Petrowest Corporation Announces First Quarter Financial Results 2012

CALGARY, May 14, 2012 /CNW/ - Petrowest Corporation (TSX: PRW) announced today its consolidated financial results for the three month period ended March 31, 2012.

Rick Quigley, Chief Executive Officer, stated that, "We are very pleased with the first quarter 2012 financial results. Our margins remained strong despite the weather related delays during the quarter with the cold weather at the beginning of the quarter and the earlier than anticipated spring break up at the end of the quarter. Achieving effectively the same EBITDA this quarter compared to 2011 was significant despite the weather related delays." Mr. Quigley further stated, "I am pleased with the ongoing profitability of the company".

Key first quarter 2012 financial highlights, compared to the first quarter of 2011 include:

• Revenue from operations of $50.8 million compared to $46.2 million, an increase of 10%
• EBITDA from operations of $7.7 million compared to $7.9 million, a decrease of $0.2 million
• EBITDA margin of 15% compared to 17%
• Net income before revaluation of financial instruments and trust and subordinated units of $1.7 million compared to $0.1 million, an improvement of $1.6 million.

Financial Results

		Three months ended March 31
(thousands of dollars, except per share amounts, margins and ratios)		2012	2011
Revenue by segment
	Construction	25,040	29,046
	Transportation	9,503	9,842
	Civil	15,487	6,130
	Rentals	744	1,198
Revenue		50,774	46,216
Operating expenses		41,357	36,767
Gross margin		9,417	9,449
Gross margin percentage		19%	20%
General and administrative		1,701	1,529
EBITDA		7,716	7,920
EBITDA margin percentage		15%	17%
Amortization of property and equipment		3,558	5,101
Amortization of intangible assets		341	862
Loss on disposal of property and equipment		330	376
Foreign exchange gain		(821)	-
Net finance costs		2,619	1,511
Net income before revaluation of financial instruments and trust units		1,689	70
Loss on fair value of financial instruments		257	2,763
Change in value of trust and subordinated units		-	17,151
Comprehensive income (loss)		1,432	(19,844)
Net income (loss) per share/unit - basic and diluted		0.01	(0.23)
Total assets		110,457	105,070
Total non-current financial liabilities		56,315	8,364
Total liabilities		90,680	120,316
Shareholders' equity		19,777	(15,246)

SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three months period ended March 31, 2012 and 2011 is set out above and includes the following non-IFRS financial measures: Gross margin, Gross margin percentage, EBITDA and EBITDA percentage. This information should be read in conjunction with the unaudited condensed financial statements for the three months ended March 31, 2012 and the Company's Management, Discussion and Analysis, available under the Company's profile on the SEDAR website at www.sedar.com.

FORWARD LOOKING INFORMATION

This news release contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are identified by their use of terms and  phrases such as "anticipate",  "achievable",  "believe", "expect",  "estimate",  "plan",  "intend",  "project",  "may",  "should",  "could",  "predict",  "will",  or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements and information are based on Petrowest's current beliefs as well as assumptions made by and information currently available to Petrowest concerning anticipated business performance. Although management of Petrowest considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking statements are subject to many external variables that are beyond Petrowest's control, such as fluctuating prices for crude oil and natural gas, changes in drilling activity, and general local and global economic, political, business and weather conditions. If any of these or other uncertainties materialize, the actual results of Petrowest may vary materially from those expected.

 

please contact Richard Quigley, President and Chief Executive Officer, or Lloyd A. Wiggins, Chief Financial Officer, at [phone] or [email protected].