Bri-Chem (BRY) Q4 2023 earnings summary

Executive summary

• Q4 2023 sales were $26.8M, up $253K YoY; adjusted EBITDA rose 35% to $1.9M, while operating earnings held near $1.0M.

• FY 2023 sales were $106.0M versus $104.5M; operating earnings fell 40% to $4.7M and adjusted EBITDA declined 11% to $6.6M.

Financial highlights

• Q4 gross margin dollars decreased $410K YoY, primarily from higher shipping costs and pricing concessions on selected products.

• Q4 adjusted net earnings were $552K versus $239K; net earnings were $467K versus $30K.

• FY adjusted net earnings were $1.4M versus $3.6M; net earnings were $909K versus $8.6M.

• Q4 revenue rose to $26.8M from $26.5M, as Canadian drilling fluids and blending activity offset lower US sales.

Outlook and guidance

• 2024 US oilfield activity is expected to remain relatively sluggish following a larger-than-expected rig count decline during FY 2023.

• Selective product expansion with new and existing customers is expected to support modest growth in Canadian blending; overhead and employee levels remain controlled.