SYLVAN LAKE, AB, Sept. 12, 2012 /CNW/ - Lonestar West Inc. (TSXV:LSI) announced today that the first two months of the new fiscal year are tracking to generate record revenues based on fleet expansion and higher utilization rates.
Combined sales for July and August 2012 reached a record $3.9 million, compared to $2.3 million in the previous year. The increase of 70% is being driven by:
- Higher utilization rates of the HVAC and Vacuum ; and,
- Fleet growth from 24 to 36 trucks comparing last year to this year at the same time.
Actual results from Q1/F2013 (Sept. 30) will be released in November. Results for F2012 (June 30) will be released later this month.
In addition, the mix in sales between corporate units and lease operator units has shifted from 61% corporate sales to 71% corporate sales. This shift will result in substantially increased operating margins.
The HVAC fleet currently numbers 29 trucks consisting of 23 corporate trucks and 6 lease operated trucks, which is an increase of 12 corporate-owned trucks and one less lease operated truck from a year ago.
The Vacuum truck fleet has increased by one from a year ago, to a total of 7 units. The current fleet total is 36 trucks.
President and CEO James Horvath commented, "Lonestar stated that it would have 40 trucks in operation by the end of the calendar year and we are on track to achieve this goal. We are optimistic about the performance of the business and anticipate a strong ending to the quarter based on the current level of revenue and our order book."
Lonestar West Inc. (www.lonestarwest.com) currently operates a fleet of HVAC and vacuum trucks throughout Western Canada from its base in Sylvan Lake, Alberta. It is focussed on profitably growing its HVAC services to become a major national competitor in the market area.
Lonestar's shares trade on the TSX(Venture) Exchange under the symbol LSI.
Certain information and statements contained herein constitute forward-looking information, including the anticipated costs associated with the purchase of capital equipment, expectations concerning the nature and timing of growth within the business operated by Lonestar, expectations respecting the competitive position of such business, expectations concerning the financing of future business activities and statements as to future economic and operating conditions. Readers should review the cautionary statement respecting forward-looking information that appears in Lonestar's complete MD&A.
SOURCE: Lonestar West Inc.
For further information:
James Horvath, President and CEO (403) 887 - 2074
Bev Roome, CA, Chief Financial Officer (403) 887 - 2074
Investor Relations, The Howard Group Inc.
Jeff Walker (888) 221-0915
[email protected] (403) 221-0915