Logan International Reports First Quarter 2015 Financial Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 05/14/15 -- (All reported figures are in US dollars unless otherwise noted)
Logan International Inc. (TSX: LII) ("Logan" or the "Company") today reported the results of its first quarter ended March 31, 2015. Logan recorded revenue of $27.8 million in this year's first quarter and $43.6 million in the prior year's first quarter. For the three month period ended March 31, 2015, Logan reported a net loss of $1.3 million, $.04 per share, as compared to net earnings of $2.9 million, $.09 per share in the prior year period. Modified EBITDA declined in this year's first quarter to $3.2 million from $9.3 million in last year's first quarter. Management believes that Modified EBITDA, which eliminates the revenue and cost effects of significant noncash and nonrecurring items, more accurately presents the results of ongoing operations.
Recent highlights include:
For the quarter ended March 31, 2015, the downhole tool segment, which includes Logan Oil Tools, Logan Completion Systems ("Logan Completions"), Logan Kline Tools ("Kline"), Logan SuperAbrasives ("SuperAbrasives") and Scope Production Developments ("Scope"), recorded revenue of $25.6 million as compared to $40.4 million for the quarter ended March 31, 2014. For the quarter ended March 31, 2015, this segment generated EBITDA of $4.6 million as compared to $9.9 million for the quarter ended March 31, 2014. For the first quarter of 2015, the rental tool segment, which includes Xtend Energy Services ("Xtend") and Logan Jar, recorded revenue of $2.2 million and EBITDA of $0.7 million as compared to revenue of $3.2 million and EBITDA of $0.8 million in last year's first quarter.
David MacNeill remarked, "Current year first quarter sales for Logan Oil Tools ("LOT"), which is our largest company and which is more closely correlated to workover activities and less dependent on drilling and completion activities than our other operations, declined by 20% as compared to last year's first quarter, despite an increase in international sales. Our customers have significantly reduced their stock purchases as they draw down their inventory and cannibalize assets. For capital items, such as jars and power swivels, they have turned to renting rather than buying new assets. Our businesses that are more affected by drilling and completion activity faced even greater challenges in the quarter. Revenue from our drilling tool rental and products businesses was off by more than 45% as compared to last year. These products are directly involved in the well drilling process and, as such, thrive when drilling and completion activity is robust and conversely struggle when drilling and completions decline. The completions businesses also disappointed in the quarter due to the severity of the slowdown in Canada and the inability to close certain foreign sales. We believe that these operations will continue to underperform until there is a meaningful upturn in North American rig count or in international orders. Finally, we initiated several cost cutting measures that resulted in a reduction in our administrative expenses by $1.2 million in the quarter as compared to the prior year quarter. In April, we were forced to make additional reductions in both our manufacturing workforce and administrative staff to better align our costs with our sales."
Mr. MacNeill added, "Although we expect all of the Logan businesses will be challenged in the coming quarter, which is typically our weakest, we believe that Logan Oil Tools will rebound later this year as customers consume their tool inventories and reach minimum re-order points. We are pursuing international opportunities in Russia, China and Mexico for our completion tools and in the Far East, Middle East and Latin America for our drilling tools. We are confident that the industry will recover when there is a better balance between the supply and demand for commodities. While we plan to cautiously manage the business by restricting capital purchases, managing costs and retiring debt, we will be alert for potential internal or external growth opportunities."
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".
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 the previously announced strategic review process and fourth quarter operating results, 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: 14.05.2015 - 22:44 Uhr
Sprache: Deutsch
News-ID 393533
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contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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