All financial figures are in Canadian dollars unless otherwise stated
-- Adjusted EBITDA(1) increased by 13% to
$136.9 millionin the first quarter of 2014, compared to the same period in 2013. For the twelve month period ended March 31, 2014, Pro Forma Adjusted EBITDA(1) was $442.9 millionrepresenting an 11% increase over the same period in 2013; -- Capital expenditures were $100.8 millionin the first quarter of 2014, of which $89.0 millionwas related to internal growth projects, primarily the construction of storage tanks and connection infrastructure that are back stopped by long-term contracts at the Company's Hardisty Terminal; -- Distributable Cash Flow(2) for the twelve month period ended March 31, 2014increased by 17% to $257.1 million( $2.11per share(3)) compared to the same period in 2013; -- Dividends declared in the first quarter of 2014 were $36.9 million( $0.30per share). This represented a 9% increase from the prior quarterly distribution and resulted in a trailing twelve month payout ratio of 53%; -- On April 14, 2014, the Company announced an expansion of its Canwest propane business with the closing of the purchase of Stittco Energy Limited, a leading supplier of propane in Northern Manitobaand the Northwest Territoriesand the signing of a letter of intent to acquire Cal-Gas Inc., a national retail propane company; and -- On April 30, 2014, the Company announced it had received long-term committed customer support for the construction of two additional 300,000 barrel oil storage tanks at its Hardisty Terminal. These are the fifth and sixth large capacity storage tanks to be announced since initiating the expansion of this facility in the third quarter of 2012. Total new storage capacity under development at the Company's Hardisty Terminalis now 2.3 million barrels representing a 53% increase in total capacity.
"This record quarter for the Company provides a tremendous start to the year for our financial and operating performance," said
(1) Adjusted EBITDA and Pro Forma Adjusted EBITDA are defined in Gibson's Management's Discussion and Analysis. (2) Distributable
Cash Flowis defined in Gibson's Management's Discussion and Analysis. (3) Per share amounts are based on basic weighted average common shares outstanding.
Management's Discussion and Analysis and Financial Statements
The Management's Discussion and Analysis and Condensed Consolidated Financial Statements provide a detailed explanation of Gibson's operating results for the three months ended
2014 First Quarter Results Conference Call
A conference call to discuss Gibson's first quarter results will be held at
-- 416-340-2217 or 866-696-5910 -- Participant Pass Code: 8111827#
Shortly after the call, an audio archive will be posted on the Investors/News section at www.gibsons.com. The call will also be recorded and available for playback 60 minutes after the meeting end time, until
-- 905-694-9451 or 800-408-3053 -- Participant Pass Code: 5148008#
Gibson is a large, independent midstream energy company in
Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements") including, but not limited to, statements concerning the Company's future payment of dividends and the amount thereof and management's expectation with respect to the Company's business and financial prospects and opportunities. These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "contemplate", "continue", "estimate", "expect", "intend", "propose", "might", "may", "will", "shall", "project", "should", "could", "would", "believe", "predict", "forecast", "pursue", "potential" and "capable" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In addition, this news release may contain forward-looking statements and forward-looking information attributed to third party industry sources. The Company does not undertake any obligations to publicly update or revise any forward looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in "Forward-Looking Statements" and "Risk Factors" included in the Company's Annual Information Form dated
This news release refers to certain financial measures that are not determined in accordance with International Financial Reporting Standards ("IFRS"). Adjusted EBITDA and Pro Forma Adjusted EBITDA are not measures recognized under IFRS and do not have standardized meanings prescribed by IFRS. Management considers these to be important supplemental measures of the Company's performance and believes these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industries with similar capital structures. See "Summary of Quarterly Results" in the Company's MD&A for a reconciliation of EBITDA to net income, the IFRS measure most directly comparable to EBITDA, and for a reconciliation of Adjusted EBITDA and Pro Forma Adjusted EBITDA to EBITDA. Distributable cash flow is used to assess the level of cash flow generated from ongoing operations and to evaluate the adequacy of internally generated cash flow to fund dividends. See "Distributable Cash Flow" in the Company's MD&A for a reconciliation of distributable cash flow to cash flow from operations, the IFRS measure most directly comparable to distributable cash flow. Investors are encouraged to evaluate each adjustment and the reasons the Company considers it appropriate for supplemental analysis. Investors are cautioned, however, that these measures should not be construed as an alternative to net income determined in accordance with IFRS as an indication of the Company's performance.
Selected Financial Highlights
Three months ended Mar 31 ------------------------ 2014 2013 ---------------------------------------------------------------------------- (in thousands) Segment Profit(i): Terminals and Pipelines
$ 26,731 $ 22,742Truck Transportation 19,884 20,679 Environmental Services 21,979 16,935 Propane and NGL Marketing and Distribution 34,405 19,465 Processing and Wellsite Fluids 17,084 17,658 Marketing 25,777 29,489 ------------------------ Total Segment Profit $ 145,860 $ 126,968------------------------ Adjusted EBITDA $ 136,945 $ 121,044Pro Forma Adjusted EBITDA $ 442,938 $ 398,925Capital Expenditures: Growth Capital $ 89,031 $ 34,205Upgrade and Replacement Capital 11,815 12,455 ------------------------ Total $ 100,846 $ 46,660------------------------ Trailing Twelve Month Metrics: Dividends Declared to Shareholders $ 137,345 $ 114,592Distributable Cash Flow $ 257,125 $ 220,051Payout Ratio 53% 52% Leverage Metrics: Total Debt Ratio(ii) 1.9 1.5 Interest Coverage Ratio 8.6 10.9 (i) Segment profit is defined as revenue minus (i) cost of sales; and (ii) operating costs. It excludes depreciation, amortization, impairment charges, stock based compensation and corporate expenses. (ii) Total Debt Ratio is defined as total debt obligations minus unrestricted cash and cash equivalents divided by Pro Forma Adjusted EBITDA. FOR FURTHER INFORMATION PLEASE CONTACT: Gibson Energy Inc. Tammi PriceVice President Investor Relations & Corporate Development (403) 206-4212 email@example.com Gibson Energy Inc. Cam DellerManager, Investor Relations (403) 776-3041 firstname.lastname@example.org Source: Gibson Energy Inc.