EDMONTON, Sept. 29, 2014 /CNW/ - John Babic, President and CEO of Dalmac Energy
Inc. ("Dalmac") (TSX Venture "DAL") is pleased to announce
first quarter financial results for the period ended July 31, 2014
First Quarter Financial Highlights:
- Revenues of $7.2 million
- EBITDAS increased 30x to $578K
from $19K
- Gross margin improved to 22% from 18%
- Over $175K spent on modern IT
system development, designed to reduce costs
- Expenses down 9% to $2.1
million
Selected Financial Information
(000's Cdn Dollars,
except per share data)
|
Q1'15
|
Q1'14
|
|
|
|
Revenues
|
7,199
|
7,614
|
Gross
Margin
|
1,615
|
1,364
|
Gross Margin
%
|
22%
|
18%
|
General and
administrative expenses
|
352
|
559
|
EBITDAS
(loss)
|
578
|
19
|
EBIDTAS per
share - basic
|
0.02
|
0.00
|
Amortization
|
830
|
720
|
Net income
(loss)
|
(360)
|
(701)
|
|
Net income (loss) per
share - basic
|
(0.02)
|
(0.03)
|
|
Net income (loss) per
share - diluted
|
(0.02)
|
(0.03)
|
The Company reported revenues from fluid transfers and well
stimulation services of $7.2M as
compared with $7.6M reported in the
first quarter of 2013. The first two months of the first quarter
came in on forecast but the third month of July was slower than
expected as many customers took time off for the summer break. The
first quarter is typically the slowest quarter of the year as the
spring breakup and road bans restrict activity Gross Margin
as a percentage of revenue increased to 22% which represents
an improvement of almost 25% over Q1'14. The company
demonstrated an impressive 30 times multiple increase in EBITDAS to
$578,000due to better management
controls over operational efficiencies along with refining our
customer mix to focus more on long term strategic partners.
While capital expenditure programs are typically curtailed
during our first quarter, Dalmac is now experiencing a significant
increase in orders and the winter drilling season is off to a
good start.
Outlook
Dalmac still remains optimistic looking forward as rig counts
are projected to continue to improve over the remainder of 2014 and
into 2015. Given the current degree of activity in the field
and the number of work orders being received for Dalmac
services, management is confident that the remainder of
fiscal 2015 is shaping up to be a banner year. The continued
focus on productivity improvements such as the implementation of a
new computerized dispatching and invoicing system will not
only improve labor costs but will also optimize equipment
deployment by allowing for real time monitoring of
fleet operations in the field. Other added benefits will stem from
more timely customer invoicing, maintenance scheduling and improved
administration of excess equipment capacities. Management strongly
feels that these processes will not only help lower operating costs
but will better position Dalmac for increased growth and
profitability in fiscal 2015.
The Company announces that Leonard
Jaroszuk has resigned as director of Dalmac effective
September 26, 2014. Dalmac will
be conducting a comprehensive search to find a replacement director
with suitable industry experience as expeditiously as
possible. "On behalf of the board of directors I would like
to wish Len all the best in his future endeavors and to personally
thank him for his nine years of service and tireless dedication to
the Company" stated John Babic, the
Chief Executive Officer of Dalmac.
Conference call
A conference call to discuss the results will be held on
September 30, 2014, at 1:30 pm EST/11:30 am
MST.
To participate in the conference call, please dial 416-260-0113
local in Toronto or toll-free
1-800-524-8950 and request the Dalmac Energy conference.
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 and Statements
In particular, this press release contains forward-looking
information and statements pertaining to conducting a comprehensive
search to find a replacement director with suitable industry
experience as expeditiously as possible. This forward-looking
information and the related statements are based upon factors,
expectations and assumptions reflected in the forward-looking
statements that are reasonable at this time but no assurance can be
given that these factors, expectations and assumptions will prove
to be correct.
The forward-looking information and statements contained in
this press release are based upon several material factors,
expectations and assumptions of Dalmac including, without
limitation: the availability of suitable candidates; that Dalmac
will be able to offer a suitable compensation package to potential
candidates; and that Dalmac will continue to conduct its operations
and management in a manner consistent with past operations.
The forward-looking information and statements included in
this press release are not guarantees of future performance and
should not be unduly relied upon. Such information and statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking information and
statements including, without limitation: general economic, market
and business conditions; volatility in market prices for crude oil
and natural gas; the ability of Dalmac's clients to explore for,
develop and produce oil and gas; availability of financing and
capital; the ability of Dalmac's customers to pay in a timely
manner; fluctuations in interest rates; demand for the Company's
product and services; adverse conditions in the debt and equity
markets; and government actions including changes in environment
and other regulation; and certain other risks detailed from time to
time in Dalmac's public disclosure documents including, without
limitation, those risks identified in this press release.
The forward-looking information and statements contained in
this press release speak only as of the date of this press release,
and Dalmac does not assume any obligation to publicly update or
revise them to reflect new events or circumstances, except as may
be required pursuant to applicable laws.
SOURCE Dalmac Energy Inc.