CALGARY, ALBERTA -- (Marketwired) -- 05/01/13 -- PHX Energy Services Corp. (TSX: PHX) ("PHX Energy") achieved an all-time quarterly record for revenue, operating days, and EBITDA.
For the three-month period ended March 31, 2013, the Corporation generated consolidated revenue of $92.7 million as compared to $79.8 million in the 2012-period; a 16 percent increase. EBITDA increased by 22 percent to $18.3 million in the first quarter of 2013 from $15.0 million in 2012. As a percentage of revenue, EBITDA was 20 percent in the 2013-quarter as compared to 19 percent in the corresponding 2012-quarter. Net earnings also increased by 5 percent from $7.9 million in the 2012-period to $8.3 million in 2013.
PHX Energy's momentum towards gaining greater market share in the US continued through the first quarter of 2013. US revenue, as a percentage of consolidated revenue, increased to 43 percent during the 2013-quarter as compared to 34 percent in the 2012-quarter.
Sturdy growth in international operations also continued with the segment representing 10 percent of consolidated revenue in the first quarter of 2013.
During the three-month period ended March 31, 2013, $13.5 million was incurred as part of the 2013 capital expenditure program. An additional $5.4 million is currently on order and is expected to be received within the next quarter.
In the 2013-quarter, the Corporation paid dividends of $5.1 million or $0.18 per share; this represented 30 percent of funds from operations.
PHX Energy ended the first quarter with long-term debt of $85.1 million and working capital of $50.8 million.
On April 23, 2013, the Corporation entered into a subscription agreement to subscribe for 20,000,000 common shares of RMS Systems Inc. ("RMS") at a price of $0.15 per common share or $3.0 million through a private placement ("offering"). Closing of the transaction is subject to the approval of the TSX Venture Exchange ("TSXV") and the shareholders of RMS. Upon closing, PHX Energy will hold approximately 39.8 percent interest in RMS. PHX Energy believes that given the prospective synergies that can be realized between RMS' electronic drilling recorder ("EDR") services and the Corporation's current service offering, these additional investments will strategically assist PHX Energy in gaining a position in a lucrative segment of the oil and natural gas industry and further expanding its markets.
In addition, RMS and PHX Energy agreed to enter into a bridge financing whereby PHX Energy shall loan $1.0 million ("bridge loan") to RMS upon receipt of TSXV's conditional approval of the offering, which occurred on April 29, 2013. Subsequent to this, the bridge loan was funded and the bridge loan will bear interest at an annual rate of 8 percent and shall be repaid upon the earlier of the closing of the offering or within 90 days upon demand by PHX Energy.
Financial Highlights
(Stated in thousands of dollars except per share amounts, percentages and shares outstanding)
Three-month periods ended March 31, 2013 2012 % Change--------------------------------------------------------------------------------------------------------------------------------------------------------Operating Results (unaudited) (unaudited)Revenue 92,667 79,769 16Net earnings 8,306 7,918 5Earnings per share - diluted 0.29 0.28 4EBITDA (1) 18,329 15,038 22EBITDA per share - diluted (1) 0.65 0.53 23----------------------------------------------------------------------------Cash FlowCash flows from operating activities 13,302 4,076 226Funds from operations (1) 16,734 14,748 13Funds from operations per share - diluted (1) 0.59 0.52 13Dividends paid 5,085 3,372 51Dividends per share (2) 0.18 0.12 50Capital expenditures 13,495 17,560 (23)--------------------------------------------------------------------------------------------------------------------------------------------------------Financial Position (unaudited) Mar 31, '13 Dec 31, '12Working capital 50,835 45,480 12Long-term debt 85,089 80,000 6Shareholders' equity 121,152 115,095 5Common shares outstanding 28,370,848 28,241,371 ---------------------------------------------------------------------------------------------------------------------------------------------------------(1) Refer to non-GAAP measures section.(2) Dividends paid by the Corporation on a per share basis in the period.
