FORT ST. JOHN, BRITISH COLUMBIA--(Marketwire - Nov 29, 2012) - Macro Enterprises Inc. (TSX VENTURE:MCR) -
|Summary of financial results|
|(thousands of dollars except per share amounts)|
|Three months |
|Nine months |
|Net earnings per share||$0.24||$0.11||$0.56||$0.15|
|Weighted average common shares outstanding (thousands)|| |
|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 above the third quarter of last year due to improved performance on jobs
- On November 22, 2012 the Company completed the acquisition of pipeline construction assets and assumed a master services agreement from companies owned by North American Energy Partners for $16.25 million.
Third quarter results
Consolidated revenue was $34.9 million compared to $38.2 million in the third quarter last year. The Company worked on three larger facility projects in the quarter as well as work under a master services agreement with one customer. In the third quarter last year, the Company worked on one larger facility project and a pipeline and related facility job for another customer.
Operating expenses were 68.2% of revenue in the quarter compared to 83.1% 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 $1.3 million, down marginally from last year. The Company has maintained a relatively steady staff complement over the past 15 months.
Total amortization expense of $1.2 million increased by $0.3 million due to a higher level of capital assets needed to sustain the current level of activity.
Interest expense of $0.2 million was the same as last year.
Income tax expense in the quarter of $2.5 million was at an effective tax rate of 29.5% which approximates the statutory rate.
Net income was $5.8 million ($0.24 per share) compared to $2.9 million ($0.11 per share).
On November 22, 2012, the Company announced that its wholly-owned subsidiaries had completed the acquisition of the business owned and operated by North American Pipeline Inc. and North American Fleet Company Ltd. of constructing, installing, maintaining, testing and repairing pipelines and facilities in the oil and gas industry throughout Western Canada together with certain assets used in carrying on the business including pipeline construction machinery and equipment. In addition, the purchaser took an assignment of a master services agreement with a major pipeline company to test and maintain certain aspects of its pipeline network. The parties have entered into a transition services agreement to facilitate the transition of the business to the purchasers. The purchase price was $16.25 million in cash.
The Company is expecting revenues in the fourth quarter to be similar to those recorded in the fourth quarter last year, after taking into account the expected additional revenues resulting from the recent 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. However, the low price of natural gas could affect future levels of activity.
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.