Petrowest Corporation Announces Fourth Quarter and Strong 2012 Year End Financial Results

CALGARY, March 21, 2013 /CNW/ - Petrowest Corporation (TSX:PRW) announced today its consolidated financial results for the three and twelve month periods ended December 31, 2012.

Rick Quigley, Chief Executive Officer, stated that, "2012 was a very solid year for the company with record revenue and adjusted EBITDA. The gross margin and adjusted EBITDA margins also showed a solid increase over 2011. Subsequent to year end the Company announced a significant contract to complete the twinning of Highway 43 near Grande Prairie, Alberta and the closing of a new long-term debt facility with significantly lower interest costs." Mr. Quigley further stated that "the landfill site commenced receiving contaminated waste in mid-January, 2013. I remain optimistic going into 2013 with the ongoing activity levels in the areas where we continue to maintain a strong presence."

FINANCIAL HIGHLIGHTS

In 2012, the Company:

• Achieved record adjusted EBITDA of $33.8 million and revenue of $196.5 million for the year, representing an increase of $4.9 million and $6.5 million respectively compared to 2011, primarily due to significant increased activity in Civil.
• On February 20, 2013 the Company repaid its US dollar term loan with proceeds from a new Canadian dollar syndicated credit facility. As a result, the Company expensed approximately $3.0 million of unamortized debt issue costs. These costs are non-cash but had a negative $3.0 million effect on net comprehensive income and a negative effect of $0.02 of net income per share.
• Reported comprehensive income of $4.8 million compared to a comprehensive loss of $(27.7) million in 2011, mainly due to strong results in Civil, the recognition of a deferred income tax recovery in the current period in addition to the $3.0 million non-cash acceleration of the unamortized debt issue costs relating to the US dollar term loan, versus the non-cash charge loss on the change in fair value of trust and subordinated units in the comparative year.
• Reported adjusted EBITDA margin of 17.2%, an increase of 2.0% over 2011.
• Reported gross margin of $39.9 million, an increase of $4.8 million compared to 2011.
• Acquired a landfill site in northeastern British Columbia to receive and manage contaminated waste.
• Established a field office and camp facility in Fox Creek, Alberta and a field office in Lloydminster, Alberta to better service the Company's existing client base and to respond to the increased activity in these areas.

FINANCIAL RESULTS

		Three months ended December 31						Year ended December 31
(In thousands of Canadian dollars)		2012		2011		Change		2012		2011		Change
Revenue		41,966		53,337		(21.3%)		196,512		190,032		3.4%
Operating Expense		(35,068)		(44,290)		(20.8%)		(156,626)		(154,907)		1.1%
Gross Margin		6,898		9,047		(23.8%)		39,886		35,125		13.6%
General and administrative		(1,638)		(1,720)		(4.8%)		(6,056)		(6,195)		(2.2%)
Adjusted EBITDA		5,260		7,327		(28.2%)		33,830		28,930		16.9%
Amortization of property and equipment		(4,601)		(5,656)		(18.7%)		(15,762)		(21,013)		(25.0%)
Amortization of intangible assets		(115)		(345)		(66.7%)		(729)		(2,819)		(74.1%)
Gain (loss) on disposal of property and equipment		(872)		647		234.8%		(2,063)		(589)		250.3%
Foreign exchange gain (loss)		(491)		1,397		(135.1%)		870		(2,102)		141.4%
Operating profit		(819)		3,370		(124.3%)		16,146		2,407		570.8%
Net finance expense		(5,990)		(2,936)		104.0%		(13,929)		(8,790)		58.5%
Gain (loss) of fair value of financial instruments		(19)		(329)		(94.2%)		(403)		(1,697)		(76.3%)
Change in fair value of trust and subordinated units		-		-				-		(19,655)
Net income (loss) and comprehensive income (loss) before income tax		(6,828)		105				1,814		(27,735)
Deferred income tax recovery		1,562		-				2,965		-
Net and comprehensive income (loss)		(5,266)		105				4,779		(27,735)
Total assets								124,743		111,059		12.3%
Total long-term liabilities								56,406		59,850		(5.8%)
Net cash generated from operating activities								27,449		13,935		97.0%

 

SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three and twelve month periods ended December 31, 2012 and 2011 is set out above and includes the following non-IFRS financial measures: Gross margin, Gross margin percentage, adjusted EBITDA and adjusted EBITDA margin percentage. This information should be read in conjunction with the consolidated financial statements for the three and twelve month periods ended December 31, 2012 and the Company's Management, Discussion and Analysis ("MD&A"), available under the Company's profile on the SEDAR website at www.sedar.com. Further information respecting the non-IFRS financial measures is contained in the Company's MD&A.

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.

ABOUT PETROWEST

Petrowest is an Alberta corporation involved in pre-drilling and post-completion energy services as well as industrial and civil infrastructure projects, gravel crushing and hauling for non-energy sector customers.  Petrowest's primary operations are based in the Grande Prairie area of northern Alberta and in northeastern British Columbia.

 

SOURCE: Petrowest Corporation

please contact Richard Quigley, President and Chief Executive Officer, at [phone], or Ian Hogg, Vice President, Corporate Affairs, at [phone], or Lloyd Wiggins, Chief Financial Officer, at [phone], or [email protected].