| CE Franklin Ltd. | |||||
| Consolidated Balance Sheets | |||||
| As at December 31 | |||||
| (in thousands of Canadian dollars) | |||||
| 2003 | 2002 | ||||
| Assets | |||||
| Current Assets | |||||
| Cash | 4,881 | - | |||
| Accounts Receivable (note 2) | 46,283 | 36,992 | |||
| Inventories | 48,529 | 40,679 | |||
| Income Taxes recoverable (note 6) | - | 741 | |||
| Other | 898 | 600 | |||
| 100,591 | 79,012 | ||||
| Property and equipment (note 3) | 8,976 | 12,757 | |||
| Goodwill | 7,765 | 7,765 | |||
| Other | 300 | - | |||
| 117,632 | 99,534 | ||||
| Liabilities | |||||
| Bank overdraft | - | 1,148 | |||
| Bank operating loan (note 4) | 23,368 | 21,500 | |||
| Accounts payable | 28,349 | 16,525 | |||
| Accrued liabilities | 16,359 | 10,213 | |||
| Current protion of long-term debt (note 5) | 369 | 297 | |||
| 68,445 | 49,683 | ||||
| Long-term debt (note 5) | 146 | 299 | |||
| Future income taxes (note 6) | 1,413 | 2,381 | |||
| 70,004 | 52,363 | ||||
| Commitments and contingencies (note 11) | |||||
| Shareholders' equity | |||||
| Capital stock (note 7) | 19,268 | 19,268 | |||
| Contributed surplus | 13,602 | 13,566 | |||
| Retained earnings | 14,758 | 14,337 | |||
| 47,628 | 47,171 | ||||
| 117,632 | 99,534 | ||||
| The accompanying notes are an integral part of these Consolidated Financial Statements. | |||||
| Approved by the Board: | |||||
| "signed" Victor J. Stobbe | Director | ||||
| "signed" S. Douglas Martin | Director | ||||
34
CE Franklin Ltd.
Consolidated Statements of Changes in Shareholders' Equity
| (in thousands of Canadian dollars, except number of shares) | |||||||||
| Capital Stock | |||||||||
| Number of | Contributed | Retained | Shareholders' | ||||||
| Shares | $ | Surplus | Earnings | Equity | |||||
| December 31, 2000 | 17,149,153 | 19,137 | 13,566 | 16,586 | 49,289 | ||||
| Stock options exercised (note 7) | 8,938 | 49 | - | - | 49 | ||||
| Net income | - | - | - | 619 | 619 | ||||
| December 31, 2001 | 17,158,091 | 19,186 | 13,566 | 17,205 | 49,957 | ||||
| Effect of change in accounting for goodwill (note 1) | - | - | - | (375) | (375) | ||||
| Stock options exercised (note 7) | 20,605 | 82 | - | - | 82 | ||||
| Net loss | - | - | - | (2,493) | (2,493) | ||||
| December 31, 2002 | 17,178,696 | 19,268 | 13,566 | 14,337 | 47,171 | ||||
| Stock options granted (note 7) | - | - | 36 | - | 36 | ||||
| Net income | - | - | - | 421 | 421 | ||||
| December 31, 2003 | 17,178,696 | 19,268 | 13,602 | 14,758 | 47,628 | ||||
The accompanying notes are an integral part of these Consolidated Financial Statements.
35
| CE Franklin Ltd. | ||||||
| Consolidated Statements of Operations | ||||||
| For the years ended December 31 | ||||||
| (in thousands of Canadian dollars, except share and per share amounts) | ||||||
| 2003 | 2002 | 2001 | ||||
| Sales | 259,557 | 261,329 | 377,845 | |||
| Cost of Sales | 215,994 | 224,623 | 334,065 | |||
| Gross Profit | 43,563 | 36,706 | 43,780 | |||
| Other expenses (income) | ||||||
| Selling, general and administrative expenses (note 8) | 37,360 | 35,537 | 39,696 | |||
| Amortization | 4,395 | 4,245 | 3,879 | |||
| Interest expense | 1,117 | 1,099 | 2,031 | |||
| Foreign exchange loss (gain) | (521) | (116) | 299 | |||
| Other income | (251) | (151) | (52) | |||
| 42,100 | 40,614 | 45,853 | ||||
| Income (loss) before income taxes | 1,463 | (3,908) | (2,073) | |||
| Income tax expense (recovery) (note 6 ) | ||||||
| Current | 2,010 | (678) | (835) | |||
| Future | (968) | (737) | 315 | |||
| 1,042 | (1,415) | (520) | ||||
| Income (loss) from continuing operations | 421 | (2,493) | (1,553) | |||
| Income from discontinued operations (note 13) | - | - | 2,172 | |||
| Net income (loss) for the year | 421 | (2,493) | 619 | |||
| Net income (loss) per share | ||||||
| Continuing operations | ||||||
| Basic and diluted | 0.02 | (0.15) | (0.09) | |||
| Discontinued operations | ||||||
| Basic and diluted | 0.00 | 0.00 | 0.13 | |||
| Net income (loss) per share | ||||||
| Basic and diluted | 0.02 | (0.15) | 0.04 | |||
| Weighted average basic number of shares outstanding | 17,178,696 | 17,172,373 | 17,156,964 | |||
The accompanying notes are an integral part of these Consolidated Financial Statements.
36
CE Franklin Ltd.
Consolidated Statements of Cash Flow
| 2003 | 2002 | 2001 | |||||
| Cash flows from operating activities | |||||||
| Income (loss) from continuing operations | 421 | (2,493) | (1,553) | ||||
| Items not affecting cash | |||||||
| Amortization | 4,395 | 4,245 | 3,879 | ||||
| Gain on disposal of property and equipment | (248) | (128) | (48) | ||||
| Future income tax expense (recovery) | (968) | (737) | 315 | ||||
| Increase in inventory write-downs | 921 | 87 | 1,593 | ||||
| Stock options granted (note 7) | 36 | - | - | ||||
| 4,557 | 974 | 4,186 | |||||
| Net change in non-cash working capital balances related to | |||||||
| operations (note 9) | 52 | (4,244) | 22,331 | ||||
| Net cash flow from continuing operations | 4,609 | (3,270) | 26,517 | ||||
| Net cash flow from discontinued operations | - | - | 2,699 | ||||
| 4,609 | (3,270) | 29,216 | |||||
| Cash flows from financing activities | |||||||
| Issuance of capital stock | - | 82 | 49 | ||||
| Increase (decrease) in bank operating loan | 1,868 | 5,200 | (31,700) | ||||
| Decrease in bank overdraft | (1,148) | (688) | (4,093) | ||||
| Decrease in long-term debt | (343) | (269) | (278) | ||||
| Other | - | - | 225 | ||||
| 377 | 4,325 | (35,797) | |||||
| Cash flows from investing activities | |||||||
| Purchase of property and equipment | (601) | (1,234) | (2,313) | ||||
| Proceeds on disposal of property and equipment | 258 | 179 | 970 | ||||
| Proceeds on sale of Brittania (note 1) | 538 | - | - | ||||
| Other | (300) | - | - | ||||
| Net proceeds on disposal of Domino Machine | (note 13) | - | - | 7,924 | |||
| (105) | (1,055) | 6,581 | |||||
| Change in cash and cash equivalents during the year | 4,881 | - | - | ||||
| Cash and cash equivalents - beginning of year | - | - | - | ||||
| Cash and cash equivalents - end of year | 4,881 | - | - | ||||
| Cash paid during the year | |||||||
| Interest on bank operating loan | 1,077 | 1,046 | 2,589 | ||||
| Interest on long-term debt | 36 | 53 | 60 | ||||
| Income taxes | 356 | 247 | 567 | ||||
The accompanying notes are an integral part of these Consolidated Financial Statements.
37
