Bonnett's Energy Corp. reports Q1 2013 financial results and announces quarterly dividend

CALGARY, May 8, 2013 /CNW/ - Bonnett's Energy Corp. (TSX: BT) ("Bonnett's" or the "Corporation") has released its Q1 2013 financial results.

The Corporation recorded revenues of $33.4 million for the three months ended March 31, 2013, a decrease of $1.8 million, or 5%, from the comparable period of 2012.

EBITDAC for the three months ended March 31, 2013 was $10.3 million, a decrease of $1.2 million, or 11%, from the comparable period of the prior year. During 1Q13 slightly lower revenues, combined with increased costs for wages and salaries, resulted in a decrease of EBITDAC compared with 1Q12.

In addition, Bonnett's is pleased to announce that its Board of Directors, after reviewing the financial position of the Corporation, has decided to increase total annual dividends to $0.28 per common share, to be paid quarterly, from the previously announced $0.20 per common share to be paid on a semi-annual basis. The first dividend of $0.07 per common share will be paid June 17, 2013, to shareholders of record on May 31, 2013. The ex-dividend date is May 29, 2013. This dividend is an eligible dividend for Canadian income tax purposes. The Board of Directors will review the dividend quarterly giving consideration to the financial position of the Corporation and alternative uses of capital.

The Corporation has a capital expenditures budget of $21.0 million planned for 2013 with a significant portion of the budget allocated to growth capital for existing service lines.  Demand for the Corporation's services has continued to remain strong during the first three months of 2013. Management remains focused on continuing to increase the revenues, profitability and market share of the Corporation by combining the latest technologies with highly trained personnel to provide the highest quality service in the field. Select acquisitions and diversification will also continue to play an important role in the growth strategy of the Corporation. Management continues to explore additional specialty services that will bring added value to its customers, and increase return to shareholders.

SELECTED FINANCIAL INFORMATION
 
  Three months ended March 31,
($000's except per share amounts)       2013    2012   2011
(unaudited)            
Revenue from operations         $    33,426 $  35,186 $  28,947
EBITDAC(1)       10,256   11,422   8,550
Funds flow from operations (2)       10,256   11,422   8,550
Funds flow from operations per share            
  - basic       0.70   0.79   0.60
  - diluted          0.68   0.77   0.59
               
Profit before income tax       8,000   9,307   5,823
Profit and comprehensive income       6,200   8,407    5,823
Earnings per share            
  - basic       0.43   0.58   0.41
  - diluted       0.42   0.56   0.40
Weighted average shares            
  - basic        14,527   14,400    14,318
  - diluted      14,868   14,858   14,690
               
Long term debt        5,715   13,822   27,853
Net working capital (3)        15,968   16,427   14,256


Notes:

(1) EBITDAC is an Additional GAAP measure and refers to earnings before interest, taxes, depreciation and amortization, share based compensation and gains or losses on dispositions of equipment. Management believes that in addition to profit, EBITDAC is a useful supplemental measure as it provides an indication of the results generated by the Corporation's principal business activities prior to consideration of how those activities are financed, how the financial results are taxed, how funds are invested or how non-cash depreciation, amortization, share based compensation and gains or losses on dispositions of equipment affect financial results.  EBITDAC is a measure that does not have any standardized meaning prescribed under IFRS and, accordingly, may not be comparable to similar measures used by other companies.
   
(2) Funds flow from operations is an Additional GAAP measure and refers to cash flow from operations before changes in non-cash working capital.  The Corporation views cash flow from operating activities before changes in non-cash working capital balances, hereafter referred to as funds flow from operations, as a measure of liquidity, and believes that funds flow is a metric used by many investors to assess the financial performance of the Corporation.  Although changes in non-cash working capital balances will impact cash available, these changes will be a source of cash in one period and a use of cash in another depending on changes in the level of activity in a particular period due to seasonality and other factors.  Absent a sustained period of growth in the Corporation's business, changes in non-cash working capital will generally not be a use of cash by the Corporation over a longer period of time, although that may be the case from one quarter to the next.  Any use of cash from an increase in working capital in a particular period will be financed by the Corporation's credit facilities and repaid when non-cash working capital decreases and cash is generated. Funds flow or funds flow from operations and funds flow from operations per share are measures that do not have any standardized meaning prescribed under IFRS and, accordingly, may not be comparable to similar measures used by other companies.
   
(3) Net working capital refers to current assets less current liabilities. Net working capital has no standard definition under IFRS.  Management believes net working capital is a useful supplemental measure as it provides an indication of the Corporation's ability to fund its current obligations. 

Bonnett's Energy Corp. is a diversified corporation, providing wireline, frac-flowback and testing, fishing, and swabbing services in the Western Canadian Sedimentary Basin. Bonnett's Energy Corp. is a publicly traded Canadian corporation listed on the Toronto Stock Exchange under the symbol "BT".

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

This press release contains forward-looking information within the meaning of applicable Canadian securities law. This information is subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking information. When used in this document, the words "plan", "anticipate", "believe", "expect", "seek", "propose", "estimate", "intend" and similar expressions, as well as future or conditional verbs such as "may", "would", "could", and "will", as they relate to the Corporation, are intended to identify forward-looking information. Such information reflects the Corporation's current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, those described in the Corporation's MD&A for the period ended March 31, 2013 under the headings, "Overview and Outlook", "Key Resources and Competencies", "Performance Analysis" and "Risks and Uncertainties".  Forward-looking information concerning expected operating and economic conditions are based upon past operating and economic conditions.  Forward-looking information concerning the availability of funding for future operations and obligations, the Corporation's financing costs and the Corporation's compliance with financing covenants are based upon sources of funding which the Corporation has relied upon in the past and expectations concerning future economic and operating conditions.  Forward-looking information concerning the relative future competitive position of the Corporation is based upon expectations relating to future economic and operating conditions, the current business environment, present and anticipated programs and expansion plans of other organizations operating in the energy service industry.  Forward-looking information concerning the nature and timing of growth is based on past factors affecting the growth of the Corporation, past sources of growth and expectations relating to future economic and operating conditions.  Forward-looking information in respect of the costs anticipated to be associated with the acquisition and maintenance of equipment are based upon past acquisition and maintenance costs for such equipment and expectations relating to the future acquisition and maintenance cost increases concerning such equipment. Forward-looking information used to estimate the amount of deferred income tax assets recognized on the balance sheet is based on management's forecast of future taxable income using the most recent financial performance of the Corporation supplemented by additional industry information available at the time the forecast is prepared. Although management of the Corporation believes that the expectations reflected in such forward-looking information are reasonable, there can be no assurance that such expectations will prove to have been correct because, should one or more of the enumerated risks or uncertainties materialize, or should the assumptions underlying forward-looking information prove incorrect, actual results may vary materially from those described in the Corporation's MD&A for the period ended March 31, 2013, as intended, planned, anticipated, believed, estimated or expected.

Except where required by law, the Corporation does not assume any obligation to update forward-looking information if conditions or opinions should change.  Readers should not place undue reliance on forward-looking information.  All of the forward-looking information of the Corporation contained in this press release is expressly qualified, in their entirety, by this cautionary statement.

Additional information related to the Corporation, including the Corporation's annual information form, is available under the Corporation's profile on SEDAR at www.sedar.com.

 

SOURCE: Bonnett's Energy Corp.

For further information:

Additional information can be obtained by contacting Bonnett's Energy Corp., 65007 43 HWY., County of Grande Prairie No. 1, Alberta, T8V 5E7. Information is also available on the Corporation's website at www.bonnettsenergy.com or by contacting Murray Toews, Chief Executive Officer at (780) 513-3400 or David Ross, Chief Financial Officer at (403) 264-3010, Fax: (403) 693-0093, E-mail: info@bonnettsenergy.com

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