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New West Energy Services Inc. Announces Its Third Quarter Results
These translations are done via Google Translate
FOR: NEW WEST ENERGY SERVICES INC.
TSX VENTURE SYMBOL: NWE
Date issue: March 31, 2017
Time in: 5:48 PM e
Attention:
CALGARY, ALBERTA--(Marketwired - March 31, 2017) - New West Energy Services
Inc. (TSX VENTURE:NWE) ("NWE"), an oil and gas and environmental services
company focused on Western Canada, today announced its financial results for
the third quarter ended January 31, 2017.
BUSINESS HIGHLIGHTS
/T/
-- NWE has had its busiest winter season (December - March) since 2013/2014
and saw increasing revenues from its fluid management, fluid
transportation and environmental services with near-full utilization of
its equipment fleet with certain services being outsourced due to excess
demand.
-- Revenues in the third quarter were $4 million, with over $2 million in
January alone, with EBITDA for the quarter of $240,000.
-- As announced on March 9, 2017, NWE and a U.S.-based organization entered
into agreements where NWE:
-- refinanced its current debt obligations;
-- obtained a new $3 million operating line of credit; and
-- to meet increasing customer demand, obtained a loan of $4.8 million
(interest only for 18 months) used to acquire a fleet of operating
equipment, including various combinations of fluid transport trucks
and trailers capable of hauling water for fracking operations as
well as drilling and production fluids.
-- Revenues in February and March were similar to those in January due to a
prolonged winter season.
/T/
Gerry E. Kerkhoff, President and Chief Executive Officer of NWE, stated "New
West was at near-full utilization of our equipment fleet in January and
February and our revenue base was limited by our fleet size and operating line
of credit. Since our $4.8 million equipment acquisition in early March, we have
been securing additional work in the completions and production sectors of the
oil and gas industry and expect greater utilization of our additional equipment
coming out of spring breakup and into summer."
Mr. Kerkhoff concluded "The oil and gas industry is showing increasing signs of
recovery and New West's improving results, now larger fleet and increase in
available operating capital make us optimistic for future growth."
THIRD QUARTER RESULTS
For the three months ended January 31, 2017, NWE's consolidated revenues were
$4 million, representing an increase of 8% compared to the same period last
year. This increase was primarily due to an increase in equipment utilization
during the winter season. EBITDA for this period was $203,000, representing a
decrease of $20,000 compared to the same period last year.
For the nine months ended January 31, 2017, NWE's consolidated revenues were
$7.5 million, representing a decrease of 24% compared to the same period last
year. This decrease was due to the prolonged downturn in the oil and gas
industry in the early part of NWE's fiscal year and NWE's corresponding lower
utilization of its equipment. EBITDA for this period was negative $620,000,
representing a decrease of $596,000 compared to the same period last year.
Vacuum Truck Services
For the three months ended January 31, 2017, revenues from the vacuum truck
services segment were $2.8 million, representing an increase of approximately
7% compared to the same period last year. This increase was primarily related
to $384,000 of services outsourced to third parties to fulfill excess customer
demand starting in December. EBITDA from this segment was $306,000,
representing a decrease of $19,000 compared to the same period last year.
For the nine months ended January 31, 2017, revenues from the vacuum truck
services segment were $4.5 million, representing a decrease of approximately
19% compared to the same period last year. This decrease was primarily related
to lower equipment utilization as a result of the continued downturn in the oil
and gas industry in the early part of NWE's fiscal year. EBITDA from this
segment was negative $114,000, representing a decrease of $322,000 compared to
the same period last year.
Environmental Services
For the three months ended January 31, 2017, revenues from the environmental
services segment were $1.2 million, representing an increase of approximately
12% compared to the same period a year ago. The increase was primarily due to
the positive drilling rig utilizations across Western Canada in December and
January. EBITDA from this segment was $27,000, representing an increase of
$62,000 compared to the same period last year.
For the nine months ended January 31, 2017, revenues from the environmental
services segment were $2.6 million, representing a decrease of 33% compared to
the same period a year ago. The reduction was due to the decline in drilling
rig utilization across Western Canada in the early part of NWE's fiscal year.
EBITDA from this segment was negative $182,000, representing a decrease of
$141,000 compared to the same period last year.
/T/
For the three months For the nine months
ended ended
January 31, January 31,
net net
($000's) 2017 2016 change 2017 2016 change
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue
Vacuum Truck Services 2,840 2,655 185 4,491 5,527 (1,036)
Environmental Services 1,234 1,101 133 2,560 3,811 (1,251)
Corporate - - - - - -
------------------------------------------------
4,074 3,756 318 7,051 9,338 (2,287)
Direct Costs
Vacuum Truck Services 2,190 2,002 188 3,749 4,327 (578)
Environmental Services 864 726 138 1,724 2,579 (855)
Corporate - - - - - -
------------------------------------------------
3,054 2,728 326 5,473 6,906 (1,433)
General & Administrative
Expenses
Vacuum Truck Services 344 328 16 855 993 (138)
Environmental Services 342 410 (68) 1,018 1,273 (255)
Corporate 130 67 63 324 191 133
------------------------------------------------
816 805 11 2,197 2,457 (260)
EBITDA
Vacuum Truck Services 306 325 (19) (114) 208 (322)
Environmental Services 27 (35) 62 (182) (41) (141)
Corporate (130) (67) (63) (324) (191) (133)
------------------------------------------------
203 223 (20) (620) (24) (596)
/T/
EBITDA is a non-IFRS term and is defined as earnings before interest, taxes,
depreciation, amortization and impairment.
Neither the TSXV nor its Regulation Services Provider (as that term is defined
in the policies of the TSXV) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
Certain statements in this news release may constitute "forward-looking
information" within the meaning of applicable securities laws that involve
known and unknown risks, uncertainties and other factors that may cause actual
results, performance or achievements or industry results to be materially
different from any future results, performance or achievements or industry
results expressed or implied by such forward-looking information and financial
outlook. Forward-looking information is identified by the use of terms and
phrases such as "anticipate", "believe", "could", "estimate", "expect",
"intend", "may", "plan", "predict", "project", "will", "would", and similar
terms and phrases, including references to assumptions. Such information may
involve, but is not limited to, comments with respect to strategies,
expectations, planned operations or future actions. Forward-looking information
in this news release includes, without limitation, statements with respect to:
the use of proceeds of its loans; the use of the acquired equipment; planned
changes in NWE's business and revenues; the competitive environment in which
NWE operates; and the assessment of future plans and operations. Actual events
or results may differ materially. The forward-looking information in this news
release is based on assumptions which includes, but is not limited to: NWE
realizing the expected benefits of its loans and acquired equipment; the
general state of the economy and the oil and gas industry not worsening; NWE
not losing any key personnel; NWE sustaining or increasing their level of
revenues and EBITDA; NWE growing its businesses long term and managing its
growth; NWE complying with existing regulations and not becoming subject to
more stringent regulations; and, NWE's insurance being sufficient to cover
losses that may occur as a result of its operations. The forward-looking
information in this news release is subject to risks, uncertainties and other
factors that could cause actual results to differ materially from historical
results or results anticipated by the forward-looking information.
The factors which could cause results to differ from current expectations
include, but are not limited to: failure to realize the expected benefits of
its loans and acquired equipment; potential undisclosed liens associated with
the acquired equipment; NWE's results being dependent upon the general state of
the economy and the oil and gas industry; NWE being dependent on key personnel,
the loss of which could harm its business; NWE may not be able to sustain or
increase its revenues or EBITDA; NWE may be unable to grow its business long
term or to manage any growth; NWE may be unable to integrate the acquired
equipment into its business; competition in NWE's markets may lead to reduced
revenues and EBITDA; NWE may fail to comply with existing regulations or become
subject to more stringent regulations; NWE's insurance may be insufficient to
cover losses that may occur as a result of NWE's operations; the market price
of NWE's common shares will fluctuate; and, there is a possibility of dilution
of existing holders of NWE's common shares due to future financings or
acquisitions. Although NWE has attempted to identify factors that would cause
actual actions, events or results to differ materially from those disclosed in
the forward-looking statements in this news release, there may be other factors
that cause actions, events or results not to be as anticipated, estimated or
intended. Also, many of the factors are beyond the control of NWE. Accordingly,
readers should not place undue reliance on the forward-looking information in
this news release. The forward-looking information is made as of the date of
this news release, and NWE does not assume any obligation to publicly update or
revise such forward-looking information to reflect new information, subsequent
or otherwise, except as may be required by applicable law. The forward-looking
information contained herein is expressly qualified in its entirety by this
cautionary statement.
- END RELEASE - 31/03/2017
For further information:
New West Energy Services Inc.
Gerry E. Kerkhoff
President & Chief Executive Officer
403.984.9798 or 1.888.977.2327 (BEAR)
403.984.9799 (FAX)
gkerkhoff@newwestenergyservices.com
www.newwestenergyservices.com
COMPANY:
FOR: NEW WEST ENERGY SERVICES INC.
TSX VENTURE SYMBOL: NWE
INDUSTRY: Energy and Utilities - Equipment, Energy and Utilities -
Oil and Gas
RELEASE ID: 20170331CC0142
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