Third Quarter 2009 Highlights: - generated revenue of $ 1.4 million in the nine months ended April 30, 2009, a 135% increase over the comparable prior year period, - our fleet now consists of 14 HVAC trucks. From our first truck in May, 2008 we now have capital leases on 6 units, rent to own and monthly rental agreements on 4 units and an additional 4 lease operator units.
SYLVAN LAKE, AB, June 29 /CNW/ - Lonestar West Inc. (TSX(V):LSI) today announced its business performance for the third quarter of fiscal 2009.
President and CEO James Horvath commented, "The quarter saw lower than anticipated revenue for Lonestar as completions of key projects and seasonal shutdowns of other projects combined with the downturn in the oil and gas industry led to lower utilization rates. However, we see better things on the horizon as late in April and into the current quarter we have had improved utilization. We have grown our customer base and continue to be a favoured supplier of our customers. We are confident our focus on customer service will provide us the basis to keep the equipment working and move us towards our goal of becoming a major national competitor in the HVAC services business. We have the employees, equipment and management team that can contribute to achieving our growth plans."
For the nine months ended April 30, 2009, Lonestar showed significant growth in Earnings Before Interest, Taxes, Depreciation and Amortization and Stock Based Compensation ("EBITDAC")((1)) to $278,000 from $166,000 in the comparable prior year period. For the 3rd quarter, EBITDAC was a negative $56,000 as compared to a positive $74,000 in the prior year. Losses in the quarter of $373,000 were primarily a result of the reduced utilization and compared to losses of $32,000 in the prior year. These quarterly amounts brought the year-to-date losses to $351,000 and $153,000 in 2009 and 2008, respectively.
CONSOLIDATED RESULTS
Financial Results (000's except per share amounts)
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3 months ended 9 months ended
April 30 April 30
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2009 2008 2009 2008
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Revenue $ 1,372 $ 584 $ 4,314 $ 1,592
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Operating expenses 1,226 439 3,475 1,233
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Gross margin 146 145 839 359
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Net income (loss) (373) (32) (351) (153)
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EBITDAC(1) (56) 74 278 166
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Earnings per share - basic (0.03) (32.08) (0.04) (152.70)
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(1) EBITDAC means earnings before interest, taxes, depreciation and
amortization and stock based compensation and is equal to earnings
before income taxes plus interest on long-term debt plus amortization
plus stock based compensation. EBITDAC is not a recognized measure
under Canadian generally accepted accounting principles ("GAAP").
Management believes that in addition to net earnings, EBITDAC is a
useful supplemental measure as it provides an indication of the
results generated by the Company's primary business activities prior
to consideration of how those activities are financed, amortized or
how the results are taxed in various jurisdictions as well as the
cash generated by the Company's primary business activities. Readers
should be cautioned, however, that EBITDAC should not be construed as
an alternative to net earnings determined in accordance with GAAP as
an indicator of Lonestar's performance. Lonestar's method of
calculating EBITDAC may differ from other organizations and,
accordingly, EBITDAC may not be comparable to measures used by other
organizations.
The complete MD&A and interim financial statements for the Third Quarter, as well as Lonestar's November 27, 2008 Prospectus, are available on SEDAR at www.sedar.com.
Change in Yearend
The Company is also announcing that it will be changing its yearend from July 31 to June 30 effective for its 2009 yearend. The purpose of this change is to provide quarterly results on consistent periods with most other publicly traded services companies. Lonestar's reporting periods, and the related comparative prior year periods, will be as follows for the next year:
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Reporting Period Prior Year Comparatives
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2009 Quarter 4 2 months ended 3 months ended
June 30, 2009 July 31, 2008
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2009 Yearend 11 months ended 12 months ended
June 30, 2009 July 31, 2008
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2010 Quarter 1 3 months ended 3 months ended
September 30, 2009 October 31, 2008
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2010 Quarter 2 3 months ended 3 months ended
December 31, 2009 January 31, 2009
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2010 Quarter 3 3 months ended 3 months ended
March 31, 2010 April 30, 2009
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2010 Quarter 4 3 months ended 2 months ended
June 30, 2010 June 30, 2009
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2010 Yearend 12 months ended 11 months ended
June 30, 2010 June 30, 2009
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Business Description
Lonestar West Inc. currently operates 14 HVAC trucks and 6 vacuum trucks throughout Western Canada and Ontario from its base in Sylvan Lake, Alberta. It is focussed on profitably growing its HVAC services to become a major national competitor in the market area.
Lonestar's shares trade on the TSX(Venture) Exchange under the symbol LSI.
Certain information and statements contained herein constitute forward-looking information, including the anticipated costs associated with the purchase of capital equipment, expectations concerning the nature and timing of growth within the business operated by Lonestar, expectations respecting the competitive position of such business, expectations concerning the financing of future business activities and statements as to future economic and operating conditions. Readers should review the cautionary statement respecting forward-looking information that appears in Lonestar's complete MD&A.
%SEDAR: 00027328E
