Winalta Announces Results for Second Quarter Ending June 30, 2012
22 Août 2012 - 2:30PM
PR Newswire (Canada)
CALGARY, Aug. 22, 2012 /CNW/ - Winalta Inc. ("Winalta" or the
"Company") announces results for the 3 months ending June 30, 2012
with revenue of $2.0 million and negative EBITDA of $151
thousand. Revenue and EBITDA have decreased from the
comparable 3 month period in 2011 by $600 thousand and $374
thousand, respectively. Seasonal slowdown in drilling activity was
compounded as the normal late second quarter recovery in rig
activity that follows spring break-up did not occur due to very wet
conditions in June, which negatively impacted rental utilization.
The Company realized 53% utilization across its entire fleet of
equipment for the 6 months ending June 30, 2012, resulting in
positive consolidated EBITDA of $4.8 million as compared to $4.0
million for the 6 months ending June 30, 2011. Oilfield Rentals net
income of $1.7 million or $0.04 per share compared favourably to
net income of $13 thousand or $0.00 per share for the 6 months
ended June 30, 2011. During the first 6 months of 2012, Winalta
continued to increase its asset base, building $2.4 million in
Wellsites and Dedicated Geo Lab units to maintain its premier
rental fleet. The Company will continue to monitor both its fleet
utilization and its capital expenditure program for the remainder
of 2012. Three Months Ended Six Months Ended June 30, June 30, 2011
June 30, June 30, 2011 2012 2012 Revenue 1,990 2,578 10,976 9,788
Net Earnings (1,654) (1,553) 1,672 13 Earnings per share and (0.04)
(0.04) 0.04 0.00 diluted earnings per share EBITDA (151) 223 4,750
3,951 EBITDAper share (0.00) 0.01 0.12 0.10 Total assets 40,296
35,522 40,296 35,522 Total liabilities 17,091 20,562 17,091 20,562
Dividends Paid 801 - 801 - Revenue Winalta revenue decreased by
$600 thousand, a decrease of 23% for the 3 months ended June 30,
2012 (the "Period") compared to the three months ended June 30,
2011 (the "Comparative Period"). This 23% decrease in revenue year
over year is attributable to decreases in utilization and third
party revenue. Revenue Drivers Q2 2012 versus Q2 2011 % Increase Q2
2012 Q2 2011 Fleet size (# of units) 12% 304 272 Utilization
(during quarter) (40%) 21% 35% Fleet Expansion Over the past 12
months, the Company has added 21 Wellsite units and 11 Dedicated
Geo-Labs. The Company continues to expand its fleet. For the
current Period, the fleet increased by five Wellsite units and two
Dedicated Geo-Lab units. Fleet Growth Q2 2012 versus Q2 2011 %
Increase Q2 2012 Q2 2011 Wellsites 10% 225 204 Drill Camps (5 and 6
units) 0% 11 11 Dedicated Geo Labs 183% 17 6 Utilization
Utilization for the Period was down across Wellsites, Drill Camps
and Dedicated Geo Lab units as continued wet weather negatively
impacted second quarter utilization. Utilization for the whole
fleet for the six months ending June 30, 2012 was 53% as compared
to the 62% for the six months ending June 30, 2011. The
Company continues to maintain the daily charge out rate on its
units. The continued wet weather is expected to negatively impact
the third quarter utilization as demand has remained below
expectations. Utilization Q2 2012 versus Q2 2011 % Increase Q2 2012
Q2 2011 Wellsites (36%) 21% 33% Drill Camps (5 and 6 units) (30%)
16% 23% Dedicated Geo Labs (41%) 30% 51% General and Administrative
For the Period, general and administrative expenses were $1,073
thousand. The selling, general and administration
expense were $1,273 thousand, for the Comparative Period. The 16%
reduction in general and administrative expenses was achieved by
reductions in salaries and benefits, stock based compensation,
travel, meals, entertainment and professional fees. Depreciation
and Amortization Depreciation and amortization was $1,247 thousand
for the Period as compared to $1,178 thousand for the Comparative
Period. The increase in depreciation and amortization expense
reflects the acquisition of $4.6 million of equipment in the
trailing 12 months. Interest Expense Interest expense for the
Period was $256 thousand as compared to $598 thousand for the
Comparable Period. The decrease in interest expense in the
Period is due to a deferred financing fee of $250 thousand in the
Comparative Period that was expensed as the Company renegotiated
its financing facility to more favorable terms. Outlook The second
quarter of 2012 resulted in some challenges for the Company due to
adverse weather conditions and volatile market conditions relating
to gas and oil price fluctuations which impact drilling
activities. Challenging weather conditions, volatile market
conditions, infrastructure and bottle-neck constraints continue to
be monitored by management as these factors could impact quarterly
results as changing conditions directly impact drilling activities
and Company asset utilizations. The Company continues to be
optimistic in regards to the balance of 2012 and into 2013 for the
winter drilling season. This combined with the continued
Western Canadian economic activity, in both oil and gas
exploration, should continue to provide opportunities for the
Company. The Company believes the strong economy will
continue for the foreseeable future, as further supported by CAODC
(Canadian Association of Oilwell Drilling Contractors) forecast for
the balance of 2012, which should translate to improved utilization
rates for Winalta's equipment. The additions to the
fleet will allow the Company to continue to support its customer
base in meeting their needs as well as expanding to new customers.
Winalta Inc., operating under the trade name, Winalta Oilfield
Rentals, is an oilfield service provider that specializes in
portable industrial rental accommodations, remote offices and
Dedicated Geo Labs; servicing the Western Canadian oil and gas
Industry. 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 Certain
information set forth in this press release, including management's
assessment of the potential for increased cash flows, continued
growth of the Company's rental fleet, demand for the Company's
rental units and the Company's expectation regarding the status of
the economy and its impact on the Company, may constitute
forward-looking statements. By their nature, forward-looking
statements involve material assumptions and are subject to numerous
risks and uncertainties, including with respect to market and
economic conditions and their impact on the Company's business,
some of which, are beyond our control. Readers are cautioned not to
place undue reliance on the forward-looking statements as the
assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
imprecise and actual results, performance or outcomes could
materially differ from those expressed or implied in such
forward-looking statements and accordingly, no assurance can be
given that any of the events anticipated by forward looking
statements will transpire or occur, or if any of them do so, what
benefit Winalta will derive therefrom. The Company does not assume
the obligation to revise or update this forward-looking information
after the date of this release or to revise such information to
reflect the occurrence of future unanticipated events, except as
may be required under applicable securities laws. Winalta
Inc. CONTACT: David Hopley, CFOPhone: (780) 960-6900Austin Fraser,
Senior Vice PresidentPhone: (403) 826-5701winalta@winaltainc.com
Copyright
(TSXV:WTA)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
(TSXV:WTA)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024