Lonestar reports dramatic revenue and EBITDAC increases for second quarter 2012
February 22 2012 - 2:46AM
PR Newswire (Canada)
Company continues to experience strong earnings and fleet expansion
SYLVAN LAKE, AB, Feb. 24, 2012 /CNW/ - Lonestar West Inc. today
announced record performance for the 2012 second fiscal quarter
ended December 31, 2011 including growth in fleet size, revenue and
operating profit. The results reflect significant growth in
its Canadian HVAC and Vacuum truck businesses driven in part by
favourable commodity prices and strong infrastructure development
in Western Canada. Highlights for the quarter include: -- Revenues
increased 57.3% to $4,535,173 from $2,882,452 in the second quarter
of F2012. -- EBITDAC increased 66.9% to $792,747 compared to
$475,073 in second quarter of F2012. -- EBITDAC per share rose
50.0% to $0.054 from $0.036 in the second quarter of F2012. For the
three months ended December 31, 2011 gross revenues were $4,535,173
an increase of 57.3% in comparison to $2,882,452 in the
previous year's comparable quarter, EBITDAC increased 66.9% in the
current quarter to $792,747 ($0.054 per weighted average share) in
relation to the previous year's comparable quarter of $475,073
($0.036 per weighted average share). Net earnings for
the three month period ended December 31, 2011, increased $521,937
compared to the net earnings of $300,486 for the comparable
quarter. Factors for the improvement in performance
include the improvement of utilization rates of the HVAC and Vacuum
units, an increase in fleet size as well as an increase in revenues
derived from lease operators. Revenues for the first half of the
2012 fiscal year were $8,347,591, an increase of 86.1% over the
$4,484,609 for the first half of fiscal 2011. The EBITDAC for
the first half ending December 31, 2011 was $1,367,638 compared to
$710,048 in the first half of 2010. Net earnings for first
half year ended December 31, 2011, increased to $839,964 compared
to $288,534 for the first half of the 2011 fiscal year. To satisfy
strong customer demand, Lonestar implemented a fleet expansion
program during the quarter deploying internally generated cash flow
and available capital sources. As of today's date the
total fleet consists of 33 trucks. The HVAC fleet increased
to 25 trucks including 17 corporate trucks and 8 lease operated
trucks, an increase of 6 corporate-owned trucks and 1 lease
operated truck since September 30, 2011. In addition, the
Vacuum truck fleet increased by 2 trucks to a total of 8 trucks.
President and CEO James Horvath commented, "We delivered a record
quarter in terms of both top-line growth and profitability.
We continue to see very strong customer demand for our fleet.
To meet this demand we successfully implemented an expansion
program that increased our overall fleet size to date by 26.9%
since the quarter ending September 30, 2011. Not only did we
grow our fleet but we successfully integrated the incremental
assets into our marketing and operational infrastructure allowing
us to start generating incremental revenues almost immediately upon
closing the acquisitions. We expect to continue this aggressive
growth strategy and believe that we will have access to both equity
and debt markets to finance our continued growth." He added,
"This fleet expansion is also having a positive impact on the third
fiscal quarter of 2012." For complete details on the interim
financial statements and MD&A for the 2012 Second Quarter
please refer to SEDAR at www.sedar.com. Business Description
Lonestar West Inc. (www.lonestarwest.com) operates a fleet of 33
HVAC and vacuum trucks throughout Western Canada from its base in
Sylvan Lake, Alberta. It is focused 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 - 2074Investor
Relations, The Howard Group Inc.Jeff Walker (888) 221-0915 (403)
221-0915jeff@howardgroupinc.com
Copyright