Lonestar reports 2010 second quarter financial results

SYLVAN LAKE, AB, Feb. 15 /CNW/ - Lonestar West Inc. (TSX(V):LSI) today announced its business performance for the second quarter of fiscal 2010.

    
    Highlights:

    -   generated revenue of $2.0 million in the three months ended December
        31, 2009, a 46% increase over the $1.4 million generated in the
        comparable prior year period,
    -   realized positive Earnings Before Interest, Taxes, Depreciation,
        Amortization and Stock Based Compensation ("EBITDAC") of $201,000
        during the quarter, as compared to $75,000 in the prior year,
    -   opened new branches in Edmonton and Lloydminster, Alberta and Swift
        Current, Saskatchewan. These branch openings were in response to
        customer demand and are expected to provide a base for future revenue
        increases, and
    -   diversified our customer base, reducing our reliance on large
        pipeline contractors.
    

President and CEO James Horvath commented, "We are continuing to grow to meet our goal of becoming a major national competitor in the HVAC industry. We were successful in diversifying our customer base and increases in revenue drove higher EBITDAC. We continue to be a favoured supplier to our customers and are confident that our focus on customer service will provide us the basis to keep the equipment working. We have the employees, equipment and management team that can contribute to achieving our growth plans."

For the three months ended December 31, 2009, Lonestar showed growth in EBITDAC to $201,000 from $75,000 in the comparable prior year period. On a year-to-date basis, EBITDAC was $732,000, a 119% increase over the prior year's $334,000.

    
    CONSOLIDATED RESULTS

    Financial Results (000's except per share amounts)
    -------------------------------------------------------------------------
                                 3 months ended         6 months ended
    -------------------------------------------------------------------------
                            December 31  January 31  December 31  January 31
                               2009         2009        2009         2009
    -------------------------------------------------------------------------
    Revenue                     $ 2,039     $ 1,399      $ 4,187     $ 2,942
    -------------------------------------------------------------------------
    Operating expenses            1,507       1,053        2,840       2,140
    -------------------------------------------------------------------------
    Gross margin                    531         346        1,347         802
    -------------------------------------------------------------------------
    Net income (loss)               (87)        (52)         185          22
    -------------------------------------------------------------------------
    EBITDAC                         201          75          732         334
    -------------------------------------------------------------------------
    Earnings per share - basic   (0.007)     (0.005)       0.014       0.003
    -------------------------------------------------------------------------
    

The complete MD&A and interim financial statements for the 2010 Second Quarter are available on SEDAR at www.sedar.com.

Business Description

Lonestar West Inc. (www.lonestarwest.com) currently operates a fleet of HVAC and vacuum trucks throughout Western Canada 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

For further information: James Horvath, President and CEO, [phone]; Randy Nicholls, CA, Chief Financial Officer, [phone]