TSX Venture: "DAL"
EDMONTON, Nov. 27, 2014 /CNW/ - John Babic, President and CEO of Dalmac Energy
Inc. ("Dalmac") (TSX Venture "DAL") is pleased to announce
fiscal 2015 second quarter financial results for the three month
and six month periods ended October 31,
2014.
Second Quarter Financial Highlights:
- Revenues of $8.6 million
- EBITDAS increased 67% to $1,432K
from $857K
- Gross Margin improved to 30% from 22%
- Positive net income of $213K from
$8K
- Reduction in G&A and Wages Expenses, Increase in
Amortization
Revenue in the second quarter was $8.6
million as compared with $9.3
million in the second quarter of the prior year.
Regional drilling and completions activity didn't kick into gear
for Dalmac until the third month of Q2'15. Management noted a
considerable pickup in servicing activity during the month of
October and expects this trend to continue until spring
breakup. For the six month period, revenues were $15.8 million compared to $16.9 million last year.
Gross Margin as a percentage of revenue increased to 30% for the
quarter and to 26.4% for the year to date. This demonstrates an
overall improvement in gross margin by 34% and 63% respectively as
compared to the same periods in the previous year. This affirms
management's strategy towards improving internal controls along
with the implementation of the new computerized dispatching and
invoicing system.
The improvement in the current Gross Margin coupled with lease
restatements resulted in a 67% EBITDAS gain for Q2'15 and a 982%
gain for the year to date as compared to the same period in
the prior year.
Net income for the quarter was $213K as compared to $8K in Q2'14. The net loss for YTD'15 was
$147K as compared to a loss of
$1,210K at the same time in the
previous year.
(000's Cdn Dollars,
except per share data)
|
Q2'15
|
Q2'14
|
YTD '15
|
YTD'14
|
|
|
|
|
|
Revenues
|
8,611
|
9,330
|
15,810
|
16,944
|
Gross
Margin
|
2,542
|
2,063
|
4,168
|
2,737
|
Gross Margin
%
|
30%
|
22%
|
26%
|
16%
|
General and
administrative expenses*
|
442
|
479
|
793
|
1,039
|
EBITDAS
(loss)
|
1,432
|
857
|
2,010
|
186
|
EBIDTAS per
share - basic
|
0.06
|
0.04
|
0.09
|
0.01
|
Interest
|
169
|
183
|
339
|
366
|
Amortization
|
831
|
645
|
1,661
|
1,364
|
Net income
(loss)
|
213
|
8
|
(147)
|
(1,210)
|
Net income (loss) per
share - basic
|
0.01
|
(0.00)
|
(0.01)
|
(0.05)
|
Net income (loss) per
share - diluted
|
0.01
|
(0.00)
|
(0.01)
|
(0.05)
|
(1) EBITDAS stands for earnings before interest, taxes,
depreciation, amortization, and stock based compensation.
Dalmac remains optimistic that the remainder of fiscal 2015 will
translate into a very profitable year. In spite of the slower start
in drilling and completions activity for the first 6 months of the
year, the current activity is showing a significant pickup.
Seasonal fluid transfers and well stimulation work orders
associated with drilling and completions activity are currently
underway. This will also lead to more steady fluid transfer runs
from new wells which are coming on line. The winter drilling season
is traditionally the busiest part of Dalmac's operating year.
Unless the current softening of oil prices deter the existing
drilling and completion programs already in place, management
expects that the activity levels for the remainder of fiscal 2015
will be trending at a record pace. Any potential disruptions of
drilling and completion activity due to the current volatility of
oil prices will be mitigated on Dalmac's part by the fact that the
majority of the company's revenue is generated from recurring fluid
transfers from existing production wells.
Management feels that the current upswing in oilfield activity
coupled with numerous productivity improvements such as the
implementation of the new computerized dispatching and invoicing
system should translate to more growth and continued sustainable
profitability in the future.
Conference call
A conference call to discuss the results will be held
Friday, November 28, 2013, at
1:30pm EST/11:30 am MST.
To participate in the conference call, please dial 416-204-9524
local in Toronto or toll-free
1-800-505-9587 and request the Dalmac Energy conference.
Statements throughout this report that are not historical
facts may be considered 'forward looking statements'. Such
statements are based on current expectations that involve risks and
uncertainties, which could cause actual results to differ from
those anticipated. Important factors that can cause
anticipated outcomes to differ materially from actual outcomes
include the impact of general economic conditions, industry
conditions, competition from other industry participants,
volatility of petroleum prices, the ability to attract and retain
qualified personnel, changes in laws or regulation, currency
fluctuations, continued ability to access capital from available
facilities and environmental risks. References to "Dalmac',
the "Corporation", "Company", "us", "we", and "our" mean Dalamc
Energy Inc. and its subsidiary Dalmac Oilfield Services Inc.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release. We seek safe
harbor.
SOURCE Dalmac Energy Inc.