Macro Enterprises Inc. Announces 2012 Second Quarter Results

Macro Enterprises Inc. (TSX VENTURE:MCR) - 



                                     Summary of financial results          
                            (thousands of dollars except per share amounts)
                            -----------------------------------------------
                                 Three months ended        Six months ended
                                            June 30                 June 30
                            -----------------------------------------------
                                   2012        2011        2012        2011
                            -----------------------------------------------
                                              (unaudited)                  
                                                                           
Revenues                        $27,799     $14,748     $69,626     $57,962
                                                                           
EBITDA(1)                         4,914         926      13,274       3,943
                                                                           
Net earnings (loss)               2,617        (296)      7,838       1,056
                                                                           
Net earnings (loss) per                                                    
 share                            $0.11      ($0.01)      $0.32       $0.04
                                                                           
                            -----------------------------------------------
Weighted average common                                                    
 shares outstanding                                                        
 (thousands)                                             23,931      23,931
                                                        -------------------



Note 1 - References to EBITDA are to net income from continuing operations
before interest, taxes, amortization and impairment charge. EBITDA is not an
earnings measure recognized by International Financial Reporting Standards
("IFRS") and does not have a standardized meaning prescribed by IFRS. Management
believes that EBITDA is an appropriate measure in evaluating the Company's
performance. Readers are cautioned that EBITDA should not be construed as an
alternative to net income (as determined under IFRS) as an indicator of
financial performance or to cash flow from operating activities (as determined
under IFRS) as a measure of liquidity and cash flow. The Company's method of
calculating EBITDA may differ from the methods used by other issuers and,
accordingly, the Company's EBITDA may not be comparable to similar measures used
by other issuers


Highlights



--  EBITDA and net income were above the second quarter of last year due to
    a greater volume of business and improved performance on jobs

--  The Company paid $210,000 of dividends on its convertible preferred
    shares which has now eliminated dividends in arrears



Second quarter results

Consolidated revenue was $27.8 million compared to $14.7 million in the second
quarter last year. The Company worked on two larger facility projects in the
quarter and several smaller jobs. In the second quarter last year, the Company
worked on one larger facility project and several smaller jobs.


Operating expenses were 77.6% of revenue in the quarter compared to 83.6% in the
same quarter last year. Performance improved this year due to higher volumes and
better project execution. 


General and administrative expenses were $1.5 million down marginally from last
year. The Company has maintained a relatively steady staff complement over the
past 15 months.


Total amortization expense of $1.1 million increased by $0.2 million due to a
higher level of capital assets needed to sustain the current level of activity.


Interest expense of $0.2 million was down from $0.4 million last year, as last
year's expense included costs associated with the temporary increase in loans
from related parties. 


Income tax expense in the quarter of $0.9 million was at an effective tax rate
of 26.8% which approximates the statutory rate. 


Net income was $2.6 million ($0.11 per share) compared to a net loss last year
of $0.3 million (a loss of $0.01 per share).


Outlook

The Company is expecting revenues in the third quarter to be strong but below
those recorded in the third quarter last year. The Company continues to actively
bid new jobs and look for new opportunities. However, the continued low price of
natural gas could affect future levels of activity in the areas where the
company is active. 


Macro's core business is providing pipeline and facilities construction and
maintenance services to major companies in the oil and gas industry in
northeastern B.C. and northwestern Alberta. The Company's corporate office is in
Calgary, Alberta. Its shares are listed on the TSX Venture Exchange under the
symbol MCR. Information on the Company's principal operating unit, Macro
Industries Inc., can be found at www.macroindustries.ca.


Forward Looking Statements

Certain statements in this news release may include forward-looking information
that involves various risks and uncertainties. These may include, without
limitation, statements regarding expected revenues, expenses and industry trends
and the pursuit of strategic acquisitions. These risks and uncertainties
include, but are not restricted to, global economic conditions, government
regulation of energy and resource companies, seasonal weather patterns,
maintaining and increasing market share, terrorist activity, the price and
availability of alternative fuels, the availability of pipeline capacity, and
potential instability or armed conflict in oil producing regions. These risks
and uncertainties may cause actual results to differ from information contained
herein. There can be no assurance that such forward-looking statements will
prove to be accurate. Actual results and future events could differ materially
from those anticipated in such statements. These statements are based on the
estimates and opinions of management on the dates they are made and are
expressly qualified in their entirety by this notice. Except as required by law,
the Company assumes no obligation to update forward-looking statements should
circumstances or management's estimates or opinions change.
Macro Enterprises (TSXV:MCR)
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