Aveda Transportation and Energy Services Announces Record Revenue, EBITDA and Net Income for the Third Quarter of 2013
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 11/04/13 -- Aveda Transportation and Energy Services Inc. ("Aveda" or the "Company") (TSX VENTURE: AVE), a leading provider of oilfield hauling services and equipment rentals to the energy industry, today announced record revenue, Adjusted EBITDA(1) and net income for the nine and three months ended September 30, 2013.
2013 Third Quarter Business Highlights
2013 First Three Quarters' Business Highlights
In addition, to accommodate Aveda's expected growth, the Company will be moving its US Corporate Office from Mineral Wells, TX to Houston TX in the first quarter of 2014. This move will put the Company in close proximity to the headquarters of many current and potential customers.
"The Aveda team has repeatedly demonstrated our ability to execute and deliver solid results every quarter this year," said Kevin Roycraft, President and Chief Executive Officer of Aveda. "I thank our team for their efforts and look forward to continued success."
The Company will host its third quarter fiscal 2013 results conference call on Tuesday, November 5th at 9:00 a.m. Eastern Time (ET). Executive Chairman David Werklund, President and CEO Kevin Roycraft and Vice-President, Finance and CFO Bharat Mahajan will discuss Aveda's financial results for the quarter and then take questions from securities analysts.
To access the conference call by telephone, dial (647) 427-7450 or 1-888-231-8191. A live audio webcast of the conference call will be available at .
The conference call webcast will be archived and available at until December 31, 2013.
The Company's consolidated financial statements and Management's Discussion and Analysis are available on the Company's website at or the SEDAR website at .
Outlook
Aveda earns revenue primarily by providing specialized transportation services to companies engaged in the exploration, development and production of petroleum resources. As a result, demand for Aveda's transportation services are generally linked to the economic conditions of the energy industry and the general level of drilling activity in the exploration, development and production of petroleum resources in Western Canada and United States.
In recent history, total drilling activity in the WCSB and United States has been negatively impacted due to, in part, lower natural gas prices. This has largely been the result of increased supply driven by the fast development of shale gas resources in the United States. Countering the decline in natural gas drilling has been a relatively strong price for oil which has resulted in oil-focused regions, such as those surrounding Aveda's Pleasanton and Midland, TX branches, to experience robust rig counts. In the third quarter of 2013, the average West Texas Intermediate spot price was approximately $106 per barrel, compared to $94 per barrel during the first half of 2013(1).
In Alberta's portion of the WCSB, third quarter rig counts increased approximately 9% relative to the same period in 2012. Despite this increase, overall counts remain below 2011 levels due to, in part, on-going export capacity bottlenecks and limited capital expenditures, particularly in natural gas plays. Instead, many companies with natural gas assets have shifted their focus towards cautious investments in liquids-rich plays, divesting from dry gas assets and reducing overall capital expenditure in expectation of market improvements(2).
Although future natural gas activity remains uncertain in Canada, a recent CIBC report(3) suggests that several years of declining natural gas production has resulted in a gradual decrease in supply. As a result, in combination with the expectation of increasing demand, they are forecasting higher natural gas prices in 2014 relative to what has been experienced in 2013. CIBC also suggests that recent events in Canada such as British Columbia's efforts to reach an agreement on a tax framework for LNG exports have focused attention on Canada's world class shale gas resources. Increasing confidence in Canada's natural gas market may be illustrated through the recent announcement by Petronas (a Malaysian state-owned oil and gas company) that they intend to invest $36 billion in the building of both a liquid natural gas plant in British Columbia, as well as the pipeline to feed it. If this occurs, it will represent one of the largest direct investments in Canada by any country(4).
Although there is no shortage of future opportunities in Canada, it appears that at this time, opportunities for expansion and growth are strongest in the US. According to the Baker Hughes Rig Count(5), drilling activity in the Eagleford and Permian basins remain close to the highest levels experienced in the last ten years. The slight decline compared to previous years is not expected to represent any significant reduction in Aveda's activity levels in these regions as rig efficiencies have resulted in more frequent rig moves. The consistently high activity levels have allowed Aveda to grow significantly in these areas, with the opening of two new branches (Pleasanton and Midland) in 2012. In contrast, the Barnett basin, which is primarily serviced by the Mineral Wells, TX branch, continues to face significant declines in rig counts. As a result, the Mineral Wells branch continues to work on maximizing revenue and EBITDA by focusing efforts on acquiring new customers in higher activity, liquids-rich areas to the north.
(1) U.S. Energy Information Administration, accessed on October 21, 2013, at
(2)
(3)
(4)
(5) Baker Hughes Rig Count, accessed on October 21, 2013, at
As with the Barnett basin, the Marcellus, which is serviced by Aveda's Williamsport, PA branch, continues to experience significant decreases in rig count and it is expected that rig counts will continue a slow downward trend in Pennsylvania gas plays. However, despite the declines, overall, the branch continued to maintain a solid revenue stream. Aveda's new satellite branch in Buckhannon, WV, which is managed by Aveda's Williamsport team, began operations at the beginning of the third quarter. The branch is strategically located to service clients in the Utica basin, an area that has experienced significant growth in rig counts over the last two years. However, the branch is experiencing slower than expected growth. The Company will closely monitor this branch's performance and implement action plans for improvement, before evaluating its options on whether it will maintain operations at the current location.
The Company continues to assess the market conditions for its services and allocates resources accordingly. The Company plans to expend approximately $2.5 - $3.0 million on capital expenditures for the remainder of the year. The Company is evaluating the merits of acquiring cranes, instead of relying on third party crane operators. The result of the crane evaluation may result in additional capital expenditure of up to $1.5 million in 2013.
About Aveda Transportation and Energy Services
Aveda provides specialized transportation services and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States of America principally in and around the states of Texas and Pennsylvania. Transportation services include both the equipment necessary to move the load as well as a trained, professional driver capable of securing, moving and manipulating the load at its origin and destination. Aveda's rental operations include the rental of tanks, mats, pickers, light towers and other equipment necessary for oilfield operations.
Aveda was incorporated in 1994 as a private company to serve the oil and gas industry. In the spring of 2006 the Company went public on the TSX Venture Exchange. Aveda has major operations in Calgary, AB, Slave Lake, AB, Leduc, AB, Sylvan Lake, AB Mineral Wells, TX, Pleasanton, TX, Midland, TX, Williamsport, PA and Buckhannon, WV. Aveda is publicly traded on the TSX Venture Exchange under the symbol AVE. For more information on Aveda please visit .
This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes. In particular, this News Release contains forward-looking statements relating to: demand for the Company's services and general industry activity level; the Company's growth opportunities; and expectation to maintain revenue and equipment utilization. Aveda believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to Aveda, including information obtained from third party industry analysts and other third party sources. In some instances, material assumptions and material factors are presented elsewhere in this News Release in connection with the forward-looking statements. Readers are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to:
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Aveda's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in Aveda's annual information form and management discussion and analysis for the year ended December 31, 2012 (the "MD&A"). Any forward-looking statements are made as of the date hereof and, except as required by law, Aveda assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
This News Release contains the terms EBITDA and Adjusted EBITDA which are defined in the MD&A. EBITDA and Adjusted EBITDA as presented do not have any standardized meaning prescribed by international financial reporting standards (IFRS) and therefore may not be comparable with the calculation of similar measures for other entities. Management uses Adjusted EBITDA to analyze the operating performance of the business. Adjusted EBITDA as presented is not intended to represent cash provided by operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.
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.
Contacts:
Aveda Transportation and Energy Services Inc.
Bharat Mahajan, CA
Vice President, Finance and Chief Financial Officer
(403) 264-5769
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Datum: 04.11.2013 - 21:10 Uhr
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