Petrowest Corporation Announces Record First Quarter 2014 Financial Results

CALGARY, May 12, 2014 /CNW/ - Petrowest Corporation ("Petrowest") (TSX:PRW) announced today its consolidated financial results for the three month period ended March 31, 2014.

Rick Quigley, Chief Executive Officer, stated that "We are very pleased with the record first quarter financial results. Both revenue and adjusted EBIDTA were the highest ever achieved in the first quarter. We continue to increase our fleet of heavy equipment and continue to have increased activity in northeastern British Columbia." Mr. Quigley further stated that "our backlog remains very strong, and during the quarter we had solid performance in the Civil division as a result of additional work on the Highway 63 upgrading projects."

FINANCIAL HIGHLIGHTS

In Q1 2014, the Company:

  • Reported  revenue of $61.1 million, an increase of $15.1 million compared to the same quarter in 2013,
  • Reported  Adjusted EBITDA of $11.1 million compared to $6.2 million in Q1 2013,
  • Reported Adjusted EBITDA margin of 18.1% compared to 13.6% in the same quarter in 2013,
  • Completed a significant amount of the crushing sub-contracts awarded on the expansion of the Highway 63 project; and

FINANCIAL RESULTS



Three months ended

March 31,

($000's)



2014

2013

Revenue



61,060

45,926

Operating expense



48,123

38,248

Gross margin1



12,937

7,678

General and administrative2



1,884

1,430

Adjusted EBITDA1



11,053

6,248

Amortization of property and equipment



4,991

4,728

Amortization of intangible assets



199

176

Share-based compensation



308

233

(Gain) loss on disposal of property and equipment



(47)

103

Foreign exchange loss



-

642

Operating profit (loss)



5,602

366

Net finance expense



1,067

5,805

Loss on fair value of financial instruments



-

4

Net income (loss) and comprehensive income (loss)

before income tax



4,535

(5,443)

Deferred income tax expense (recovery)



1,009

(1,139)

Net and comprehensive income (loss)



3,526

(4,304)






Total assets



142,701

136,771

Total long-term liabilities



51,474

64,141

Funds from Operations



10,125

3,508







SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three month period ended March 31, 2014 and 2013 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 months ended March 31, 2014 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.

ADVANCE NOTICE BY-LAW

The Company also announced today that the Board of Directors has approved the adoption of an advance notice by-law (the "Advance Notice By-law") which requires advance notice to Petrowest in circumstances where nominations of persons for election to the Board are made by shareholders other than pursuant to a requisition of a meeting or a shareholder proposal made pursuant to the provisions of the Business Corporations Act (Alberta) ("ABCA").

Among other things, the Advance Notice By-law fixes a deadline by which shareholders must submit a notice of director nominations to Petrowest prior to any annual or special meeting of shareholders where directors are to be elected and sets forth the information that a shareholder must include in the written notice for it to be valid.  In the case of an annual meeting of shareholders, written notice to Petrowest must be made not less than 30 nor more than 65 days prior to the date of the annual meeting of shareholders.  In the case of a special meeting (which is not also an annual meeting) of shareholders called for the purpose of electing directors, (whether or not called for other purposes), written notice to the Petrowest must be made not later than the close of business on the 15th day following the date on which the first public announcement of the date of the special meeting of shareholders was made.

The purpose of the Advance Notice By-law is to ensure that all shareholders, including those participating in a meeting by proxy rather than in person, receive adequate notice of the nominations to be considered at a meeting and can thereby exercise their voting rights in an informed manner.  The Advance Notice By-Law is effective immediately. At the next annual meeting of shareholders of Petrowest to be held on June 17, 2014, the shareholders will be asked to confirm the Advance Notice By-law.  A copy of the Advance Notice By-law has been filed under Petrowest's SEDAR profile at www.sedar.com.

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.


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.