Petrowest Corporation announces record third quarter 2012 financial results

CALGARY, Nov. 12, 2012 /CNW/ - Petrowest Corporation (TSX: PRW) announced today its consolidated financial results for the three and nine month periods ended September 30, 2012.

Rick Quigley, Chief Executive Officer, stated that, "the activity levels the Company experienced in the first six months of 2012 have continued into the third quarter. I am very pleased that we are announcing record third quarter results with not only revenue increases over the strong 2011 third quarter, but also an exceptionally strong EBITDA margin. Both the Civil and Construction divisions posted very strong margins. In addition, the Civil division remained at or near capacity for the quarter which is a continuation of the activity levels in this division." Mr. Quigley further stated, "I am optimistic about the ongoing activity levels in the areas where we have a strong presence."

FINANCIAL HIGHLIGHTS

In the three months ended September 30, 2012, the Company:

  • Achieved record third quarter comprehensive income before tax of $6.7 million and revenue of $59.9 million, an increase of $6.9 million and $4.6 million respectively from the same quarter in 2011, driven primarily by strong activity in the Civil division.
  • Reported EBITDA margin of 21.3%.
  • Reported gross margin of $14.2 million, an increase of $1.8 million compared to the same quarter in 2011.
  • Acquired a landfill site in northeastern British Columbia to receive and manage contaminated waste. It is anticipated to be operational by the end of November, 2012.
  • Established a field office and camp facility in Fox Creek, Alberta to better service the Company's existing client base and to respond to the increased activity in the area.

In the nine months ended September 30, 2012, the Company:

  • Increased EBITDA and revenue by 32.3% and 13.1% respectively, from $21.6 million and $136.7 million to $28.6 million and $154.5 million respectively, a record for the Company for the first nine month period of a year, primarily due to strong activity in the Civil division and continued strength of other divisions.
  • Reported comprehensive income of $10.0 million compared to a comprehensive loss of $(27.8) million in the first nine months of 2011, mainly due to strong results in the Civil division, as well as the recognition of a deferred income tax recovery in the current period, versus the non-cash charge loss on the change in fair value of trust and subordinated units in the comparative period.
  • Opened a field office in Lloydminster, Alberta in order to better service the Company's existing customer base conducting heavy oil operations in the area.

FINANCIAL RESULTS

                           
  Three months ended September 30 Nine months ended September 30
(thousands of Canadian dollars, except per share amounts, margins and ratios)     2012     2011     2012     2011
                         
Revenue by segment                        
  Construction   $                    27,476   $             29,203   $                    68,489   $             80,235
  Transportation     7,906     8,541             21,961                      21,271
  Civil           23,844     16,519     62,349     32,483
  Rentals     646     1,006             1,747                        2,706
  Environmental                                  -        -            -
Revenue     59,872     55,269           154,546                    136,695
Operating expenses               45,719     42,965     121,558     110,617
Gross margin     14,153     12,304             32,988                      26,078
Gross margin percentage     23.6%     22.3%     21.3%     19.1%
General and administrative                1,409     1,534     4,418        4,475
EBITDA     12,744       10,770            28,570                      21,603
EBITDA margin percentage     21.3%     19.5%     18.5%     15.8%
Amortization of property and equipment     3,932     5,147              11,161                      15,357
Amortization of intangible assets                      58     741     614     2,474
Loss on disposal of property and equipment          671     562                1,191                        1,236
Foreign exchange (gain) loss              (1,346)     3,709     (1,361)       3,499
Net finance costs     2,660     2,634     7,939                        5,854
Loss on fair value of financial instruments     114     (1,803)                     384                        1,368
Net income before revaluation of trust units     6,655     (220)     8,642                    (8,185)
Change in value of trust and subordinated units            -                                    -                      19,655
Comprehensive income (loss) before tax                  6,655     (220)     8,642                    (27,840)
Deferred income tax recovery (expense)     (1,375)     -             1,403                               -
Comprehensive income (loss)   $ 5,280   $                  (220)   $                     10,045   $            (27,840)
Net income (loss) per share - basic     0.05     -     0.10                        (0.31)
Net income (loss) per share - diluted     0.05     -     0.09                       (0.31)
Total assets     129,278     111,479     129,278     111,479
Total liabilities     100,756     95,967     100,756     95,967
Shareholders' equity     28,522                      15,512     28,522                      15,512

SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three and nine months period ended September 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 nine months ended September 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.

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, at (780) 830-0881, or Ian Hogg, Vice President, Corporate Affairs, at (403) 384-0407, or Lloyd Wiggins, Chief Financial Officer, at (416) 945-6607, or info@petro-west.com.