FORT ST. JOHN, BRITISH COLUMBIA--(Marketwired - Nov 29, 2013) - Macro Enterprises Inc. (TSX VENTURE:MCR) --
|Summary of financial results|
|(thousands of dollars except per share amounts)|
|Three months ended||Nine months ended|
|Sept. 30||Sept. 30|
|Net earnings per share||$||0.30||$||0.24||$||0.91||$||0.56|
|Weighted average common sharesoutstanding (thousands)||25,120||23,921|
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.
- Revenues increased from the third quarter last year due in part to revenues from the new business acquired in November 2012
- EBITDA and net income were above the third quarter of last year due to increased activity Third quarter results
Consolidated revenue was $60.1 million compared to $34.8 million in the third quarter last year. Most of the revenue in the quarter was derived from five larger projects covering pipeline and facility construction and pipeline repair work. In the third quarter last year, the Company worked on two larger facility project and pipeline and related facility jobs for two other customers.
Operating expenses, as a percent of revenue, increased in the quarter compared to the same quarter last year. This increase was due to the mix of contracts undertaken.
General and administrative expenses were $1.9 million, up from $1.3 million last year, but down slightly from the levels of the most recent two quarters. Costs were higher this year due mainly to additional staff expenses.
Total depreciation expense of $1.9 million increased by $0.7 million due mainly to the depreciation on the additional assets obtained in the November 2012 acquisition.
Interest expense of $0.2 million was lower than last year due mainly to the interest saved on the conversion of the shareholder loan in June 2013.
Income tax expense in the quarter of $3.0 million was at an effective tax rate of 24.4% which approximates the statutory rate.
Net income was $9.2 million ($0.30 per share) compared to $5.8 million ($0.24 per share) in the same period last year.
The Company has performed several significant contracts in the Fort McMurray region of Alberta and continues to be encouraged by prospective levels of activity in that area. The Company does not expect activity in northeast B.C. to be higher than current levels, unless there is significant progress made in one or more of the proposed LNG projects in that area.
The Company is expecting revenues in the fourth quarter to be somewhat above that recorded in the fourth 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.
Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry. 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.