CALGARY, Oct. 13, 2015 /CNW/ - Pulse Seismic Inc. ("Pulse" or "the Company") reports its preliminary selected unaudited financial and operating results for the three and nine months ended September 30, 2015.
These financial results are based on management's estimates and have not yet been approved by the Company's Audit Committee or Board of Directors or reviewed by the Company's auditors.
Pulse expects to release its full financial results for the three and nine months ended September 30, 2015 on November 6, 2015.
"Data library sales of $4.7 million for the third quarter bring our year-to-date sales to $12.5 million," stated Neal Coleman, Pulse's President and CEO. "The $7.8 million in shareholder free cash flow(a) Pulse has generated year to date even amidst a prolonged downturn has enabled us to become debt-free, having repaid the $5.5 million balance on our revolving credit facility during the third quarter and early in the fourth quarter."
HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015
Lower period-over-period data library sales decreased Pulse's key performance metrics for 2015 versus 2014. Highlights for the three-month and nine-month periods are:
- Seismic data library sales for the third quarter of 2015 decreased to $4.7 million from $14.5 million for the comparable period in 2014. Seismic data library sales for the nine months ended September 30, 2015 were $12.5 million compared to $27.4 million for the comparable period of 2014;
- Total seismic revenue was $15.7 million for the nine months ended September 30, 2015 compared to $27.4 million for the nine months ended September 30, 2014. There was one participation survey completed during the first quarter of 2015 which generated $3.2 million of participation survey revenue;
- Cash EBITDA(a) was $3.3 million ($0.06 per share basic and diluted) for the third quarter of 2015 compared to $12.7 million ($0.21 per share basic and diluted) for the comparable period of 2014. Cash EBITDA was $8.1 million ($0.14 per share basic and diluted) for the nine months ended September 30, 2015 compared to $22.0 million ($0.37 per share basic and diluted) for the nine months ended September 30, 2014;
- Shareholder free cash flow(a) was $3.2 million ($0.06 per share basic and diluted) for the third quarter of 2015 compared to $12.5 million ($0.21 per share basic and diluted) for the comparable period in 2014. Shareholder free cash flow was $7.8 million ($0.14 per share basic and diluted) for the nine months ended September 30, 2015 compared to $21.3 million ($0.36 per share basic and diluted) for the nine months ended September 30, 2014;
- In the nine-month period ended September 30, 2015 Pulse purchased and cancelled, through its normal course issuer bid, a total of 865,100 common shares at a total cost of approximately $2.4 million (at an average cost of $2.72 per common share including commissions);
- At September 30, 2015 Pulse had total debt(b) of $1.5 million and cash of $845,000, The debt balance was repaid on October 6 upon the collection of accounts receivable. The $50.0 million revolving credit facility is undrawn and fully available to the Company;
- In 2015, Pulse has paid three quarterly dividends of $0.02 per share totalling $3.4 million; and
- The Company added 136 square kilometres of new high-quality 3D seismic data to the library through the completion of a survey in west central Alberta which commenced in January and was completed in March 2015.
(a) The Company's continuous disclosure documents provide discussion and analysis of "cash EBITDA", "cash EBITDA per share", "shareholder free cash flow" and "shareholder free cash flow per share". These financial measures do not have standard definitions prescribed by IFRS 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, repayment of debt, purchase of its shares, discretionary capital expenditures and the payment of dividends, and is calculated as earnings (loss) from operations before interest, taxes, depreciation and amortization less participation survey revenue, plus any non-cash and non-recurring 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. Cash EBITDA per share is defined as cash EBITDA divided by the weighted average number of shares outstanding for the period. Shareholder free cash flow further refines the calculation of capital available to invest in growing the Company's 2D and 3D seismic data library, to repay debt, to purchase its common shares and to pay dividends by deducting non-discretionary expenditures from cash EBITDA. Non-discretionary expenditures are defined as debt financing costs (net of deferred financing expenses amortized in the current period) and current tax provisions. Shareholder free cash flow per share is defined as shareholder free cash flow divided by the weighted average number of shares outstanding for the period.
(b) Total debt is defined as long-term debt, excluding deferred financing costs.
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 28,400 square kilometres of 3D seismic and 340,000 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occur.
SOURCE Pulse Seismic Inc.
For further information: please contact: Neal Coleman, President and CEO; Or Pamela Wicks, VP Finance and CFO, Tel.: 403-237-5559, Toll-free: 1-877-460-5559, E-mail: [email protected], Please visit our website at www.pulseseismic.com.