FORT ST. JOHN, BRITISH COLUMBIA--(Marketwired - May 22, 2013) - Macro Enterprises Inc. (TSX VENTURE:MCR) -
|Summary of financial results |
(thousands of dollars except per share amounts)
|Three months ended |
|Net earnings per share||$0.40||$0.21|
|Weighted average common shares outstanding (thousands) - basic||24,118||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
- Revenue increased from the first quarter last year due to revenues from the new business acquired in November 2012
- EBITDA and net income were above the first quarter of last year due to increased levels of business and improved performance on jobs
First quarter results
Consolidated revenue was $60.1 million compared to $41.8 million in the first quarter last year. Most of the revenue in the quarter was derived from four larger facility and pipeline projects as well as maintenance and pipeline integrity work for three other customers. In addition, the Company had three other smaller contracts. In the first quarter last year, the Company worked on one larger facility project and pipeline and related facility jobs for two other customers.
Operating expenses were 71.8% of revenue in the quarter compared to 76.5% in the same quarter last year. Performance improved this year due to improved bid margins and a greater percentage of cost-plus work.
General and administrative expenses were $2.2 million, up from $1.5 million last year, but consistent with levels of the fourth quarter of 2012. Costs were higher this year due mainly to additional professional fees and staff costs.
Total amortization expense of $1.8 million increased by $0.7 million due to mainly to the amortization on the additional assets obtained in the November 2012 acquisition.
Interest expense of $0.3 million was higher than last year due to higher levels of debt.
Income tax expense in the quarter of $3.3 million was at an effective tax rate of 25.4% which approximates the statutory rate.
Net income was $9.7 million ($0.40 per share) compared to $5.2 million ($0.21 per share).
The Company is expecting revenues in the second quarter to be above that recorded in the second quarter last year, after taking into account the expected additional revenues resulting from the November 2012 acquisition. The Company continues to actively bid new jobs and look for new opportunities. The Company is encouraged by the prospect of significant pipeline infrastructure projects in B.C. and Alberta in the short and medium term.
New independent director
Macro also announces the appointment of Wayne Albo to its Board of Directors effective immediately. Mr. Albo will join the Audit Committee and the Compensation Committee. Management is of the view that Mr. Albo will provide valuable perspective and expertise to the Board as an independent director.
Mr. Albo is chairman of CCC Investment Banking, a Toronto based investment advisory firm. Mr. Albo has been in corporate finance since 1975. He is a Fellow of the Ontario Institute of Chartered Accountants and a Fellow of the Canadian Institute of Chartered Business Valuators.
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.