million up significantly from the same
period last year and with only $47 thousand in long term debt.
The Company also wishes to announce the resignation of David Richard from
the Board of Directors effective March 9, 2005.
In commenting on the results John Paul, President of KTI said, "The
results for fiscal 2004 reflect a general reduction in seismic activity in our
principal market of North America during the year. Each of our processing
operations suffered setbacks in excess of the cost reductions taken earlier in
the year. In response to fluctuating processing revenues from our traditional
market segment we opened a new division, KT International, with its initial
office in London, UK to service exploration programs in Europe, Africa and the
Middle East. This initiative was rewarded early in 2005 with a first major
contract from an E&P company working in Libya.
The data management division, despite the slowness in seismic activity
was able to maintain its market lead in Canada, add major new clients in the
United States, increase revenue year over year and add positive net income to
the consolidated results. However, such income was not enough to offset the
reversals experienced in our processing division."
Kelman Technologies Inc. is a publicly traded Canadian company listed on
the Toronto Stock Exchange under the trading symbol KTI. With offices in
Calgary and Toronto, Canada, Denver, Houston, and Oklahoma City in the United
States and London in the UK, KTI services oil and gas exploration companies
with a full suite of seismic processing and on-line data management and data