Petrowest Corporation Announces Record Third Quarter 2013 Financial Results

CALGARY, Nov. 12, 2013 /CNW/ - Petrowest Corporation (TSX:PRW) announced today its consolidated financial results for the three and nine month periods ended September 30, 2013.

Rick Quigley, Chief Executive Officer, stated that "with a return to normal operating conditions and continuing strong customer activity in the regions the Company operates, the Company recorded record revenues and record Adjusted EBITDA in the third quarter. In the first nine months of 2013 the Company increased its fleet by 90 pieces of heavy equipment resulting in increased capacity.  Although there was a recovery in our margins this quarter, the year to date results remain below anticipated levels due to the unseasonable weather we experienced with the rest of the industry during the first half of the year." Mr. Quigley further stated that "we are proud of the record financial results for this quarter and continue to be encouraged by the amount of backlog currently in place. These results confirm that work has not been lost during periods of unseasonable weather and is deferred to subsequent periods."

Subsequent to quarter end, on November 5, 2013 the Company completed the sale, on a "bought deal" basis, of 21,562,500 class A common shares at a price of $0.80 per common share, for aggregate gross proceeds of $17.25 million. The net proceeds from the offering were approximately $15.9 million after deduction of the underwriter's fee and closing costs and were utilized to reduce the Company's long-term debt in addition to increasing its working capital position.

FINANCIAL HIGHLIGHTS

In the three months ended September 30, 2013 compared to the same period of 2012, the Company:

  • Reported record revenue of $73.5 million, an increase of $13.6 million compared to the same quarter in 2012
  • Reported record Adjusted EBITDA of $14.6 million, an increase of $1.8 million  compared to the same quarter in 2012
  • Reported Adjusted EBITDA margin of 19.8% compared to 21.4% in the same quarter in 2012
  • Entered into a revolving credit facility with availability of up to $30.0 million
  • Repaid the outstanding balance of the $22.2 million Canadian term facility

In the nine months ended September 30, 2013 compared to the same period of 2012, the Company:

  • Reported revenue of $169.7 million, an increase of $14.1 million compared to the same period in 2012
  • Reported Adjusted EBITDA of $29.1 million compared to $33.0 million in the same period in 2012
  • Reported Adjusted EBITDA margin of 14.8% compared to 18.6% in the same period in 2012
  • 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 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   Nine months ended
    September 30,   September 30,
($000's) 2013 2012   2013 2012
Revenue 73,475 59,872   168,673 154,546
Operating expenses (57,591) (45,719)   (139,536) (121,558)
Gross margin 15,884 14,153   29,137 32,988
General and administrative (1,334) (1,370)   (4,220) (4,194)
Adjusted EBITDA 14,550 12,783   24,917 28,794
Amortization of property and equipment (5,250) (4,304)   (15,155) (12,073)
Amortization of intangible assets (96) (58)   (357) (614)
Share-based compensation (234) (39)   (665) (224)
Gain(loss) on disposal of property and equipment 165 (299)   329 (279)
Foreign exchange gain (loss) - 1,346   (642) 1,361
Operating profit (loss) 9,135 9,429   8,427 16,965
Net finance expense (1,883) (2,660)   (9,959) (7,939)
Loss on fair value of financial instruments - (114)   (6) (384)
Net income (loss) and comprehensive income (loss) before income tax 7,252 6,655   (1,538) 8,642
Deferred income tax expense (recovery) 760 (1,375)   (357) 1,403
Net and comprehensive income (loss) 6,492 5,280   (1,181) 10,045
           
Total assets 147,180 129,278      
Total long-term liabilities 69,176 61,318      
Funds from Operations 12,785 10,502   18,652 21,935
           

SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three and nine month periods ended September 30, 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 nine month periods ended September 30, 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.

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:

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


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