HSE Reports Highest Q3 Profit in Five Years

CALGARY, Nov. 8, 2011 /CNW/ - HSE Integrated Ltd. ("HSE" or the "Corporation") announces its financial results for the three-month and nine-month reporting periods ended September 30, 2011.  President and CEO Tom Hickey stated:  "The Corporation is confident it is executing its plan of increased profitability after producing five consecutive quarters of positive earnings."

  Three months
Sept 30, 2011
Three months
Sept 30, 2010 (2)
% change
Nine months
Sept 30, 2011
Nine months
Sept 30, 2010 (2)
% change
Revenue $ 24,277 $ 20,349 19.3% $ 73,663 $ 59,606 23.6%
Direct operating expenses   17,747   16,366 8.4%   56,961   49,381 15.4%
Operating margin(1)   6,530   3,983 63.9%   16,702   10,225 63.3%
Operating margin %   26.9%   19.6%     22.7%   17.2%  
Selling, general and administrative $ 2,651 $ 2,027 30.8% $ 7,089 $ 5,891 20.3%
Net earnings (loss)   1,834   175 948%   2,882   (484) 696%
  Per-share basic   0.05   0.00     0.07   (0.01)  
  Per-share diluted   0.04   0.00     0.07   (0.01)  
EBITDA (1) $ 3,879 $ 1,956 98.3% $ 9,613 $ 4,334 121.8%
EBITDA %   16.0%   9.6%     13.0%   7.3%  
Total assets           $ 55,376 $ 48,070 15.2%
Total long-term liabilities           $ 8,941 $ 8,317 7.5%

(1)     See non-GAAP measures
(2)     IFRS transition date was January 1, 2010; 2010 financial results have been adjusted to conform with IFRS 

Total revenue for the quarter increased 19.3% to $24,277 from $20,349 in Q3 2010.  EBITDA for the quarter increased 98.3% year-over-year from $1,956 (9.6% of revenue) to $3,879 (16.0% of revenue). Year-to-date EBITDA was $9,613 (13.0% of revenue), up 121.8% from $4,334 (7.3% of revenue) in 2010.

In the United States, Boots & Coots HSE Services LLC ("BCHSE"), the Corporation's venture with Boots & Coots Services, contributed $1,051 to revenue in the third quarter compared to $383 in the same period in 2010. This increase was achieved through HSE's strategic growth initiatives and capital spending programs designed to respond to customer demand.

HSE continues to have a strong balance sheet. Working capital at September 30, 2011 was $14,342 compared to $12,016 at year-end and $9,217 at September 30, 2010.

Tom Hickey, HSE President and CEO, made the following comments on the Corporation's 2011 Q3 financial performance, and the outlook for the remainder of the year and beyond.

"We are very excited with our year-to-date results and the commitment from our employees to achieving our goal of managing costs and working more safely every day.  While we have focused on managing costs this year, we are also growing, with year-to-date revenues up almost 24.0%, year over year.  Going forward, we will continue to concentrate on growth as the next step in our plans, while continuing to drive efficiencies in our business.  One of our focuses going forward is to enhance the return on investment we receive from our fleet of equipment.

With the balance sheet strong, we will also start to look again for strategic opportunities in the health and safety industry.

The year-over-year revenue increases of 19.3% for the third quarter and 23.6% for the nine-month period confirms that even as the largest safety services company in Canada, the Corporation still has significant potential for expansion."

HSE is also pleased to announce that Tom Hickey has been appointed as a Director of the Corporation.  Mr. Hickey joined HSE in November of 2010 as President and was appointed Chief Executive Officer on August 15, 2011.

Non-GAAP Measures

This press release makes reference to Operating Margin and EBITDA, measures that are not recognized under International Financial Reporting Standards. Management believes that, in addition to net earnings, these amounts are useful supplementary measures. Operating Margin is defined as revenue less all operating expenses incurred by field operations and support functions such as fleet management.

EBITDA provides investors with an indication of earnings before provisions for interest, taxes, amortization, foreign exchange gains or losses, gains or losses on the disposal of property and equipment and the non-cash effect of stock-based compensation expense. Investors should be cautioned that EBITDA should not be construed as an alternative to net earnings determined by GAAP as an indication of the Corporation's performance. HSE's method of calculating EBITDA may differ from that of other companies' and, accordingly, may not be comparable to measures used by other companies.


On November 9, 2011, the Corporation will be hosting an investor and analyst conference call. Details follow:

Conference Call Time and Date: Wednesday November 9, 2011 11:00 am ET (9:00 am MT)

Dial-In Number: 1-647-427-7450 (Toronto area) or 1-888-231-8191

Conference Replay to December 7, 2011: 1-416-849-0833 or 1-855-859-2056 (Passcode: 20612541)

Webcast: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3713820

About HSE

HSE is an integrated, national supplier of industrial health, safety and environmental services. From its head office in Calgary, Alberta, HSE serves its clients from field locations in Alberta, British Columbia, Saskatchewan, Manitoba, Ontario, Nova Scotia, New Brunswick, Newfoundland-Labrador, and Michigan. HSE also operates in Texas through a jointly owned company called Boots & Coots HSE Services LLC.

HSE Integrated Ltd. trades on the TSX under the symbol "HSL".



SOURCE HSE Integrated Ltd.

For further information:

Tom Hickey, President & Chief Executive Officer
Telephone: 403-266-1833
Email: thickey@hseintegrated.com

Lori McLeod-Hill, Chief Financial Officer
Telephone: 403-266-1833
Email: lmcleod-hill@hseintegrated.com

Organization Profile

HSE Integrated Ltd.

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