CALGARY, Jan. 19, 2015 /CNW/ - Pulse Seismic Inc. ("Pulse" or "the Company") reports the following preliminary selected unaudited financial and operating results for the three months and year ended December 31, 2014. The 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 audited by the Company's auditors.
HIGHLIGHTS FOR THE 12 MONTHS ENDED DECEMBER 31, 2014
Pulse achieved the following results:
- Seismic data library sales of $35.7 million, an increase of 32 percent over $27.1 million in 2013;
- Cash EBITDA(a) of $28.6 million, a 49 percent increase from $19.1 million in 2013 and a 53 percent increase on a per-share basis to $0.49 from $0.32 per share basic and diluted;
- Shareholder free cash flow(a) of $27.9 million, a 35 percent increase from $20.7 million in 2013 and a 38 percent increase on a per-share basis to $0.47 from $0.34 per share basic and diluted;
- Funds from operations(b) of $31.6 million ($0.54 per share basic and diluted) compared to $27.8 million ($0.46 per share basic and diluted) for 2013;
- The purchase and cancellation, through the Company's normal course issuer bid, of 2,101,277 million common shares (3.5 percent of the total outstanding at December 31, 2013) at a total cost of approximately $6.3 million;
- Payment of four quarterly dividends of $0.02 per common share, totalling $4.7 million paid to shareholders; and
- At December 31, 2014, a cash balance of $901,000 with total long-term debtc) of $5.5 million, resulting in net debt of $4.6 million.
"These results demonstrate that 2014 was a successful year for Pulse," stated Neal Coleman, President and CEO. "Having a lean organization with low fixed costs enabled Pulse to transform 78 percent of sales into shareholder free cash flow."
In addition, Coleman said, "Our financial position continues to improve. Shareholders benefited directly from our shareholder free cash flow through a return of $11.0 million of capital, consisting of $4.7 million in dividends and $6.3 million in share buybacks. Additionally, we repaid $16.6 million of debt, reducing our net debt at year-end to only $4.6 million. This further strengthens Pulse during a period of industry uncertainty."
HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2014
Pulse achieved the following results:
- Seismic data library sales of $8.4 million, up by 84 percent from $4.6 million in the same period of 2013;
- Cash EBITDA of $6.7 million or $0.12 per share basic and diluted compared to $3.0 million or $0.05 per share basic and diluted in the fourth quarter of 2013;
- Shareholder free cash flow of $6.5 million or $0.11 per share basic and diluted compared to $3.7 million or $0.06 per share basic and diluted in the fourth quarter of 2013; and
- Funds from operations of $6.6 million ($0.11 per share basic and diluted) compared to $2.7 million ($0.05 per share basic and diluted) for the three months ended December 31, 2013.
The Company is pleased to announce the extension and amendment of its credit facility with a syndicate led by TD Bank and including ATB Financial. The balance owing on the facility is currently $5.5 million with $44.5 million available.
The credit facility was initially structured as a three-year extendible facility maturing on February 13, 2016. The lenders have approved the second extension with the facility now maturing on February 13, 2018. The amendment comprises removal of a negative covenant that restricted the payment of dividends without lender approval if the total debt to adjusted EBITDA ratio exceeded 1.5:1.0. Henceforth dividends (other than special dividends) are unrestricted.
Other highlights of the facility continue to be:
- An accordion feature allowing Pulse to increase the facility's size by up to an additional $20.0 million, subject to the consent of the lenders; and
- No regularly scheduled payments against the revolving facility's principal and no prepayment penalties, with voluntary payments permitted at any time.
"We value the lenders' continued support of Pulse's business model," said Coleman. "The removal of the negative covenant is acknowledgment of the Company's very strong balance sheet."
The Company is also pleased to announce that it has executed an agreement with a large oil and gas company to conduct a 137 square kilometer 3D participation survey in west-central Alberta. Field operations commenced earlier this month and are expected to be complete, with data delivered, by the end of the first quarter of 2015.
On Thursday, March 5, 2015 Pulse intends to release its complete audited financial results for the year ended December 31, 2014. A conference call and webcast to review the 2014 results is scheduled for Friday, March 6, 2015 at 1:00 EST (11:00 am MST). Further details of the conference call, including dial-in numbers, will be provided at a later date.
(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, debt servicing, 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 3D and 2D 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) Funds from operations is an additional GAAP measure. Funds from operations is defined as cash provided by operations as prescribed by IFRS, excluding the impact of changes in non-cash working capital. Funds from operations represents the cash that was generated during the period, regardless of the timing of collection of receivables and payment of payables. Funds from operations per share is defined as funds from operations divided by the weighted average number of shares outstanding for the period.
(c) 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 28,300 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.
This news release contains preliminary unaudited financial results. These financial results are based upon management's estimates, and have not yet been approved by the Company's Audit Committee or Board of Directors or audited by the Company's auditors. The final audited financial results could differ from these preliminary unaudited financial results.
FORWARD LOOKING INFORMATION:
This news release contains information that constitutes "forward looking information" or "forward looking statements" (collectively, "forward looking information") within the meaning of applicable securities legislation. This forward looking information includes, among other things, statements regarding the size and expected completion and delivery dates of a participation survey.
Undue reliance should not be placed on forward-looking information. Forward looking information is based upon current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward looking information.
SOURCE Pulse Seismic Inc.
For further information: Pulse Seismic Inc., Neal Coleman, President & CEO, Pamela Wicks, Vice President Finance and CFO, Tel.: (403) 237-5559 or 1-877-460-5559, E-mail: [email protected], www.pulseseismic.com