MATRRIX Announces Third Quarter 2012 Results

CALGARY, Nov. 23, 2012 /CNW/ - MATRRIX Energy Technologies Inc. ("MATRRIX" or the "Corporation") (TSXV: MXX) announces financial results for the third quarter of 2012.

HIGHLIGHTS

• MATRRIX achieved revenue of $3,186,625 and EBITDA of $670,025 (21%) in Q3 2012 and revenue of $9,785,349 and EBITDA of $962,336 (10%) year to date 2012.
• MATTRIX for the past 12 months of operations achieved revenue of $13,171,277 and EBITDA of $1,318,903 (10%)
• MATRRIX realized gross margin of $1,341,725 (42%) in Q3 2012 and $3,073,159 (31%) year to date 2012 which was a notable increase from 25% in both the same periods in 2011.
• The Corporation's concurrent job capacity was 13 directional and horizontal drilling systems during Q3.  The construction of 10 additional systems is in process, with deployment targeted for Q4 2012 and Q1 2013.
• Continued balance sheet strength with $11,350,774 of cash on hand, and working capital of $16,165,180 at September 30, 2012.
• MATRRIX is pleased to announce the launch of its website: www.matrrix.com

FINANCIAL SUMMARY HIGHLIGHTS

			Three Months Ended			Nine Months Ended
			September 30, 2012			September 30, 2012
Revenue			$3,186,625			$9,785,349
EBITDA		(i)	$670,025			$962,336
EBITDA per share
	Basic		$0.02			$0.03
	Diluted		$0.02			$0.03
Net income			$279,938			($89,537)
Net income/(loss) per share
	Basic		$0.01			($0.00)
	Diluted		$0.01			($0.00)
Weighted Average diluted shares			32,037,508			31,558,462
			At September 30, 2012			At December 31, 2011
Working capital			$16,141,660			$19,023,869
Total assets			$27,049,208			$26,848,999
Long-term debt			$ Nil			$ Nil
Shareholders' equity			$26,125,265			$24,727,378
Common shares outstanding			32,101,638			30,771,021

 

At the date of this press release MATRRIX had a total of 13 directional and horizontal systems available for deployment in Alberta, Saskatchewan, British Columbia and Manitoba. In addition, the Corporation continues to operate a drilling motor business in west Texas.

President Richard Ryan states, "We're making strong progress growing the MATRRIX brand, our revenue base, and our EBITDA. Our Key Performance Indicators (KPI's) all show significant period to period improvement, affirming our strategy and our model. Of primary importance is that our formula is being endorsed by MATRRIX clients. With financial strength anchored around a balance sheet that includes $11 million in cash, we'll remain disciplined in deploying additional capital, targeting strong returns as we execute our comprehensive approach to delivering horizontal and directional drilling technology and services in North America. I'm impressed (but not surprised) with the hard work and focus of all MATRRIX staff, and equally impressed with our ability to find opportunities and execute in a way that is clearly having an impact."

The Corporation's financial statements and management's discussion and analysis for the three and nine month periods ended September 30, 2012 will be available on SEDAR at www.sedar.com.

NON-GAAP MEASURES

This press release contains references to EBITDA. This financial measure is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-GAAP measure. The non-GAAP measures used by the Corporation may not be comparable to similar measures used by other companies.

(i) EBITDA is defined as "income (loss) before interest, taxes, business acquisition transaction costs, reverse takeover adjustments, depreciation, stock based compensation expense, gains on disposal of property and equipment and foreign exchange." Management believes that in addition to net and total comprehensive income (loss), EBITDA 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 these activities are financed, how the results are taxed in various jurisdictions, or how the results are effected by the accounting standards associated with the Corporation's stock based compensation plan.

		Three Months Ended		Nine Months Ended
		September 30, 2012		September 30, 2012
Income (loss) before income taxes and interest	$	253,002	$	(251,046)
Depreciation		335,085		820,668
Share based payments		98,971		360,951
Foreign exchange (gain)/loss		(17,032)		31,762
EBITDA	$	670,025	$	962,336

 

MATRRIX is engaged in the acquisition and supply of horizontal and directional drilling technologies for the oil and gas industry in North America.

FORWARD-LOOKING INFORMATION

This press release contains certain statements or disclosures relating to MATRRIX that are based on the expectations of MATRRIX as well as assumptions made by and information currently available to MATRRIX which may constitute forward-looking information under applicable securities laws. In particular, this press release contains forward-looking information related to: the consistency of activity in both Canada and the USA. Such forward-looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond MATRRIX's control.  Many factors could cause the performance or achievement by MATRRIX to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking information. MATRRIX's documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. MATRRIX disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

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. 

 

 

SOURCE: MATRRIX Energy Technologies Inc.

Richard Ryan
President & Chief Executive Officer
MATRRIX Energy Technologies Inc.
Tel: [phone]

Imran Gulam
Vice President Finance & CFO
MATRRIX Energy Technologies Inc.
Tel: (403)  984-5075