Summary of financial results
(thousands of dollars except
per share amounts)
Three months ended
Revenues $41,827 $43,214
EBITDA(1) 8,360 3,017
Net earnings 5,221 1,352
Net earnings per share $0.21 $0.05
Weighted average common shares outstanding
(thousands) - basic 23,931 23,931
Note 1 - References to EBITDA are to net income from continuing operations
before interest, taxes, amortization and impairment charge. EBITDA is not an
earnings measure recognized by International Financial Reporting Standards
("IFRS") and does not have a standardized meaning prescribed by IFRS.
Management believes that EBITDA is an appropriate measure in evaluating the
Company's performance. Readers are cautioned that EBITDA should not be
construed as an alternative to net income (as determined under IFRS) as an
indicator of financial performance or to cash flow from operating activities
(as determined under IFRS) as a measure of liquidity and cash flow. The
Company's method of calculating EBITDA may differ from the methods used by
other issuers and, accordingly, the Company's EBITDA may not be comparable
to similar measures used by other issuers.
-- EBITDA and net income were substantially above the first quarter of last
year due to improved performance on jobs
-- The Company paid $841,000 of dividends in arrears on its convertible
First quarter results
Consolidated revenue was $41.8 million compared to $43.2 million in the first quarter last year. The Company worked on three larger projects in the quarter and several smaller jobs. In the first quarter last year, the Company worked on three large contracts also.
Operating expenses were 76.5% of revenue in the quarter compared to 90.2% in the same quarter last year. Performance improved this year due to improved bid margins and better weather. Results last year were affected by losses on one job.
General and administrative expenses were $1.5 million, up from $1.3 million last year. Additional costs were incurred principally due to an increased staff complement.
Total amortization expense of $1.0 million increased by $0.2 million due to a higher level of capital assets needed for the increased level of activity.
Interest expense of $0.2 million was down from $0.3 million last year, as last year's expense included costs associated with the temporary increase in loans from related parties.
Income tax expense in the quarter of $1.9 million was at an effective tax rate of 26.4% which approximates the statutory rate.
Net income was $5.2 million ($0.21 per share) compared to a net income last year of $1.3 million ($0.05 per share).
The Company is expecting revenues in the second quarter to be above those recorded in the second quarter last year. The Company continues to actively bid new jobs and look for new opportunities. However, the continued low price of natural gas could affect future levels of activity in the areas where the company is active.
Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. and northwestern Alberta. The Company's corporate office is in Calgary, Alberta. Its shares are listed on the TSX Venture Exchange under the symbol MCR. Information on the Company's principal operating unit, Macro Industries Inc., can be found at www.macroindustries.ca.
Certain statements in this news release may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements regarding expected revenues, expenses and industry trends and the pursuit of strategic acquisitions. These risks and uncertainties include, but are not restricted to, global economic conditions, government regulation of energy and resource companies, seasonal weather patterns, maintaining and increasing market share, terrorist activity, the price and availability of alternative fuels, the availability of pipeline capacity, and potential instability or armed conflict in oil producing regions. These risks and uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
Neither 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.
Macro Enterprises Inc.
President and C.E.O.
T. Jerrold Jackson
Macro Enterprises Inc.