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Press release from CNW Group

Petrowest Corporation Announces Fourth Quarter and Twelve Month Financial Results For 2011

Thursday, March 22, 2012

Petrowest Corporation Announces Fourth Quarter and Twelve Month Financial Results For 201108:45 EDT Thursday, March 22, 2012CALGARY, March 22, 2012 /CNW/ - Petrowest Corporation (TSX: PRW) announced today its consolidated financial results for the three and twelve month periods ended December 31, 2011.Rick Quigley, Chief Executive Officer, stated that "we are very pleased with the 2011 financial results. They represent a significant improvement over 2010 in terms of both revenue and operating margins."  Mr. Quigley further stated that "the business activity is trending positively, both in the energy and infrastructure sectors. We are also very encouraged by the level of our backlog heading into 2012."Key 2011 and fourth quarter financial highlights include:2011Revenue from continuing operations of $190.0 million compared to $136.0 million, an increase of 40%EBITDA from continuing operations of $28.9 million compared to $12.8 million, an increase of 126%EBITDA margin of 15% compared to 9%Net loss before revaluation of financial instruments and trust and subordinated units of $6.4 million compared to $19.3 million, an improvement of $12.9 millionFourth QuarterRevenue from continuing operations of $53.3 million compared to $34.6 million, an increase of 54%EBITDA from continuing operations of $7.3 million compared to $0.8 million, an increase of $6.5 millionEBITDA margin of 14% compared to 2%Net income before revaluation of financial instruments and trust and subordinated units of $0.4 million compared to a net loss of $7.2 million, an improvement of $7.6 millionFINANCIAL HIGHLIGHTS   (thousands of dollars, except per share amounts, margins and ratios)2011 2010   Revenue by segment:   Construction107,28761,573 Transportation31,01723,008 Civil48,04847,698 Rentals3,6803,740Revenue from continuing operations190,032136,019Operating expenses154,907118,157Gross margin from continuing operations35,12517,862Gross margin percentage18%13%General and administrative6,1955,105EBITDA from continuing operations28,93012,757EBITDA margin percentage15%9%Amortization of property and equipment21,01320,728Amortization of intangible assets2,8193,494Impairment of property and equipment--Impairment of goodwill and intangible assets--Loss (gain) on disposal of property and equipment5891,663Foreign exchange loss2,102-Net finance costs8,7906,137Net loss before revaluation of financial instruments and trust and subordinated units(6,383)(19,265)Loss (gain) on fair value of financial instruments1,697(166)Change in value of trust and subordinated units19,6552,837Comprehensive loss before discontinued operations before income taxes(27,735)(21,936)Deferred income tax recovery--Comprehensive loss before discontinued operations(27,735)(21,936)Discontinued operations, net of tax-65Comprehensive loss(27,735)(22,001)Net loss per share - basic and diluted(0.30)(0.37)Total assets111,05995,064Total liabilities92,80690,466Shareholders' equity18,2534,598Fourth Quarter Financial ResultsThree months ended December 31  (thousands of dollars, except per share amounts, margins and ratios)2011  2010    Revenue by segment:    Construction27,052 17,963 Transportation9,746 7,302 Civil15,565 7,989 Rentals974 1,378Revenue from continuing operations53,337 34,632Operating expenses44,290 32,649Gross margin from continuing operations9,047 1,983Gross margin percentage17% 6%General and administrative1,720 1,177EBITDA from continuing operations7,327 806EBITDA margin percentage14% 2%Amortization of property and equipment5,656 5,207Amortization of intangible assets345 881Loss (gain) on disposal of property and equipment(647) 485Foreign exchange gain(1,397) -Net finance costs2,936 1,417Net income (loss) before revaluation of financial instruments andtrust units and subordinated units434 (7,184)Loss (gain) on fair value of financial instruments329 -Change in value of trust and subordinated units- 1,671Comprehensive income (loss)105 (8,855)Net loss per share - basic and diluted0.00 (0.10)Total assets111,059 95,064Total liabilities92,806 90,466Shareholders' equity18,253 4,598SELECTED FINANCIAL INFORMATIONSelected financial information for the twelve and three months period ended December 31, 2011 and 2010 is included above. This information should be read in conjunction with the audited consolidated financial statements for the three and twelve months ended December 31, 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.