Bonnett's Energy Corp. Reports Q3 2012 Financial Results

CALGARY, Nov. 7, 2012 /CNW/ - Bonnett's Energy Corp. (TSX: BT) ("Bonnett's" or the "Corporation") has released its Q3 2012 financial results.

The Corporation recorded Q3 2012 revenue of $25.2 million, a 4% increase over the comparable period of the prior year. For the nine months ended September 30 2012, revenues increased 15% over the comparable period of the prior year. The drilling of deeper and more complex wells continued to increase service revenue for the Corporation, despite lower drilling activity than the prior year.

EBITDAC for the three months ended September 30, 2012 was $5.9 million, a decrease of $0.7 million from the comparable period of the prior year as a result of increases in the fixed cost structure of the Corporation, combined with certain increases in direct costs of providing field services. For the nine months ended September 30, 2012, EBITDAC increased $0.6 million, or 4% over the comparable period of the prior year.

SELECTED FINANCIAL INFORMATION

(Unaudited)
		Three months ended September 30,		Nine months ended September 30,
($000's except per share amounts)		2012	2011	2012	2011
Revenue from operations		$ 25,249	$ 24,247	$ 74,812	$ 65,328
EBITDAC from operations ^(1)		5,869	6,552	15,221	14,619
Funds flow from operations ^(2)		5,869	6,552	15,221	14,619
Funds flow from operations per share
	- basic	0.40	0.46	1.05	1.02
	- diluted	0.39	0.44	1.02	0.99
Profit before income tax		3,680	4,423	8,790	8,082
Profit and comprehensive income		3,680	4,423	8,290	3,574
Earnings per share
	- basic	0.25	0.31	0.57	0.25
	- diluted	0.25	0.30	0.56	0.24
Weighted average shares
	- basic	14,522	14,394	14,458	14,367
	- diluted	14,948	14,822	14,894	14,834
Long term debt		11,433	25,294	11,433	25,294
Working capital ^(3)		14,730	15,019	14,730	15,019

⁽¹⁾ EBITDAC refers to earnings before interest, taxes, depreciation and amortization, share based compensation and gains or losses on dispositions of equipment. Management believes that in addition to profit, EBITDAC is a useful supplemental measure as it provides an indication of the results generated by the Corporation's principal business activities prior to consideration of how those activities are financed, how the financial results are taxed, how funds are invested or how non-cash depreciation, amortization, share based compensation and gains or losses on dispositions of equipment affect financial results.  EBITDAC is a measure that does not have any standardized meaning prescribed under IFRS and, accordingly, may not be comparable to similar measures used by other companies.

⁽²⁾ Funds flow or funds flow from operations and funds flow from operations per share refers to cash flow from operations before changes in non-cash working capital.  The Corporation views cash flow from operating activities before changes in non-cash working capital balances, hereafter referred to as funds flow from operations, as a measure of liquidity, and believes that funds flow is a metric used by many investors to assess the financial performance of the Corporation.  Although changes in non-cash working capital balances will impact cash available, these changes will be a source of cash in one period and a use of cash in another depending on changes in the level of activity in a particular period due to seasonality and other factors.  Absent a sustained period of growth in the Corporation's business, changes in non-cash working capital will generally not be a use of cash by the Corporation over a longer period of time, although that may be the case from one quarter to the next.  Any use of cash from an increase in working capital in a particular period will be financed by the Corporation's credit facilities and repaid when non-cash working capital decreases and cash is generated. Funds flow or funds flow from operations and funds flow from operations per share are measures that do not have any standardized meaning prescribed under IFRS and, accordingly, may not be comparable to similar measures used by other companies.

⁽³⁾ Working capital is calculated as current assets less current liabilities.

Bonnett's Energy Corp. is a diversified corporation, providing wireline, frac-flowback and testing, fishing, and swabbing services in the Western Canadian Sedimentary Basin. Bonnett's Energy Corp. is a publicly traded Canadian corporation listed on the Toronto Stock Exchange under the symbol "BT".

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

This press release contains forward-looking information within the meaning of applicable Canadian securities law. This information is subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking information. When used in this document, the words "plan", "anticipate", "believe", "expect", "seek", "propose", "estimate", "intend" and similar expressions, as well as future or conditional verbs such as "may", "would", "could", and "will", as they relate to the Corporation, are intended to identify forward-looking information. Such information reflects the Corporation's current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, those described in the Corporation's MD&A for the period ended September 30, 2012, under the heading "Risks and Uncertainties", "Performance Analysis", "Overview and Outlook" and "Key Resources and Competencies - Outlook".  Forward-looking information concerning expected operating and economic conditions are based upon past operating and economic conditions.  Forward-looking information concerning the availability of funding for future operations, the Corporation's financing costs and the Corporation's compliance with financing covenants are based upon sources of funding which the Corporation has relied upon in the past and expectations concerning future economic and operating conditions.  Forward-looking information concerning the relative future competitive position of the Corporation is based upon expectations relating to future economic and operating conditions, the current business environment, present and anticipated programs and expansion plans of other organizations operating in the energy service industry.  Forward-looking information concerning the nature and timing of growth is based on past factors affecting the growth of the Corporation, past sources of growth and expectations relating to future economic and operating conditions.  Forward-looking information in respect of the costs anticipated to be associated with the acquisition and maintenance of equipment are based upon past acquisition and maintenance costs for such equipment and expectations relating to the future acquisition and maintenance cost increases concerning such equipment.  Although management of the Corporation believes that the expectations reflected in such forward-looking information are reasonable, there can be no assurance that such expectations will prove to have been correct because, should one or more of the enumerated risks or uncertainties materialize, or should the assumptions underlying forward-looking information prove incorrect, actual results may vary materially from those described in the Corporation's MD&A for the period ended September 30, 2012, as intended, planned, anticipated, believed, estimated or expected.  Except where required by law, the Corporation does not assume any obligation to update forward-looking information if conditions or opinions should change.  Readers should not place undue reliance on forward-looking information.  All of the forward-looking information of the Corporation contained in this press release is expressly qualified, in their entirety, by this cautionary statement.

 

SOURCE: Bonnett's Energy Corp.

Additional information can be obtained by contacting Bonnett's Energy Corp., R.R. 2, Site 33, Box 1, Grande Prairie, Alberta, T8V 2Z9. Information is also available on the Corporation's website at www.bonnettsenergy.com or by contacting Murray Toews, Chief Executive Officer at [phone] or David Ross, Chief Financial Officer at [phone], Fax: [phone], E-mail: [email protected]