TSX SYMBOL: BT.UN
GRANDE PRAIRIE, AB, Nov. 11 /CNW/ - Bonnett's Energy Services Trust (TSX:BT.UN) ("Bonnett's", or the "Trust") has released its Q3 2009 results.
Bonnett's Energy Services Trust announced today that it has generated earnings before interest, taxes, depreciation and amortization and unit based compensation ("EBITDAC") and before losses incurred on the sale of equipment, of $1.1 million for the three months ended September 30, 2009 on revenues of $10.3 million.
Revenues have been negatively affected by decreased demand for the Trust's services and the lack of drilling activity in Western Canada in the current economic environment. EBITDAC was $3.9 million in the comparable period of the prior year.
Murray Toews, Chief Executive Officer of the Trust commented, "While this is the most difficult economic environment we have encountered, the management of the Trust remains focused and committed. We have looked at the slowdown in activity as an opportunity to improve how we operate and deliver value to our customers."
The Trust has incurred a loss of $8.5 million year to date as compared with a loss of $2.2 million in the same period of 2008. The management of the Trust continues to evaluate service offerings and the overall business strategy of the Trust in response to economic conditions.
Three Months Ended Nine Months Ended
September 30 September 30
amounts) 2009 2008 2007 2009 2008 2007
operations $ 10,351 $ 21,030 $ 16,423 $ 37,410 $ 57,231 $ 62,665
operations(1) 1,137 3,967 1,953 1,589 8,753 9,236
operations(2) 495 3,143 1,037 (317) 5,621 6,810
Per unit -
diluted 0.03 (0.22) 0.09 (0.02) 0.44 0.59
operations (2,735) 482 (29,243) (8,481) (1,837) (30,492)
(loss) (2,735) 477 (30,568) (8,481) (2,193) (33,872)
Per unit -
diluted (0.19) 0.03 (2.51) (0.59) (0.14) (2.63)
Per unit -
diluted (0.19) 0.03 (2.62) (0.59) (0.17) (2.92)
to Unitholders - - 3,474 - - 10,409
per unit -
basic - - 0.30 - - 0.90
diluted 14,305 14,305 11,645 14,305 12,900 11,582
(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 or how the results are taxed. These measures are identified
and presented, where appropriate, together with reconciliations to
the equivalent GAAP measure. 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 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 will be financed
by the Trust's credit facilities and repaid when non cash working
capital decreases and cash is generated. See the heading "Funds flow
from Operations" for reconciliation to the equivalent GAAP measure.
Funds flow should not be used as an alternative to GAAP, because it
may not be consistent with calculations of other companies or trusts.
Disclosure Regarding Forward-Looking 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 "intend", "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, 2009 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, 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. 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 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 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 are expressly qualified, in their entirety, by this cautionary statement.
Additional information relating to the Trust is filed on SEDAR and can be viewed at www.sedar.com or at the Trust's website at www.bonnettsenergy.com. This information includes the Trust's Annual Information Form dated March 31, 2009. Information can also be obtained by contacting the Trust at Bonnett's Energy Services Ltd., R.R. 2, Site 33, Box 1, Grande Prairie, Alberta T8V 2Z9 or David Ross, Chief Financial Officer at (403) 264-3010 ext 231.
SOURCE BONNETT'S ENERGY SERVICES TRUST
For further information: For further information: Information can also be obtained by contacting the Trust at Bonnett's Energy Services Ltd., R.R. 2, Site 33, Box 1, Grande Prairie, Alberta, T8V 2Z9; or David Ross, CFO at (403) 264-3010 ext 231