Petrowest Corporation Announces Fourth Quarter and Twelve Month Financial Results For 2011

CALGARY, March 22, 2012 /CNW/ - Petrowest Corporation (TSX: PRW) announced today its consolidated financial results for the three and twelve month periods ended December 31, 2011.

Rick Quigley, Chief Executive Officer, stated that "we are very pleased with the 2011 financial results. They represent a significant improvement over 2010 in terms of both revenue and operating margins."  Mr. Quigley further stated that "the business activity is trending positively, both in the energy and infrastructure sectors. We are also very encouraged by the level of our backlog heading into 2012."

Key 2011 and fourth quarter financial highlights include:

2011

• Revenue from continuing operations of $190.0 million compared to $136.0 million, an increase of 40%
  
  
• EBITDA from continuing operations of $28.9 million compared to $12.8 million, an increase of 126%
  
  
• EBITDA margin of 15% compared to 9%
  
  
• Net loss before revaluation of financial instruments and trust and subordinated units of $6.4 million compared to $19.3 million, an improvement of $12.9 million

Fourth Quarter

• Revenue from continuing operations of $53.3 million compared to $34.6 million, an increase of 54%
  
  
• EBITDA from continuing operations of $7.3 million compared to $0.8 million, an increase of $6.5 million
  
  
• EBITDA margin of 14% compared to 2%
  
  
• Net income before revaluation of financial instruments and trust and subordinated units of $0.4 million compared to a net loss of $7.2 million, an improvement of $7.6 million

FINANCIAL HIGHLIGHTS

(thousands of dollars, except per share amounts, margins and ratios)		2011	2010
Revenue by segment:
	Construction	107,287	61,573
	Transportation	31,017	23,008
	Civil	48,048	47,698
	Rentals	3,680	3,740
Revenue from continuing operations		190,032	136,019
Operating expenses		154,907	118,157
Gross margin from continuing operations		35,125	17,862
Gross margin percentage		18%	13%
General and administrative		6,195	5,105
EBITDA from continuing operations		28,930	12,757
EBITDA margin percentage		15%	9%
Amortization of property and equipment		21,013	20,728
Amortization of intangible assets		2,819	3,494
Impairment of property and equipment		-	-
Impairment of goodwill and intangible assets		-	-
Loss (gain) on disposal of property and equipment		589	1,663
Foreign exchange loss		2,102	-
Net finance costs		8,790	6,137
Net loss before revaluation of financial instruments and trust and subordinated units		(6,383)	(19,265)
Loss (gain) on fair value of financial instruments		1,697	(166)
Change in value of trust and subordinated units		19,655	2,837
Comprehensive loss before discontinued operations before income taxes		(27,735)	(21,936)
Deferred income tax recovery		-	-
Comprehensive loss before discontinued operations		(27,735)	(21,936)
Discontinued operations, net of tax		-	65
Comprehensive loss		(27,735)	(22,001)
Net loss per share - basic and diluted		(0.30)	(0.37)
Total assets		111,059	95,064
Total liabilities		92,806	90,466
Shareholders' equity		18,253	4,598

Fourth Quarter Financial Results

Three months ended December 31
(thousands of dollars, except per share amounts, margins and ratios)		2011		2010
Revenue by segment:
	Construction	27,052		17,963
	Transportation	9,746		7,302
	Civil	15,565		7,989
	Rentals	974		1,378
Revenue from continuing operations		53,337		34,632
Operating expenses		44,290		32,649
Gross margin from continuing operations		9,047		1,983
Gross margin percentage		17%		6%
General and administrative		1,720		1,177
EBITDA from continuing operations		7,327		806
EBITDA margin percentage		14%		2%
Amortization of property and equipment		5,656		5,207
Amortization of intangible assets		345		881
Loss (gain) on disposal of property and equipment		(647)		485
Foreign exchange gain		(1,397)		-
Net finance costs		2,936		1,417
Net income (loss) before revaluation of financial instruments and trust units and subordinated units		434		(7,184)
Loss (gain) on fair value of financial instruments		329		-
Change in value of trust and subordinated units		-		1,671
Comprehensive income (loss)		105		(8,855)
Net loss per share - basic and diluted		0.00		(0.10)
Total assets		111,059		95,064
Total liabilities		92,806		90,466
Shareholders' equity		18,253		4,598

SELECTED FINANCIAL INFORMATION

Selected financial information for the twelve and three months period ended December 31, 2011 and 2010 is included above. This information should be read in conjunction with the audited consolidated financial statements for the three and twelve months ended December 31, 2011 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", "may," "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.

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