NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES
Pro-Trans Ventures Inc. (the "Company") (TSX VENTURE:PVI) today reported
financial results for the Company's year ended December 31, 2013.
"Due primarily to the current levels of commodity prices, last year was an
extremely challenging year for our customers and a result, for our Company,"
stated Mr. Martin Carsky, President and Chief Executive Officer of the Company.
"The management team is grateful to all of our employees who worked extremely
hard in spite of the difficult business circumstances but unfortunately, we
still were not able to make the business profitable," added Mr. Carsky.
2013 HIGHLIGHTS
-- Revenue for the year was $57.4 million as compared to $63.6 million in
2012
-- EBITDA for the year was $2.7 million as compared to $5.2 million in 2012
due primarily to higher operating expenses
-- Comprehensive loss for the year was $8.0 million as compared to a profit
of $0.6 million in 2012, primarily due to the write-down of $6.2 million
in goodwill
The full version of the Company's financial statements and Management's
Discussion and Analysis can be viewed on the Company's website at
www.protransventures.com, or on SEDAR at www.sedar.com. All financial
information is prepared in accordance with IFRS and all dollar amounts are
expressed in Canadian dollars unless otherwise indicated.
OUTLOOK
The Company was hampered by significantly higher repairs and maintenance costs
and higher than expected equipment downtime during much of the fourth quarter
and, as a result, haul volumes for the Brule operation were down from the third
quarter. Also, the hauling requirements of two other customers were reduced
which had an impact on the Company's overall cash flows. Lastly, while the
Company was successful in negotiating a new contract with one of its customers,
the new terms did not take effect until December 2013. As a result, the
financial results for the fourth quarter were extremely poor and caused a
significant strain on the Company's working capital.
The operational situation was the same for the first quarter of 2014 and as a
result, the strain on working capital continued. In addition, under the terms of
one of its hauling contracts, the Company incurred financial penalties which
further affected its profitability.
Looking ahead to the next two quarters management believes that there will be an
improvement in equipment availability as the weather improves, that haul volumes
will increase for two of the three operations, and that no future hauling
penalties will be incurred. That, together with the new contract in place for
the third customer, should increase the prospects for future profitability.
However, the news on April 15, 2014 from the Company's largest customer creates
uncertainty as to what will happen in 2015. Management is currently assessing
the potential impacts on the business and is having ongoing discussions with its
customer.
Lastly, the Company is still undercapitalized and continues to seek additional
financing to remedy the situation. There are material uncertainties with respect
to the ongoing discussions with the Company's lenders as a result of current
period covenant violations and forecasted future period covenant violations. The
successful future operations of the Company are dependent on the ability of the
Company to secure sufficient funds through operations, bank financing, or other
sources, and there are no assurances that such funding will be available when
needed.
ABOUT PRO-TRANS
Pro-Trans is a Calgary based public company listed on the TSX Venture Exchange.
The Company is actively involved in specialized transportation and logistics
services within Western Canada, through its wholly owned subsidiary, Maple Leaf
Loading Ltd. ("Maple Leaf"), based in Prince George, BC. Maple Leaf, a mining
support company, offers specialized transportation services related to the
management, handling, and transportation of coal and ore concentrates for
customers in the mining industry in BC, Alberta, and the Yukon.
NON-IFRS MEASURES
The discussion of financial results in this press release includes reference to
EBITDA which is a non-IFRS measure. The Company provides this measure as
additional information regarding the Company's financial results and
performance. Please refer to the Company's MD&A for the three months and year
ended December 31, 2013 for a definition and reconciliation of these measures to
the Company's financial statements.
FORWARD-LOOKING INFORMATION
This press release contains certain statements or disclosures relating to
Pro-Trans that are based on the expectations of Pro-Trans as well as assumptions
made by and information currently available to Pro-Trans which may constitute
forward-looking information under applicable securities laws. In particular,
this press release contains forward-looking information related to the future
financial and operational performance of the Corporation, with respect to the
Corporation's customer base, future equipment utilization and the requirement
for additional future financing. Such forward looking information involves
material assumptions and known and unknown risks and uncertainties, certain of
which are beyond Pro-Trans' control. Many factors could cause the performance or
achievement by Pro-Trans to be materially different from any future results,
performance or achievements that may be expressed or implied by such forward
looking information. Pro-Trans' Management's Discussion and Analysis and other
documents filed with securities regulatory authorities (accessible through the
SEDAR website at www.sedar.com) describe certain risks, material assumptions and
other factors that could influence actual results. Pro-Trans disclaims any
intention or obligation to publicly update or revise any forward looking
information, whether as a result of new information, future events or otherwise,
except as may be expressly required by applicable securities laws.
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.
Not for distribution to U.S. Newswire Services or for dissemination in the
United States. Any failure to comply with this restriction may constitute a
violation of U.S. securities laws.
PRO-TRANS VENTURES INC.
Consolidated Statements of Financial Position
As at December 31, 2013 and 2012
2013 2012
$ $
------------------------------
Assets
Current assets:
Cash 15,863 7,956
Accounts receivable 4,292,427 4,249,118
Corporate income taxes receivable 1,210,564 1,006,502
Inventories 1,244,781 1,332,229
Prepaid expenses and deposits 603,205 1,684,438
------------------------------
7,366,840 8,280,243
Prepaid deposits on leases 145,231 260,726
Property, plant and equipment 26,949,958 22,811,252
Goodwill and intangible assets 2,550,000 8,973,754
------------------------------
37,012,029 40,325,975
---------------------------------------------------------------------------
2013 2012
$ $
------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Bank indebtedness 1,757,578 134,280
Accounts payable and accrued liabilities 7,400,833 4,970,648
Deferred revenue and customer deposits 390,844 1,562,541
Current portion of long term debt 1,028,400 291,566
Current portion of obligations under
capital leases 12,362,518 13,474,622
Current portion of due to former
shareholder 79,719 159,319
Demand loans payable 172,287 571,442
------------------------------
23,192,179 21,164,418
------------------------------
Non-current liabilities
Long term debt 46,473 80,935
Obligations under capital leases 2,859,354 1,473,227
Convertible debenture loan 4,792,863 4,609,124
Payable to former shareholders of
subsidiary - 79,720
Deferred income taxes 2,122,694 1,851,694
------------------------------
33,013,563 29,259,118
------------------------------
Shareholders' equity
Share capital - common shares 9,654,820 8,851,069
Contributed surplus 1,611,538 1,524,901
Equity component of convertible debt 525,000 525,000
Retained earnings (deficit) (7,792,892) 165,887
------------------------------
3,998,466 11,066,857
------------------------------
Commitments
37,012,029 40,325,975
---------------------------------------------------------------------------
PRO-TRANS VENTURES INC.
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
Years ended December 31, 2013 and 2012
2013 2012
$ $
------------------------------
Revenue:
Operating 57,382,174 63,637,365
Leasing 267,165 300,560
------------------------------
57,649,339 63,937,925
------------------------------
Expenses:
Operating 46,597,926 49,962,096
Depreciation 3,567,142 2,925,163
Equipment rentals and leases 3,977,574 4,612,459
General and administrative 4,208,199 4,069,578
Amortization of intangible asset 200,000 200,000
Net finance costs 1,627,159 1,540,092
Gain on sale of property, plant and equipment (186,623) (254,923)
Share-based compensation 87,987 62,500
Goodwill impairment expense 6,223,754 -
------------------------------
66,303,118 63,116,965
------------------------------
Income (loss) before income taxes (8,653,779) 820,960
------------------------------
Income tax expense (recovery)
Current (966,000) (312,694)
Deferred 271,000 488,777
------------------------------
(695,000) 176,083
------------------------------
Net income (loss) and comprehensive income
(loss) for the year (7,958,779) 644,877
------------------------------
Weighted average shares outstanding 27,319,917 25,194,623
Earnings (loss) per share - basic and diluted ($0.29) $0.03
---------------------------------------------------------------------------
PRO-TRANS VENTURES INC.
Consolidated Statements of Changes in Shareholders' Equity
Years ended December 31, 2013 and 2012
Common Shares Contributed
Number Amount Surplus
---------------------------------------------
$ $
Balances January 1, 2013 26,256,903 8,851,069 1,524,901
Grant of options - - 87,987
Exercise of options 270,000 28,350 (1,350)
Shares issued on conversion of
warrants 1,500,000 - -
Shares issued through private
placement 13,333,333 775,401 -
Net income (loss) and
comprehensive income (loss) - - -
---------------------------------------------
Balances December 31, 2013 41,360,236 9,654,820 1,611,538
---------------------------------------------------------------------------
Balances January 1, 2012 23,810,000 8,088,140 2,250,330
Shares issued on conversion of
warrants 2,446,903 762,929 (762,929)
Grant of options - - 37,500
Net income and comprehensive
income - - -
---------------------------------------------
Balances December 31, 2012 26,256,903 8,851,069 1,524,901
---------------------------------------------------------------------------
Equity Portion Retained
Convertible Earnings
Debt (Deficit) Total
---------------------------------------------
$ $ $
Balances January 1, 2013 525,000 165,887 11,066,857
Grant of options - - 87,987
Exercise of options - - 27,000
Shares issued on conversion of
warrants - -
Shares issued through private
placement - - 775,401
Net income (loss) and
comprehensive income (loss) - (7,958,779) (7,958,779)
---------------------------------------------
Balances December 31, 2013 525,000 (7,792,892) 3,998,466
---------------------------------------------------------------------------
Balances January 1, 2012 525,000 (478,990) 10,384,480
Shares issued on conversion of
warrants - - -
Grant of options - - 37,500
Net income and comprehensive
income - 644,877 644,877
---------------------------------------------
Balances December 31, 2012 525,000 165,887 11,066,857
---------------------------------------------------------------------------
PRO-TRANS VENTURES INC.
Consolidated Statements of Cash Flows
Years ended December 31, 2013 and 2012
2013 2012
Cash provided by (used in): $ $
------------------------------
Operations:
Net income (loss) for the year (7,958,779) 644,877
Adjustments for:
Depreciation and amortization 3,567,142 2,925,163
Finance costs 1,627,159 1,540,092
Gain on sale of property, plant and
equipment (186,623) (254,923)
Share-based compensation 87,987 37,500
Change in prepaid deposits on leases 115,495 119,363
Amortization of intangible assets 200,000 200,000
Goodwill impairment expense 6,223,754 -
Income tax expense (recovery) (695,000) 176,083
Changes in items of working capital:
Accounts receivable (43,309) 1,128,152
Inventories 87,448 (158,174)
Prepaid expenses and deposits 1,081,233 (435,702)
Accounts payable and accrued liabilities 2,430,185 (993,286)
Deferred revenue and customer deposits (1,171,697) 1,545,843
Interest paid (1,443,419) (1,289,300)
Income tax recovered (paid) 761,938 (493,208)
------------------------------
Net cash provided by (used in) operating
activities 4,683,514 4,692,480
------------------------------
Financing:
Proceeds of bank indebtedness 1,623,298 134,280
Repayment of demand loans payable (399,155) (126,842)
Proceeds of long term debt 920,056 1,286,947
Repayment of long-term debt (217,684) (1,667,354)
Repayment of obligations under capital
leases (3,702,662) (4,373,600)
Repayments to former shareholders of
subsidiary (159,320) (313,338)
Proceeds on exercise of stock options 27,000 -
Proceeds on issue of common shares 775,401 -
------------------------------
Net cash provided by (used in) financing
activities (1,133,066) (5,059,907)
------------------------------
Investing:
Proceeds on disposal of property, plant and
equipment 3,089,321 2,628,714
Purchase of property, plant and equipment (6,631,862) (2,315,992)
------------------------------
Net cash used in investing activities (3,542,541) 312,722
------------------------------
Increase (decrease) in cash 7,907 (54,705)
Cash, beginning of year 7,956 62,661
------------------------------
Cash, end of year 15,863 7,956
---------------------------------------------------------------------------
FOR FURTHER INFORMATION PLEASE CONTACT:
Pro-Trans Ventures Inc.
Martin Carsky
President & Chief Executive Officer
(250) 614-7277
mcarsky@protransventures.com
Pro-Trans Ventures Inc.
Derrek Wong, MBA, CFA, FCMA
Chief Financial Officer
(403) 452-7055
dwong@protransventures.com
(TSXV:PVI)
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