Lonestar reports 2012 first quarter financial results
December 28 2011 - 2:53AM
PR Newswire (Canada)
Company experiences strong earnings and fleet expansion SYLVAN
LAKE, AB, Dec. 29, 2011 /CNW/ - Lonestar West Inc. (TSX(V):LSI)
today announced the continuation of a strong business performance
for the first quarter of fiscal 2012. Highlights for the quarter
include: -- Significant growth in gross revenue and EBITDAC; --
Completion of a $1.3 million equity offering; and, -- Additions to
the HVAC and Vacuum fleet after the quarter end. For the three
months ended September 30, 2011 gross revenues were $3,812,418 in
comparison to $1,602,157 in the previous year's comparable quarter,
an increase of 137.0%. EBITDAC increased 146.2% in the current
quarter to $574,892 ($0.041 per share) in relation to the previous
year's comparable quarter of $233,463 ($0.018 per share). Earnings
for the three-month period ended September 30, 2011, increased
$318,207 compared to the net loss of $11,951 for the comparable
quarter. Factors for the improvement in performance include the
improvement of utilization rates of the HVAC and Vacuum units as
well as a significant increase in revenues derived from lease
operators. During the quarter, Lonestar substantially improved its
overall equity position. Three factors contributed: -- first,
during the quarter Lonestar completed an equity offering of $1.3
million; -- second, as a result of the adoption of IFRS July 1,
2011 the book value increased by $1.7 million; and -- third,
Lonestar generated earnings of $0.3 million for the quarter. The
overall impact was to increase book value to $4.6 million. With the
additional capital and with strong customer demand, Lonestar
implemented a fleet expansion program subsequent to the end of the
first fiscal quarter of 2012. The total HVAC fleet rose to 21
trucks consisting of 14 corporate trucks and 7 lease operated
trucks (an increase of 3 corporate trucks). In addition, one vacuum
truck was added taking the total from 7 to 8 vacuum trucks. Most of
the additional trucks were acquired in December and as such will
not materially impact financial performance until the third quarter
(ending March 30, 2012). President and CEO James Horvath commented,
"We have experienced a very good first quarter. We improved our
utilization rates and our customer base continues to increase. The
outlook for the second and third quarter is positive and we aim to
bring in the New Year with another excellent level of performance."
For complete details on the interim financial statements and
MD&A for the 2012 First Quarter please refer to SEDAR at
www.sedar.com. Business Description Lonestar West Inc.
(www.lonestarwest.com) currently operates a fleet of HVAC and
vacuum trucks throughout Western Canada from its base in Sylvan
Lake, Alberta. It is focussed on profitably growing its HVAC
services to become a major national competitor in the market area.
Lonestar's shares trade on the TSX(Venture) Exchange under the
symbol LSI. Certain information and statements contained herein
constitute forward-looking information, including the anticipated
costs associated with the purchase of capital equipment,
expectations concerning the nature and timing of growth within the
business operated by Lonestar, expectations respecting the
competitive position of such business, expectations concerning the
financing of future business activities and statements as to future
economic and operating conditions. Readers should review the
cautionary statement respecting forward-looking information that
appears in Lonestar's complete MD&A. Lonestar West Inc.
CONTACT: James Horvath, President and CEO (403) 887 - 2074Bev
Roome, CA, Chief Financial Officer (403) 887 - 2074
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