Winalta Inc. Reports 2010 Two Month Stub Year End Results

CALGARY, April 29 /CNW/ - Winalta Inc. (TSXV: WTA.A) is pleased to announce its financial results for the 2 month stub year-ended December 31, 2010, due to change in year end from October 31 to December 31.

Gross profit of $1.9 million for the two months ended December 31, 2010 was 63% on $3.1 million of revenue as compared to $0.9 million or 50% on $1.8 million on revenue for the two months ended December 31, 2009. Positive consolidated EBITDA from continuing operations was $1.1 million for the two month year ended December 31, 2010. This compares to a positive EBITDA from continuing operations of $2.7 million for the twelve month year ended October 31, 2010.

Due to the difficulty in providing comparative figures, caused by the change in year end, from October 31 to December 31, the following average monthly information has been provided. These comparisons have not taken into effect the seasonal nature of the business and were calculated based strictly as a straight average.

                   
Average monthly comparisons                  
      December
2010
$
(average
from 2
months
ended)
    October
2010
$
(average
from 12
months
ended)
    October
2009
$
(average
from 12
months
ended)
Revenue     1,570     1,085     889
Gross profit     991     548     511
Gross profit %     63%     50%     58%
Net earnings (loss) from continuing operations     5     (335)     (420)
Net loss from discontinued operations     (4)     (1,364)     (1,836)
Net earnings (loss)     1     (1,699)     (2,256)
EBITDA from continuing operations(1)     540     221     223

For the two months ending December 31, 2010, selling, general and administrative expenses from continuing operations were $930 thousand. The selling, general and administration expenses were 30% of two month 2010 revenue, as compared to 22% of revenue for the twelve months ending October 2010. Additional expenses of $406 thousand were incurred in the two months relating to an increase in audit and consulting fees, legal fees relating to CCAA and corporate restructuring matters, preparation for IFRS conversion, additional provision for doubtful accounts and stock based compensation expense. The selling, general and administration is currently structured to support the current asset base, the anticipated revenue growth and the expected addition of fleet assets.

Winalta Inc., operating under the trade name, Winalta Oilfield Rentals, is an oilfield service provider that specializes in portable industrial rental accommodations, remote offices and Dedicated Geo Labs; servicing the Western Canadian Oil and Gas Industry.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Forward-looking information certain information set forth in this press release, including management's assessment of future plans and forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which, including market conditions, are beyond our control. Readers are cautioned not to place undue reliance on the forward-looking statements as the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or outcomes could materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by forward-looking statements will transpire or occur, or if any of them do so, what benefit Winalta will derive there from. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

SOURCE Winalta Inc.

For further information:

David Hopley, CFO
Phone: (780) 960-6900

Austin Fraser, Senior Vice President
Phone: (780) 960-6900

winalta@winaltainc.com

Organization Profile

Winalta Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890