Q1'13 earnings increased by 212% to $239K
TSX Venture: "DAL"
EDMONTON, Sept. 26, 2012 /CNW/ - John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSX Venture "DAL") is pleased to announce financial and operating results for the first quarter ended July 31, 2012.
Revenues for Q1'13 increased by 47% to a record $8.1M in comparison to the $5.6M reported in Q1'12. The gross margin for Q1'13 was 27% compared to 25% in Q1'12. EBITDA for Q1'13 increased by 105% to $1.0M from the $490K reported in Q1'12.
Pre-tax net earnings for Q1'13 continued to show marked improvement over the previous year. Pre-tax net earnings increased by 250% over Q1'12 to $318K compared to a loss of $213K. The Company's net earnings after-tax increased by 212%, to $239K or $0.01/share, compared with a loss of $213K or ($0.01) per share. Deferred tax liabilities for Q1'13 were $80K compared to nil in Q1'12. This is the first time Dalmac has achieved profitability in the first quarter of the fiscal year, which is historically a slow period due to spring break-up.
Selected Financial Information
|(000's Cdn Dollars, except per share data)||Q1'13||Q1'12|
|Gross Margin %||27%||25%|
|EBIDTAS per share - basic||0.04||0.03|
|Net income (loss)||239||(213)|
|Net income (loss) per share - basic||0.01||(0.01)|
|Net income (loss) per share - diluted||0.01||(0.01)|
|(1) EBITDAS is defined as earnings before interest, taxes, depreciation, amortization, gain or loss on sale of property, plant and equipment, and stock based compensation.|
Expenses for Q1'13 increased by only 24% to $1.9M, approximately half of the percentage increase in revenues over the same period one year ago. Total debt, excluding capital leases, decreased by 12% over the same period last year to $7.9 Million.
Subsequent to quarter end, the Company secured a $17 Million credit facility with PNC Bank Canada branch. Over $5.0M will be reclassified in Q2 FY'13 from Current Liabilities to Long Term Liabilities thereby increasing our working capital and improving the working capital ratio to about 1.5:1.0. There are no principle repayments necessary on the new facility thereby improving cash flow and allowing greater financial flexibility to grow. Lastly, this facility will improve our weighted average cost of capital by nearly 3% saving over $200,000 annually.
Q1'13 was a record quarter which generated the first positive first quarter performance in the Company's history. All our divisions are benefiting from increased oil prices and technology driven industry conditions which continue to create an increased demand for our services.
It is important to note that approximately 75% of our annual revenue is currently recurring work, i.e. fluid transfers and servicing of existing production, while the remaining 25% is contributed from drilling, fracing, completions and maintenance work for new and existing customers. Both of these revenue streams continue to expand, particularly with the longer-length, multi-stage frac wells that are becoming more prevalent in the industry.
Responding to the current surge in demand for our services, Dalmac plans on increasing the size of its fleet by purchasing about $6.5 million dollars of additional oilfield equipment. The Company is confident that current positive industry indicators will continue to translate into higher revenues and earnings for Dalmac through calendar 2012 and well into 2013.
A conference call to discuss the financial results will be held the same day at 1:30 pm EST, 11:30am MST. To participate in the conference please dial, 416-644-3417 local in Toronto, or toll free, 1-877-974-0446 and request the Dalmac Energy Conference.
Dalmac Energy is an oil and gas services company specializing in fluid hauling, well servicing, chemical sales, tank rentals and rig moving. The Company has over 207 pieces of rolling stock consisting of tank, vacuum, hydro-vac, pressure, hot oiler, acid flush, steamer, picker and winch trucks in addition to 250 pieces of oilfield tank and rig matting rental equipment.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. We seek Safe Harbor.
SOURCE: Dalmac Energy Inc.
For further information:
John Beasley - CFO - Dalmac Energy Inc.
Tel: 780-988-8510 Ext. 227
Doren Quinton - QIS Capital