Strong Start to F2013 for Lonestar West
September 12 2012 - 5:01AM
PR Newswire (Canada)
SYLVAN LAKE, AB, Sept. 12, 2012 /CNW/ - Lonestar West Inc.
announced today that the first two months of the new fiscal year
are tracking to generate record revenues based on fleet expansion
and higher utilization rates. Combined sales for July and August
2012 reached a record $3.9 million, compared to $2.3 million in the
previous year. The increase of 70% is being driven by: -- Higher
utilization rates of the HVAC and Vacuum ; and, -- Fleet growth
from 24 to 36 trucks comparing last year to this year at the same
time. Actual results from Q1/F2013 (Sept. 30) will be released in
November. Results for F2012 (June 30) will be released later this
month. In addition, the mix in sales between corporate units and
lease operator units has shifted from 61% corporate sales to 71%
corporate sales. This shift will result in substantially increased
operating margins. The HVAC fleet currently numbers 29 trucks
consisting of 23 corporate trucks and 6 lease operated trucks,
which is an increase of 12 corporate-owned trucks and one less
lease operated truck from a year ago. The Vacuum truck fleet has
increased by one from a year ago, to a total of 7 units. The
current fleet total is 36 trucks. President and CEO James Horvath
commented, "Lonestar stated that it would have 40 trucks in
operation by the end of the calendar year and we are on track to
achieve this goal. We are optimistic about the performance of
the business and anticipate a strong ending to the quarter based on
the current level of revenue and our order book." 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 - 2074Investor Relations, The Howard Group Inc.Jeff Walker
(888) 221-0915jeff@howardgroupinc.com (403) 221-0915
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