Lonestar West Reports Record Year-End Results
September 25 2012 - 7:06AM
PR Newswire (Canada)
Lonestar Reports 2012 Year-end and Fourth Quarter Financial Results
SYLVAN LAKE, AB, Sept. 27, 2012 /CNW/ - Lonestar West Inc. today
announced its business performance for the fiscal year end June 30,
2012 and the fourth quarter of fiscal 2012. Lonestar continued its
strong performance throughout the 2012 fiscal year including growth
in fleet size, revenue and operating profit. The results
reflect the growth in its Canadian HVAC and Vacuum truck businesses
driven in part by favourable commodity prices and strong
infrastructure development activities in Western Canada. Highlights
for the fiscal year include: -- Revenues increased 67.0% to
$18,618,413 from $11,146,314 in the previous fiscal year. --
EBITDAC increased 73.3% to $3,016,609 compared to $1,741,146 in the
previous fiscal year. -- EBITDAC per share rose 53.8% to $0.20 from
$0.13 in the previous fiscal year. -- Net income of $1,308,708 in
comparison to the $514,477 net income in the previous fiscal year.
The fleet expansion program resulted in a 32.0% increase in fleet
size as the Company went from 25 units available for work at the
end of fiscal 2011 to 33 units available at the end of fiscal 2012.
Subsequent to the Fiscal 2012 year end, the Company purchased
another four units and disposed of one, which has increased the
number of units to 36. The Company also incorporated two
subsidiaries in the USA with expectations of expanding its
geographic market in the future. Highlights for the fourth quarter
include: The Company generated revenues of $4,442,167 in the three
months ended June 30, 2012, an increase of 64.9% over the prior
year equivalent period revenue of $2,694,146. The EBITDAC for the
three months ended June 30, 2012 increased to $380,644 over the
$165,688 in the prior year equivalent period. The net loss of
$197,825 for the three months is an increase in net earnings in
comparison to the net loss of $343,315 in the prior year equivalent
period. President and CEO James Horvath commented, "We have had
another remarkable year in fiscal 2012 resulting in increases in
both revenue and EBITDAC over the prior fiscal year. The
utilization rates of our VAC and HVAC fleets have increased
substantially during fiscal 2012 which had a direct impact on our
profits. During this 2012 fiscal year we placed a strong
emphasis on building our earning potential by building our fleet;
and I believe the company's year-end performance shows the success
of our strategy. As always, Lonestar is committed to customer
service, safety and our employees which enable us to continue to
grow into a major national HVAC competitor." Financial Results
(000's except per share data) 12 months ended 3 months ended June
30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 Revenue $18,618
$11,146 $4,442 $2,694 Net earnings 1,309 514 (198) (343) (loss)
Basic earnings per 0.09 0.04 (0.01) (0.03) share ("EPS") Diluted
earnings per 0.08 0.04 (0.01) (0.03) share ("EPS") EBITDAC (i)
3,017 1,741 381 188 (i) EBITDAC
means earnings before interest, taxes, depreciation, amortization
and stock based compensation and for the purposes of analyzing
Lonestar is equal to earnings before income taxes plus interest on
debt plus depreciation plus share-based payments. EBITDAC is
not a recognized measure under International Financial Reporting
Standards ("IFRS"). Management believes that in addition to
net earnings, EBITDAC is a useful supplemental measure as it
provides an indication of the results generated by the Company's
primary business activities prior to consideration of how those
activities are financed, depreciated or how the results are taxed.
Readers should be cautioned, however, that EBITDAC should not be
construed as an alternative to net earnings determined in
accordance with IFRS or as an indicator of Lonestar's
performance. Lonestar's method of calculating EBITDAC may
differ from other organizations and may not be comparable to
measures used by other organizations. For complete details on the
audited consolidated year-end financial statements and MD&A for
the June 30, 2012 year-end, please refer to SEDAR at www.sedar.com.
Business Description Lonestar West Inc. (www.lonestarwest.com)
operates a fleet of 36 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) 221-0915jeff@howardgroupinc.com (403) 221-0915
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