Winalta Announces Record Results for the First Quarter Ended March 31, 2012
May 25 2012 - 8:00AM
PR Newswire (Canada)
CALGARY, May 25, 2012 /CNW/ - Winalta Inc. ("Winalta" or the
"Company") is pleased to announce record results for the three
months ended March 31, 2012 with net earnings from continuing
operations of $3.3 million or $0.08 per share fully diluted
compared to a net earnings from continuing operations of $1.6
million or $0.04 per share fully diluted for the three months ended
March 31, 2011. Revenue of $9.0 million and EBITDA of $4.9 million
compared favourably to revenue of $7.2 million and EBITDA of $3.7
million for the comparative 3 month period 2011. Selected Financial
Information Three Months Ended ($000,s except per share amounts)
March 31, 2012 March 31, 2011 Revenue 8,986 7,210 Net Earnings
3,325 1,566 Earnings per share and diluted 0.08 0.04 earnings per
share EBITDA 4,901 3,728 EBITDAper share 0.12 0.09 Total assets
44,529 40,910 Total liabilities 18,898 18,635 Dividends - - Revenue
Winalta revenue increased by $1.8 million, an increase of 25% for
the 3 months ended March 31, 2012 (the "Period") compared to the
three months ended March 31, 2011 (the "Comparative Period").
This 25% increase in revenue year over year is attributable to
increases in fleet size, third party revenue and day rates. Revenue
Drivers Q1 2012 versus Q1 2011 % Increase Q1 2012 Q1 2011 Fleet
size (# of units) 9% 297 266 Utilization (during quarter) -7% 85%
91% Day rates for the period showed a year over year improvement of
12%. Fleet Expansion During the Period the Company has increased
its fleet size by 5 Wellsite units and 4 Dedicated Geo-Lab units.
Since the Comparative Period Winalta has increased by 16 Wellsite
units and 15 Dedicated Geo-Lab units. The Company continues
to expand its fleet organically with cash from operations. Fleet
Growth Q1 2012 versus Q1 2011 % Increase Q1 2012 Q1 2011 Wellsites
7% 219 204 Drill Camps (5 and 6 units) 0% 11 11 Dedicated Geo Labs
1500% 16 1 Utilization Utilization of Wellsite units for the Period
was 85% as compared to 91% for the Comparative Period. Utilization
of Camp units for the Period was 90% as compared to 91% for the
Comparative Period. Utilization of Dedicated Geo-Labs for the
Period was 87% as compared to 79% for the Comparative Period, which
shows continued demand for these specialty units. Decreased
utilization for the Period over the Comparable Period can be
attributed to early spring weather in March which negatively
affected demand. Utilization Q1 2012 versus Q1 2011 % Increase Q1
2012 Q1 2011 Wellsites -7% 85% 91% Drill Camps (5 and 6 units) -1%
90% 91% Dedicated Geo Labs 13% 87% 79% General and Administrative
General and administrative expenses for the Period were 11% of
revenue as compared to 16% for the Comparative Period.
General and administrative expenses improved by $187 thousand in
the Period as compared to Comparative Period due to decreases in
professional fees, wages, stock based compensation and travel
expenses. This represents an improvement of 16% from the
Comparative Period. Depreciation and Amortization Depreciation and
amortization was $1,217 for the Period as compared to $1,202 for
the Comparative Period. The increase in depreciation and
amortization expense reflects the Company's depreciation and
amortization policy along with the acquisition of $1.4 million of
equipment in 2012. Interest Expense Interest expense for the Period
was $358 thousand as compared to $960 thousand for the Comparable
Period. The decrease in interest expense in the Period is due
to the new financing agreement the Company entered into in January
2012. In the Comparative Period, the interest rate on the
Company's term facility was 21% as compared to an interest rate on
the Company's new financing arrangements of 6% during the
period. The Company expensed a deferred financing fee of $115
thousand in the Period due to the renegotiated financing facility.
Outlook The Company continues to see strong fleet utilization and
strengthening rental rates, which combined with continued positive
Western Canadian economic activity, in both oil and gas
exploration, should continue to provide opportunities for the
Company. The Company believes the strong economy will
continue for the foreseeable future, as further supported by the
CAODC (Canadian Association of Oilwell Drilling Contractors)
forecast for the balance of 2012, which should translate to higher
utilization rates for Winalta's equipment. In conjunction
with the expected strong demand, the Company is continuing to
expand the fleet of oilfield Wellsite units and Dedicated Geo-Labs
in order to meet demand and to maintain a relatively new fleet of
units. The additions to the fleet will allow the Company to
continue to support its customer base in meeting their needs as
well as expanding to new customers. Winalta Inc., operating under
the trade name, Winalta Oilfield Rentals, is an oilfield service
provider that specializes in portable industrial rental
accommodations, remote offices and Dedicated Geo Labs; servicing
the Western Canadian oil and gas Industry. Neither the TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward-looking information Certain information set forth in this
press release, including management's assessment of the potential
for increased cash flows, continued growth of the Company's rental
fleet, demand for the Company's rental units and the Company's
expectation regarding the status of the economy and its impact on
the Company, may constitute forward-looking statements. By their
nature, forward-looking statements involve material assumptions and
are subject to numerous risks and uncertainties, including with
respect to market and economic conditions and their impact on the
Company's business, some of which, are beyond our control. Readers
are cautioned not to place undue reliance on the forward-looking
statements as the assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise and actual results,
performance or outcomes could materially differ from those
expressed or implied in such forward-looking statements and
accordingly, no assurance can be given that any of the events
anticipated by forward looking statements will transpire or occur,
or if any of them do so, what benefit Winalta will derive
therefrom. The Company does not assume the obligation to revise or
update this forward-looking information after the date of this
release or to revise such information to reflect the occurrence of
future unanticipated events, except as may be required under
applicable securities laws. Winalta Inc. CONTACT: David Hopley,
CFOPhone: (780) 960-6900Austin Fraser, Senior Vice PresidentPhone:
(403) 826-5701winalta@winaltainc.com
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