Pulse Data Inc. reports 2006 results and declaration of quarterly dividend



    TSX:PSD

    CALGARY, March 19 /CNW/ - Ken MacDonald, President and Chief Executive
Officer of Pulse Data Inc. ("Pulse" or the "Company") reports the financial
and operating results of Pulse for the year ended December 31, 2006.
    Mr. MacDonald is also pleased to announce that Pulse has declared its
fifteenth consecutive quarterly dividend. This dividend is $0.0375 per common
share and will be paid on April 12, 2007 to shareholders of record at the
close of business on March 29, 2007. The Company's Dividend Reinvestment Plan
for eligible shareholders will be available for this dividend. Pulse confirms
that all dividends paid to shareholders in 2006 are designated as "eligible
dividends", as defined by the Government of Canada's Bill C-28, entitling
Canadian resident individuals to a higher gross up and dividend tax credit.
Pulse also designates all dividends paid in 2007 and subsequent years as
eligible dividends.

    
    HIGHLIGHTS

     -  Pulse added 17,862 net kilometres of 2D seismic and 461 net square
        kilometres of 3D seismic to its data library during 2006. This
        significant addition of seismic data during the year was accomplished
        through the purchase of two seismic datasets totaling 17,862 net
        kilometres of 2D data and 224 net square kilometres of 3D data and
        one participation survey totaling 237 net square kilometres of 3D
        data. This compares to the addition of 2,920 net square kilometres of
        3D data and 534 net kilometres of 2D data in 2005.

     -  Based on the Company's current share price, the annual dividend rate
        of $0.15 per share represents an approximate yield of 6.4%.

     -  Free cash flow(b) for the year ended December 31, 2006 was
        $17.8 million, compared to $23.5 million in 2005.

     -  Seismic data library sales decreased marginally by 2% to
        $34.2 million for the year ended December 31, 2006 from $34.9 million
        for the year ended December 31, 2005.

     -  Pulse had a working capital position of $5.7 million at December 31,
        2006 compared to a working capital position of $17.5 million at
        December 31, 2005.

     -  Pulse repaid $11.8 million of long-term debt during 2006. In November
        2006 Pulse restructured its long-term debt facility with its
        principal lenders to include an additional $25.0 million, which
        together with $7.5 million of cash resources, financed the purchase
        of the $32.5 million Foothills area dataset in November 2006.

     -  On July 31, 2006, the Company completed the sale of its former
        wholly-owned subsidiary, Trango Technologies Inc., to Fugro Canada
        for total proceeds of $1.8 million plus a working capital adjustment
        of approximately $400,000.

     -  On March 5, 2007, Pulse announced that it had initiated a process to
        evaluate strategic alternatives for its LiDAR business segment (also
        known as Terrapoint).


    Financial Highlights
    Continuing operations
    (stated in thousands of dollars except per share data and numbers of
    shares)

                             Three months ended          12 months ended
                                 December 31               December 31
                                 -----------               -----------
                              2006         2005         2006         2005
                              ----         ----         ----         ----
                                 (unaudited)                (audited)
    Revenue from continuing
     operations:
      Data library sales  $    10,506  $    12,439  $    34,214  $    34,905
      Participation
       surveys            $         -  $     4,368  $     3,058  $    10,006
      LiDAR               $     2,268  $     1,963  $     7,889  $     8,452
      Corporate & other   $      (362) $       (54) $      (520) $      (226)
    Total revenue
     from continuing
     operations           $    12,412  $    18,716  $    44,641  $    53,137
    Amortization of data
     libraries            $     5,631  $     6,779  $    22,750  $    21,536

    Net earnings (loss)
     from continuing ops  $     1,339  $     3,977  $    (4,499) $     6,700
    Net earnings (loss)
     from continuing ops
     per share:
      Basic               $      0.03  $      0.09  $  (0.10)(a) $      0.15
      Diluted             $      0.03  $      0.08  $  (0.10)(a) $      0.14

    Net earnings (loss)   $     1,339  $     4,020  $    (3,290) $     6,488
    Net earnings (loss)
     per share:
      Basic               $      0.03  $      0.09  $  (0.07)(a) $      0.14
      Diluted             $      0.03  $      0.08  $  (0.07)(a) $      0.14
    Funds from
     operations(b)        $     7,494  $    13,860  $    24,508  $    35,017
    Funds from operations
     per share(b):
      Basic               $      0.16  $      0.30  $      0.52  $      0.76
      Diluted             $      0.15  $      0.29  $      0.51  $      0.75
    Free cash flow(b)     $     7,869  $     7,782  $    17,812  $    23,458
    Working capital       $     5,681  $    17,503  $     5,681  $    17,503
    Total assets          $   129,594  $   129,882  $   129,594  $   129,882
    Capital expenditures
      Seismic data
       purchases          $    33,000  $         -  $    36,850  $    15,225
      Participation
       surveys            $      (375) $     6,078  $     6,696  $    11,559
      Changes to work in
       progress           $         -  $       182  $      (192) $       190
      Property and
       equipment
       additions          $       266  $       139  $     2,221  $     1,510
    Total capital
     expenditures         $    32,891  $     6,399  $    45,575  $    28,484
    Total long-term debt
     (net of current
     maturities)          $    31,996  $    20,772  $    31,996  $    20,772
    Shareholders' equity  $    75,357  $    82,432  $    75,357  $    82,432

    Weighted average
     shares outstanding:
      basic                47,802,900   46,500,615   47,145,373   46,161,608
      diluted              48,470,921   47,320,276   48,007,006   46,842,744
    Shares outstanding
     at period-end         47,919,342   46,559,778   47,919,342   46,559,778

    (a) Basic weighted average shares outstanding are used to calculate loss
        per share
    (b) These non-GAAP financial measures are defined in the Financial
        Summary below.

    Seismic Library:

      Seismic library:
        2D in net
         kilometres           257,684      239,822      257,684      239,822
        3D in net square
         kilometres             9,903        9,442        9,903        9,442
    


    FINANCIAL SUMMARY

    The Company's continuous disclosure documents provide discussion and
analysis of "free cash flow", "funds from operations" and "funds from
operations per share". These financial measures do not have standard
definitions prescribed by GAAP in Canada and, therefore, may not be comparable
to similar measures disclosed by other companies. The Company has included
these non-GAAP financial measures because management, investors, analysts and
others use them as measures of the Company's financial performance. The
Company's definition of free cash flow is cash available for debt servicing,
discretionary capital expenditures and the payment of dividends, and is
calculated as funds from operations less participation survey additions to the
data library. The Company's definition of funds from operations is cash flow
from operations as prescribed by Canadian GAAP, but excluding the impact of
changes in non-cash working capital. Funds from operations per share is
defined as funds from operations divided by the weighted average number of
shares outstanding for the period.

    Overview

    The loss from continuing operations for the year ended December 31, 2006
was $4.5 million ($0.10 per share basic and diluted), compared to earnings of
$6.7 million ($0.15 per share basic and $0.14 per share diluted) for 2005.
When calculating this loss per share, the basic number of shares outstanding
for this period has been utilized, as using diluted shares would have the
effect of inappropriately decreasing the net loss per share. This loss was due
entirely to the one-time write-down of Terrapoint's capital assets of
$8.8 million taken in the first half of 2006. Without this write-down, the
Company would have had net earnings from continuing operations of $1.1 million
for the year ended December 31, 2006.
    The net loss for 2006 was $3.3 million ($0.07 per share basic and
diluted) compared to net earnings of $6.5 million ($0.14 per share basic and
diluted) for 2005.
    Funds from operations for 2006 totalled $24.5 million ($0.52 per share
basic and $0.51 per share diluted), compared to $35.0 million ($0.76 per share
basic and $0.75 per share diluted) generated for the year ended December 31,
2005. The earnings per share for 2005 and the funds from operations per share
for 2006 and 2005 are based on the weighted average shares outstanding of
47,145,373 (diluted - 48,007,006) for 2006 compared to 46,161,608 (diluted -
46,842,744) for 2005. In 2006, the loss per share figure is based on the basic
weighted average number of shares outstanding of 47,145,373, as discussed
above.
    Net earnings from continuing operations for the three-month period ended
December 31, 2006 were $1.3 million ($0.03 per share basic and diluted)
compared to $4.0 million ($0.09 per share basic and $0.08 per share diluted)
for the same period in 2005. Funds from operations for the fourth quarter of
2006 of $7.5 million ($ 0.16 per share basic and $0.15 per share diluted) were
46.0 percent lower than the $13.9 million ($0.30 per share basic and $0.29 per
share diluted) generated in the fourth quarter of 2005. The primary reason for
these reductions is that Pulse purchased a large seismic data base rather than
conduct participation surveys in the fourth quarter of 2006, while the Company
conducted two participation surveys in the fourth quarter of 2005. These per
share figures are based on the weighted average shares outstanding of
47,802,900 (diluted - 48,470,921) for the fourth quarter of 2006 compared to
46,500,615 (Diluted - 47,320,276) for the fourth quarter of 2005.
    Effective October 6, 2006 Pulse acquired a significant seismic dataset
consisting of 14,417 net kilometres of 2D data, located primarily in the
Foothills region of Alberta and northeast British Columbia. Earlier in the
year, effective August 29, 2006, Pulse acquired a seismic dataset consisting
of 3,445 net kilometres of 2D data and 224 net square kilometres of 3D data in
the Deep Basin of west central Alberta. In 2005 Pulse added 2,920 net square
kilometres of 3D data through the purchase of a significant dataset which
consisted of 2,502 net square kilometres of 3D data and 534 net kilometres of
2D data, and through four participation surveys consisting of 418 net square
kilometres of 3D data.

    Revenue

    For the year ended December 31 (stated in thousands of dollars)

    
    -------------------------------------------------------------------------
                                2006                  2005
                        ------------------------------------------
                                     % of                  % of         %
    Business Segment     Revenue     Total     Revenue     Total      Change
                                    Revenue               Revenue
    -------------------------------------------------------------------------
    Seismic Data:
    -------------------------------------------------------------------------
      Data library
       sales            $ 34,214       76.6   $ 34,905       65.7       (2.0)
    -------------------------------------------------------------------------
      Participation
       surveys             3,058        6.9     10,006       18.8      (69.4)
    -------------------------------------------------------------------------
    LiDAR                  7,889       17.7      8,452       15.9       (6.7)
    -------------------------------------------------------------------------
    Corporate and other     (520)      (1.2)      (226)      (0.4)    (130.1)
    -------------------------------------------------------------------------
    Total               $ 44,641      100.0   $ 53,137      100.0      (16.0)
    -------------------------------------------------------------------------


    For the three months ended December 31 (stated in thousands of dollars)

    -------------------------------------------------------------------------
                                2006                  2005
                        ------------------------------------------
                                     % of                  % of         %
    Business Segment     Revenue     Total     Revenue     Total      Change
                                    Revenue               Revenue
    -------------------------------------------------------------------------
    Seismic Data:
    -------------------------------------------------------------------------
      Data library
       sales            $ 10,506       84.6   $ 12,439       66.5      (15.5)
    -------------------------------------------------------------------------
      Participation
       surveys                 -          -      4,368       23.3     (100.0)
    -------------------------------------------------------------------------
    LiDAR                  2,268       18.3      1,963       10.5       15.5
    -------------------------------------------------------------------------
    Corporate and other     (362)      (2.9)       (54)      (0.3)    (570.4)
    -------------------------------------------------------------------------
    Total               $ 12,412      100.0   $ 18,716      100.0      (33.7)
    -------------------------------------------------------------------------
    


    Seismic Data Segment

    The seismic data segment, which includes data library sales and
participation survey revenues, contributed 83.5 percent of total revenue from
continuing operations for the Company in 2006, and 84.6 percent of total
revenue from continuing operations for the fourth quarter of 2006. In
comparison, the seismic data segment contributed 84.5 percent of total revenue
for the year ended December 31, 2005 and 89.8 percent of total revenue for the
fourth quarter of 2005. For the year ended December 31, 2006, Pulse recorded
total seismic revenue of $37.3 million compared to $44.9 million for 2005.
    Within the seismic data segment the Company generates two types of
revenue: data library sales and participation survey revenue. While
participation survey revenue increases revenue and earnings significantly in
periods of high survey activity, participation surveys represent an investment
in the seismic data library that initially draws down the capital resources of
the Company similar to the purchase of existing seismic data. However, the
process of purchasing seismic data does not generate "revenue" in the initial
instance. Once the participation survey data or the purchased data enter our
data library future licensing revenue generates free cash flow, which can
occur many times while incurring minimal further cash costs.
    Seismic data segment revenue for the year ended December 31, 2006
reflects an overall decrease of 17.0 percent from 2005. The primary reason for
the decrease in total seismic data segment revenue is the Company's decision
to grow the seismic data library through the purchase of existing datasets
rather than conduct additional participation surveys after the first half of
the year, and lower-than-normal client funding on the participation survey
completed in the second quarter of 2006. Pulse recorded $3.1 million of
participation survey revenue in 2006, compared to $10.0 million of
participation survey revenue in 2005.

    LiDAR Segment

    LiDAR revenue for the fourth quarter of 2006 increased by 15.5 percent to
$2.3 million from $2.0 million in the fourth quarter of 2005 and reached a
full-year total of $7.9 million in 2006, down slightly from $8.5 million in
2005. The decrease was due to lower sales in the summer months of 2006;
however, the increase in LiDAR revenue in the fourth quarter was due to a
significant amount of contracts being sold in the third quarter that were
executed during the fourth quarter.

    Trango Segment

    The Trango segment of Pulse has been reported as discontinued operations
as of September 30, 2006. Trango, a former wholly-owned subsidiary of Pulse,
was classified as assets held for sale as of June 30, 2006 and was
subsequently sold on July 31, 2006, for $1.8 million in cash plus a working
capital adjustment of approximately $400,000.

    Corporate and Other Segment

    The Corporate and Other segment consists primarily of Pulse's Corporate
G&A costs, interest and items such as inter-company eliminations and foreign
exchange gains and/or losses.

    General and Administrative Expenses (G&A) For the year ended December 31,
2006 Corporate G&A expenses were $5.6 million, a 19.3 percent increase from
$4.7 million for 2005. The G&A increase is principally related to higher
stock- based compensation expense, higher salary expense due to hiring more
employees, increased consulting costs and higher public reporting costs.

    Depreciation Expense Depreciation expense for the year ended December 31,
2006 increased by 25 percent to $363,000 from $290,000 in 2005. The
depreciation provision in the fourth quarter of 2006 was $94,000, an increase
of 17.5 percent from the $80,000 expense for the same three-month period in
2005. The increase in both periods is due primarily to the 2005 capital
expenditures, mainly for technology-related equipment for improving data
security and data flow as well as software upgrades, which results in higher
depreciation in the subsequent year.

    Interest Expense Total interest expense for the year ended December 31,
2006 increased to $1.1 million from $1.0 million in 2005. The increase is
primarily due to the additional debt undertaken midway through 2005 to finance
a $15.2 million seismic data purchase, as well as an increase in long-term
debt at the end of 2006 to partially fund the $32.5 million seismic data
purchase on November 15. In addition, the interest rate on the long-term debt
increased slightly in 2006.

    Data Library

    Pulse acquires seismic data to grow its data library through two primary
methods. The Company conducts participation surveys each year and also
purchases proprietary rights to complementary seismic data when the
opportunity arises. During 2006, Pulse invested $43.5 million to acquire new
seismic data. Of this amount, $6.7 million was invested to conduct a 237
square kilometre, 3D participation survey in west-central Alberta in the
second quarter of 2006. An additional $36.9 million was invested to purchase
two seismic datasets during the year. In the third quarter Pulse purchased a
dataset consisting of approximately 224 net square kilometres of 3D data and
3,445 net kilometres of 2D data located in the Deep Basin of west-central
Alberta, followed by a fourth-quarter acquisition of 14,417 net kilometres of
2D data located primarily in the Foothills region of Alberta and northeast
British Columbia, and including some data in Saskatchewan, Yukon, the
Northwest Territories and the northwest United States. In comparison, in 2005
the Company invested a total of $26.8 million to acquire seismic data. The
Company paid $15.2 million to purchase the proprietary rights to approximately
2,500 net square kilometres of 3D seismic data and 500 net kilometres of 2D
seismic data, located in the south-central area of Alberta. Additionally in
2005, the Company invested $5.5 million to acquire 244 net square kilometres
of 3D data through two participation surveys in northern Alberta and
$6.1 million to acquire 174 net square kilometres of 3D data through two
participation surveys in west-central Alberta.

    Liquidity, Capital Resources and Capital Requirements

    At December 31, 2006 the working capital position of Pulse, including the
current portion of long-term debt of $8.0 million, was $5.7 million, compared
to $17.5 million at December 31, 2005. During the year, Pulse utilized working
capital for seismic data purchases ($36.9 million), a participation survey
($6.7 million), long-term debt repayment ($11.8 million) and dividends, net of
the Dividend Reinvestment Program proceeds ($6.8 million). The current portion
of long-term debt increased by $1.9 million at December 31, 2006 over
December 31, 2005 due to additional bank term debt of $25 million undertaken
to finance the $32.5 million fourth quarter seismic data purchase.
    With the continued trend of strong seismic data sales, Pulse management
expects that its funds from operations will be sufficient to finance
operations, service debt, and continue to pay dividends and carry out the
budgeted capital expenditures through 2007. The ongoing growth in the
Company's seismic data library continues to position Pulse as a leading
provider of valuable seismic data to industry participants well into the
future. Historical data sales analysis shows that most seismic data retains
its value for many years. Utilizing the recent technological advancements in
data reprocessing, the Company's clients are able to enhance the quality of
older data in the library.


    
    PULSE DATA INC.
    Consolidated Balance Sheets
    December 31, 2006 and 2005
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                            2006        2005
    -------------------------------------------------------------------------

    Assets

    Current assets:
      Cash and cash equivalents                        $   2,549   $  11,012
      Accounts receivable                                 18,406      20,249
      Prepaid expenses                                       362         315
      Work in progress                                     1,098         993
      Assets of discontinued operations                        -       1,750
    -------------------------------------------------------------------------
                                                          22,415      34,319

    Long-term receivable                                       -         800
    Data libraries                                       101,039      80,256
    Participation surveys in progress                          -         192
    Property and equipment                                 5,179      13,665
    Investments                                              351         432
    Deferred charges                                         610         218

    -------------------------------------------------------------------------
                                                       $ 129,594   $ 129,882
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable and accrued liabilities         $   4,944   $   6,700
      Deferred revenue                                     3,786       3,848
      Current portion of long-term debt                    8,004       6,068
      Liabilities of discontinued operations                   -         200
    -------------------------------------------------------------------------
                                                          16,734      16,816

    Long-term debt                                        31,996      20,772

    Future income taxes                                    5,507       9,862

    Shareholders' equity:
      Share capital                                       54,887      51,808
      Contributed surplus                                  1,305       1,079
      Retained earnings                                   19,165      29,545
    -------------------------------------------------------------------------
                                                          75,357      82,432

    -------------------------------------------------------------------------
                                                       $ 129,594   $ 129,882
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    PULSE DATA INC.
    Consolidated Statements of Operations and Retained Earnings

    Years ended December 31, 2006 and 2005
    (In thousands of dollars, except per share data)
    -------------------------------------------------------------------------
                                                            2006        2005
    -------------------------------------------------------------------------

    Revenue                                            $  44,641   $  53,137

    Operating expenses:
      Amortization of data libraries                      22,750      21,536
      Operating                                           10,677       9,497
      Depreciation and amortization                       10,707       2,615
      -----------------------------------------------------------------------
                                                          44,134      33,648

    General and administrative expenses                    7,037       6,571
    Research and development expenses                        974       1,169

    Gain on sale of assets                                 1,100           -

    Interest:
      Long-term debt                                       1,714       1,300
      Other                                                 (461)       (288)
      -----------------------------------------------------------------------
                                                           1,253       1,012

    -------------------------------------------------------------------------
    Earnings (loss) from continuing operations
     before income taxes                                  (7,657)     10,737

    Income taxes:
      Current                                              1,302         349
      Future (reduction)                                  (4,460)      3,688
      -----------------------------------------------------------------------
                                                          (3,158)      4,037

    -------------------------------------------------------------------------
    Net earnings (loss) from continuing operations     $  (4,499)  $   6,700

    Earnings (loss) from discontinued operations,
     net of income taxes                                   1,209        (212)
    -------------------------------------------------------------------------
    Net earnings (loss)                                   (3,290)      6,488

    Retained earnings, beginning of year               $  29,545   $  26,527

    Dividends paid                                        (7,090)     (3,470)
    -------------------------------------------------------------------------
    Retained earnings, end of year                     $  19,165   $  29,545
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings (loss) per share from continuing
    operations,
      basic                                            $   (0.10)  $    0.15
      diluted                                          $   (0.10)  $    0.14

    Earnings (loss) per share, basic and diluted       $   (0.07)  $    0.14
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    PULSE DATA INC.
    Consolidated Statements of Cash Flows

    Years ended December 31, 2006 and 2005
    (In thousands of dollars)
    -------------------------------------------------------------------------
                                                            2006        2005
    -------------------------------------------------------------------------

    Cash provided by (used in):

    Operations:
      Net earnings                                     $  (3,290)  $   6,488
      Items not involving cash:
        Amortization of data libraries                    22,750      21,536
        Depreciation and amortization                     10,735       2,693
        Unrealized gain (loss) on foreign exchange            13        (107)
        Future income taxes                               (4,352)      3,574
        Stock-based compensation                             997         813
        Gain on sale of assets                            (1,100)          -
        Gain on sale of subsidiary                        (1,323)          -
        Amortization of deferred charges                      78          20
      -----------------------------------------------------------------------
                                                          24,508      35,017

      Net change in non-cash working capital items
       related to operations                               4,143      (4,157)
      -----------------------------------------------------------------------
                                                          28,651      30,860
    Financing:
      Long-term debt                                      25,000      15,439
      Repayment of long-term debt                        (11,840)     (5,464)
      Issue of share capital                               1,993         893
      Dividends paid - net                                (6,775)     (3,269)
      Increase in deferred charges                          (470)       (145)
      Proceeds from sale of subsidiary                     1,714           -
      -----------------------------------------------------------------------
                                                           9,622       7,454
    Investing:
      Additions to data libraries through
       participation surveys                              (6,696)    (11,559)
      Seismic data purchases                             (36,850)    (15,225)
      (Increase) decrease in participation surveys
       in progress                                           192        (190)
      Proceeds from sale of seismic data                   1,000           -
      Proceeds from sale of investments                      194         235
      Additions to property and equipment                 (2,221)     (1,510)
      Net change in non-cash working capital items
       related to investing                               (3,252)     (1,983)
      -----------------------------------------------------------------------
                                                         (47,633)    (30,232)

    -------------------------------------------------------------------------
    Increase (decrease) in cash position                  (9,360)      8,082

    Cash and cash equivalents, beginning of year          11,909       3,827

    -------------------------------------------------------------------------
    Cash and cash equivalents, end of year             $   2,549   $  11,909
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    During the year the Corporation paid interest of $ 2,038,000 (2005 -
$1,284,000) and received interest of $784,000 (2005 - $137,000). During the
year the Corporation paid income taxes of $364,000 (2005 - $177,000).


    Segment Information

    Years ended December 31, 2006 and 2005
    (Tabular amounts in thousands of dollars)

    -------------------------------------------------------------------------
    Year ended                   Seismic               Corporate
    December 31, 2006               Data       LiDAR   and Other       Total
    -------------------------------------------------------------------------
    Revenue
      Data library sales       $  34,214   $       -   $       -   $  34,214
      Participation surveys        3,058           -           -       3,058
      LiDAR                            -       7,889           -       7,889
      Corporate and other              -           -        (520)       (520)
    -------------------------------------------------------------------------
    Total revenue                 37,272       7,889        (520)     44,641
    Amortization                  22,574         176           -      22,750
    -------------------------------------------------------------------------
    Segment profit (loss),
     before undernoted            14,698       7,713        (520)     21,891

    Operating expenses             3,843       6,834           -      10,677
    General and
     administrative expense            -       1,404       5,633       7,037
    Depreciation                       -      10,344         363      10,707
    Research and development
     expense                           -         974           -         974
    Interest expense                   -         147       1,106       1,253

    -------------------------------------------------------------------------
    Earnings (loss) before
     income taxes              $  10,855   $ (11,990)  $  (7,622)  $  (8,757)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total assets               $ 116,022   $   8,369   $   5,203   $ 129,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital expenditures       $  43,354   $   2,087   $     128   $  45,569
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Year ended                   Seismic               Corporate
    December 31, 2005               Data       LiDAR   and Other       Total
    -------------------------------------------------------------------------
    Revenue
      Data library sales       $  34,905   $       -   $       -   $  34,905
      Participation surveys       10,006           -           -      10,006
      LiDAR                            -       8,452           -       8,452
      Corporate and other              -           -        (226)       (226)
    -------------------------------------------------------------------------
    Total revenue                 44,911       8,452        (226)     53,137
    Amortization                  21,360         176           -      21,536
    -------------------------------------------------------------------------
    Segment profit (loss),
     before undernoted            23,551       8,276        (226)     31,601

    Operating expenses             3,399       6,306        (208)      9,497
    General and
     administrative expense            -       1,850       4,721       6,571
    Depreciation                       -       2,325         290       2,615
    Research and development
     expense                           -       1,169           -       1,169
    Interest expense                   -           3       1,009        1012

    -------------------------------------------------------------------------
    Earnings (loss) before
     income taxes              $  20,152   $  (3,377)  $  (6,038)  $  10,737
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total assets               $ 109,562   $  17,006   $   1,564   $ 128,132
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital expenditures       $  26,974   $     567   $     927   $  28,468
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Three months ended December 31, 2006 and 2005
    (Tabular amounts in thousands of dollars)

    -------------------------------------------------------------------------
    Three months ended           Seismic               Corporate
    December 31, 2006               Data       LiDAR   and Other       Total
    -------------------------------------------------------------------------
    Revenue
      Data library sales       $  10,506   $       -   $       -   $  10,506
      Participation surveys            -           -           -           -
      LiDAR                            -       2,268           -       2,268
      Corporate and other              -           -        (362)       (362)
    -------------------------------------------------------------------------
    Total revenue                 10,506       2,268        (362)     12,412
    Amortization                   5,587          44           -       5,631
    -------------------------------------------------------------------------
    Segment profit (loss),
     before undernoted             4,919       2,224        (362)      6,781

    Operating expenses               929       2,321         113       3,363
    General and
     administrative expenses           -         265       1,423       1,688
    Depreciation                       -         215          94         309
    Research and development
     expenses                          -         258           -         258
    Interest expense                   -         144         258         402

    -------------------------------------------------------------------------
    Earnings (loss) before
     income taxes              $   3,990   $    (979)  $  (2,250)  $     761
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total assets               $ 116,022   $   8,369   $   5,203   $ 129,594
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital expenditures       $  32,626   $     245   $      14   $  32,885
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Three months ended           Seismic               Corporate
    December 31, 2005               Data       LiDAR   and Other       Total
    -------------------------------------------------------------------------
    Revenue
      Data library sales       $  12,439   $       -   $       -   $  12,439
      Participation surveys        4,368           -           -       4,368
      LiDAR                            -       1,963           -       1,963
      Corporate and other              -           -         (54)        (54)
    -------------------------------------------------------------------------
    Total revenue                 16,807       1,963         (54)     18,716
    Amortization                   6,735          44           -       6,779
    -------------------------------------------------------------------------
    Segment profit (loss),
     before undernoted            10,072       1,919         (54)     11,937

    Operating expenses             1,026       1,580        (183)      2,423
    General and
     administrative expenses           -         500       1,481       1,981
    Depreciation                       -         590          80         670
    Research and development
     expenses                          -         333           -         333
    Interest expense                   -           -         215         215

    -------------------------------------------------------------------------
    Earnings (loss) before
     income taxes              $   9,046   $  (1,084)  $  (1,647)  $   6,315
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Total assets               $ 109,562   $  17,006   $   1,564   $ 128,132
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capital expenditures       $   6,260   $      98   $      40   $   6,398
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    OUTLOOK

    The Company has a positive outlook for seismic licensing sales activity,
revenue, operating margins and free cash flow for 2007. Forecasting agencies
and associations are generally calling for weaker and volatile commodity
prices (especially for natural gas) and lower levels of oil and natural gas
industry field activity in 2007. However, the seismic sub-sector is driven by
somewhat different dynamics than those driving the drilling sub-sector.
Seismic activity, representing a relatively small proportion of oil and
natural gas producers' capital spending, remains an important component of
future success regardless of current commodity prices and therefore tends to
be less volatile than commodity prices. Tighter capital budgets may motivate
exploration companies to seek licensed data rather than shoot new, proprietary
data, which is more costly. The declines in drilling levels forecast for 2007
are expected to be weighted towards shallow natural gas and coalbed methane
wells. Exploration drilling, which is more heavily dependent on seismic
interpretation (and, hence, on obtaining access to raw data), is not forecast
to decline as much, if at all. These factors bode well for Pulse's overall
activity levels as well as the pricing of licensed seismic data for 2007.
    Accordingly, the Company remains optimistic concerning its business
prospects for 2007. To date Pulse has experienced solid licensing activity and
revenue. The Foothills Data Set acquired in November 2006 is generating
significant levels of interest in licensing. Pulse has experienced a
satisfactory stream of data sales to date in 2007. This has enabled the
Company to maintain a strong working capital position and position itself to
act on growth opportunities that may occur in 2007. With the continued trend
of strong seismic data sales Pulse management expects that its funds from
operations will be sufficient to finance operations, service debt, and
continue to pay dividends and carry out the budgeted capital expenditures
through 2007.
    On March 6, 2007 Pulse announced that it had initiated a process to
evaluate strategic alternatives for Terrapoint. Pulse is taking this step to
allow Pulse to focus on its core seismic business. We foresee strong growth
potential in our seismic business, which will require substantial capital
investment and sustained focus and commitment on the management team's part.
We also believe the right strategic alternative for Terrapoint will enhance
its opportunity for success.

    CORPORATE PROFILE

    Pulse is a Calgary-based company with two operating units: Pulse Seismic
which specializes in acquiring, marketing and licensing seismic data to the
western Canadian energy sector, and Terrapoint which focuses on acquisitions
and processing of digital elevation and image data (also referred to as LiDAR)
to diverse markets. Through these two operating units, Pulse Seismic and
Terrapoint, the Company has evolved into an industry leader providing Better
Information Faster(TM).
    Pulse trades on the Toronto Stock Exchange under the symbol PSD.

    Certain information contained herein may constitute forward-looking
statements under applicable securities laws. Such statements are subject to
known or unknown risks and uncertainties that may cause actual results to
differ materially from those anticipated or implied in the forward-looking
statements. Investors are encouraged to review "Risk Factors" in the 2006 MD&A
for a discussion of risks that could affect the Company's operations and
financial results. Forward-looking statements are based upon management's
assumptions, expectations and estimates at the time that such statements are
made. Pulse does not update forward-looking statements should circumstances
change or management's assumptions, expectations or estimates change, except
as required by securities laws.




For further information:

For further information: Ken MacDonald, President & C.E.O. of Pulse or
Douglas Cutts, Vice President Finance and C.F.O. of Pulse, Tel.: (403)
237-5559, Toll-free: 1-877-460-5559, E-mail: info@pulsedatainc.com; Please
visit our website at www.pulsedatainc.com

Organization Profile

Pulse Seismic Inc.

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