Divestco Reports Q1 2014 Results
CALGARY, ALBERTA--(Marketwired - May 30, 2014) - Divestco Inc.
("Divestco" or the "Company") (TSX-VENTURE:DVT) is pleased to
announce its operating results for the three months ended March 31,
2014. Divestco had a net loss of $0.7 million for the first quarter
of 2013 ($0.01 per share - basic and diluted) compared to a net
income of $2.1 million ($0.03 per share - basic and diluted) for
the same period in 2013. The Company generated revenue of $6.7
million compared to $11.6 million in Q1 2013, a decrease of $4.9
million (42%). Revenue in the Software and Data segment decreased
by $0.3 million (14%) due to our disposition of support data to
Canadian Western Data Inc. (a partially owned subsidiary of
Divestco) in Q2 2013. Revenue in the Seismic Data segment decreased
by $4.3 million (69%) due to a drop in seismic participation
revenue. Revenue in the Services segment decreased by $0.3 million
(10%) with geomatics, processing and land management services all
experiencing weaker demand as compared to Q1 2013.
Operating expenses decreased by $1.1 million (16%) to $5.6
million in Q1 2014 from $6.7 million in Q1 2013. Salaries and wages
were down $0.6 million (13%) due to lower headcount and
profit-share accrual. G&A expenses were down $0.4 million (19%)
as occupancy costs decreased due to a surrendered office floor
space in June 2013. Depreciation and amortization decreased by $0.9
million (33%) mainly due to lower depreciation on seismic data as
the Company acquired a greater amount of data in Q1 2013 as
compared to Q1 2014, and lower amortization of deferred development
costs as certain projects were fully amortized in prior
periods.
EBITDA was $1.3 million in Q1 2014, a $3.7 million (74%)
decrease from $5 million for the same period in 2013. The Company
generated funds from operations of $1.1 million ($0.02 per share -
basic and diluted) for the first quarter of 2014, compared to $5.2
million ($0.08 per share - basic and diluted) for the same period
in 2013, a decrease of $4.1 million (79%) primarily due to a lower
seismic participation revenue in Q1 2014.
Working Capital
As at March 31, 2014, Divestco had a working capital deficit of
$3.8 million (excluding deferred revenue of $2.7 million), compared
to working capital deficit of $2.3 million (excluding deferred
revenue of $2.8 million) as at December 31, 2013. The increase in
working capital deficit from the end of 2013 was primarily due an
unpredictably slow quarter and a weather related cost overrun in
our Alder East seismic program which was completed in Q1 2014. In
addition, the industry continued to experience lower than
anticipated first quarter activity levels with respect to
exploration having a negative impact on the Company's services
divisions; geomatics, processing and land services.
Operations Update
Operationally, all divisions of Divestco are running at high
efficiency and are now focusing on growing top line revenue.
Investment into sales & marketing and related support functions
will augment this focus. The company remains optimistic about near
future opportunities as the industry continues to work back towards
pre-recession activity levels.
The Company's 2014 industry outlook for geoscience related
opportunities is mixed. While domestic seismic activity remains
relatively flat as compared to 2013, the Company is seeing
increased opportunity levels in software & data and
internationally. Domestic opportunities in the Software & Data
Segment will largely be driven by software releases that are more
aligned with customer needs and industry trends. Greater project
activity from customers operating outside of North America is also
expected in the Seismic Processing and Geomatics Divisions as a
result of the international efforts over the past year.
Mr. Stephen Popadynetz, CEO commented: "The first quarter
started off substantially slower than expected due to continued
cash flow conservation by our clients and due to significant
weather related issues. Much of the expected activity was either
delayed or cancelled and many projects we had hoped to complete in
Q1 only commenced in the second quarter. While gas prices rebounded
for a brief period, they quickly returned to levels that many
clients still find uneconomic. This resulted in a very slow start
for our services segment and a rather flat first quarter for our
software group. The seismic division did not commence any new
shoots in Q1 but our existing database remains very active with
several negotiations underway. The processing division struggled in
Western Canada but our international backlog is increasing and
currently sits at over 3 times the entire amount we completed in
2013. Our software group released several new versions of our
flagship products and adoption and industry interest is at an
all-time high. We believe that we have successfully delivered the
right products to our marketplace and look forward to increased
revenues in this segment as a result. As we continue to look
forward in 2014, Divestco has greatly improved virtually every
aspect of the Company and remains well positioned to capitalize on
any new growth in our marketplace."
Non-GAAP Measures
The Company's condensed consolidated interim financial
statements have been prepared in accordance with IAS 34, "Interim
Financial Reporting". Certain measures in this document do not have
any standardized meaning as prescribed by IFRS and are considered
non-GAAP measures. While these measures may not be comparable to
similar measures presented by other issuers, they are described and
presented in this MD&A to provide shareholders and potential
investors with additional information regarding the Company's
results, liquidity, and its ability to generate funds to finance
its operations.
Earnings before interest, taxes, depreciation and amortization
("EBITDA")
Divestco uses EBITDA as a key measure to evaluate the
performance of its segments and divisions, as well as the Company
overall, with the closest IFRS measure being net income or net
loss. EBITDA is a measure commonly reported and widely used by
investors as an indicator of the Company's operating performance
and ability to incur and service debt, and as a valuation metric.
The Company believes EBITDA assists investors in comparing the
Company's performance on a consistent basis, without regard to
financing decisions and depreciation and amortization, which are
non-cash in nature and can vary significantly depending upon
accounting methods or non-operating factors such as historical
cost.
EBITDA is not a calculation based on IFRS and should not be
considered an alternative to net income or loss in measuring the
Company's performance. As well, EBITDA should not be used as an
exclusive measure of cash flow, because it does not consider the
impact of working capital growth, capital expenditures, debt
principal reductions and other sources and uses of cash, which are
disclosed in the consolidated statements of cash flows. While
EBITDA has been disclosed herein to permit a more complete
comparative analysis of the Company's operating performance and
debt servicing ability relative to other companies, investors
should be cautioned that EBITDA as reported by Divestco may not be
comparable in all instances to EBITDA as reported by other
companies. Investors should also carefully consider the specific
items included in Divestco's computation of EBITDA.
The following is a reconciliation of EBITDA with net income
(loss):
|
|
|
|
Three months ended March 31 |
|
(Thousands) |
2014 |
|
2013 |
|
Net Income (Loss) |
$ |
(715 |
) |
$ |
2,084 |
|
Income Tax Expense (Reduction) |
|
(31 |
) |
|
- |
|
Finance Costs |
|
259 |
|
|
270 |
|
Depreciation and Amortization |
|
1,757 |
|
|
2,613 |
|
EBITDA |
$ |
1,270 |
|
$ |
4,967 |
Working capital
Working Capital is calculated as current assets minus current
liabilities (excluding deferred revenue). Working capital provides
a measure that can be used to gauge Divestco's ability to meet its
current obligations.
Additional GAAP Measure
Funds from operations
Divestco reports funds from operations because it is a key
measure used by management to evaluate its performance and to
assess the ability of the Company to finance operating and
investing activities. Funds from operations exclude certain working
capital changes and other sources and uses of cash, which are
disclosed in the consolidated statements of cash flows.
Funds from operations is not a calculation based on IFRS and
should not be considered an alternative to the consolidated
statements of cash flows. Funds from operations is a measure that
can be used to gauge Divestco's capacity to generate discretionary
cash flow. Investors should be cautioned that funds from operations
as reported by Divestco may not be comparable in all instances to
funds from operations as reported by other companies. While the
closest IFRS measure is cash from operating activities, funds from
operations is considered relevant because it provides an indication
of how much cash generated by operations is available before
proceeds from divested assets and changes in certain working
capital items.
The following reconciles funds from operations with cash from
operating activities:
|
|
|
|
Three months ended March 31 |
|
(Thousands) |
2014 |
|
2013 |
|
Net Cash from Operating Activities |
$ |
4,223 |
|
$ |
3,988 |
|
Changes in non-cash Working Capital Balances Related to Operating
Activities |
|
(3,064 |
) |
|
980 |
|
Interest Paid |
|
216 |
|
|
243 |
|
Income Taxes Refunded |
|
(251 |
) |
|
- |
|
Funds from Operations |
$ |
1,124 |
|
$ |
5,211 |
Financial Highlights
|
|
| Financial Results (Thousands, Except Per Share
Amounts) |
|
|
Three months ended March 31 |
|
2014 |
|
2013 |
|
$ Change |
|
% Change |
|
| Revenue |
$ |
6,712 |
|
$ |
11,618 |
|
$ |
(4,906 |
) |
-42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Expenses |
|
5,625 |
|
|
6,655 |
|
|
(1,030 |
) |
-15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income |
|
(183 |
) |
|
(4 |
) |
|
(179 |
) |
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
1,270 |
|
|
4,967 |
|
|
(3,697 |
) |
-74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Finance Costs |
|
259 |
|
|
270 |
|
|
(11 |
) |
-4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and Amortization |
|
1,757 |
|
|
2,613 |
|
|
(856 |
) |
-33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Income (Loss) before Income Taxes |
|
(746 |
) |
|
2,084 |
|
|
(2,830 |
) |
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income Tax Reduction |
|
(31 |
) |
|
- |
|
|
(31 |
) |
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income (Loss) |
$ |
(715 |
) |
$ |
2,084 |
|
$ |
(2,799 |
) |
N/A |
|
|
|
Per Share - Basic and Diluted |
|
(0.01 |
) |
|
0.03 |
|
|
(0.04 |
) |
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Funds from Operations |
$ |
1,124 |
|
$ |
5,211 |
|
$ |
(4,087 |
) |
-78 |
% |
|
|
Per Share - Basic and Diluted |
|
0.02 |
|
|
0.08 |
|
|
(0.06 |
) |
-75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Class A Shares Outstanding |
|
67,085 |
|
|
66,865 |
|
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
67,055 |
|
|
66,811 |
|
|
N/A |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Position (Thousands) |
Balance as at |
|
|
|
Mar 31 |
|
Dec 31 |
|
Dec 31 |
|
|
|
2014 |
|
2013 |
|
2012 |
|
|
Total Assets |
$ |
38,389 |
|
$ |
40,721 |
|
$ |
41,945 |
|
|
Working Capital Deficit (1) |
|
(3,816 |
) |
|
(2,295 |
) |
|
(7,483 |
) |
|
Long-Term Financial Liabilities (2) |
|
9,158 |
|
|
9,357 |
|
|
7,622 |
|
- Excludes the current portion of deferred revenue of $2.7
million (December 31, 2013: $2.8 million; December 31, 2011: $2.4
million).
- Includes long-term debt obligations (both current and
long-term portions), sublease loss provision (both current and
long-term portions) and deferred rent obligations.
Segment Review Summary
|
|
|
|
|
|
|
|
|
|
| Three months ended March 31, 2014 (Thousands) |
|
|
|
Software |
|
Services |
Data |
Corporate & Other |
|
Total |
|
|
Revenue |
$ |
1,915 |
|
$ |
2,855 |
$ |
1,942 |
$ |
- |
|
$ |
6,712 |
|
|
EBITDA |
|
532 |
|
|
235 |
|
1,257 |
|
(754 |
) |
|
1,270 |
|
|
Finance costs |
|
73 |
|
|
36 |
|
150 |
|
- |
|
|
259 |
|
|
Depreciation and amortization |
|
468 |
|
|
151 |
|
1,033 |
|
105 |
|
|
1,757 |
|
|
Income (loss) before income taxes |
|
(9 |
) |
|
48 |
|
74 |
|
(859 |
) |
|
(746 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three months ended March 31, 2013 (Thousands) |
|
|
|
|
Software |
|
|
Services |
|
Data |
Corporate & Other |
|
|
Total |
|
|
Revenue |
$ |
2,232 |
|
$ |
3,183 |
$ |
6,203 |
$ |
- |
|
$ |
11,618 |
|
|
EBITDA |
|
617 |
|
|
262 |
|
5,401 |
|
(1,313 |
) |
|
4,967 |
|
|
Finance costs |
|
84 |
|
|
42 |
|
144 |
|
- |
|
|
270 |
|
|
Depreciation and amortization |
|
702 |
|
|
155 |
|
1,638 |
|
118 |
|
|
2,613 |
|
|
Income (loss) before income taxes |
|
(169 |
) |
|
65 |
|
3,619 |
|
(1,431 |
) |
|
2,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Divestco Inc. |
| Condensed Consolidated Interim Statements of Financial
Position |
|
|
At Mar 31 |
At Dec 31 |
| (Thousands - Unaudited) |
2014 |
2013 |
| Assets |
|
|
|
|
|
|
|
|
|
| Current Assets |
|
|
|
|
|
Cash |
$ |
564 |
$ |
417 |
|
Accounts receivable |
|
6,384 |
|
9,136 |
|
Prepaid expenses, supplies and deposits |
|
317 |
|
300 |
|
|
Income taxes receivable |
|
326 |
|
502 |
|
Total current assets |
|
7,591 |
|
10,355 |
|
|
|
|
|
| Equity-accounted investees |
|
311 |
|
133 |
| Participation surveys in progress |
|
5,199 |
|
4,733 |
| Property and equipment |
|
2,827 |
|
2,869 |
| Intangible assets |
|
22,461 |
|
22,631 |
|
|
|
|
|
| Total assets |
$ |
38,389 |
$ |
40,721 |
|
|
|
|
|
| Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
| Current Liabilities |
|
|
|
|
|
Bank indebtedness |
$ |
2,591 |
$ |
2,996 |
|
Accounts payable and accrued liabilities |
|
5,954 |
|
6,935 |
|
Deferred revenue |
|
2,715 |
|
2,756 |
|
Current loss on sublease loss provision |
|
336 |
|
336 |
|
Current portion of long-term debt obligations |
|
2,454 |
|
2,311 |
|
|
Current portion of tenant inducement |
|
72 |
|
72 |
|
Total current liabilities |
|
14,122 |
|
15,406 |
|
|
|
|
|
| Deferred rent obligations |
|
469 |
|
451 |
| Long-term debt obligations |
|
5,315 |
|
5,591 |
| Sublease loss provision |
|
584 |
|
668 |
| Tenant Inducements |
|
732 |
|
750 |
| Total liabilities |
|
21,222 |
|
22,866 |
|
|
|
|
|
| Shareholders' Equity |
|
|
|
|
|
Share capital |
|
7,270 |
|
7,266 |
|
Contributed surplus |
|
8,012 |
|
7,989 |
|
|
Retained earnings |
|
1,885 |
|
2,600 |
|
|
Total shareholders' equity |
|
17,167 |
|
17,855 |
|
|
|
|
|
| Total liabilities and shareholders' equity |
$ |
38,389 |
$ |
40,721 |
|
|
|
|
|
|
|
|
|
|
| Divestco Inc. |
|
| Condensed Consolidated Interim Statements of Income
(Loss) and |
|
| Comprehensive Income (Loss) |
|
|
|
|
Three months ended March 31 |
|
| (Thousands, Except Per Share Amounts - Unaudited) |
2014 |
|
2013 |
|
|
|
|
|
|
|
|
| Revenue |
$ |
6,712 |
|
$ |
11,618 |
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
|
|
|
|
|
Salaries and benefits |
|
3,770 |
|
|
4,331 |
|
|
General and administrative |
|
1,832 |
|
|
2,275 |
|
|
Depreciation and amortization |
|
1,757 |
|
|
2,613 |
|
|
Other income |
|
(183 |
) |
|
(4 |
) |
|
|
Share-based payments |
|
23 |
|
|
49 |
|
|
|
Total operating expenses |
|
7,199 |
|
|
9,264 |
|
|
|
|
|
|
|
|
| Finance costs |
|
259 |
|
|
270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
(746 |
) |
|
2,084 |
|
|
|
|
|
|
|
|
| Income taxes |
|
|
|
|
|
|
|
|
Current |
|
(31 |
) |
|
- |
|
|
|
|
|
|
|
|
| Net income (loss) and comprehensive income (loss) for
the year |
$ |
(715 |
) |
$ |
2,084 |
|
|
|
|
|
|
|
|
| Net income (loss) per share |
|
|
|
|
|
|
|
Basic and Diluted |
$ |
(0.01 |
) |
$ |
0.03 |
|
|
|
|
|
|
|
|
| Weighted average number of shares |
|
|
|
|
|
|
|
|
Basic and Diluted |
|
67,055 |
|
|
66,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Divestco Inc. |
|
| Condensed Consolidated Interim Statements of Changes
in Equity |
|
|
|
| (Thousands - Unaudited) |
Number of Shares Issued |
Share Capital |
Contributed Surplus |
Retained Earnings |
|
Total Equity |
|
| Balance as at January 1, 2013 |
66,758 |
$ |
7,216 |
$ |
7,829 |
$ |
1,273 |
|
$ |
16,318 |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
|
| Net income and comprehensive income for the period |
- |
|
- |
|
- |
|
2,084 |
|
|
2,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners, recorded in equity
contributions by and distributions to owners: |
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of Class A common shares as service awards |
107 |
|
19 |
|
- |
|
- |
|
|
19 |
|
|
Share-based payment transactions |
|
|
|
|
49 |
|
|
|
|
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at March 31, 2013 |
66,865 |
$ |
7,235 |
$ |
7,878 |
$ |
3,357 |
|
$ |
18,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at January 1, 2014 |
67,050 |
$ |
7,266 |
$ |
7,989 |
$ |
2,600 |
|
$ |
17,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss and comprehensive loss for the year |
|
|
|
|
|
|
(715 |
) |
|
(715 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| Transactions with owners, recorded in equity
contributions by and distributions to owners: |
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of Class A common shares as service awards |
35 |
|
4 |
|
|
|
|
|
|
4 |
|
|
Share-based payment transactions |
|
|
|
|
23 |
|
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as at March 31, 2014 |
67,085 |
$ |
7,270 |
$ |
8,012 |
$ |
1,885 |
|
$ |
17,167 |
|
|
|
|
|
|
|
|
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| Divestco Inc. |
|
| Condensed Consolidated Interim Statements of Cash
Flows |
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Three months ended March 31 |
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(Thousands - Unaudited) |
2014 |
|
2013 |
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Cash from operating activities |
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Net income (loss) for the period |
$ |
(715 |
) |
$ |
2,084 |
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Items not affecting cash: |
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Equity investment income |
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(171 |
) |
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(2 |
) |
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Depreciation and amortization |
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1,757 |
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2,613 |
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Amortization of tenant inducements |
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(18 |
) |
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(30 |
) |
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Deferred rent obligations |
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18 |
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|
210 |
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Income taxes |
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(31 |
) |
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- |
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Unrealized foreign exchange loss |
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(2 |
) |
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(2 |
) |
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Non-cash employment benefits |
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4 |
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19 |
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Share-based payments |
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23 |
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49 |
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Finance costs |
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259 |
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270 |
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Funds from operations |
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1,124 |
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5,211 |
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Changes in non-cash working capital balances |
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3,064 |
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(980 |
) |
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Interest paid |
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(216 |
) |
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(243 |
) |
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Income taxes received |
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251 |
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- |
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Net cash from operating activities |
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4,223 |
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|
3,988 |
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Cash from (used in) financing activities |
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Bank indebtedness |
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(405 |
) |
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- |
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Repayment of long-term debt obligations |
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(291 |
) |
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(299 |
) |
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Net cash from (used in) financing activities |
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(696 |
) |
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(299 |
) |
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Cash from (used in) investing activities |
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Additions to intangible assets |
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(1,156 |
) |
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(3,563 |
) |
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Decrease (increase) in participation surveys in progress |
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(466 |
) |
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3,508 |
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Purchase of property and equipment |
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(12 |
) |
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(55 |
) |
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Payments towards sublease loss provision |
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(89 |
) |
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(89 |
) |
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Deferred development costs |
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(306 |
) |
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(590 |
) |
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Changes in non-cash working capital balances |
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(1,351 |
) |
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(3,268 |
) |
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Net cash from (used in) investing activities |
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(3,380 |
) |
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(4,057 |
) |
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Increase (decrease) in cash |
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147 |
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(368 |
) |
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Cash, beginning of period |
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417 |
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1,320 |
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Cash, end of period |
$ |
564 |
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$ |
952 |
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About the Company
Divestco provides innovative geoscience solutions to Energy and
Service companies worldwide. Our customers predominantly operate in
geology, geophysics, land and engineering and we work with our
clients to ensure they have the right solutions, at the right time,
to help them make more informed decisions. Commitment, innovation,
accountability and agility form the cornerstone of our values and
enable us to consistently provide reliable solutions and
exceptional, personalized service in all of the core areas in which
we operate. Divestco provides Software & Data, Seismic
Processing, Geomatics Services, Seismic Data & Brokerage, and
Land Services. Divestco is headquartered in Calgary and trades on
the TSX Venture Exchange under the symbol "DVT".
Neither 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 news release.
This press release contains forward-looking information
related to the Company's capital expenditures, projected growth,
view and outlook with respect to future oil and gas prices and
market conditions, and demand for its products and services.
Statements that contain words such as "could', "should", "can",
"anticipate", "expect", "believe", "will", "may" and similar
expressions and statements relating to matters that are not
historical facts constitute "forward-looking information" within
the meaning applicable by Canadian securities legislation. Although
management of the Company believes that the expectations reflected
in such forward-looking information are reasonable, there can be no
assurance that such expectations will prove to have been correct
because, should one or more of the risks materialize, or should the
assumptions underlying forward-looking statements or
forward-looking information prove incorrect, actual results may
vary materially from those described in this press release as
intended, planned, anticipated, believed, estimated or expected.
Readers should not place undue reliance on forward-looking
statements or forward-looking information. All of the
forward-looking statements and forward-looking information of the
Company contained in this press release are expressly qualified, in
their entirety, by this cautionary statement. Except where required
by law, the Company does not assume any obligation to update these
forward-looking statements or forward-looking information if
conditions or opinions should change.
In particular, this press release contains forward-looking
statements pertaining to the following: Company's ability to keep
debt and liquidity at acceptable levels, improve/maintain its
working capital position and maintain profitability in the current
economy; availability of external and internal funding for future
operations; relative future competitive position of the Company;
nature and timing of growth; oil and natural gas production levels;
planned capital expenditure programs; supply and demand for oil and
natural gas; future demand for products/services; commodity prices;
impact of Canadian federal and provincial governmental regulation
on the Company; expected levels of operating costs, finance costs
and other costs and expenses; future ability to execute
acquisitions and dispositions of assets or businesses; expectations
regarding the Company's ability to raise capital and to add to
seismic data through new seismic shoots and acquisition of existing
seismic data; treatment under tax laws; and new accounting
pronouncements.
These forward-looking statements are based upon assumptions
including: future prices for crude oil and natural gas; future
interest rates and future availability of debt and equity financing
will be at levels and costs that allow the Company to manage,
operate and finance its business and develop its software products
and various oil and gas datasets including its seismic data
library, and meet its future obligations; the regulatory framework
in respect of royalties, taxes and environmental matters applicable
to the Company and its customers will not become so onerous on both
the Company and its customers as to preclude the Company and its
customers from viably managing, operating and financing its
business and the development of its software and data; and that the
Company will continue to be able to identify, attract and employ
qualified staff and obtain the outside expertise as well as
specialized and other equipment it requires to manage, operate and
finance its business and develop its properties.
These forward-looking statements are subject to numerous
risks and uncertainties, certain of which are beyond the Company's
control, including: general economic, market and business
conditions; volatility in market prices for crude oil and natural
gas; ability of Divestco's clients to explore for, develop and
produce oil and gas; availability of financing and capital;
fluctuations in interest rates; demand for the Company's product
and services; weather and climate conditions; competitive actions
by other companies; availability of skilled labour; failure to
obtain regulatory approvals in a timely manner; adverse conditions
in the debt and equity markets; and government actions including
changes in environment and other regulation.
Divestco Inc.Mr. Stephen PopadynetzCEO, President and
CFO587-952-8152Divestco Inc.Mr. Danny ChiarastellaVice President,
Finance587-952-8027www.divestco.com
Divestco Inc. (TSXV:DVT)
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Divestco Inc. (TSXV:DVT)
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From Dec 2023 to Dec 2024
