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CALGARY, ALBERTA -- (Marketwired) -- 05/10/13 -- Pulse Seismic Inc. (TSX: PSD) (OTCQX: PLSDF) ("Pulse" or "the Company") reports its financial and operating results for the three months ended March 31, 2013. The unaudited condensed consolidated interim financial statements and MD&A will be filed on SEDAR (www.sedar.com) and will be available on Pulse's website (www.pulseseismic.com).
Pulse has declared a quarterly dividend of $0.02 per common share. This dividend will be paid on June 20, 2013 to shareholders of record at the close of business on June 6, 2013.
HIGHLIGHTS FOR THE PERIOD ENDED MARCH 31, 2013
-- Pulse's key performance metrics which include cash EBITDA(a), shareholder free cash flow(a)and net earnings all declined in the three month period ending March 31, 2013 compared to the prior year. The Company experienced lower data library sales for the quarter as the prior comparable period included Pulse's single-largest data sale of $27.8 million. -- Seismic data library sales were $13.9 million compared to $34.6 million. -- Total seismic revenue (including revenue from participation surveys) was $26.9 million compared to $36.4 million. -- Cash EBITDA was $11.3 million ($0.19 per share basic and diluted) compared to $32.0 million ($0.49 per share basic and diluted). -- Shareholder free cash flow was $10.4 million ($0.17 per share basic and diluted) compared to $31.4 million ($0.48 per share basic and diluted). -- Net earnings were $2.5 million ($0.04 per share basic and diluted) compared to $12.0 million ($0.19 per share basic and diluted).-- The 2012-13 winter 3D participation survey program has been completed on time and on budget. The three surveys totaled 1,182 square kilometres with total gross CAPEX amounting to $57.9 million. At the end of the quarter two of the surveys, totaling 642 square kilometres, were in the final data processing stage and had not yet been delivered to the client, therefore remain as work in progress at March 31, 2013.-- Pulse purchased and cancelled, through its normal course issuer bid, a total of 869,172 common shares at a total cost of approximately $2.5 million.-- On February 15, 2013 Pulse executed a new $50.0 million three-year extendible revolving syndicated credit facility. At March 31, 2013 $23.9 million was available for future draws.
SELECTED FINANCIAL AND OPERATING INFORMATION
(thousands of dollars except per share data and number of shares)
3 months 3 months ended ended March 31, March 31, Year ended 2013 2012 December 31, (unaudited) (unaudited) 2012----------------------------------------------------------------------------Revenue: Data library sales $ 13,864 $ 34,607 $ 64,040 Participation surveys 13,068 1,793 22,313----------------------------------------------------------------------------Total revenue $ 26,932 $ 36,400 $ 86,353Amortization of seismic data library $ 20,027 $ 17,000 $ 36,568Net earnings $ 2,541 $ 11,985 $ 27,446Net earnings per share: Basic and diluted $ 0.04 $ 0.19 $ 0.44Funds from operations (b) $ 20,317 $ 33,156 $ 71,585Funds from operations per share (b): Basic and diluted $ 0.33 $ 0.51 $ 1.14Cash EBITDA (a) $ 11,341 $ 32,001 $ 54,692Cash EBITDA per share (a): Basic and diluted $ 0.19 $ 0.49 $ 0.87Shareholder free cash flow (a) $ 10,371 $ 31,361 $ 50,046Shareholder free cash flow per share (a): Basic and diluted $ 0.17 $ 0.48 $ 0.80Capital expenditures: Participation surveys $ 20,700 $ 3,703 $ 40,261 Seismic data purchases and related costs 298 - 1,908 Property & equipment additions 74 9 790----------------------------------------------------------------------------Total capital expenditures $ 21,072 $ 3,712 $ 42,959Weighted average shares outstanding: Basic 60,958,068 64,691,878 62,526,761 Diluted 60,998,114 64,691,878 62,526,761Shares outstanding at period end 60,927,170 63,877,071 61,140,442----------------------------------------------------------------------------Seismic library: 2D net kilometres 339,991 339,991 339,991 3D net square kilometres 27,642 27,089 27,089--------------------------------------------------------------------------------------------------------------------------------------------------------Financial Position and Ratios(thousands of dollars except ratio calculations) March 31, March 31, December 31, 2013 2012 2012----------------------------------------------------------------------------Working capital $ 11,440 $ 25,708 $ (1,462)Working capital ratio 1.85:1 1.99:1 0.96:1Total assets $ 148,546 $ 155,726 $ 162,454Long-term debt(c) $ 25,707 $ 43,351 $ 26,688TTM cash EBITDA(d) $ 34,032 $ 50,542 $ 54,692Shareholders' equity $ 97,318 $ 90,283 $ 96,550Long-term debt to equity ratio 0.26:1 0.48:1 0.28:1Long-term debt to TTM cash EBITDA ratio 0.76:1 0.86:1 0.49:1--------------------------------------------------------------------------------------------------------------------------------------------------------(a) The Company's continuous disclosure documents provide discussion and analysis of "cash EBITDA", "cash EBITDA per share", "shareholder free cash flow" and "shareholder free cash flow per share". These financial measures do not have standard definitions prescribed by IFRS and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because management, investors, analysts and others use them as measures of the Company's financial performance. The Company's definition of cash EBITDA is cash available for interest payments, cash taxes if applicable, debt servicing, discretionary capital expenditures and the payment of dividends, and is calculated as earnings (loss) from operations before interest, taxes, depreciation and amortization less participation survey revenue, plus any non-cash and non-recurring expenses. Cash EBITDA excludes participation survey revenue as these funds are directly used to fund specific participation surveys and this revenue is not available for discretionary capital expenditures. The Company believes cash EBITDA assists investors in comparing Pulse's results on a consistent basis without regard to participation survey revenue and non-cash items, such as depreciation and amortization, which can vary significantly depending on accounting methods or non-operating factors such as historical cost. Cash EBITDA per share is defined as cash EBITDA divided by the weighted average number of shares outstanding for the period. Shareholder free cash flow further refines the calculation of capital available to invest in growing the Company's 2D and 3D seismic data library, to repay debt, to purchase its common shares and to pay dividends by deducting non-discretionary expenditures from cash EBITDA. Non-discretionary expenditures are defined as debt financing costs (net of deferred financing expenses amortized in the current period) and current tax provisions. Shareholder free cash flow per share is defined as shareholder free cash flow divided by the weighted average number of shares outstanding for the period.(b) Funds from operations is an additional GAAP measure. Funds from operations is defined as cash provided by operations as prescribed by IFRS, excluding the impact of changes in non-cash working capital. Funds from operations represents the cash that was generated during the period, regardless of the timing of collection of receivables and payment of payables. Funds from operations per share is defined as funds from operations divided by the weighted average number of shares outstanding for the period.(c) Long-term debt is defined as total long-term debt, including current portion, net of deferred financing costs.(d) TTM cash EBITDA is defined as the sum of the trailing 12 month's cash EBITDA and is used to provide a comparable annualized measure.
