DIVERGENT Energy Services Announces the Release of 2020 Year End Results
19 3월 2021 - 10:00PM
DIVERGENT Energy Services Corp.
(“
Divergent”
,
the “
Company”, “
our” or
“
DVG”
) announces the release of
its financial results for the year ended December 31, 2020.
FINANCIAL AND OPERATING HIGHLIGHTS –
YEAR ENDED DECEMBER 31, 2020
Divergent successfully traversed through one of
the most challenging years in its history. Support from
shareholders, debenture holders, customers and employees allowed
the Company to restructure its burdensome financial obligations and
improve key operational aspects of the business thereby positioning
the Company for growth in 2021. During 2020, a total of $3.1
million of unsecured current obligations with suppliers was
restructured into long-term obligations. In addition, $3.4 million
of the secured debentures were converted to equity of the Company
with the remaining $1.2 million being extended to 2025, both of
which were finalized in January 2021. The Company also accessed
$0.4 million of Government emergency loans made available to
companies negatively impacted by the COVID-19 pandemic. While
revenues decreased 47% from 2019, the Company maintained gross
margins of 25% vs 23% in 2019 by implementing cost control and cost
reduction measures to adjust to the lower levels of activity. The
Company exited 2020 with a significantly improved financial
position and an organization positioned to grow when the underlying
market conditions improve.
Select Financial Information for the three and
twelve-month periods ending December 31, 2020 have been summarized
as follows:
RESULTS OF
OPERATIONSSelect Financial Information - Tables
contain fourth quarter and year-end results for 2020 and 2019.
Refer to the Company’s consolidated audited financial statements
and related management’s discussion and analysis (“MD&A”) for a
full description.
(in 000’s
of USD $ unless otherwise stated) |
Three Months EndedDec 31 |
Year EndedDec 31 |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$1,447 |
|
$2,274 |
|
$4,332 |
|
$8,178 |
|
Cost of sales |
|
(946 |
) |
|
(1,889 |
) |
|
(3,247 |
) |
|
(6,313 |
) |
Provision for slow moving
inventory |
|
840 |
|
|
(1,325 |
) |
|
934 |
|
|
(1,325 |
) |
Gross Profit |
|
1,341 |
|
|
(940 |
) |
|
2,019 |
|
|
540 |
|
|
|
|
|
|
General and
administration |
|
(576 |
) |
|
(607 |
) |
|
(2,054 |
) |
|
(2,140 |
) |
Depreciation and
amortization |
|
(3 |
) |
|
120 |
|
|
(20 |
) |
|
(51 |
) |
Stock based compensation |
|
(1 |
) |
|
(6 |
) |
|
(10 |
) |
|
(37 |
) |
Results from operating
activities |
|
761 |
|
|
(1,433 |
) |
|
(65 |
) |
|
(1,688 |
) |
|
|
|
|
|
Benefit on low interest
government loans |
|
182 |
|
|
- |
|
|
182 |
|
|
- |
|
Product development credit
(expense) |
|
- |
|
|
326 |
|
|
- |
|
|
270 |
|
Finance (expense) income |
|
(54 |
) |
|
(342 |
) |
|
12 |
|
|
(1,226 |
) |
Net income
(loss) |
$889 |
|
($1,449 |
) |
$129 |
|
($2,644 |
) |
Income (loss) per
share – basic and dilutive (cents) |
$0.05 |
|
($0.13 |
) |
$0.01 |
|
($0.22 |
) |
|
|
|
|
|
As at December
31 |
2020 |
|
2019 |
|
Assets |
|
|
Current assets |
$2,376 |
|
$2,555 |
|
Long-term assets |
801 |
|
739 |
|
|
$3,177 |
|
$3,294 |
|
Liabilities |
|
|
Current liabilities (excluding debentures) |
$1,871 |
|
$5,605 |
|
Debentures(1) |
4,356 |
|
- |
|
Total current liabilities |
6,227 |
|
5,605 |
|
|
|
|
Long-term liabilities |
2,938 |
|
4,344 |
|
|
9,165 |
|
9,949 |
|
Shareholders’
deficit |
(5,988 |
) |
(6,655 |
) |
Liabilities and
shareholders’ deficit |
$3,177 |
|
$3,294 |
|
Working capital
ratio |
0.38(1) |
|
0.46 |
|
(1) The debentures were considered current at
December 31, 2020. Subsequent to year end, 75% of the debentures
were converted to equity and the maturity date on 25% were extended
to December 31, 2025. Had these transactions occurred in prior to
yearend, the working capital ratio at December 31, 2020 would have
been 1.27.
The Company’s complete set of 2020 year end
filings have been filed on the SEDAR website at www.sedar.com and
are also available on the Company’s website at
www.divergentenergyservices.com.
OUTLOOK
With our restructuring now complete, and with
energy prices continuing to show resiliency, our client base has
demonstrated an improvement to operating budgets that include the
ongoing replacement of ESPs. As a result, we expect revenue from
oil producing clients to become an increasing percentage of the
Company’s revenue. Activity levels continue to improve and with
this higher volume of work comes the opportunity for continued
reduction of inventory down to efficient levels.
For Further Information:
Ken Berg, President and Chief Executive Officer,
kberg@divergentenergyservices.com
Lance Mierendorf, Interim Chief Financial Officer,
lmierendorf@divergentenergyservices.com
ABOUT DIVERGENT ENERGY SERVICES CORP.
Headquartered in Calgary, Alberta, Divergent
provides Artificial Lift products and services that are used in the
oil and gas industry. Product lines including Electric Submersible
Pumps, Electric Submersible Progressing Cavity Pumps, and the
future development of an Electromagnetic Pump technology.
DIVERGENT Energy Services Corp., 2020, 715 – 5th Ave SW,
Calgary, AB T2P 2X6, (403) 543-0060, (403) 543-0069 (fax),
www.divergentenergyservices.com
FORWARD LOOKING STATEMENTS
This press release contains forward-looking
statements, including, without limitation, statements pertaining to
anticipated future operational activity levels of Divergent and of
a majority of its customers, and statements pertaining to interest
payments on the Company’s debentures. All statements included
herein, other than statements of historical fact, are
forward-looking information and such information involves various
risks and uncertainties, including: the risk that the anticipated
slowdown in sales and service of submersible pumps by Divergent’s
customers lasts longer than expected or impacts Divergent’s
revenues more severely than expected, the risk that the COVID-19
pandemic and the low oil and gas price environment cause additional
negative effects on Divergent’s business, the risk that the
suspension of trading of the Company’s common shares by the TSXV
cannot be lifted in a timely manner or at all, and the risk that
the Company cannot remedy the outstanding interest payments under
the terms of its debenture indenture in a timely manner or at all .
There can be no assurance that such information will prove to be
accurate, and actual results and future events could differ
materially from those anticipated in such information. A
description of assumptions used to develop such forward-looking
information and a description of risk factors that may cause actual
results to differ materially from forward-looking information can
be found in the Company’s disclosure documents on the SEDAR website
at www.sedar.com. Forward-looking statements are based on estimates
and opinions of management of the Company at the time the
information is presented, including expectations provided to
Divergent by its customers. The Company may, as considered
necessary in the circumstances, update or revise such
forward-looking statements, whether as a result of new information,
future events or otherwise, but the Company undertakes no
obligation to update or revise any forward-looking statements,
except as required by applicable securities laws.
This press release contains financial outlook
information (“FOFI”) about prospective revenue reductions, which
are subject to the same assumptions, risk factors, limitations, and
qualifications as set forth in the above paragraphs. FOFI contained
in this press release was made as of the date hereof and was
provided for the purpose of providing an update regarding an
anticipated material reduction in near-term revenue. Divergent
disclaims any intention or obligation to update or revise any FOFI
contained in this press release, whether as a result of new
information, future events or otherwise, unless required pursuant
to applicable law. Readers are cautioned that the FOFI contained in
this press release should not be used for purposes other than for
which it is disclosed herein.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
(Not for dissemination in the United States of
America)
Divergent Energy Services (TSXV:DVG)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Divergent Energy Services (TSXV:DVG)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024