Cdn Oilfield Technologies & Solutions Corp.
TSX VENTURE : OTS

Cdn Oilfield Technologies & Solutions Corp.

May 30, 2012 13:49 ET

COTS Reports March 31, 2012 Financial Results

CALGARY, ALBERTA--(Marketwire - May 30, 2012) - Cdn Oilfield Technologies & Solutions Corp (TSX VENTURE:OTS) (COTS) today reported the results of its first quarter ended March 31 2012.

The company reported 3 months sales to March 31, 2012 of $7,106,178 up from $1,243,380 for the same 3 months period in 2011. Net profit from Operations was $505,525 up from a loss of $455,576 in 2011. Funds flow from operations totaled $560,894.

For the three months ended March 31, 2012, COTS:

  • The corporation showed positive sales growth in Mexico. Both pipe and third party projects have contributed immensely to the growth in the Mexican market. Approximately 50% of the Terra 114 project was completed to March 31, 2012 with 90% complete at today's date. It is anticipated that the expanded project will be completed by June 15, 2012
  • Starting in May 2011 with the delivery of its first flexible pipe project, the Corporation completed a total of 33.7 Km of deliveries to March 31, 2012. The first quarter resulted in 6.6 Km of deliveries with an additional 8.8 Km being delivered in late May.
  • CBM showed a drop in sales in the pump business, primarily attributable to low gas prices. Alternative market opportunities are being addressed by management in regards to an ongoing restructuring of the business including product supply and sales and marketing initiatives.
  • Completed the placement in Quarter 1, 2012 of $2,000,000 of 12% Debentures and on April 23, 2012, completed the close of an additional $511,000 of 12% debentures totaling $2,511,000. In addition a short term loan for $700,000 was attained to assist in the expanded scope and size for the Terra 114 Construction project. The short term loan is scheduled to be repaid by June 15, 2012.
  • Continued to assess opportunities for expanded business in the US and Mexico.

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, anticipated sales of the company and completion of installation projects . Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other industry and geographic specific risk factors. Investors are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Investors are cautioned not to place undue reliance on forward-looking information.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state of the United States or any other jurisdiction outside of Canada in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933 and applicable state securities laws.

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.

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