Petrowest Corporation announces record fourth quarter and 2013 year end financial results

CALGARY, March 19, 2014 /CNW/ - Petrowest Corporation (TSX:PRW) announced today its consolidated financial results for the three month period and year ended December 31, 2013.

Rick Quigley, Chief Executive Officer, stated that "We are very proud of the 2013 financial results and our recovery after the unseasonable weather that we, along with the rest of the industry, experienced during the first half of the year.  The Company recorded record revenues of $231.9 million, Adjusted EBITDA of $32.6 million and increased its fleet by 120 pieces (net 70) of heavy equipment. During 2013, the Company completed a bought-deal equity financing for $17.25 million and two debt refinancings which has strengthened our balance sheet, significantly lowered interest costs, and has put us in a favourable position for growth in the foreseeable future" Mr. Quigley further stated that "we continue to be encouraged by the amount of backlog currently in place and the LNG opportunities that are in front of us."

FINANCIAL HIGHLIGHTS

In 2013, the Company:

  • Reported record revenue of $231.9 million, an increase of $35.4 million compared to 2012
  • Reported Adjusted EBITDA of $32.6 million compared to $34.2 million in 2012
  • Reported Adjusted EBITDA margin of 14.1% compared to 17.4% in 2012
  • Completed the sale, on a "bought-deal" basis, of 21,562,500 class A common shares at a price of $0.80 per share, for aggregate gross proceeds of $17.25 million
  • Entered into a revolving credit facility with availability up to $30 million, and repaid the outstanding balance of the $22.2 million Canadian term facility
  • Closed a $50.0 million syndicated loan facility and repaid the outstanding balance of the US$31.7 million long-term debt facility and $1.8 million of convertible debentures
  • Commenced crushing operations on the $35.0 million Highway 63 expansion project
  • Commenced construction of the $78.0 million Highway 43 twinning project
  • Commenced operations at the landfill site in northeastern British Columbia

               

FINANCIAL RESULTS              
               
  Three months ended
December 31,
  Year ended
December 31,
($000's) 2013   2012   2013   2012
Revenue 63,200   41,966   231,873   196,512
Operating expenses (53,471)   (35,068)   (193,007)   (156,626)
Gross margin 9,729   6,898   38,866   39,886
General and administrative (1,997)   (1,497)   (6,217)   (5,691)
Adjusted EBITDA 7,732   5,401   32,649   34,195
Amortization of property and equipment (5,278)   (5,475)   (20,433)   (17,547)
Amortization of intangible assets (100)   (115)   (457)   (729)
Share-based compensation (447)   (141)   (1,112)   (365)
Gain(loss) on disposal of property and equipment 103   2   432   (278)
Foreign exchange gain (loss) -   (491)   (642)   870
Operating profit (loss) 2,010   (819)   10,437   16,146
Net finance expense (1,198)   (5,990)   (11,157)   (13,929)
Loss on fair value of financial instruments -   (19)   (6)   (403)
Net income (loss) and comprehensive income (loss) before income tax 812   (6,828)   (726)   1,814
Deferred income tax expense (recovery) 215   1,562   (142)   2,965
Net and comprehensive income (loss) 597   (5,266)   (584)   4,779
               
Total assets 140,295   124,743        
Total long-term liabilities 54,181   56,406        
Funds from Operations 6,676   9,120   25,328   24,734

 

SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three and twelve month periods ended December 31, 2013 and 2012 is set out above and includes the following non-IFRS financial measures: Gross margin, Gross margin percentage, Adjusted EBITDA, Adjusted EBITDA margin percentage and Funds from Operations. This information should be read in conjunction with the consolidated financial statements for the three and twelve month periods ended December 31, 2013 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.

DIRECTOR RESIGNATION

Petrowest also announces that Larry Patriquin has resigned as a director, to focus on his other business interests. Petrowest wishes to thank Mr. Patriquin for his contributions to the Company over the past four years.

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) 572-2160, or info@petro-west.com.