HOUSTON, TEXAS -- (Marketwire) -- 03/20/13 -- Noble Iron Inc. ("Noble Iron" or the "Company") (TSX VENTURE: NIR) announced preliminary 2012 full year revenue and additional debt financing terms to support its Texas operations.
-- 2012 revenues are in excess of $16.0MM, an increase of more than 100% over the prior year. 2012 represents the first full calendar year of Noble Iron's operating directly in the equipment rental and dealership business.-- The Company has received financing terms from its current lender, Regions Bank, for an additional $15.0MM asset based lending facility to support growth at its Texas operations. Combined borrowing facilities for Noble Iron's Southern California and Texas operations total $40.0MM
Willie Swisher, CEO of the Company, said, "Noble Iron ventured into the equipment rental and dealership industry in August 2011 in Southern California, and in Texas in July 2012. The Company's performance in two markets has already begun demonstrating the potential of the Noble Iron model, a different and better operating platform in the equipment industry. In its first full year of operations, the company's Southern California CELL (Centralized Equipment Logistics Location) achieved revenues in excess of $10.0MM and EBITDA exceeding $3.0MM on a standalone basis."
Mr. Swisher added, "This new debt financing will provide Noble Iron with significant borrowing capacity for growth in existing CELLs. We are pleased to work with our lending partner, Regions Bank, and will continue to pursue expansion in strategic markets throughout North America."
Financing terms of the $15MM Texas debt facility are similar to those of the existing $25MM Southern California facility. Noble Iron's full year audited 2012 results are expected to be released prior to the end of April 2013.
Financial information indicated, as set out in this news release, is presented on a basis consistent with the accounting principles used to prepare Noble Iron's most recently filed financial statements. The consolidated financial statements are prepared by management in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board. Readers are advised that the Company faces various risk factors with respect to its business and operations: for further information please see the Management Discussion and Analysis of Noble Iron Inc. at www.SEDAR.com.
About Noble Iron Inc. (TSX VENTURE: NIR)
Noble Iron Inc. operates in three complementary sectors: equipment rental, equipment dealership and enterprise asset management software for the construction and industrial equipment industry.
The Company operates its equipment rental business and dealerships under the name "Noble Iron". Noble Iron rental depots, or CELLs (Centralized Equipment Logistics Location), currently serve customers in California and Texas. Noble Iron offers select manufacturer equipment and accessories for sale, and is the exclusive distributor of LiuGong Construction Machinery equipment in Southeast Texas.
The Company's software division, Texada Software, develops software applications to manage the complete equipment ownership lifecycle, from acquisition, rental, sales and other activities, through to disposal. Texada offers in-the-cloud or client-based software, and is scalable to meet the needs of any customer.
References in this press release to EBITDA are to earnings before interest, income taxes, depreciation, amortization, share based compensation, and foreign exchange gains/losses. EBITDA is a measure used by many investors to compare issuers on the basis of ability to generate cash flow from operations. EBITDA is not an earnings measure recognized by International Financial Reporting Standards (IFRS), does not have standardized meanings prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. Noble Iron's management believes that EBITDA is an important supplemental measure in evaluating Noble Iron's performance and in determining whether to invest in its common shares. Readers of this information are cautioned that EBITDA should not be construed as an alternative to: net income or loss determined in accordance with IFRS as an indicator of Noble Iron's performance; or cash flows from operating, investing and financing activities as measures of Noble Iron's liquidity and cash flows. Noble Iron's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, Noble Iron's EBITDA may not be comparable to similar measures presented by other issuers.
This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industries in which the Company participates; others are more specific to the Company. The Company's ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Noble Iron Inc.
Corporate communications contact:
Noble Iron Inc.
Chief Financial Officer
(832) 767-4424 Ext. 207