Dalmac Energy Reports Second Quarter 2015 Financial Results

TSX Venture: "DAL"

EDMONTON, Nov. 27, 2014 /CNW/ - John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSX Venture "DAL") is pleased to announce fiscal 2015 second quarter financial results for the three month and six month periods ended October 31, 2014.

Second Quarter Financial Highlights:

• Revenues of $8.6 million
• EBITDAS increased 67% to $1,432K from $857K
• Gross Margin improved to 30% from 22%
• Positive net income of $213K from $8K
• Reduction in G&A and Wages Expenses, Increase in Amortization

Revenue in the second quarter was $8.6 million as compared with $9.3 million in the second quarter of the prior year.  Regional drilling and completions activity didn't kick into gear for Dalmac until the third month of Q2'15.  Management noted a considerable pickup in servicing activity during the month of October and expects this trend to continue until spring breakup.  For the six month period, revenues were $15.8 million compared to $16.9 million last year.

Gross Margin as a percentage of revenue increased to 30% for the quarter and to 26.4% for the year to date. This demonstrates an overall improvement in gross margin by 34% and 63% respectively as compared to the same periods in the previous year. This affirms management's strategy towards improving internal controls along with the implementation of the new computerized dispatching and invoicing system. 

The improvement in the current Gross Margin coupled with lease restatements resulted in a 67% EBITDAS gain for Q2'15 and a 982% gain  for the year to date as compared to the same period in the prior year.

Net income for the quarter was $213K as compared to $8K in Q2'14. The net loss for YTD'15 was $147K as compared to a loss of $1,210K at the same time in the previous year.

(000's Cdn Dollars, except per share data)	Q2'15	Q2'14	YTD '15	YTD'14
Revenues	8,611	9,330	15,810	16,944
Gross Margin	2,542	2,063	4,168	2,737
Gross Margin %	30%	22%	26%	16%
General and administrative expenses*	442	479	793	1,039
EBITDAS (loss)	1,432	857	2,010	186
EBIDTAS per share  - basic	0.06	0.04	0.09	0.01
Interest	169	183	339	366
Amortization	831	645	1,661	1,364
Net income (loss)	213	8	(147)	(1,210)
Net income (loss) per share - basic	0.01	(0.00)	(0.01)	(0.05)
Net income (loss) per share - diluted	0.01	(0.00)	(0.01)	(0.05)

(1) EBITDAS stands for earnings before interest, taxes, depreciation, amortization, and stock based compensation.

Dalmac remains optimistic that the remainder of fiscal 2015 will translate into a very profitable year. In spite of the slower start in drilling and completions activity for the first 6 months of the year, the current activity is showing a significant pickup.  Seasonal fluid transfers and well stimulation work orders associated with drilling and completions activity are currently underway. This will also lead to more steady fluid transfer runs from new wells which are coming on line. The winter drilling season is traditionally the busiest part of Dalmac's operating year. Unless the current softening of oil prices deter the existing drilling and completion programs already in place, management expects that the activity levels for the remainder of fiscal 2015 will be trending at a record pace. Any potential disruptions of drilling and completion activity due to the current volatility of oil prices will be mitigated on Dalmac's part by the fact that the majority of the company's revenue is generated from recurring fluid transfers from existing production wells.

Management feels that the current upswing in oilfield activity coupled with numerous productivity improvements such as the implementation of the new computerized dispatching and invoicing system should translate to more growth and continued sustainable profitability in the future.

Conference call

A conference call to discuss the results will be held Friday, November 28, 2013, at 1:30pm  EST/11:30 am MST.

To participate in the conference call, please dial 416-204-9524 local in Toronto or toll-free 1-800-505-9587 and request the Dalmac Energy conference.

Statements throughout this report that are not historical facts may be considered 'forward looking statements'.  Such statements are based on current expectations that involve risks and uncertainties, which could cause actual results to differ from those anticipated.  Important factors that can cause anticipated outcomes to differ materially from actual outcomes include the impact of general economic conditions, industry conditions, competition from other industry participants, volatility of petroleum prices, the ability to attract and retain qualified personnel, changes in laws or regulation, currency fluctuations, continued ability to access capital from available facilities and environmental risks.  References to "Dalmac', the "Corporation", "Company", "us", "we", and "our" mean Dalamc Energy Inc. and its subsidiary Dalmac Oilfield Services Inc.  The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.  We seek safe harbor.

SOURCE: Dalmac Energy Inc.

John Babic - CEO - Dalmac Energy, Tel: [phone], Email: [email protected]; Doren Quinton, President, QIS Capital Corp., Ph: [phone], Email: [email protected]; www.smallcaps.ca