Petrowest Corporation announces strong second quarter 2012 financial results

CALGARY, Aug. 10, 2012 /CNW/ - Petrowest Corporation (TSX:PRW) announced today its consolidated financial results for the three and six month period ended June 30, 2012.

Rick Quigley, Chief Executive Officer, stated that, "continuing on the momentum of our strong first quarter, I am very pleased with the second quarter 2012 financial results, particularly for what is historically the weakest quarter of the year. The work which was delayed in the first quarter as a result of the cold weather and early spring breakup effectively moved into the second quarter. Our Civil division was at or near capacity for the entire quarter which contributed significantly to our results for the quarter. Revenue and EBITDA for the second quarter were very strong in addition to a solid EBITDA margin for the quarter." Mr. Quigley further stated, "I continue to be pleased with our levels of activity."

FINANCIAL HIGHLIGHTS

For the three months ended June 30, 2012 compared to the second quarter of 2011:

• Revenue of $43.9 million versus $35.2 million, an increase of $8.7 million;
• Record EBITDA for a second quarter of $8.1 million versus $2.9 million, an increase of $5.2 million;
• EBITDA margin of 18.5% versus 8.3%, an increase of 10.2%; and
• Net income before deferred income tax recovery and revaluation of financial instruments and trust and subordinated units of $0.6 million versus a loss of $(4.9) million, an increase of $5.5 million.

For the six months ended June 30, 2012 compared to the same period of 2011:

• Revenue of $94.7 million versus $81.4 million, an increase of $13.3 million;
• EBITDA  of $15.8 million versus $10.8 million, an increase of $5.0 million;
• EBITDA margin of 16.7% versus 13.3%, an increase of 3.4%; and
• Net income before deferred income tax recovery and revaluation of financial instruments and trust and subordinated units of $2.3 million versus a loss of $(4.8) million, an increase of $7.1 million.

FINANCIAL RESULTS

		Three months ended June 30		Six months ended June 30
(thousands of dollars, except per share amounts, margins and ratios)		2012	2011	2012	2011
Revenue by segment
	Construction	15,973	21,986	41,013	51,032
	Transportation	4,552	2,888	14,055	12,730
	Civil	23,018	9,834	38,505	15,964
	Rentals	357	502	1,101	1,700
Revenue		43,900	35,210	94,674	81,426
Operating expenses		34,482	30,885	75,839	67,652
Gross margin		9,418	4,325	18,835	13,774
Gross margin percentage		21.5%	12.3%	19.9%	16.9%
General and administrative		1,308	1,412	3,009	2,941
EBITDA		8,110	2,913	15,826	10,833
EBITDA margin percentage		18.5%	8.3%	16.7%	13.3%
Amortization of property and equipment		3,671	5,109	7,229	10,210
Amortization of intangible assets		215	871	556	1,733
Loss on disposal of property and equipment		190	298	520	674
Foreign exchange (gain) loss		806	(210)	(15)	(210)
Net finance costs		2,660	1,709	5,279	3,220
Net income before taxes and revaluation of financial instruments and trust units		568	(4,864)	2,257	(4,794)
Loss on fair value of financial instruments		13	408	270	3,171
Change in value of trust and subordinated units		-	2,504	-	19,655
Comprehensive income (loss) before tax		555	(7,776)	1,987	(27,620)
Deferred income tax recovery		2,778	-	2,778	-
Comprehensive income (loss)		3,333	(7,776)	4,765	(27,620)
Net income (loss) per share/unit - basic and diluted		0.03	(0.09)	0.05	(0.32)
Total assets		111,735	98,926	111,735	98,926
Total non-current financial liabilities		56,177	58,467	56,177	58,467
Total liabilities		88,532	121,948	88,532	121,948
Shareholders' equity		23,203	(23,022)	23,203	(23,022)

SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three and six months period ended June 30, 2012 and 2011 is set out above and includes the following non-IFRS financial measures: Gross margin, Gross margin percentage, EBITDA and EBITDA margin percentage. This information should be read in conjunction with the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2012 and the Company's Management, Discussion and Analysis ("MD&A"), available under the Company's profile on the SEDAR website at www.sedar.com. Further information respecting the non-IFRS financial measures is contained in the Company's MD&A.

UPDATE ON PROPOSED LANDFILL ACQUISITION

The Company issued a news release on July 23, 2012 relating to the proposed purchase of a landfill site. At that point in time it was anticipated that closing would take place by the end of July. Closing of the acquisition is subject to the transfer of the lease, permit and environmental assessment certificate into the name of Petrowest Environmental Services Limited Partnership, a limited partnership established by the Company to acquire the assets.  Closing is expected to take place in August 2012.

FORWARD LOOKING INFORMATION

This news release contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are identified by their use of terms and  phrases such as "anticipate",  "achievable",  "believe", "expect",  "estimate",  "plan",  "intend",  "project",  "may", "should", "could", "predict",  "will", or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements and information are based on Petrowest's current beliefs as well as assumptions made by and information currently available to Petrowest concerning anticipated business performance. Although management of Petrowest considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking statements are subject to many external variables that are beyond Petrowest's control, such as fluctuating prices for crude oil and natural gas, changes in drilling activity, and general local and global economic, political, business and weather conditions. If any of these or other uncertainties materialize, the actual results of Petrowest may vary materially from those expected.

ABOUT PETROWEST

Petrowest is an Alberta corporation involved in pre-drilling and post-completion energy services as well as industrial and civil infrastructure projects, gravel crushing and hauling for non-energy sector customers.  Petrowest's primary operations are based in the Grande Prairie area of northern Alberta and in northeastern British Columbia.

 

SOURCE: Petrowest Corporation

For further information:

please contact Richard Quigley, President and Chief Executive Officer, or Lloyd A. Wiggins, Chief Financial Officer, at [phone] or [e-mail].