Pulse Seismic Inc. Reports Second Quarter 2013 Results and Declares Quarterly Dividend
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 08/02/13 -- Pulse Seismic Inc. ("Pulse" or "the Company") (TSX: PSD)(OTCQX: PLSDF) reports its financial and operating results for the three and six months ended June 30, 2013. The unaudited condensed consolidated interim financial statements and MD&A will be filed on SEDAR () and will be available on Pulse's website ().
Pulse has declared a quarterly dividend of $0.02 per common share. This dividend will be paid on September 20, 2013 to shareholders of record at the close of business on September 6, 2013.
Pulse's key performance metrics, which include cash EBITDA(a), shareholder free cash flow(a) and net earnings, all declined in the three and six-month periods ended June 30, 2013 from the prior year's comparative periods. Following quarterly records achieved in the first two quarters of 2012, lower data library sales were experienced in both the first and second quarters of 2013, accounting for the weaker results.
All key performance metrics are in line with the preliminary results announced on July 16, 2013, except for a change in shareholder free cash flow resulting from a tax reclassification.
HIGHLIGHTS FOR THE PERIODS ENDED JUNE 30, 2013
"In the first half of 2013 Pulse converted $0.72 of each dollar of seismic data library sales revenue into shareholder free cash flow," stated Neal Coleman, Pulse's president and CEO. "The low fixed costs associated with being a 30-person, pure-play seismic data library company factors into our ability to generate continuing cash in periods of lower sales activity."
In addition, said Coleman, "In the first two quarters, we returned over $6.8 million to our shareholders, via dividends of $2.4 million and share repurchases totalling over $4.4 million."
OUTLOOK
Short-term visibility for industry activity and seismic revenue remains very unclear. Although Pulse is discussing potential participation surveys with its customers for the upcoming fall/winter survey season, no survey plans have been finalized as yet. Some of the Company's customers continue to evaluate initial results from certain unconventional plays, such as the Duvernay shale and liquids-rich Montney, before committing to major development programs requiring new seismic. Pulse, accordingly, remains fully prepared for ongoing quarterly variations in activity and data library sales, including additional weak quarters.
Short-term industry signals are mixed. Natural gas prices, following the modest rally in fall 2012 and spring 2013, were well below $3.00 per gigajoule at AECO as of late July. At least one Canadian investment bank has lowered its gas price forecast for 2014. Although U.S. natural gas storage remains slightly below the five-year weekly average for the time of year, and far below last year's record volumes, gas prices in the U.S. have weakened as well. New gas supply from the Marcellus shale continues to soar, driving overall higher shale gas production in the United States, despite the low natural gas-focused drilling rig count of approximately 360.
On the positive side, in late May the Canadian Association of Oilwell Drilling Contractors issued a revised 2013 forecast predicting that there will be 10,649 wells drilled in Canada and a total of 121,126 rig days for the year, up slightly from the organization's initial forecast. While the number of active drilling rigs throughout the first six months of 2013 was lower than in each of the corresponding months in 2012, the CAODC noted that the industry continues to drill mainly complex horizontal wells. Such wells cover more land area than vertical wells, representing potentially greater need for seismic data.
Pulse is continuing with vigorous business development activity for seismic data library sales, especially in the liquids-rich and oil-prone, multi-zone areas of northwest Alberta, and for new participation surveys. Industry corporate level activity such as mergers and acquisitions, joint ventures, assets sales and farm-ins/farm-outs represent an additional potential source of transaction based of seismic data.
Pulse's strong balance sheet, moderate debt, improved working capital and credit facility provide a solid financial base from which to operate with decision-making flexibility. The Company's proven approach to capital allocation - investment in participation surveys and dataset acquisitions that meet key criteria, continued purchase of Pulse shares under the normal course issuer bid, payment of a sustainable dividend, and prudent management of the revolving credit facility - will continue to guide Pulse's business.
As the second quarter demonstrated, Pulse can generate positive cash EBITDA and shareholder free cash flow, and continue to pay its dividend, under moderately low quarterly data sales. As industry capital spending and field activities vary along with business conditions and opportunities, Pulse will continue to focus on generating as much data library sales revenue, cash EBITDA and shareholder free cash flow per share as conditions allow, while seeking opportunities to grow.
Q2 2013 CONFERENCE CALL
Pulse will host a conference call on Friday, August 2, 2013 at 11:00 am MDT (1:00 pm EDT) to discuss the Company's results for the second quarter. Neal Coleman, President & CEO, will chair the call with Pamela Wicks, VP Finance & CFO, taking part. A question-and-answer period will follow an update on the Company's strategy and outlook.
To participate please dial 416-340-8530 or 877-440-9795 approximately 10 minutes before the commencement of the call. To listen to the audio webcast of the conference call please visit the Company's website at .
An archival recording of the conference call will be available approximately one hour after the completion of the call until August 10, 2013. To access the replay, please dial 905-694-9451 or 800-408-3053 and enter the pass code 3376392.
CORPORATE PROFILE
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 28,300 net square kilometres of 3D seismic and 340,000 net kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occur.
Forward Looking Information
This news release contains information that constitutes "forward looking information" or "forward looking statements" (collectively, "forward looking information") within the meaning of applicable securities legislation. This forward looking information includes, among other things, statements regarding:
Undue reliance should not be placed on forward-looking information. Forward looking information is based upon current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward looking information.
The material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to:
The foregoing list of risks is not exhaustive. Additional information on these risks and other factors which could affect the Company's operations or financial results are included in the Risk Factors section of the Company's MD&A for the most recent calendar year and interim periods. Forward looking information is based upon the assumptions, expectations, estimates and opinions of the Company's management at the time the information is presented.
Contacts:
Pulse Seismic Inc.
Neal Coleman
President and CEO
(403) 237-5559 or Toll-free: 1-877-460-5559
Pulse Seismic Inc.
Pamela Wicks
VP Finance and CFO
(403) 237-5559 or Toll-free: 1-877-460-5559
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Datum: 02.08.2013 - 11:00 Uhr
Sprache: Deutsch
News-ID 284266
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CALGARY, ALBERTA
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Oil & Gas
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