Bonnett'S Energy Corp. Reports Q3 2011 Financial Results

CALGARY, Nov. 10, 2011 /CNW/ - Bonnett's Energy Corp. (TSX: BT) (the "Corporation") has released its Q3 2011 financial results.

The Corporation recorded third quarter revenue of $24.2 million, a 22% increase over the comparable period of the prior year. For the nine months ended September 30, 2011, revenue from operations increased $13.5 million, or 26% over the same period last year.

EBITDAC, or earnings before interest, taxes, depreciation and amortization and certain other items, for the three months ended September 30, 2011 was 6.5 million, $1.5 million more than the comparable period of 2010. For the nine months ended September 30, 2011, EBITDAC was $14.6 million, $4.8 million more than the comparable period of 2010.

Murray Toews, Chief Executive Officer of Bonnett's Energy Corp. commented, "We expected a strong quarter and are pleased with our financial results. With our recent acquisition of the business assets of Choice Energy Services Ltd., we continue to expand our presence and look for additional opportunities to grow and provide value to our shareholders."

SELECTED FINANCIAL INFORMATION        
         
(Unaudited)        
  Three months ended September 30, Nine months ended September 30,
($000's except per share amounts) 2011 2010 2011 2010
         
Revenue from operations $ 24,247 $ 19,920 $ 65,328 $ 51,833
EBITDAC from operations (1) 6,552 5,007 14,619 9,812
Funds flow from operations (2) 6,552 5,007 14,619 9,812
Funds flow from operations per share        
  - basic 0.46 0.35 1.02 0.69
  - diluted 0.44 0.35 0.99 0.69
Profit before income tax 4,423 1,610 8,082 2,122
Profit and comprehensive income 4,423 1,610 3,574 2,122
Earnings per share        
  - basic 0.31 0.11 0.25 0.15
  - diluted 0.30 0.11 0.24 0.15
Weighted average shares        
  - basic 14,394 14,310 14,366 14,308
  - diluted 14,823 14,430 14,833 14,308
           
         

(1) EBITDAC refers to earnings before interest, taxes, depreciation, amortization and share based compensation and certain other items. 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 and share based compensation charges affect financial results.  The Corporation's method to determine EBITDAC may not be consistent with calculations of other companies or corporations.
(2) Funds flow or funds flow from operations and funds flow per share 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.

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 September 30, 2011, under the heading "Risks and Uncertainties", and "Outlook".  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, 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.  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 September 30, 2011, 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.

 

 

 

SOURCE Bonnett's Energy Corp.

For further information:

Additional information can be obtained by contacting Bonnett's Energy Corp., R.R. 2, Site 33, Box 1, Grande Prairie, Alberta, T8V 2Z9. 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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Bonnett's Energy Corp.

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