2014 BUSINESS HIGHLIGHTS
-- Revenue for the quarter ended
March 31, 2014grew by $12.0 millionto $35.5 million, compared with revenue of $23.5 millionfor the same period in 2013. US revenue increased by 82.5% and Canadian revenue increased by 6.9% which resulted in overall revenue increase of 51.1%; -- Generated net income for the quarter ended March 31, 2014of $2.5 million, an increase of approximately $0.8 millioncompared to $1.7 millionfor the same period in 2013. Net income per share for 2014 was $0.15compared to net income per share of $0.17in the comparative period; -- Generated Adjusted EBITDA(1) for the quarter ended March 31, 2014of $6.6 million, an increase of $2.3 millioncompared with Adjusted EBITDA(1) of $4.3 millionfor the same period in 2013; -- Expanded equipment base by acquiring $2.4 millionof additional equipment and leaseholds in the quarter ended March 31, 2014, including the addition of two cranes; -- On January 31, 2014, completed the acquisition of the operating assets of Williston, North Dakotabased M&K Hotshot Trucking, Inc.and M&K Rig Service, Inc.(collectively "M&K"); and -- In connection with the completion of M&K acquisition, in December 2013the Company closed a $23.0 millionbought deal private placement offering of 6.4 million Subscription Receipts of the Company (the "Subscription Receipts") at a price of $3.60per Subscription Receipt. Concurrent with the closing of the M&K acquisition, all Subscription Receipts automatically converted into 6.4 million common shares of the Company.
"We are extremely pleased to have delivered another solid quarter of results," said
The Company announces that
The Company will host its first quarter fiscal 2014 results conference call on
To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191. A live audio webcast of the conference call will be available at http://www.newswire.ca/en/webcast/detail/1358301/1503345.
The conference call webcast will be archived and available at http://www.avedaenergy.com/investors/Conference-Calls/default.aspx until
The Company's consolidated financial statements and Management's Discussion and Analysis are available on the Company's website at www.avedaenergy.com or the SEDAR website at www.sedar.com.
(in thousands, except per share and ratio amounts) Three Three Months Months % Change 2013 Ended March Ended March - 31, 2014 31, 2013 2014 ------------------------------------------ Revenue 35,455 23,471 51.1% Gross profit(5) 7,541 4,859 55.2% Gross margin 21.3% 20.7% N/A Gross profit(5) excluding depreciation and amortization 10,289 6,841 50.4% Gross margin excluding depreciation and amortization 29.0% 29.1% N/A Adjusted EBITDA(1) 6,572 4,306 52.6% Adjusted EBITDA(1) as a percentage of revenue 18.5% 18.3% N/A Net income 2,544 1,723 47.6% Net income as a percentage of revenue 7.2% 7.3% N/A Adjusted EBITDA(1) per share 0.38 0.43 -11.6% Earnings per share - basic 0.15 0.17 -11.8% Earnings per share - diluted 0.15 0.16 -6.3% Current ratio(2) 1.77 2.06 -14.1% Debt to equity ratio(3) 0.56 1.14 -50.9% Debt to EBITDA ratio(3, 4) 2.20 2.67 -17.5% Notes: (1) This News Release contains the term Adjusted EBITDA. Adjusted EBITDA as presented does not have any standardized meaning prescribed by international financial reporting standards (IFRS) and therefore it may not be comparable with the calculation of similar measures for other entities. Management uses Adjusted EBITDA to analyze the operating performance of the business. Adjusted EBITDA as presented is not intended to represent cash provided by operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. It is defined as earnings before interest, taxes, depreciation and amortization excluding foreign exchange gains or losses which are primarily related to the US dollar activities of the Company and can vary significantly depending on exchange rate fluctuations, which are beyond the control of the Company, and write downs of intangible assets, goodwill impairment, financing costs, gains or losses on disposal of assets, stock based compensation, fees and expenses on settlement of debt and losses on extinguishment of debt. (2) Current ratio calculated as current assets divided by current liabilities. (3) Debt includes loans and borrowings as per their carrying amounts on the balance sheet. (4) EBITDA used is Adjusted EBITDA for the trailing twelve months. (5) Gross profit is calculated as revenue less direct operating expense.
In recent history, total drilling activity in the WCSB and US has been negatively impacted due to, in part, lower average natural gas prices. This has largely been the result of increased supply driven by the fast development of shale gas resources in the US. Countering the decline in natural gas drilling has been a relatively strong price for oil which has resulted in oil-focused regions, such as those surrounding
(7) Rig Locator, accessed on
Although future activity remains uncertain in
Although there is no shortage of future opportunities in
(10) Baker Hughes Rig Count, accessed on
Overall, 2014 is expected to be a strong year for
This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes. In particular, this News Release contains forward-looking statements relating to: demand for the Company's services and general industry activity level; the Company's growth opportunities; and expectation to maintain revenue and equipment utilization.
Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to
-- the performance of
Aveda'sbusinesses, including current business and economic trends; -- oil and natural gas commodity prices and production levels; -- the effect of the rebranding on Aveda'sbusinesses; -- capital expenditure programs and other expenditures by Avedaand its customers; -- the ability of Avedato retain and hire qualified personnel; -- the ability of Avedato obtain parts, consumables, equipment, technology, and supplies in a timely manner to carry out its activities; -- the ability of Avedato maintain good working relationships with key suppliers; -- the ability of Avedato market its services successfully to existing and new customers; -- the ability of Avedato obtain timely financing on acceptable terms; -- currency exchange and interest rates; -- risks associated with foreign operations; -- changes under governmental regulatory regimes and tax, environmental and other laws in Canadaand the United States; and -- a stable competitive environment.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause
This News Release contains the terms EBITDA and Adjusted EBITDA which are defined in the MD&A. EBITDA and Adjusted EBITDA as presented do not have any standardized meaning prescribed by international financial reporting standards (IFRS) and therefore may not be comparable with the calculation of similar measures for other entities. Management uses Adjusted EBITDA to analyze the operating performance of the business. Adjusted EBITDA as presented is not intended to represent cash provided by operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
FOR FURTHER INFORMATION PLEASE CONTACT:
Aveda Transportation and Energy Services Inc.Bharat Mahajan, CA Vice President, Finance and Chief Financial Officer (403) 264-5769 email@example.com Source: Aveda Transportation and Energy Services