Pason Systems Inc. (PSI.TO), provider of instrumentation systems
to land-based and offshore drilling rigs worldwide, announced its
2013 first quarter results.
Net earnings increased by 2% to $29.6 million, or $0.36 per
share, compared to $29.1 million, or $0.35 per share, in the first
quarter of 2012.
First quarter net earnings were impacted by the following
factors: A $3.2 million decrease in stock-based compensation due to
a smaller increase in our stock price during the first quarter of
2013 compared to the first quarter of 2012; A $1.0 million increase
in R&D costs as we completed the hiring of staff to support our
Electronic Drilling Recorder (
) evolution projects; A drop in foreign exchange loss of $1.5
Outlook: "There continues to be uncertainty regarding the
outlook for North American drilling activity going forward. The
natural gas glut generated by unconventional plays does limit
gas-directed drilling activity, thereby challenging our ability to
significantly grow revenue in the short term. However, the outlook
has improved somewhat and industry observers are expecting a modest
recovery in North America during the second half of 2013 and
beyond. As with every year, the duration of spring break-up in
Canada will be a key driver of second quarter 2013 results. We
expect the International business unit to continue to realize
profitable growth this year.
"Our capital expenditure budget for the next 12 months is $79
million, $56 million of which is directed towards equipment that
can generate incremental revenue or save operating costs, $10
million for maintenance capital, and $13 million for capitalized
"Our cash-generating capacity, cash position at $168.9 million,
and working capital position at $190.5 million are strong enough to
comfortably cover new business development, planned equipment
upgrades, and the dividend."
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