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Press release from CNW Group

Petrowest Corporation announces solid third quarter financial results for 2011

Thursday, November 10, 2011

Petrowest Corporation announces solid third quarter financial results for 201119:12 EST Thursday, November 10, 2011CALGARY, Nov. 10, 2011 /CNW/ - Petrowest Corporation (TSX: PRW) announced today its consolidated financial results for the three and nine months ended September 30, 2011.Revenue from continuing operations for the three months ended September 30, 2011, was $55.3 million, a 40% increase from revenue of $39.6 million in the comparable period of 2010.  Consolidated operating expenses for the three months ended September 30, 2011 were $43.0 million (2010 - $32.4 million) with a Gross Margin of 22% compared to 18% in 2010. For the three month period ended September 30, 2011 consolidated EBITDA from continuing operations was $10.8 million which is a 79% increase from EBITDA of $6.0 million in the comparable period of 2010.  The EBITDA percentage was 19% compared to 15% in the comparable period of 2010.Revenue from continuing operations for the nine months ended September 30, 2011, was $136.7 million, a 35% increase from revenue of $101.4 million in the comparable period of 2010.  Consolidated operating expenses for the nine months ended September 30, 2011 were $110.6 million (2010 - $85.5 million) with a Gross Margin of 19% compared to 16% in the comparable period in 2010.  For the nine months period ended September 30, 2011 consolidated EBITDA from continuing operations was 21.6 million which is an 81% increase from EBITDA of $12.0 million in the comparable period of 2010.  The EBITDA percentage was 16% compared to 12% in the comparable period of 2010.Rick Quigley, Chief Executive Officer, stated that "we are very pleased with the financial results for the third quarter. These results are reflective of the continuing positive trend in the sectors we do business in. We continue to have a solid backlog of work and during the quarter saw significant activity flowing over from the second quarter which was significantly affected by unseasonable rain and forest fires." Mr. Quigley further stated that "margins are trending up and activity levels appear to be very strong in the near term."FINANCIAL HIGHLIGHTS Three months ended September 30 Nine months endedSeptember 30(thousands of dollars, except per unit amounts, margins and ratios)2011201020112010     Revenue by segment:       Construction29,20319,02080,23543,610   Transportation8,5414,16121,27115,706   Civil16,51915,61732,48339,709   Rentals1,0067962,7062,362Revenue from continuing operations55,26939,594136,695101,387Operating expenses42,96532,406110,61785,508Gross margin from continuing operations12,3047,18826,07815,879Gross margin percentage22%18%19%16%General and administrative1,5341,1784,4753,928EBITDA from continuing operations10,7706,01021,60311,951EBITDA margin percentage19%15%16%12%Amortization of property and equipment5,1475,13015,35715,521Amortization of intangible assets7418812,4742,613Loss on disposal of property and equipment5625181,2361,178Foreign exchange loss3,709-3,499-Net finance costs2,6341,4195,8544,720Net loss before revaluation of financial instruments and trust units(2,023)(1,938)(6,817)(12,081)Loss (gain) on fair value of financial instruments(1,803)(122)1,368(122)Revaluation of trust units-89819,6551,122Comprehensive loss before discontinued operations(220)(2,714)(27,840)(13,081)Discontinued operations, net of tax-20-(65)Comprehensive loss(220)(2,734)(27,840)(13,146)Net loss per share - basic and diluted(0.00)(0.03)(0.31)(0.26)Total assets111,479108,374111,479108,374Total liabilities95,96794,92195,96794,921Shareholders' equity15,51213,45315,51213,453SELECTED FINANCIAL INFORMATIONSelected financial information for the three and nine months period ended September 30, 2011 is included above. This information should be read in conjunction with the unaudited interim consolidated financial statements for the three and nine months ended September 30, 2011 and the Company's Management, Discussion and Analysis, available under the Company's profile on the SEDAR website at www.sedar.com.FORWARD LOOKING INFORMATIONThis news release contains forward-looking statements that involve substantial known and unknown risks and uncertainties.  These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "achievable," "believe," "expect," "estimate," "plan," "intend," "project," "may," "should", "could", "predict", "may," "will," or similar words suggesting future outcomes or language suggesting an outlook.  Forward-looking statements and information are based on Petrowest's current beliefs as well as assumptions made by and information currently available to Petrowest concerning anticipated business performance.  Although management of Petrowest considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.  Forward-looking statements are subject to many external variables that are beyond Petrowest's control, such as fluctuating prices for crude oil and natural gas, changes in drilling activity, and general local and global economic, political, business and weather conditions.  If any of these, or other uncertainties, materialize the actual results of Petrowest may vary materially from those expected. For further information: Richard Quigley, President and Chief Executive Officer, or Lloyd A. Wiggins, Chief Financial Officer, at (780) 830-0881 or info@petro-west.com