Dalmac Energy Reports Q1'15 Financial Results

EDMONTON, Sept. 29, 2014 /CNW/ - John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSX Venture "DAL") is pleased to announce first quarter financial results for the period ended July 31, 2014

First Quarter Financial Highlights:

  • Revenues of $7.2 million
  • EBITDAS increased 30x to $578K from $19K
  • Gross margin improved to 22% from 18%
  • Over $175K spent on modern IT system development, designed to reduce costs
  • Expenses down 9% to $2.1 million

Selected Financial Information

(000's Cdn Dollars, except per share data)

Q1'15

Q1'14




Revenues

7,199

7,614

Gross Margin

1,615

1,364

Gross Margin %

22%

18%

General and administrative expenses

352

559

EBITDAS (loss)

578

19

EBIDTAS per share  - basic

0.02

0.00

Amortization

830

720

Net income (loss)

(360)

(701)


Net income (loss) per share - basic

(0.02)

(0.03)


Net income (loss) per share - diluted

(0.02)

(0.03)

 

The Company reported revenues from fluid transfers and well stimulation services of $7.2M as compared with $7.6M reported in the first quarter of 2013. The first two months of the first quarter came in on forecast but the third month of July was slower than expected as many customers took time off for the summer break. The first quarter is typically the slowest quarter of the year as the spring breakup and road bans restrict activity  Gross Margin as a percentage of revenue increased to  22% which represents an improvement of almost 25% over Q1'14.   The company demonstrated an impressive 30 times multiple increase in EBITDAS to $578,000due to better management controls over operational efficiencies along with refining our customer mix to focus more on long term strategic partners.

While capital expenditure programs are typically curtailed during our first quarter, Dalmac is now experiencing a significant increase in orders and  the winter drilling season is off to a good start.

Outlook

Dalmac still remains optimistic looking forward as rig counts are projected to continue to improve over the remainder of 2014 and into 2015.  Given the current degree of activity in the field and the number of work orders being received  for Dalmac services,  management is confident that the remainder of fiscal 2015 is shaping up to be a banner year.  The continued focus on productivity improvements such as the implementation of a new computerized dispatching and invoicing system  will not only  improve labor costs but will also optimize equipment deployment by allowing for real time monitoring  of  fleet operations in the field. Other added benefits will stem from more timely customer invoicing, maintenance scheduling and improved administration of excess equipment capacities. Management strongly feels that these processes will not only help lower operating costs but will better position Dalmac for increased growth and profitability in fiscal 2015.

The Company announces that Leonard Jaroszuk has resigned as director of Dalmac effective September 26, 2014.  Dalmac will be conducting a comprehensive search to find a replacement director with suitable industry experience as expeditiously as possible.  "On behalf of the board of directors I would like to wish Len all the best in his future endeavors and to personally thank him for his nine years of service and tireless dedication to the Company" stated John Babic, the Chief Executive Officer of Dalmac.  

Conference call

A conference call to discuss the results will be held on September 30, 2014, at 1:30 pm EST/11:30 am MST.

To participate in the conference call, please dial 416-260-0113 local in Toronto or toll-free 1-800-524-8950 and request the Dalmac Energy conference.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information and Statements

In particular, this press release contains forward-looking information and statements pertaining to conducting a comprehensive search to find a replacement director with suitable industry experience as expeditiously as possible.  This forward-looking information and the related statements are based upon factors, expectations and assumptions reflected in the forward-looking statements that are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct.

The forward-looking information and statements contained in this press release are based upon several material factors, expectations and assumptions of Dalmac including, without limitation: the availability of suitable candidates; that Dalmac will be able to offer a suitable compensation package to potential candidates; and that Dalmac will continue to conduct its operations and management in a manner consistent with past operations.

The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information and statements including, without limitation: general economic, market and business conditions; volatility in market prices for crude oil and natural gas; the ability of Dalmac's clients to explore for, develop and produce oil and gas; availability of financing and capital; the ability of Dalmac's customers to pay in a timely manner; fluctuations in interest rates; demand for the Company's product and services; adverse conditions in the debt and equity markets; and government actions including changes in environment and other regulation; and certain other risks detailed from time to time in Dalmac's public disclosure documents including, without limitation, those risks identified in this press release.

The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Dalmac does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.

SOURCE: Dalmac Energy Inc.

For further information: John Babic - CEO - Dalmac Energy, Tel: 780-988-8510, Email: jbabic@dalmac.ca

Profil de l'entreprise

Dalmac Energy Inc.

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