TSX Symbol - PSD
CALGARY, Jan. 25 /CNW/ - Douglas Cutts, President and Chief Executive Officer of Pulse Seismic Inc. ("Pulse" or "the Company"), reports the following preliminary selected unaudited financial and operating results of Pulse for the fourth quarter of 2009 and for the year ended December 31, 2009. The financial information contained in this news release is based on management's estimates and has not yet been approved by the Company's Audit Committee or Board of Directors, or reviewed by the Company's auditors.
- Seismic data library sales for the three months ended December 31,
2009 were approximately $10.2 million, compared to $10.1 million for
the same period in 2008. Seismic data library sales for the year
ended December 31, 2009 were approximately $23.4 million compared to
$36.9 million for the year ended December 31, 2008.
- Total seismic revenue (including revenue from participation surveys)
for the year ended December 31, 2009 was approximately $30.7 million
compared to $45.4 million for the year ended December 31, 2008.
- Cash EBITDA(a) from continuing operations for the year ended
December 31, 2009 was approximately $16.4 million ($0.31 per share
basic and diluted) compared to $28.2 million ($0.52 per share basic
and diluted) for the year ended December 31, 2008.
- Net loss from continuing operations for the year ended December 31,
2009 was approximately $2.6 million ($0.05 per common share basic and
diluted) compared to net earnings from continuing operations of
$880,000 ($0.02 per share basic and diluted) for the year ended
December 31, 2008.
- Pulse's working capital position grew to approximately $19.3 million
(including cash of $15.0 million and current portion of long term
debt of $7.0 million) at December 31, 2009 from $14.4 million
(including cash of $13.2 million and current portion of long term
debt of $6.8 million) at December 31, 2008.
- One 3D participation survey in the Deep Basin area of northwestern
Alberta totalling 108 net square kilometres was completed and
delivered in Q4 2009.
"Seismic data library sales for Q4 2009 were stronger than anticipated as a result of a number of E&P companies expediting their capital expenditures prior to year end. As pleased as we are with the results for the quarter we continue to maintain a highly cautious stance heading into 2010," commented Douglas Cutts.
"Looking beyond, we are encouraged to see renewed interest and new discoveries in the Cardium and Pembina plays in Alberta which are being advanced through new horizontal drilling technologies, initially developed for the unconventional oil and natural gas plays, and now being utilized in the conventional areas. Pulse has concentrated over the past few years on building upon its seismic data library in Alberta both through participation surveys and the acquisition of existing data. More than one third of Pulse's 12,800 square kilometre 3D seismic data library covers the territory encompassing the Cardium zone potential. Although we are excited about future potential data sales opportunities, there remains significant uncertainty in the recovery in drilling activity relating to the natural gas component of the industry."
On Friday, March 12, 2010, Pulse intends to release its complete audited financial results for the year ended December 31, 2009. A conference call and webcast to review the 2009 results is scheduled for Monday, March 15, 2010 at 1:00 EDT (11:00 am MDT). Further details of the conference call, including dial-in numbers, will be provided at a later date.
(a) The Company's continuous disclosure documents provide discussion and analysis of "cash EBITDA", "funds from continuing operations" and "funds from continuing 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 cash EBITDA is cash available for interest payments, cash taxes if applicable, debt servicing, discretionary capital expenditures and the payment of dividends, and is calculated as earnings before interest, taxes, depreciation and amortization less participation survey revenue, plus non-cash and non-recurring G&A expenses. Cash EBITDA excludes participation survey revenue as these funds are directly used to fund specific participation surveys and this revenue is not available for discretionary capital expenditures. The Company believes cash EBITDA assists investors in comparing Pulse's results on a consistent basis without regard to participation survey revenue and non-cash items, such as depreciation and amortization, which can vary significantly depending on accounting methods or non-operating factors such as historical cost. The Company's definition of funds from continuing operations is cash flow from continuing operations as prescribed by Canadian GAAP but excluding the impact of changes in non-cash working capital. Funds from continuing operations represent the cash that was generated during the period, regardless of the timing of collection of receivables and payment of payables. Funds from continuing operations per share is defined as funds from continuing operations divided by the weighted average number of shares outstanding for the period.
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data for the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 258,000 net kilometres of 2D seismic and 12,800 net square kilometres of 3D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occurs. The replacement value of Pulse's library is currently estimated at over $1 billion based on current field replacement costs.
Forward Looking Information
This document contains information that constitutes "forward looking information" or "forward looking statements" (collectively, "forward looking information") within the meaning of applicable securities legislation. This forward looking information includes, among other things, statements regarding:
- estimated future demand for seismic data;
- estimated future seismic data sales;
- estimated future demand for participation surveys;
- estimated costs, funding, size, commencement dates and delivery dates
of participation surveys;
- planned future participation surveys;
- planned growth of the seismic data library;
- planned future normal course issuer bid purchases;
- Pulse's business strategy; and
- Other expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events, conditions,
results and performance.
Often, but not always, forward looking information uses words or phrases such as: "expects", "does not expect" or "is expected", "anticipates" or "does not anticipate", "plans" or "does not plan", "estimates" or "estimated", "projects" or "projected", "forecasts" or "forecasted", "believes" or "does not believe", "intends" or "does not intend", "likely" or "unlikely", "possible", "probable", "scheduled", "positioned", "goal", "objective", "hopes", "optimistic" or states that certain actions, events or results "should", "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Undue reliance should not be placed on forward-looking information. Forward looking information is based upon current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward looking information.
The material risk factors include, but are not limited to:
- the demand for seismic data and participation surveys;
- the pricing of data library license sales;
- the level of pre-funding of participation surveys, and the ability of
the Company to make subsequent data library sales from such
- the ability of the Company to complete participation surveys on time
and within budget;
- the price and demand for oil and natural gas;
- the level of oil and natural gas exploration and development
- the ability of the Company's customers to raise capital;
- environment, health and safety risks;
- the effect of seasonality and weather conditions on participation
- federal and provincial government laws and regulation, including
taxation, royalty rates, environment and safety;
- competition from other seismic data library companies;
- dependence upon qualified seismic field contractors;
- dependence upon key management, operations and marketing personnel;
- protection of Intellectual Property.
The foregoing list of risks is not exhaustive. Additional information on these risks and other factors which could affect the Company's operations or financial results are included in the Risk Factors section of the Company's MD&A for the most recent calendar year and interim periods. Forward looking information is based upon the assumptions, expectations, estimates and opinions of the Company's management at the time the information is presented.
SOURCE Pulse Seismic Inc.
For further information: For further information: Douglas Cutts, President and C.E.O., Tel.: (403) 237-5559, Toll-free: 1-877-460-5559, E-mail: email@example.com; Please visit our website at www.pulseseismic.com