Lonestar West Announces Q3 2015 Financial Results
(firmenpresse) - SYLVAN LAKE, ALBERTA -- (Marketwired) -- 11/30/15 -- Lonestar West Inc. (TSX VENTURE: LSI) today announced the financial results for the three and nine month periods ended September 30, 2015.
Highlights for the three months ended September 30, 2015 include:
The Company achieved EBITDAC(2) of $1,562,412 for the quarter ended September 30, 2015, which is a decrease from $2,442,928 for the prior year equivalent period. The EBITDAC margin was 11.1% for the quarter ended September 30, 2015 as compared to 18.8% for the prior year comparable period. The decrease in EBITDAC is due primarily to higher selling, general and administrative expenses, which offset higher revenues and gross margin for the period. The higher selling, general and administrative expenses were due primarily to $863,382 of bad debt expense recorded during the period, on account of outstanding accounts receivable balances where the collections of certain accounts has been determined to be unlikely.
Highlights for the nine months ended September 30, 2015 include:
The Company achieved normalized EBITDAC(2) of $4,389,551 for the nine month period ended September 30, 2015, which is a decrease from $5,376,304 for the prior year equivalent period. The normalized EBITDAC margin was 11.5% for the nine month period ended September 30, 2015 as compared to 15.8% for the prior year comparable period. The decrease in EBITDAC is due primarily to higher selling, general and administrative expenses, which offset higher revenues and gross margin for the period. The higher selling, general and administrative expenses were due primarily to the $1,203,514 of bad debt expense recorded during the period.
"The Company is pleased with the revenue growth and the maintenance of its gross margin percentage during the third quarter of fiscal 2015," commented James Horvath, President and CEO of Lonestar. "Our growth strategy in the US continues to positively impact revenue, and we will continue to focus on expanding these underserviced areas. Unfortunately, EBITDAC in fiscal 2015 continues to be adversely impacted by the depressed energy market along with bad debt expense recorded during the period. Management continues to focus on improving its credit and collections process, and believes it is continuing to make progress in this regard. "
The Company has been successful in executing its planned growth strategy with three transformational acquisitions and organic expansion throughout the Southern United States, which has positioned Lonestar as a major Hydrovac and Vacuum services provider in North America. In August 2015 the Company completed the previously announced acquisition of Hewitt Specialty Services, LLC ("Hewitt"), providing a base to service the Cushing, Oklahoma region to complement its existing base in Elk City, Oklahoma and provide an expanded presence in the South Central United States.
The Company's fleet increased by 6 units during the quarter on account of units added as part of the Hewitt acquisition, and now stands at 158 units.
About Lonestar West
Based in Sylvan Lake, Alberta, Lonestar West Inc. operates a fleet of 158 Hydrovac, Vacuum and Auxiliary units throughout Western Canada, Ontario, California, and the Southern United States. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.
For more information please visit the Lonestar West website at .
Notes:
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
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 expectations regarding the Company's revenue, normalized EBITDAC and equipment utilization. Lonestar 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. Specific material factors and assumptions include, but are not limited to:
Readers are cautioned that these factors are difficult to predict. Accordingly readers are cautioned that the actual results achieved will vary from the information provided herein and the variations may be material. Readers are also cautioned that the list of factors above are not exhaustive. Before placing reliance on any forward-looking statements to make decisions with respect to an investment in securities in Lonestar, prospective investors and others should carefully consider the factors identified above and other risks, uncertainties and potential changes that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
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 Lonestar'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 Lonestar's annual information form and management discussion and analysis for the year ended December 31, 2014 (the "MD&A"), which are available for viewing on SEDAR at . In addition, the forward-looking statements contained in this News Release are made as of the date of this News Release. Lonestar does not undertake any obligation to publicly update or to revise any forward-looking statements except as expressly required by applicable securities laws. The forward-looking statements contained in this Press Release are expressly qualified by the cautionary statements contained herein.
NEITHER THE 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:
James Horvath
President & CEO
403-887-2074
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Datum: 30.11.2015 - 19:57 Uhr
Sprache: Deutsch
News-ID 436430
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SYLVAN LAKE, ALBERTA
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Oil & Gas
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