CALGARY, May 25, 2012 /CNW/ - Winalta Inc. (TSX-V: WTA) ("Winalta" or the "Company") is pleased to announce record results for the three months ended March 31, 2012 with net earnings from continuing operations of $3.3 million or $0.08 per share fully diluted compared to a net earnings from continuing operations of $1.6 million or $0.04 per share fully diluted for the three months ended March 31, 2011.
Revenue of $9.0 million and EBITDA of $4.9 million compared favourably to revenue of $7.2 million and EBITDA of $3.7 million for the comparative 3 month period 2011.
Selected Financial Information
|Three Months Ended|
|($000,s except per share amounts)||March 31, 2012||March 31, 2011|
|Earnings per share and diluted earnings per share||0.08||0.04|
|EBITDA per share||0.12||0.09|
Winalta revenue increased by $1.8 million, an increase of 25% for the 3 months ended March 31, 2012 (the "Period") compared to the three months ended March 31, 2011 (the "Comparative Period"). This 25% increase in revenue year over year is attributable to increases in fleet size, third party revenue and day rates.
|Revenue Drivers Q1 2012 versus Q1 2011|
|% Increase||Q1 2012||Q1 2011|
|Fleet size (# of units)||9%||297||266|
|Utilization (during quarter)||-7%||85%||91%|
Day rates for the period showed a year over year improvement of 12%.
During the Period the Company has increased its fleet size by 5 Wellsite units and 4 Dedicated Geo-Lab units. Since the Comparative Period Winalta has increased by 16 Wellsite units and 15 Dedicated Geo-Lab units. The Company continues to expand its fleet organically with cash from operations.
|Fleet Growth Q1 2012 versus Q1 2011|
|% Increase||Q1 2012||Q1 2011|
|Drill Camps (5 and 6 units)||0%||11||11|
|Dedicated Geo Labs||1500%||16||1|
Utilization of Wellsite units for the Period was 85% as compared to 91% for the Comparative Period. Utilization of Camp units for the Period was 90% as compared to 91% for the Comparative Period. Utilization of Dedicated Geo-Labs for the Period was 87% as compared to 79% for the Comparative Period, which shows continued demand for these specialty units.
Decreased utilization for the Period over the Comparable Period can be attributed to early spring weather in March which negatively affected demand.
|Utilization Q1 2012 versus Q1 2011|
|% Increase||Q1 2012||Q1 2011|
|Drill Camps (5 and 6 units)||-1%||90%||91%|
|Dedicated Geo Labs||13%||87%||79%|
General and Administrative
General and administrative expenses for the Period were 11% of revenue as compared to 16% for the Comparative Period. General and administrative expenses improved by $187 thousand in the Period as compared to Comparative Period due to decreases in professional fees, wages, stock based compensation and travel expenses. This represents an improvement of 16% from the Comparative Period.
Depreciation and Amortization
Depreciation and amortization was $1,217 for the Period as compared to $1,202 for the Comparative Period. The increase in depreciation and amortization expense reflects the Company's depreciation and amortization policy along with the acquisition of $1.4 million of equipment in 2012.
Interest expense for the Period was $358 thousand as compared to $960 thousand for the Comparable Period. The decrease in interest expense in the Period is due to the new financing agreement the Company entered into in January 2012. In the Comparative Period, the interest rate on the Company's term facility was 21% as compared to an interest rate on the Company's new financing arrangements of 6% during the period. The Company expensed a deferred financing fee of $115 thousand in the Period due to the renegotiated financing facility.
The Company continues to see strong fleet utilization and strengthening rental rates, which combined with continued positive 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 the CAODC (Canadian Association of Oilwell Drilling Contractors) forecast for the balance of 2012, which should translate to higher utilization rates for Winalta's equipment. In conjunction with the expected strong demand, the Company is continuing to expand the fleet of oilfield Wellsite units and Dedicated Geo-Labs in order to meet demand and to maintain a relatively new fleet of units. 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.
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.
David Hopley, CFO
Phone: (780) 960-6900
Austin Fraser, Senior Vice President
Phone: (403) 826-5701