"The Enerflex management team is pleased with our first quarter financial results," said J. Blair Goertzen, Enerflex's President and Chief Executive Officer. "As a result of steady revenue levels from our geographical diversification, we have recorded strong first quarter results. The Canada and Northern U.S. market continues to struggle with weak natural gas prices and this trend is expected to continue through the first half of 2013. The Southern U.S. and Latin America region has been stable from a bookings stand point, and we remain cautiously optimistic for the remainder of 2013 in this region. Finally, there continue to be opportunities in our International segment; however we expect that these potential project awards will have long lead times, as evidenced by $55.5 million in bookings in this segment subsequent to the end of the first quarter of 2013. With a strong balance sheet, a continued focus on expanding our capabilities and a focus on controlling our costs, we are currently right-sized for the challenges of 2013, and well positioned to capitalize on the opportunities that will arise."
First Quarter Highlights
In the three months ended March 31, 2013, Enerflex:
-- Generated revenue of $353.3 million compared to $355.7 million in the first quarter of 2012, a decrease of $2.4 million or 0.7%;-- Achieved a gross margin of $61.0 million or 17.3% during the first quarter of 2013 compared to $62.3 million or 17.5% during the same period of 2012, a decrease of $1.3 million;-- Produced EBIT of $22.8 million or 6.4% of revenue for the first quarter compared to $21.6 million or 6.1% during the first quarter of 2012; EBIT as a percentage of revenue for the trailing 12 months ended March 31, 2013 was 7.9%;-- Generated first quarter EBITDA of $32.6 million, an increase of $1.2 million over the first quarter of 2012;-- Recorded net earnings from continuing operations in the first quarter of $15.4 million ($0.20 cents per share), an increase of $0.5 million over the same period last year;-- Registered a return on capital employed from continuing operations, based on trailing 12-month EBIT, of 13.4% during the first quarter of 2013 compared to 9.6% for the same period in 2012;-- Generated $189.3 million in bookings for the first three months of 2013 compared to $222.7 million in the same period in 2012, a decrease of 15.0%;-- Ended the quarter with a backlog of $603.2 million, a decrease of $80.0 million or 11.7% from December 31, 2012; and-- Exited the quarter with $151.6 million in cash, resulting in a net cash to EBITDA ratio of 0.31:1 and a net cash to equity ratio of 0.05:1.
Subsequent to the end of the first quarter of 2013:
-- Enerflex declared the Company's quarterly dividend of $0.07 per share, payable on July 5, 2013, to shareholders of record on May 27, 2013;-- Bookings in the International segment totalled $55.5 million, which included a large order for the installation and construction of a compressor station in South Australia; and-- The Company and its Lenders finalized an amendment to its existing Bank Facilities to extend the term of the facilities by one year.
The Company generated $353.3 million in revenue in the first quarter of 2013 compared to $355.7 million in 2012. The decrease in revenue of $63.7 million in the Canada and Northern U.S. segment was largely offset by revenue increases of $2.5 million and $58.7 million in the Southern U.S. and Latin America, and International segments, respectively. Lower opening backlog resulted in decreased Engineered Systems revenue, partially offset by stronger Service revenue in all regions, and an increase in Rental revenue in Canada and Northern U.S.