Logan International Reports 2014 Financial Results
(All reported figures are in US dollars unless otherwise noted)
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 03/30/15 -- Logan International Inc. (TSX: LII) ("Logan" or the "Company") today reported the results of its fourth quarter and year ended December 31, 2014.
Recent highlights include:
Logan recorded revenue of $37.8 million in this year's fourth quarter and $45.6 million in the prior year's fourth quarter. For the three month period ended December 31, 2014, Logan reported a net loss of $9.5 million, $0.28 per diluted share, as compared to net earnings of $3.8 million, $0.11 per diluted share, in the prior year quarter. The Company recorded an impairment loss on goodwill of $10.6 million, $0.31 per diluted share, in this year's fourth quarter. Excluding the effects of the impairment loss, the Company would have reported net earnings of $1.1 million, $0.03 per diluted share for the quarter. Modified EBITDA declined in this year's fourth quarter to $6.2 million from $9.7 million in last year's fourth quarter. Management utilizes Modified EBITDA to evaluate its operating results because this measurement eliminates the revenue and cost effects of significant noncash and nonrecurring items.
For the quarter ended December 31, 2014, the downhole tool segment, which includes Logan Oil Tools, Logan Completion Systems, Logan Kline Tools, Logan SuperAbrasives and Scope Production Developments, recorded revenue of $34.1 million as compared to $42.3 million for the quarter ended December 31, 2013. For the current year quarter, this segment generated EBITDA of $6.5 million as compared to $10.3 million for last year's fourth quarter. For the fourth quarter of 2014, the rental tool segment, which includes Xtend Energy Services and Logan Jar, recorded revenue of $3.7 million and EBITDA of approximately $0.5 million as compared to revenue of $3.3 million and an EBITDA loss of $1.0 million in the prior year's fourth quarter.
For the year ended December 31, 2014, Logan recorded revenue of $170.7 million as compared to $194.1 million in 2013. For fiscal year 2014, Logan reported net earnings of $211 thousand, $0.01 per diluted share, as compared to $18.7 million, $0.55 per diluted share, in the prior year period. The Company reported an impairment loss on goodwill of $10.6 million, $0.31 per diluted share, in 2014. Excluding the effects of the impairment loss, the Company would have reported net earnings of $10.8 million, $0.32 per diluted share for the 2014. Modified EBITDA for the current year-to-date period decreased to $35.7 million from $46.4 million in the prior year.
The downhole tool segment recorded revenue of $156.9 million and EBITDA of $37.7 million in 2014. This segment recorded revenue of $179.2 million and EBITDA of $46.2 million in 2013. The rental tool segment recorded revenue of $13.8 million and EBITDA of $2.9 million in 2014 as compared to revenue of $14.9 million and EBITDA of $3.9 million in the prior year.
David MacNeill, President and Chief Executive Officer, commented, "Our fourth quarter operating results were adversely affected not only by the industry slowdown but also, to a lesser extent, by customer-imposed postponements of scheduled orders. Each of our businesses experienced a reduction in sales and in operating results in this year's fourth quarter as compared to last year's, reflecting the dramatic deterioration in industry conditions. Likewise, order flow decreased as customers quickly adjusted spending levels to the reduced level of activity. Our fiscal year 2014 results of operations also lagged 2013. The combination of the lingering effects of the strategic review process begun in 2013 and the decline in industry conditions in the fourth quarter took their toll. Despite the disappointing financial results, 2014 offered several accomplishments. We restructured the operating groups, each of which is led by a Houston- based senior executive; we added to our suite of fishing tools with the acquisition of the Houston Engineering specialty fishing tool products and we finalized the amendment to our credit agreement, which expanded the commitment to $115 million and extended the maturity to December 2016."
Mr. MacNeill added, "Forecasting our operating results for 2015 will be difficult due to rapidly declining activity levels and reduced spending by our customers. In response, we have reduced administrative expenses by almost $3 million since 2013, as a result of review and evaluation of our operating and corporate administrative staffs and are prepared to further adjust as required. We strengthened our international sales and marketing staff in 2014 and, as a result, we expect each of our businesses to gain share in international markets, where industry conditions may not be as severe. Finally, we believe our balance sheet and recently amended credit facility provide a solid financial foundation to weather the current slowdown."
About Logan
Logan provides specialized downhole tools and services to oilfield service providers, drilling contractors and exploration and production operators. It is organized into three classifications:
Common shares of Logan are traded on the Toronto Stock Exchange (TSX) under the ticker symbol "LII".
Note: Effective April 17, 2013, the Company, through its wholly-owned subsidiaries Logan Oil Tools, Inc. and Logan Jar, LLC, purchased certain assets and operations related to the Sup-R-Jar drilling jar product line. Accordingly, the Company has recognized eight and a half months of the Sup-R-Jar product line's operating results in the consolidated financial statements for the twelve months ending December 31, 2013.
(1) Non-IFRS Measurements: The MD&A presents: (a) EBITDA as earnings before net finance cost, income taxes, and depreciation and amortization ("EBITDA"), and (b) Modified EBITDA as EBITDA before acquisition accounting adjustments, transaction fees, share-based compensation and severance costs ("Modified EBITDA"). Neither of these measurements should be considered an alternative to, or more meaningful than, "net earnings from the period" or "cash flow from operating activities" as determined in accordance with IFRS as an indicator of the Company's financial performance. EBITDA and Modified EBITDA do not have standardized definitions as prescribed by IFRS; therefore, the Company's presentation of these measurements may not conform to similar presentations by other companies. Management calculates EBITDA and Modified EBITDA each period and evaluates the Company's operating performance based on these measurements. Management believes that Modified EBITDA, which eliminates significant non-cash or non-recurring items of revenue or cost, more accurately presents the results of the Company's ongoing operations and its ability to generate the cash required to fund or finance future growth, acquisitions and capital investments. A reconciliation of EBITDA and Modified EBITDA with net earnings for each period follows.
EBITDA and Modified EBITDA are provided as measures of the Company's operating performance without regard to financing decisions, share-based compensation payments, age and cost of equipment used and income tax impacts, all of which are factors that are not controlled at the operating management level. The acquisition accounting adjustments reverse the effect of the increase or step-up in cost basis of inventories and subsequently sold fixed assets acquired in business combinations. The transaction fees include the professional and other fees incurred in connection with the Company's strategic review, as well as business acquisitions. Share-based compensation relates to expense recognized from the granting of stock appreciation rights, stock options and restricted share units.
(2) Includes bank and other borrowed debt and capital leases.
Reconciliation of EBITDA by Segment
Forward-Looking Statements
This press release contains forward-looking statements. These statements relate to future events or future performance of Logan. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect Logan's current views with respect to certain events, including but not limited to future demand for the company's products and services in international markets, and are subject to certain risks, uncertainties and assumptions. Although Logan believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Many factors could cause Logan's actual results, performance, or achievements to materially differ from those described in this press release. Readers are referred to Logan's Annual Information Form filed on , which identifies significant risk factors that could cause actual results to differ from those contained in the forward-looking statements. Should one or more risks or uncertainties materialize or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Logan does not intend and does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein in any jurisdiction.
For more information about Logan International Inc., please visit our website at .
Contacts:
Logan International Inc.
David MacNeill
Chief Executive Officer
281-617-5300 Houston
Logan International Inc.
Larry Keister
Chief Financial Officer
832-386-2534 Houston
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Datum: 30.03.2015 - 13:00 Uhr
Sprache: Deutsch
News-ID 382000
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CALGARY, ALBERTA
Kategorie:
Oil & Gas
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