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Press release from CNW Group

Petrowest Corporation Announces First Quarter 2013 Financial Results

Monday, May 13, 2013

Petrowest Corporation Announces First Quarter 2013 Financial Results

18:04 EDT Monday, May 13, 2013

CALGARY, May 13, 2013 /CNW/ - Petrowest Corporation (TSX:PRW) announced today its consolidated financial results for the three month period ended March 31, 2013.

Rick Quigley, Chief Executive Officer, stated that "the financial results for the first quarter of 2013 were impacted by unfavorable weather conditions, which specifically affected the ramp up of the rock crushing operation. The work that was delayed has moved into the second quarter, as was the case in 2012, and activity levels in the second quarter have ramped up considerably." Mr. Quigley further stated that he "is encouraged by the amount of backlog currently in place, the improvement in the Transportation segment margins and the continued strong activity levels in Construction and Civil."

FINANCIAL HIGHLIGHTS

In the three months ended March 31, 2013, the Company:

  • Reported revenue of $45.9 million a decrease of $4.8 million compared to the same quarter in 2012.
  • Reported adjusted EBITDA margin of 13.1%.
  • Closed a $50.0 million syndicated loan facility
  • Repaid the outstanding balance of the US $31.7 million long-term debt facility
  • Repaid the outstanding balance of the $1.8 million of convertible debentures
  • Recorded $3.6 million of non-recurring finance expenses relating to the unamortized debt issue costs of the US 31.7 million long-term debt facility and the convertible debenture, prepayment costs relating to the US $31.7 million long-term debt facility and $2.1 million of accelerated amortization for the expected refinancing of the term facility
  • Commenced operations of the landfill site in northeastern British Columbia.

FINANCIAL RESULTS

     
  Three months ended March 31  
(In thousands of Canadian dollars) 2013 2012 Change
Revenue                         45,926                         50,774 (9.5%)
Operating Expense                        (38,248)                        (41,357) (7.5%)
Gross Margin                           7,678                           9,417 (18.5%)
General and administrative                          (1,663)                          (1,701) (2.2%)
Adjusted EBITDA                           6,015                           7,716 (22.0%)
Amortization of property and equipment                          (4,289)                          (3,558) 20.5%
Amortization of intangible assets                             (176)                             (341) (48.4%)
Gain (loss) on disposal of property and equipment                             (542)                             (330) 64.2%
       
Foreign exchange gain (loss)                             (642)                              821 (178.2%)
Operating profit                              366                           4,308 (91.5%)
Net finance expense1                          (5,805)                          (2,619) 121.6%
Gain (loss) of fair value of financial instruments                                 (4)                             (257) (98.4%)
       
Net income (loss) and comprehensive income (loss) before income tax                          (5,443)                           1,432  
Deferred income tax recovery                           1,139                                 -    
Net and comprehensive income (loss)                          (4,304)                           1,432  
       
Total assets              136,771              111,059 23.2%
Total long-term liabilities                64,141                59,850 7.2%
Net cash generated from operating activities                  2,889                13,935 (79.3%)
1 Includes approximately $3.6 million of non-recurring costs - see Financial Highlights above

SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three month periods ended March 31, 2013 and 2012 is set out above and includes the following non-IFRS financial measures: Gross margin, Gross margin percentage, adjusted EBITDA and adjusted EBITDA margin percentage. This information should be read in conjunction with the consolidated financial statements for the three month period ended March 31, 2013 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.

FORWARD LOOKING INFORMATION

This 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 PETROWEST

Petrowest 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 Corporation

For further information:

Richard Quigley, President and Chief Executive Officer, at (780) 830-0881, or Ian Hogg, Vice President, Corporate Affairs, at (403) 384-0407, or Lloyd Wiggins, Chief Financial Officer, at (416) 572-2160, or info@petro-west.com.

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