Company continues to experience strong earnings and fleet expansion
SYLVAN LAKE, AB, Feb. 24, 2012 /CNW/ - Lonestar West Inc. (TSX-V:LSI) today announced record performance for the 2012 second fiscal quarter ended December 31, 2011 including growth in fleet size, revenue and operating profit. The results reflect significant growth in its Canadian HVAC and Vacuum truck businesses driven in part by favourable commodity prices and strong infrastructure development in Western Canada.
Highlights for the quarter include:
- Revenues increased 57.3% to $4,535,173 from $2,882,452 in the second quarter of F2012.
- EBITDAC increased 66.9% to $792,747 compared to $475,073 in second quarter of F2012.
- EBITDAC per share rose 50.0% to $0.054 from $0.036 in the second quarter of F2012.
For the three months ended December 31, 2011 gross revenues were $4,535,173 an increase of 57.3% in comparison to $2,882,452 in the previous year's comparable quarter, EBITDAC increased 66.9% in the current quarter to $792,747 ($0.054 per weighted average share) in relation to the previous year's comparable quarter of $475,073 ($0.036 per weighted average share). Net earnings for the three month period ended December 31, 2011, increased $521,937 compared to the net earnings of $300,486 for the comparable quarter. Factors for the improvement in performance include the improvement of utilization rates of the HVAC and Vacuum units, an increase in fleet size as well as an increase in revenues derived from lease operators.
Revenues for the first half of the 2012 fiscal year were $8,347,591, an increase of 86.1% over the $4,484,609 for the first half of fiscal 2011. The EBITDAC for the first half ending December 31, 2011 was $1,367,638 compared to $710,048 in the first half of 2010. Net earnings for first half year ended December 31, 2011, increased to $839,964 compared to $288,534 for the first half of the 2011 fiscal year.
To satisfy strong customer demand, Lonestar implemented a fleet expansion program during the quarter deploying internally generated cash flow and available capital sources. As of today's date the total fleet consists of 33 trucks. The HVAC fleet increased to 25 trucks including 17 corporate trucks and 8 lease operated trucks, an increase of 6 corporate-owned trucks and 1 lease operated truck since September 30, 2011. In addition, the Vacuum truck fleet increased by 2 trucks to a total of 8 trucks.
President and CEO James Horvath commented, "We delivered a record quarter in terms of both top-line growth and profitability. We continue to see very strong customer demand for our fleet. To meet this demand we successfully implemented an expansion program that increased our overall fleet size to date by 26.9% since the quarter ending September 30, 2011. Not only did we grow our fleet but we successfully integrated the incremental assets into our marketing and operational infrastructure allowing us to start generating incremental revenues almost immediately upon closing the acquisitions. We expect to continue this aggressive growth strategy and believe that we will have access to both equity and debt markets to finance our continued growth." He added, "This fleet expansion is also having a positive impact on the third fiscal quarter of 2012."
For complete details on the interim financial statements and MD&A for the 2012 Second Quarter please refer to SEDAR at www.sedar.com.
Lonestar West Inc. (www.lonestarwest.com) operates a fleet of 33 HVAC and vacuum trucks throughout Western Canada from its base in Sylvan Lake, Alberta. It is focused 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.
James Horvath, President and CEO (403) 887 - 2074
Bev Roome, CA, Chief Financial Officer (403) 887 - 2074
Investor Relations, The Howard Group Inc.