TSX SYMBOL: BT.UN
CALGARY, Aug. 11 /CNW/ - The Trust generated revenues from operations of $9.1 million for the quarter ended June 30, 2010, $2.8 million more than generated in the comparable period of 2009. Q2 2010 revenues increased 44% over the same period of the prior year as a result of increased demand for core service offerings. Pricing continues to remain at historic low levels however industry consolidation and projected increases in demand may result in price increases later in 2010. Drilling activity is a key indicator of demand for the Trust's services, and is forecast by PSAC to be 35% higher in 2010 than 2009, which may bring added revenue to the Trust. For the six months ended June 30, 2010, revenues were up 18% over the same period of the prior year, and the expectation is that this trend will continue.
(unaudited) Three Months Ended Six Months Ended
($000's except June 30 June 30
per unit amounts) 2010 2009 2010 2009
Revenue from operations $ 9,143 $ 6,347 $31,913 $27,059
EBITDAC from operations(1) (1,204) (3,242) 4,805 450
Funds flow from operations(2) (1,806) (3,913) 3,595 (812)
Funds flow from operations
Per unit - basic (0.13) (0.27) 0.25 (0.05)
Per unit - diluted (0.13) (0.27) 0.25 (0.05)
Loss before other items (4,181) (6,323) (1,160) (5,672)
Net loss (5,851) (6,361) (2,877) (5,746)
Net loss per unit
- basic (0.41) (0.44) (0.20) (0.40)
- diluted (0.41) (0.44) (0.20) (0.40)
Weighted average units
- basic 14,308 14,305 14,307 14,305
- diluted 14,308 14,305 14,307 14,305
(1) Earnings before interest, taxes, depreciation, amortization and unit based compensation and certain other items ("EBITDAC") is not a recognized measure under Canadian Generally Accepted Accounting Principles (GAAP). Management believes that in addition to net earnings, EBITDAC is a useful supplemental measure as it provides an indication of the results generated by the Trust'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 unit based compensation charges affect financial results. These measures are identified and presented, where appropriate, together with reconciliations to the equivalent GAAP measure (see "Summary of consolidated statements of loss" on page 5 of the Trust's MD&A for the three and six months ended June 30, 2010). However, they should not be used as an alternative to GAAP, because they may not be consistent with calculations of other companies or trusts.
(2) Funds flow or funds flow from operations and funds flow per unit refers to cash flow from operations before changes in non-cash working capital. The Trust views cash flow from operating activities before changes in non- cash working capital balances, hereafter referred to as Funds Flow, as a measure of liquidity, and believes that Funds Flow is a metric used by many investors to assess the financial performance of the Trust. As the Trust may distribute a portion of its cash on an ongoing basis, the Trust believes that Funds Flow is an appropriate consideration in determining funds available for distribution to Unitholders. Although changes in non-cash working capital balances will impact cash available to finance distributions, 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 Trust's business, changes in non-cash working capital will generally not be a use of cash by the Trust over a longer period of time, although that may be the case from one quarter to the next. Given that these changes are not predictable and tend to even out over time, management does not believe it is appropriate to include such changes in determining cash flow from operating activities being a measure used to indicate capacity of the Trust to generate cash flow for paying distributions in the future. Any use of cash from an increase in working capital in a particular period wil be financed by the Trust's credit facilities and repaid when non cash working capital decreases and cash is generated.
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", "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 Trust, are intended to identify forward-looking information. Such information reflects the Trust's current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, those described in the Trust's MD&A for the three and six months ended June 30, 2010, 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 is based upon sources of funding which the Trust 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 Trust is based upon expectations relating to future economic and operating conditions, future dril ing activity, 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 Trust, past sources of growth and expectations relating to future economic and operating conditions. Although management of the Trust 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 this press release and in the Trust's MD&A for the three and six months ended June 30, 2010 as intended, planned, anticipated, believed, estimated or expected. Except where required by law, the Trust 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 Trust contained in this press release is expressly qualified, in their entirety, by this cautionary statement.
SOURCE BONNETT'S ENERGY SERVICES TRUST
For further information: For further information: Additional information can be obtained by contacting the Trust at Bonnett's Energy Services Ltd., R.R. 2, Site 33, Box 1, Grande Prairie, Alberta, T8V 2Z9. Information is also available at the Trust's website at www.bonnettsenergy.com; Murray Toews, Chief Executive Officer at (780) 513-3400; or David Ross, Chief Financial Officer at (403) 264-3010, Fax: (780) 532-4811, E-mail: firstname.lastname@example.org