Pulse Seismic Inc. Reports Third Quarter 2013 Results and Declares Quarterly Dividend
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 11/08/13 -- Pulse Seismic Inc. (TSX: PSD)(OTCQX: PLSDF) ("Pulse" or "the Company") reports its financial and operating results for the three and nine months ended September 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. It will be paid on December 20, 2013 to shareholders of record at the close of business on December 6, 2013.
Pulse's key performance metrics of data library sales, cash EBITDA(a) and shareholder free cash flow(a) each improved in the three-month period ended September 30, 2013 over the prior year's comparative period. The results for the nine-month period, however, were significantly lower than in 2012. One transaction in the first quarter of 2012 led to a $27.8 million data library sale, and record data library sales for the comparative nine months in 2012. Revenue fluctuations are a normal part of the seismic data library business.
The current period's data library sales still led to positive cash generation. "The quarter's $4.2 million of sales resulted in $2.5 million of cash EBITDA, and due to an anticipated income tax recovery, shareholder free cash flow is even higher, at $3.8 million for the quarter," commented Neal Coleman, Pulse's President and CEO.
In addition, continued Coleman, "In the first three quarters of this year, we returned over $10.7 million to our shareholders through dividends of $3.6 million and share purchases totalling over $7.1 million. Note that 76% of every dollar of the $22.5 million in data library sales for that nine month period, converts to shareholder free cash flow."
All key performance metrics reported for the periods ended September 30, 2013 are in line with the preliminary results announced on October 10, 2013.
OUTLOOK
Pulse continues to have limited short-term visibility for energy sector exploration activity and seismic revenue. Some customers are deferring investments in exploration-related activities that would include the need for seismic data. There also is less merger-and-acquisition activity in the energy sector than a year ago, reducing the number of corporate transaction-based seismic sales. Pulse continues to evaluate participation survey opportunities for the coming winter season and beyond, but to date has not found any projects that meet the Company's investment criteria. Pulse's sales team remains engaged in vigorous business development activity for seismic data library sales, especially covering the liquids-rich and oil-prone, multi-zone areas of northwest Alberta.
Traditional leading indicators of potential seismic activity are essentially flat. In late July the Canadian Association of Oilwell Drilling Contractors (CAODC) reported that the number of active drilling rigs, fleet utilization and overall drilling rig days across western Canada in the first and second quarters of 2013 were slightly lower than in the comparable quarters of 2012, and forecast that third-quarter 2013 activity would be almost identical to the third quarter of 2012. Activity in the first three quarters of both years, however, is down from the comparable 2011 results. On October 30, 2013, the Petroleum Services Association of Canada (PSAC) released highlights from its 2014 Drilling Activity Forecast and Industry Outlook. PSAC estimated that 10,800 wells will be drilled in western Canada in 2014, a decrease of 160 or 1.5 percent from 2013.
The natural gas price of $3.35 per thousand cubic feet (mcf) at AECO on November 6, 2013 represents somewhat of a recovery from a weak summer and early fall, and was up slightly over year-earlier prices. As of the same date, year-ahead and calendar 2014 AECO price forecasts are virtually unchanged from comparable projections one year earlier. In the United States, Nymex gas price forecasts are down slightly year-over-year. The current gas price is not considered sufficient to trigger a revival of natural gas-focused drilling in western Canada.
Pulse continues to benefit greatly from its low cost structure, which enables the Company to generate positive cash EBITDA and shareholder free cash flow. Pulse is well prepared for continued depressed market conditions due to its low debt held at favourable terms and its current dividend level.
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 maintaining the integrity of its seismic data library asset. Pulse remains optimistic about its long-term potential for growth. Pulse's continued share purchases reflect the Board of Directors' and management team's belief in the Company's value.
Q3 2013 CONFERENCE CALL
Pulse will host a conference call on Friday, November 8, 2013 at 11:00 am MST (1:00 pm EST) where Neal Coleman, President & CEO and Pamela Wicks, VP Finance & CFO will discuss the Company's results for the third quarter. 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 November 16, 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.
Please visit our website at .
Forward-Looking Information
This news release contains information that constitutes "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning Pulse continues to have limited short-term visibility for energy sector exploration activity and seismic revenue;
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: 08.11.2013 - 12:00 Uhr
Sprache: Deutsch
News-ID 314376
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CALGARY, ALBERTA
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Oil & Gas
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