Macro Enterprises Inc. Announces 2011 Third Quarter Results
November 25 2011 - 3:11PM
Marketwired
Macro Enterprises Inc. (TSX VENTURE:MCR) -
Summary of financial results
(thousands of dollars except per
share amounts)
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Three months ended Nine months ended
September 30 September 30
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2011 2010 2011 2010
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(unaudited)
Revenues $38,229 $15,965 $96,191 $45,546
EBITDA(1) 5,144 1,003 9,087 2,957
Net earnings (loss) 2,858 (93) 3,914 (257)
Net earnings (loss) per share $0.11 ($0.01) $0.15 ($0.02)
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Weighted average common shares
outstanding (thousands) 23,931 23,577
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Highlights
-- Revenues increased substantially from same period last year due to
additional work obtained principally from two customers.
-- EBITDA(1) of $5.1 million was generated in the quarter due to the much
higher levels of activity.
Note 1 - References to EBITDA are to net income from continuing operations
before interest, taxes, amortization and impairment charge. EBITDA is not an
earnings measure recognized by International Financial Reporting Standards
("IFRS") and does not have a standardized meaning prescribed by IFRS.
Management believes that EBITDA is an appropriate measure in evaluating the
Company's performance. Readers are cautioned that EBITDA should not be
construed as an alternative to net income (as determined under IFRA) as an
indicator of financial performance or to cash flow from operating activities
(as determined under IFRS) as a measure of liquidity and cash flow. The
Company's method of calculating EBITDA may differ from the methods used by
other issuers and, accordingly, the Company's EBITDA may not be comparable
to similar measures used by other issuers.
Third quarter results
Consolidated revenue was $38.2 million compared to $16.0 million
in the third quarter last year. During the third quarter this year,
the Company continued to work on a compressor move and
re-installation for one customer which began in the second quarter.
In addition, work commenced on a large pipeline and related
facilities contract for another customer in NE B.C. The Company
also completed some smaller projects for other customers. Last year
the Company worked on several smaller projects and completed a
compressor installation for one customer.
Operating expenses were 83.1% of revenue in the quarter compared
to 87.4% in the same quarter last year. This percentage fell this
year due to improved performance on jobs.
General and administrative expenses were $1.3 million, up from
$1.1 million last year. Additional costs continued to be incurred
due to the substantially higher levels of activity this year.
Total amortization expense was $0.9 million compared to $0.8
million in the prior period.
Net finance costs of $0.2 million were approximately the same as
last year.
Income tax expense in the quarter of $1.2 million was at an
effective tax rate of 28.7% which was slightly above the statutory
rate.
Net earnings were $2.9 million ($0.11 per share) compared to a
net loss last year of $0.1 million (a loss of $0.01 per share).
Outlook
The Company is expecting revenues in the fourth quarter to be
substantially above those recorded in the fourth quarter last year.
The Company continues to actively bid new jobs and is expecting the
first quarter of 2012 to also be busy. However, the continued low
price of natural gas and uncertain financial markets could affect
future levels of activity in the areas where the company is
active.
Macro's core business is providing pipeline and facilities
construction and maintenance services to major companies in the oil
and gas industry in northeastern B.C. and northwestern Alberta. The
Company's corporate office is in Calgary, Alberta. Its shares are
listed on the TSX Venture Exchange under the symbol MCR.
Information on the Company's principal operating unit, Macro
Industries Inc., can be found at www.macroindustries.ca.
Forward Looking Statements
Certain statements in this news release may include
forward-looking information that involves various risks and
uncertainties. These may include, without limitation, statements
regarding expected revenues, expenses and industry trends and the
pursuit of strategic acquisitions. These risks and uncertainties
include, but are not restricted to, global economic conditions,
government regulation of energy and resource companies, seasonal
weather patterns, maintaining and increasing market share,
terrorist activity, the price and availability of alternative
fuels, the availability of pipeline capacity, and potential
instability or armed conflict in oil producing regions. These risks
and uncertainties may cause actual results to differ from
information contained herein. There can be no assurance that such
forward-looking statements will prove to be accurate. Actual
results and future events could differ materially from those
anticipated in such statements. These statements are based on the
estimates and opinions of management on the dates they are made and
are expressly qualified in their entirety by this notice. Except as
required by law, the Company assumes no obligation to update
forward-looking statements should circumstances or management's
estimates or opinions change.
Contacts: Macro Enterprises Inc. Frank Miles President and
C.E.O. (250) 785-0033 Macro Enterprises Inc. T. Jerrold Jackson
C.F.O. (403) 705-7302www.macroindustries.ca
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