Lonestar reports 2010 third quarter financial results

SYLVAN LAKE, AB, May 14 /CNW/ - Lonestar West Inc. (TSX(V):LSI) today announced its business performance for the third quarter of fiscal 2010.

Results:

    
    -   generated revenue of $1.4 million in the three months ended March 31,
        2010, consistent with the prior year. On a year-to-date basis,
        revenue of $5.6 million represents a 29% increase over the
        $4.3 million generated in the comparable prior year period,
    -   loss incurred in the quarter of $372,000 consistent with comparable
        prior year quarter.
    -   year to date EBITDAC of $627,000 continues to exceed prior year
        results.
    

President and CEO James Horvath commented, "Our revenue was consistent in the quarter as weather conditions and delays in customer projects dampened our growth expectations. We have increased our equipment base and our customer list to expand opportunities to perform HVAC services. However, during the most recent quarter revenue did not meet our expectations and actions are being taken to improve revenue in future periods. We continue to make efforts to be a favoured supplier to our customers and believe 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."

CONSOLIDATED RESULTS

    
    Financial Results (000's except per share amounts)

    -------------------------------------------------------------------------
                                     3 months ended        9 months ended
    -------------------------------------------------------------------------
                                   March 31   April 30   March 31   April 30
                                       2010       2009       2010       2009
    -------------------------------------------------------------------------
    Revenue                         $ 1,369    $ 1,372    $ 5,556    $ 4,314
    -------------------------------------------------------------------------
    Operating expenses                1,086      1,174      3,927      3,314
    -------------------------------------------------------------------------
    Gross margin                        283        198      1,629      1,000
    -------------------------------------------------------------------------
    Net income (loss)                  (372)      (373)      (187)       (83)
    -------------------------------------------------------------------------
    EBITDAC                            (105)       (56)       627        278
    -------------------------------------------------------------------------
    Earnings per share - basic        (0.03)     (0.03)     (0.01)     (0.04)
    -------------------------------------------------------------------------
    

The complete MD&A and interim financial statements for the 2010 Third 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]