Wenzel Downhole Tools Ltd. First Quarter Results for 2013

CALGARY, ALBERTA--(Marketwired - May 13, 2013) - Wenzel Downhole Tools Ltd. (TSX:WZL) (the "Company") today announced its financial results for the three months ended March 31, 2013. First quarter revenues were $20.5 million compared to $24.5 million in the first quarter of 2012, a 16% decrease. Earnings before income tax for the quarter were $3.7 million compared to $4.2 million, a decrease of 11% compared to the same period in 2012. After tax earnings for the period were $2.5 million or $0.08 per share (basic), compared to $3.2 million or $0.10 per share (basic) in 2012.

The Company is pleased to announce that Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the first quarter of 2013 were $6.0 million compared to $6.2 million in quarter one of 2012.

FINANCIAL HIGHLIGHTS

Highlights of the first quarters of 2013 and 2012 are summarized in the following table together with comparative year end 2012 highlights:

	3 mos. ended March 31, 2013		3 mos. ended March 31, 2012		FY ended Dec. 31, 2012
	($000's, except for earnings per share)
Revenue	20,547		24,545		87,306
Gross Profit	6,804		9,083		27,475
Gross Profit Percentage	33	%	37	%	32	%
EBITDA(1)(2)	6,004		6,190		19,222
EBITDA(1)(2) Percentage	29	%	25	%	22	%
Earnings (Loss) Before Income Taxes	3,745		4,208		(7,569	)
Net Earnings (Loss)	2,535		3,159		(5,530	)
Total Comprehensive Income	2,737		2,997		(5,739	)
Net Earnings (Loss) per Share - basic	0.08		0.10		(0.18	)
Net Earnings per Share - diluted	0.07		0.09		(0.18	)
Total Assets	77,441		82,838		78,846
Short Term Debt	2,369		11,822		2,416
Long Term Debt	13,901		-		-
Shareholders' Equity	50,828		56,676		47,987
Note (1) Refer to Non-generally accepted accounting principles ("GAAP") measures at the end of this news release.

Results and Outlook

During the first quarter, Wenzel was able to achieve a similar level of EBITDA compared to Q1 of 2012 despite the reduction in our year over year Q1 revenues. We are pleased with the improvement in our gross profit over Q3 and Q4 of 2012.

Canadian drilling activity was down from the first quarter of 2012. We, like the rest of our peers, feel that these conditions will persist in 2013. Despite the lower activity levels, Wenzel was able to generate positive operational and financial results.

US operational and financial results remain steady despite the decreased US rig count. Our team is focused on gaining market share and we expect an improvement in our operational and financial results with the opening of our Odessa, Texas facility. We remain positive about our business prospect in the US for the remainder of 2013.

Internationally, Wenzel recently hired a VP of International Sales to increase our presence and revenues in the growing international market.

About Wenzel Downhole Tools Ltd.

The Company designs, manufactures, sells and rents downhole drilling tools for use in the oil and gas industry, operating in Canada, the United States and internationally. The Company's shares trade on the Toronto Stock Exchange under the symbol "WZL".

The Company's Canadian sales, manufacturing and servicing facilities are located in Edmonton, Alberta and its sales and servicing facilities are located in Conroe, Texas; Morgantown, West Virginia; Casper, Wyoming; Oklahoma City, Oklahoma; and Celle, Germany. The corporate office is located in Calgary, Alberta.

The Company's First Quarter Consolidated Financial Statements and Management's Discussion and Analysis will be posted on SEDAR (www.sedar.com) on or about May 13, 2013.

Non-GAAP Measure

Note (1) EBITDA, or earnings before interest, taxes, depreciation and amortization is calculated by adding these items back to reported net earnings. In addition to EBITDA, share-based compensation expense, loss on derivative asset and litigation settlement have been excluded so as to make year to year comparisons more comparable.

	2013		2012		2012
	Q1		Q1		Year
Net earnings	$	2,535	$	3,159	$	(5,530	)
Income taxes		1,210		1,048		(2,040	)
Depreciation and amortization		2,117		1,832		7,935
Interest		125		134		348
Share-based compensation		17		17		33
Litigation settlement		-		-		18,476
EBITDA	$	6,004	$	6,190	$	19,222

Management uses EBITDA as a measurement to determine the ability of the Company to generate cash from normal operations. EBITDA does not have a standardized meaning for International Financial Reporting Standards ("IFRS") and therefore may not be comparable with calculations of similar measures presented by other issuers. EBITDA is not intended to represent net income for the period nor should it be viewed as an alternative to operating or net income or cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS.

Note (2) Litigation Settlement

In December 2012, the Company settled a long-standing legal action. As a result of the settlement, the Company incurred a loss in 2012. The settlement is a non-recurring item that makes comparison with other periods difficult. As a result, the Company is presenting certain items on a basis wherein the $18,475,683 settlement is removed.

Forward Looking Statements

Certain statements contained in this press release constitute "forward-looking statements". These statements are based on current beliefs and assumptions of management, however are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this press release. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. For additional information with respect to certain of these beliefs, assumptions, risks and uncertainties, please refer to The Company's Annual Information Form for fiscal 2012 available on SEDAR at http://www.sedar.com.

Forward-looking statements are based on estimates and opinions of management of the Company at the time the statements are presented. 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.