Press release from CNW Group
Petrowest Corporation announces strong second quarter 2012 financial results
Friday, August 10, 2012
Petrowest Corporation announces strong second quarter 2012 financial results08:30 EDT Friday, August 10, 2012CALGARY, Aug. 10, 2012 /CNW/ - Petrowest Corporation (TSX:PRW) announced today its consolidated financial results for the three and six month period ended June 30, 2012.Rick Quigley, Chief Executive Officer, stated that, "continuing on the momentum of our strong first quarter, I am very pleased with the second quarter 2012 financial results, particularly for what is historically the weakest quarter of the year. The work which was delayed in the first quarter as a result of the cold weather and early spring breakup effectively moved into the second quarter. Our Civil division was at or near capacity for the entire quarter which contributed significantly to our results for the quarter. Revenue and EBITDA for the second quarter were very strong in addition to a solid EBITDA margin for the quarter." Mr. Quigley further stated, "I continue to be pleased with our levels of activity."FINANCIAL HIGHLIGHTSFor the three months ended June 30, 2012 compared to the second quarter of 2011:Revenue of $43.9 million versus $35.2 million, an increase of $8.7 million;Record EBITDA for a second quarter of $8.1 million versus $2.9 million, an increase of $5.2 million;EBITDA margin of 18.5% versus 8.3%, an increase of 10.2%; andNet income before deferred income tax recovery and revaluation of financial instruments and trust and subordinated units of $0.6 million versus a loss of $(4.9) million, an increase of $5.5 million.For the six months ended June 30, 2012 compared to the same period of 2011:Revenue of $94.7 million versus $81.4 million, an increase of $13.3 million;EBITDA of $15.8 million versus $10.8 million, an increase of $5.0 million;EBITDA margin of 16.7% versus 13.3%, an increase of 3.4%; andNet income before deferred income tax recovery and revaluation of financial instruments and trust and subordinated units of $2.3 million versus a loss of $(4.8) million, an increase of $7.1 million.FINANCIAL RESULTS Three months ended June 30Six months ended June 30(thousands of dollars, except per share amounts, margins and ratios)2012201120122011 Revenue by segment Construction15,97321,98641,01351,032 Transportation4,5522,88814,05512,730 Civil23,0189,83438,50515,964 Rentals3575021,1011,700Revenue43,90035,21094,67481,426Operating expenses34,48230,88575,83967,652Gross margin9,4184,32518,83513,774Gross margin percentage21.5%12.3%19.9%16.9%General and administrative1,3081,4123,0092,941EBITDA8,1102,91315,82610,833EBITDA margin percentage18.5%8.3%16.7%13.3%Amortization of property and equipment3,6715,1097,22910,210Amortization of intangible assets2158715561,733Loss on disposal of property and equipment190298520674Foreign exchange (gain) loss806(210)(15)(210)Net finance costs2,6601,7095,2793,220Net income before taxes and revaluation of financialinstruments and trust units568(4,864)2,257(4,794)Loss on fair value of financial instruments134082703,171Change in value of trust and subordinated units-2,504-19,655Comprehensive income (loss) before tax555(7,776)1,987(27,620)Deferred income tax recovery2,778-2,778-Comprehensive income (loss)3,333(7,776)4,765(27,620)Net income (loss) per share/unit - basic and diluted0.03(0.09)0.05(0.32)Total assets111,73598,926111,73598,926Total non-current financial liabilities56,17758,46756,17758,467Total liabilities88,532121,94888,532121,948Shareholders' equity23,203(23,022)23,203(23,022)SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURESSelected financial information for the three and six months period ended June 30, 2012 and 2011 is set out above and includes the following non-IFRS financial measures: Gross margin, Gross margin percentage, EBITDA and EBITDA margin percentage. This information should be read in conjunction with the unaudited condensed consolidated financial statements for the three and six months ended June 30, 2012 and the Company's Management, Discussion and Analysis ("MD&A"), available under the Company's profile on the SEDAR website at www.sedar.com. Further information respecting the non-IFRS financial measures is contained in the Company's MD&A.UPDATE ON PROPOSED LANDFILL ACQUISITIONThe Company issued a news release on July 23, 2012 relating to the proposed purchase of a landfill site. At that point in time it was anticipated that closing would take place by the end of July. Closing of the acquisition is subject to the transfer of the lease, permit and environmental assessment certificate into the name of Petrowest Environmental Services Limited Partnership, a limited partnership established by the Company to acquire the assets. Closing is expected to take place in August 2012.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", "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.ABOUT PETROWESTPetrowest is an Alberta corporation involved in pre-drilling and post-completion energy services as well as industrial and civil infrastructure projects, gravel crushing and hauling for non-energy sector customers. Petrowest's primary operations are based in the Grande Prairie area of northern Alberta and in northeastern British Columbia. SOURCE: Petrowest CorporationFor further information: please contact Richard Quigley, President and Chief Executive Officer, or Lloyd A. Wiggins, Chief Financial Officer, at (780) 830-0881 or email@example.com.