Stock Name: PSV
Amount: CAD 0.09
Announcement Date: 09/08/2012
Record Date: 29/10/2012
Dividend Detail:
CALGARY, Aug. 9, 2012 /CNW/ - Pure Energy Services Ltd. ("Pure" or "the Corporation") (TSX: PSV) is pleased to announce its financial and operating results for the three
and six-month periods ended June 30, 2012.�� The financial results
presented and all comparative information have been prepared in
accordance with International Financial Reporting Standards ("IFRS").��
Unless otherwise indicated, references in this news release to "$" or
"Dollars" are to Canadian dollars.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
�� | �� | �� | ||||||
(Unaudited) | Three months ended June 30, | Six months ended June 30, | ||||||
($000's, except per share amounts) | 2012 | 2011 | Change | 2012 | 2011 | Change | ||
Revenue | ������������$��54,986 | ������������$��40,877 | ������������������������35% | ������������$��138,049 | ������������$��101,849 | ������������������������36% | ||
Gross margin | ������������������������8,959 | ������������������������6,197 | ������������������������45% | ������������������������36,792 | ������������������������26,405 | ������������������������39% | ||
Gross margin % | ������������������������16% | ������������������������15% | ������������������������7% | ������������������������27% | ������������������������26% | ������������������������4% | ||
SG&A expenses (1) | ������������������������7,043 | ������������������������5,289 | ������������������������33% | ������������������������14,199 | ������������������������11,251 | ������������������������26% | ||
EBITDAS (2) | ������������������������1,916 | ������������������������908 | ������������������������111% | ������������������������22,593 | ������������������������15,154 | ������������������������49% | ||
Net Earnings (Loss) | ������������������������(2,368) | ������������������������(3,020) | ������������������������22% | ������������������������7,852 | ������������������������3,939 | ������������������������99% | ||
������������ | Per share: | �� | �� | �� | �� | �� | �� | |
�������������� | �� | Basic | ������������������������(0.10) | ������������������������(0.12) | ������������������������17% | ������������������������������������ 0.32 | ������������������������������������ 0.16 | ������������������������100% |
�������������� | �� | Diluted | ������������������������(0.10) | ������������������������(0.12) | ������������������������17% | ������������������������������������ 0.31 | ������������������������������������ 0.16 | ������������������������94% |
Funds flow from operations (2) | ������������������������1,746 | ������������������������667 | ������������������������162% | ������������������������22,148 | ������������������������15,296 | ������������������������45% | ||
Capital expenditures (3) | ������������������������12,231 | ������������������������11,618 | ������������������������5% | ������������������������21,113 | ������������������������18,706 | ������������������������13% |
|
�� | �� | �� | �� |
(Unaudited) ($000's) | June 30, 2012 | December 31, 2011 | ������������������������ Change |
Property and equipment | ������������$��137,002 | ������������$��125,162 | ������������������������9% |
Total assets | ������������������������198,300 | ������������������������196,713 | ������������������������1% |
Long term debt, net of working capital | ������������������������2,507 | ������������������������(1,939) | ������������������������229% |
BUSINESS OVERVIEW
Pure is a publicly traded oilfield services company that operates in
western Canada and the United States ("US").�� The Corporation's shares
trade on the Toronto Stock Exchange under the symbol PSV.
Pure's operations are divided into three separate operating segments:
Canadian Completion Services ("CCS"), US Completion Services ("USCS")
and Corporate Administration ("Corporate") as follows:
The CCS segment provides Frac Flowback and Wireline services on new,
producing and abandoned oil and natural gas wells for exploration and
production companies operating in the Western Canadian Sedimentary
Basin ("WCSB").�� CCS currently operates the largest Frac Flowback fleet
and one of the largest Wireline fleets in the WCSB.�� At June 30, 2012,
the CCS fleet consisted of 73 Frac Flowback units and 61 Wireline
units.�� CCS' operations are impacted by seasonality, experiencing
higher levels of activity during the winter months (November through
March) and lower levels of activity during the spring (April through
June).
The USCS segment provides Frac Flowback and Wireline services on new,
producing and abandoned oil and natural gas wells for exploration and
production companies throughout the US. At June 30, 2012, the USCS
fleet consisted of 55 Frac Flowback units and 22 Wireline units.�� USCS'
operations are also impacted by seasonality, although not to the same
extent as CCS' operations, with higher levels of activity typically
experienced during the non-winter months (April through October) in the
northern US operation areas.
The Corporate segment is a cost centre which includes corporate
administration and other costs not specifically attributable to the CCS
and USCS segments.
The demand for Pure's services in Canada and the US is, in large part,
correlated with the level of drilling and completion activity.�� Prices
for oil, natural gas and natural gas liquids ("NGL's") can have a
considerable impact on drilling and completion activity.
Q2 2012 HIGHLIGHTS
In Q2 2012, Pure:
Generated revenue of $55.0 million, representing a 35% increase over the
comparable quarter in 2011.
Recorded EBITDAS of $1.9 million, representing a 111% increase over the
comparable quarter in 2011.
Reported a quarterly net loss of $2.4 million ($0.10 per share), which
was a 22% improvement from the $3.0 million net loss ($0.12 per share)
recorded in Q2 2011.
Invested $12.2 million in capital expenditures to increase operating
capacities for Frac Flowback and Wireline services in both the CCS and
USCS segments.
Exited the quarter in a strong financial position with long-term debt,
net of working capital of $2.5 million and undrawn credit of
approximately $48 million available under its aggregate credit
facilities of $67 million.
DIVIDENDS
On August 8, 2012, Pure's Board of Directors declared a quarterly
dividend of $0.09 per share to be paid on November 15, 2012 to
shareholders of record at the close of business on October 31, 2012.��
Pure's dividends are eligible dividends for Canadian tax purposes.�� The
annualized dividend amount of approximately $8.8 million (based on the
24.5 million shares outstanding at August 8, 2012) represents
approximately 15% of funds flow from operations generated by Pure
during the trailing twelve-month period from July 1, 2011 to June 30,
2012.
OUTLOOK
Given the current volatility in prices for oil, natural gas and NGL's,
Pure's management continues to carefully monitor industry activity
levels in western Canada and the Corporation's US operating areas to
ensure equipment and manpower are positioned to provide sustainable
equipment utilization rates with the objective of maximizing operating
margins.
Management is encouraged by the robust utilization rates experienced so
far in Q3 2012 in both the Corporation's Canadian Frac Flowback and
Wireline operations.�� The Canadian Frac Flowback operations are
benefitting from the significant multi-well pad project work in the
Horn River and Montney basins combined with the ongoing work for a
senior customer related to liquefied petroleum gas ("LPG") fracturing
operations. Canadian Wireline operations' utilization rates continue to
benefit from the regulatory requirements for logging services and the
increasing demand for well abandonment services.
US Frac Flowback operations have also experienced strong utilization
rates in early Q3 2012 due to the repositioning of equipment from
certain "dry" natural gas basins, where activity has been reduced, to
other basins with higher drilling and completion activity.
In response to the uncertainty surrounding drilling and completion
activity for the remainder of 2012, Pure plans to postpone
approximately $9 million of its previously announced $53 million
capital expenditure program for 2012 until 2013.�� The postponed capital
expenditures relate primarily to the US Frac Flowback and Wireline
divisions.�� The US Frac Flowback division plans to postpone the
acquisition of 4 new Frac Flowback units and supporting auxiliary
equipment (with an aggregate cost of approximately $3 million) and
continue to focus on repositioning existing equipment and manpower. The
US Wireline division plans to postpone the acquisition of 4 new
Wireline units and supporting equipment (with an aggregate cost of
approximately $5 million) and focus on improving margins in its
existing operating bases, including those that have been recently
established.
RESULTS OF CONTINUING OPERATIONS
Financial Summary by Segment
The break-down of consolidated financial results by segment for the
three and six-month periods ended June 30, 2012 and 2011 is as follows:
�� | �� | �� | ||||||
(Unaudited) | �� | Three months ended June 30, 2012 | ||||||
($000's)�� | �� | CCS | USCS | Corporate | Consolidated | |||
Revenue | $ | 25,632 | $ | ��29,354 | $ | ��- | $ | ��54,986 |
Operating expenses | �� | 23,510 | �� | 22,517 | �� | ��- | �� | 46,027 |
Gross margin | $ | 2,122 | $ | 6,837 | $ | - | $ | 8,959 |
Gross margin % | �� | 8% | �� | 23% | �� | - | �� | 16% |
SG&A expenses | �� | 3,064 | �� | 2,645 | �� | 1,334 | �� | 7,043 |
EBITDAS | $ | (942) | $ | ��4,192 | $ | (1,334) | $ | ��1,916 |
�� | �� | �� | ||||||
(Unaudited) | �� | Three months ended June 30, 2011 | ||||||
($000's) | �� | CCS | USCS | Corporate | Consolidated | |||
Revenue | $ | 18,391 | $ | ��22,486 | $ | - | $ | 40,877 |
Operating expenses | �� | 19,761 | �� | ��14,919 | �� | ��- | �� | 34,680 |
Gross margin | $ | (1,370) | $ | ��7,567 | $ | - | $ | 6,197 |
Gross margin % | �� | (7%) | �� | 34% | �� | ��- | �� | 15% |
SG&A expenses | �� | 2,528 | �� | 1,660 | �� | 1,101 | �� | 5,289 |
EBITDAS | $ | (3,898) | $ | 5,907 | $ | (1,101) | $ | 908 |
�� | �� | �� | ||||||
(Unaudited) | �� | Six months ended June 30, 2012 | ||||||
($000's)�� | �� | CCS | USCS | Corporate | Consolidated | |||
Revenue | $ | 79,690 | $ | 58,359 | $ | - | $ | 138,049 |
Operating expenses | �� | 56,975 | �� | 44,282 | �� | ��- | �� | 101,257 |
Gross margin | $ | 22,715 | $ | 14,077 | $ | - | $ | 36,792 |
Gross margin % | �� | 29% | �� | 24% | �� | - | �� | 27% |
SG&A expenses | �� | 6,582 | �� | 5,080 | �� | 2,537 | �� | 14,199 |
EBITDAS | $ | 16,133 | $ | 8,997 | $ | (2,537) | $ | 22,593 |
�� | �� | �� | |||||||
(Unaudited) | �� | Six months ended June 30, 2011 | |||||||
($000's)���� | �� | CCS | USCS | Corporate | Consolidated | ||||
Revenue | �� | $ | 61,916 | $ | 39,933 | $ | - | $ | 101,849 |
Operating expenses | �� | �� | 47,591 | �� | 27,853 | �� | - | �� | 75,444 |
Gross margin | �� | $ | 14,325 | $ | 12,080 | $ | - | $ | 26,405 |
Gross margin % | �� | �� | 23% | �� | 30% | �� | - | �� | 26% |
SG&A expenses | �� | �� | 5,663 | �� | 3,331 | �� | 2,257 | �� | 11,251 |
EBITDAS | �� | $ | 8,662 | $ | 8,749 | $ | (2,257) | $ | 15,154 |
DISCUSSION OF SEGMENT RESULTS
Canadian Completion Services ("CCS") Segment
�� | �� | �� | |||||||||
(Unaudited) | Three months ended June 30, | Six months ended June 30, | |||||||||
($000's) | �� | 2012 | �� | 2011 | Change | �� | 2012 | �� | 2011 | Change | |
Revenue | �� | ������������������������ �� | �� | ������������������������ �� | �������������� | �� | �������������� | �� | �������������� | �������������� | |
������������ | Frac Flowback | $ | 11,602 | $ | 8,531 | 36% | $ | ��35,403 | $ | 26,598 | 33% |
������������ | Wireline (1) | �� | 14,030 | �� | 9,860 | 42% | �� | 44,287 | �� | 35,318 | 25% |
�� | $ | 25,632 | $ | 18,391 | 39% | $ | 79,690 | $ | 61,916 | 29% | |
Gross margin | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
������������ | Frac Flowback | $ | 2,467 | $ | 1,468 | 68% | $ | 11,773 | $ | 8,531 | 38% |
������������ | Wireline (1)������ | �� | (345) | �� | (2,838) | 88% | �� | 10,942 | �� | ������������5,794 | 89% |
�� | $ | 2,122 | $ | (1,370) | 255% | $ | 22,715 | $ | 14,325 | 59% | |
Gross margin % | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
������������ | Frac Flowback | �� | 21% | �� | 17% | 24% | �� | 33% | �� | 32% | 3% |
������������ | Wireline (1)������ | �� | (2%) | �� | (29%) | 93% | �� | 25% | �� | 16% | 56% |
�� | �� | 8% | �� | (7%) | 214% | �� | 29% | �� | 23% | 26% | |
SG&A expenses | $ | 3,064 | $ | 2,528 | 21% | $ | 6,582 | $ | 5,663 | 16% | |
EBITDAS | $ | (942) | $ | (3,898) | 76% | $ | 16,133 | $ | 8,662 | 86% | |
Average unit counts:���������������������� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Frac Flowback | �� | 73.5 | �� | 69.5 | 6% | �� | 72.7 | �� | 69.3 | 5% |
�� | Wireline (2) | �� | 62.0 | �� | 68.0 | (9%) | �� | 62.7 | �� | 67.3 | (7%) |
Total | �� | 135.5 | �� | 137.5 | (1%) | �� | 135.4 | �� | 136.6 | (1%) | |
Unit counts - period end:���������������������� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Frac Flowback(3) | �� | �� | �� | �� | �� | �� | 73 | �� | 69 | 6% |
�� | Wireline (2), (4) | �� | �� | �� | �� | �� | �� | 61 | �� | 67 | (9%) |
Total | �� | �� | �� | �� | �� | �� | 134 | �� | 136 | (1%) | |
Number of jobs / days: | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Frac Flowback - days | �� | 1,827 | �� | 1,471 | 24% | �� | 6,405 | �� | 5,483 | 17% |
�� | Wireline - jobs (2) | �� | 1,247 | �� | 1,089 | 15% | �� | 4,504 | �� | 4,338 | 4% |
Total | �� | 3,074 | �� | 2,560 | 20% | �� | 10,909 | �� | 9,821 | 11% |
|
CCS generated better than expected revenue and gross margins during Q2
2012 given the extremely wet weather experienced throughout western
Canada.�� Increased equipment utilization combined with higher revenue
per day/job rates in both the Frac Flowback and Wireline divisions led
to a quarter over quarter revenue increase of 39% (to $25.6 million in
Q2 2012 from $18.4 million in Q2 2011).�� The increase in revenues
translated into a positive gross margin in Q2 2012 of $2.1 million
compared to a negative margin of $1.4 million in Q2 2011.�� The CCS
segment posted near break-even EBITDAS in Q2 2012 of negative $0.9
million representing a considerable improvement over the negative
EBITDAS of $3.9 million in Q2 2011.
The CCS segment continues to benefit from the shift to horizontal
drilling in the WCSB.�� During Q2 2012, 70% of the total wells drilled
(rig released) were horizontal, an increase from the 63% in Q1 2012 and
60% in Q2 2011.����The shift towards horizontal drilling has also led to
a slight increase in metres drilled on a quarter over quarter basis
(2.9 million in Q2 2012 versus 2.8 million in Q2 2011) offsetting the
drop in the total number of wells drilled (1,441 in Q2 2012 versus
1,457 in Q2 2011).
PDF - Horizontal Wells as a % of Total Wells Drilled
PDF - Metres Drilled/Well Rig Released
Frac Flowback
CCS Frac Flowback revenue increased by $3.1 million (or 36%) to $11.6
million in Q2 2012 versus the $8.5 million earned in Q2 2011.�� The Frac
Flowback division continues to benefit from the shift to more service
intensive horizontal wells (1,015 horizontal wells drilled in Q2 2012
compared to 867 in Q2 2011 - Source: Nickles Energy Group) and
increased work related to LPG fracturing operations. These factors led
to a 24% increase in Frac Flowback days worked to 1,827 in Q2 2012
compared to 1,471 in Q2 2011.�� Revenue per day increased on a quarter
over quarter basis, reflecting the significant increase in auxiliary
equipment (storage tanks, line heaters, high pressure pipe) required
for LPG fracturing work and high pressure work.�� The demand for
auxiliary Frac Flowback equipment continues to increase with the high
flowback volumes associated with horizontal wells and the increased
pressure encountered in deeper wells. The higher equipment utilization
combined with the increased revenue per day contributed to an increase
in the gross margins achieved by this division in Q2 2012 to 21%
compared to the 17% in Q2 2011.
Wireline����
CCS Wireline revenue in Q2 2012 of $14.0 million was 42% higher than the
$9.9 million recorded in Q2 2011.�� The higher revenue for Q2 2012
reflected a shift in the job mix towards higher rate services such as
pump down perforating and logging for horizontal wells, tubing conveyed
perforating and abandonment services, combined with an increase in
equipment utilization rates. Equipment utilization rates were higher as
1,247 jobs were completed in Q2 2012 compared to 1,089 jobs in Q2 2011,
despite a smaller operating fleet of wireline trucks and the extremely
wet weather experienced throughout the WCSB. The higher revenue level
resulted in a significant improvement in the division's gross margin
percentage to negative 2% in Q2 2012 from negative 29% in Q2 2011 as
the costs of the Wireline business are predominantly fixed in nature.
SG&A expenses incurred by the CCS segment in Q2 2012 of $3.1 million
were 12.0% of revenue, which was an improvement over the 13.7% of
revenue recognized in Q2 2011.�� For the six months ended June 30, 2012,
SG&A improved to 8.3% of revenue from the 9.1% recorded in the
comparative six-month period in 2011.�� The improvement in the quarter
over quarter and six-month periods reflects the significant increase in
revenues.
Outlook
CCS management continues to deploy equipment and structure its service
offerings to exploit the trend towards horizontal drilling.�� The Frac
Flowback division commenced work on 3 multi-well pad projects in the
Horn River area at the end of Q2 2012 and an additional multi-well pad
project in the Montney area in early Q3 2012.�� These projects, which
are expected to run through Q4 2012 and early 2013, require an
aggregate of 11 Frac Flowback units (or 15% of the existing fleet) and
a large complement of auxiliary equipment.�� The strong overall demand
for Frac Flowback services, combined with the continuing contractual
LPG flowback work and the aforementioned multi-well pad projects, is
expected to keep Frac Flowback equipment utilization levels robust for
the remainder of 2012.�� The CCS Wireline division is also experiencing
strong utilization rates for equipment due to the strong demand for
abandonment, high pressure and well logging services (for regulatory
purposes) and is expected to continue for the remainder of 2012.
US Completion Services ("USCS") Segment
�� | �� | �� | |||||||||||
(Unaudited) | Three months ended June 30, | Six months ended June 30, | |||||||||||
($000's) | �� | 2012 | �� | 2011 | �� | Change | �� | 2012 | �� | 2011 | �� | Change | |
Revenue | �� | ������������������������ �� | �� | �������������� | �� | �������������� | �� | ������������������������ �� | �� | �������������� | �� | �������������� | |
������������ | Frac Flowback | $ | 20,779 | $ | 16,092 | �� | 29% | $ | 41,969 | $ | 28,330 | �� | 48% |
������������ | Wireline | �� | 8,575 | �� | 6,394 | �� | 34% | �� | 16,390 | �� | 11,603 | �� | 41% |
�� | $ | 29,354 | $ | 22,486 | �� | 31% | $ | 58,359 | $ | 39,933 | �� | 46% | |
Gross margin | �� | �������������� | �� | �������������� | �� | ������������������������ �� | �� | �������������� | �� | �������������� | �� | ������������������������ �� | |
������������ | Frac Flowback | $ | 6,198 | $ | 6,467 | �� | (4%) | $ | 13,438 | $ | 10,645 | �� | 26% |
������������ | Wireline������ | �� | 639 | �� | 1,100 | �� | (42%) | �� | 639 | �� | 1,435 | �� | (55%) |
�� | $ | 6,837 | $ | 7,567 | �� | (10%) | $ | 14,077 | $ | 12,080 | �� | 17% | |
Gross margin % | �� | ������������������������ �� | �� | ������������������������ �� | �� | ������������������������ �� | �� | ������������������������ �� | �� | ������������������������ �� | �� | ������������������������ �� | |
������������ | Frac Flowback | �� | 30% | �� | 40% | �� | (25%) | �� | 32% | �� | 38% | �� | (16%) |
������������ | Wireline������ | �� | 7% | �� | 17% | �� | (59%) | �� | 4% | �� | 12% | �� | (67%) |
�� | �� | 23% | �� | 34% | �� | (32%) | �� | 24% | �� | 30% | �� | (20%) | |
SG&A expenses | $ | 2,645 | $ | 1,660 | �� | 59% | $ | 5,080 | $ | 3,331 | �� | 53% | |
EBITDAS | $ | 4,192 | $ | 5,907 | �� | (29%) | $ | 8,997 | $ | 8,749 | �� | 3% | |
Average unit counts: | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Frac Flowback | �� | 54.0 | �� | 43.5 | �� | 24% | �� | 53.7 | �� | 43.0 | �� | 25% |
�� | Wireline (1) | �� | 21.5 | �� | 16.5 | �� | 30% | �� | 20.7 | �� | 16.7 | �� | 24% |
Total | �� | 75.5 | �� | 60.0 | �� | 26% | �� | 74.4 | �� | 59.7 | �� | 25% | |
Unit counts - period end:���������������������� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Frac Flowback (2) | �� | �� | �� | �� | �� | �� | �� | 55 | �� | 45 | �� | 22% |
�� | Wireline (1), (3) | �� | �� | �� | �� | �� | �� | �� | 22 | �� | 16 | �� | 38% |
Total | �� | �� | �� | �� | �� | �� | �� | 77 | �� | 61 | �� | 26% | |
Number of jobs / days: | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Frac Flowback - days | �� | 3,010 | �� | 2,892 | �� | 4% | �� | 5,974 | �� | 5,146 | �� | 16% |
�� | Wireline - jobs | �� | 952 | �� | 788 | �� | 21% | �� | 1,825 | �� | 1,329 | �� | 37% |
Total | �� | 3,962 | �� | 3,680 | �� | 8% | �� | 7,799 | �� | 6,475 | �� | 20% |
|
�� ��
USCS' revenues increased by 31% to $29.4 million in Q2 2012 compared to
$22.5 million in Q2 2011 with increased contributions from both the
Wireline and Frac Flowback divisions.�� Drilling activity levels in
USCS' primary operating areas varied on a quarter over quarter basis.��
North Dakota continued to experience a modest increase in drilling
activity (average rig counts), despite the volatility in oil prices in
Q2 2012.�� Colorado, Pennsylvania and Wyoming, however, all experienced
decreases in drilling activity in Q2 2012 primarily due to lagging
natural gas prices.�� USCS' overall gross margin of $6.8 million in Q2
2012 was 10% less than the $7.6 million achieved in Q2 2011 reflecting
quarter over quarter margin reductions (on a dollar and percentage
basis) in both operating divisions.�� The lower gross margins, together
with higher SG&A expenses, contributed to a 29% reduction in EBITDAS
for USCS from $5.9 million in Q2 2011 to $4.2 million in Q2 2012.
The following chart shows the trend of drilling activity in USCS' core
operating areas:
PDF - Average Rotary Rig Counts
Frac Flowback ������ ��
USCS Frac Flowback revenues increased by $4.7 million (or 29%) to $20.8
million in Q2 2012 compared to $16.1 million in Q2 2011 reflecting a
slight increase in the number of days worked, combined with an increase
in revenue per day, in the current quarter.�� The increased revenue per
day reflects improved pricing on a quarter over quarter basis combined
with an increased use of auxiliary equipment, which adds to the daily
rates charged. �� Gross margins decreased by 4% to $6.2 million in Q2
2012 from $6.5 million in Q2 2011, while the gross margin percentage
declined to 30% in Q2 2012 compared to the 40% achieved in Q2 2011,
despite the increases in days worked and revenue per day.�� The erosion
in the gross margin reflects the significant mobilization costs
associated with relocating crews and equipment from regions focused on
"dry" natural gas to regions with an oil and liquids rich natural gas
focus.
Equipment utilization rates in early Q3 2012 have shown improvement over
rates in Q2 2012 as equipment repositioned to the DJ basin (in northern
Colorado) and to Wyoming is now working for customers.�� The USCS Frac
Flowback division continues to focus on margin improvement through
higher equipment utilization rates, reduced mobilization costs and
reductions in other operating costs.
Wireline
USCS Wireline revenues increased by $2.2 million (34%) to $8.6 million
in Q2 2012 compared to $6.4 million in Q2 2011.�� The higher revenues
primarily reflected the larger equipment fleet as the number of jobs
completed increased to 952 in Q2 2012 compared to 788 in Q2 2011.�� The
increase in revenue, however, did not translate to improved gross
margins.�� The Wireline division continued to be hampered by expansion
costs relating to new bases in Colorado, Oklahoma and New Mexico,
combined with the costs of repositioning equipment and crews into areas
with higher drilling activity.�� Some of the new bases are gaining
traction (particularly the Fort Lupton, Colorado base servicing the DJ
Basin) as the customer base grows.�� A sales office was established in
Dallas, Texas in Q2 2012 to focus on customers operating primarily in
the new markets of Oklahoma and New Mexico.
SG&A expenses incurred by the USCS segment in Q2 2012 of $2.6 million
(9.0% of revenue) were higher than the $1.7 million (7.4% of revenue)
in Q2 2011 reflecting the increased operating infrastructure needed for
the expanded operations.�� SG&A for the six-month period ended June 30,
2012 was 8.7% of revenue, which was relatively consistent with the 8.3%
of revenue recognized in the comparable six-month period of 2011.
Outlook
With the completion of the recent expansion of Wireline operations into
new operating areas in Colorado, New Mexico and Oklahoma, Pure's USCS
segment is focusing on improving operating margins for all of its
Wireline bases. The USCS Frac Flowback division is also focusing on
margin improvement through operating cost reductions in the wake of the
repositioning of equipment and crews to areas of higher activity in Q2
2012.
OTHER EXPENSES
�� | �� | �� | ||||||||||
(Unaudited) | ������������Three months ended June 30, | ������������Six months ended June 30, | ||||||||||
($000's) | �� | 2012 | �� | 2011 | �� | Change | �� | 2012 | �� | 2011 | �� | Change |
Stock-based compensation | $ | 311 | $ | 445 | �� | ������������������������(30%) | $ | 794 | $ | 629 | �� | ������������������������26% |
Depreciation and amortization | �� | ������������������������4,922 | �� | ������������������������3,618 | �� | ������������������������36% | �� | ������������������������9,538 | �� | ������������������������7,003 | �� | ������������������������36% |
Finance costs (1) | �� | ������������������������231 | �� | ������������������������240 | �� | ������������������������(4%) | �� | ������������������������496 | �� | ������������������������472 | �� | ������������������������5% |
Other expenses (income) (2) | �� | ������������������������(364) | �� | ������������������������265 | �� | ������������������������(237%) | �� | ������������������������173 | �� | ������������������������473 | �� | ������������������������(63%) |
|
Depreciation and Amortization Expense
Depreciation and amortization expense increased to $4.9 million in Q2
2012 from $3.6 million in Q2 2011.�� This reflects an increase in the
average net book values of property and equipment from $96.3 million in
Q2 2011 to $133.0 million in Q2 2012 primarily due to $48.9 million in
property and equipment additions over the past twelve months.
Finance Costs
Finance costs of $0.2 million in Q2 2012 were consistent with the $0.2
million recognized in Q2 2011.�� The increase in the average long-term
debt balance of $26.3 million in Q2 2012 compared to the $17.8 million
in Q2 2011 was offset by a reduction in interest rates related to
Pure's finance lease liabilities and its US debt facilities.
Other Expenses (Income)
Other income in Q2 2012 was comprised of a $0.5 million foreign exchange
gain, offset by a $0.1 million loss on sale of property and equipment.��
The foreign exchange gain in Q2 2012 was recognized by Pure's
wholly-owned US subsidiary, Pure Energy Services (USA), Inc. ("Pure
USA"), on Canadian dollar denominated term debt owing to the parent and
was the result of the strengthening in the US dollar relative to the
Canadian dollar from March 31, 2012 (where 1 USD = $0.9975 CDN) to June
30, 2012 (where 1 USD = $1.0181 CDN).
INCOME TAX EXPENSE
Pure's total income tax recovery in Q2 2012 of $0.8 million on the net
loss before income tax of $3.2 million results in a blended Canadian/US
effective income tax rate of approximately 26%.�� The US and Canadian
jurisdictions have effective income tax rates of approximately 38% and
30% respectively when the impact of expenses not deductible for tax
purposes are incorporated.�� The low blended effective income tax rate
in Q2 2012 is a result of the net losses incurred in the lower rate
Canadian jurisdiction (due to the seasonally slower Q2 period) that
were offset by the net earnings in the higher rate US jurisdiction.��
SUMMARY OF QUARTERLY RESULTS (1)
�� | �� | �� | �� | �� | �� | �� | �� | �� | ||||||
(Unaudited) | �� | 2012 | �� | �� | 2011 | �� | �� | 2010 | ||||||
($000's, except�� per share amounts) | �� | Q2 | Q1 | �� | �� | Q4 | Q3 | Q2 | Q1 | �� | �� | Q4 | Q3 | |
Continuing operations | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Revenue | �� | 54,986 | 83,063 | �� | �� | 78,883 | 65,088 | 40,877 | 60,972 | �� | �� | 55,128 | 45,996 | |
Gross margin | �� | 8,959 | 27,833 | �� | �� | 27,897 | 21,746 | 6,197 | 20,208 | �� | �� | 17,316 | 13,804 | |
Gross margin % | �� | 16% | 34% | �� | �� | 35% | 33% | 15% | 33% | �� | �� | 31% | 30% | |
SG&A expenses | �� | 7,043 | 7,156 | �� | �� | 7,431 | 5,928 | 5,289 | 5,962 | �� | �� | 6,379 | 5,558 | |
EBITDAS | �� | 1,916 | 20,677 | �� | �� | 20,466 | 15,818 | 908 | 14,246 | �� | �� | 10,937 | 8,246 | |
Net earnings (loss) | �� | (2,368) | 10,220 | �� | �� | 9,389 | 8,297 | (3,020) | 6,959 | �� | �� | 4,416 | 3,166 | |
Earnings (loss) per share | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Basic | �� | (0.10) | 0.42 | �� | �� | 0.39 | 0.34 | (0.12) | 0.29 | �� | �� | 0.19 | 0.13 |
�� | Diluted | �� | (0.10) | 0.41 | �� | �� | 0.37 | 0.33 | (0.12) | 0.28 | �� | �� | 0.18 | 0.13 |
Funds flow from operations | �� | 1,746 | 20,402 | �� | �� | 20,105 | 15,498 | 667 | 14,629 | �� | �� | 10,523 | 7,482 | |
Discontinued operations | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Net earnings (loss) | �� | - | - | �� | �� | - | - | - | - | �� | �� | (46) | (165) | |
Total operations | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
Earnings (loss) per share | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | Basic | �� | (0.10) | 0.42 | �� | �� | 0.39 | 0.34 | (0.12) | 0.29 | �� | �� | 0.18 | 0.13 |
�� | Diluted | �� | (0.10) | 0.41 | �� | �� | 0.37 | 0.33 | (0.12) | 0.28 | �� | �� | 0.18 | 0.12 |
|
Pure's business is seasonal in nature with Canadian operations
experiencing a slow-down in activity in Q2 of each year due to spring
break-up in western Canada, and US operations typically experiencing
slower activity in the colder winter months.�� In addition, the business
is cyclical as a result of industry activity levels that are highly
correlated to oil, NGL and natural gas prices that affect the cash flow
of the Corporation's customers and their ability to obtain debt and
equity financing.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 2012, Pure's long-term debt exceeded working capital by $2.5
million which is an increase of $4.4 million from the amount at
December 31, 2011.�� The increase primarily reflects funds flow from
operations of $22.1 million, offset by net capital expenditures of
$22.2 million and dividend payments of $4.4 million.
The net capital expenditures of $22.2 million were comprised of $23.3
million in purchases of property, equipment and intangible assets (of
which $2.2 million related to field vehicles financed through leases),
offset by $1.1 million in proceeds received from equipment disposals.��
The additions to property, equipment and intangible assets (excluding
vehicles acquired through finance leases) for the six months ended June
30, 2012 related primarily to:
CCS
5 Frac Flowback units and auxiliary equipment.
Wireline unit refurbishments and auxiliary Wireline equipment.
Progress payments for 3 additional Frac Flowback units scheduled to be
received in Q3 2012.
Progress payments for additional auxiliary Frac Flowback equipment and
Wireline equipment.
The original CCS capital expenditure budget for 2012 included 9 Frac
Flowback units.�� Funds for one Frac Flowback unit originally budgeted
have been re-allocated to certain auxiliary equipment required for
customer projects in 2012.
USCS
2 Wireline units and supporting equipment.
Progress payments for 2 additional Wireline Units scheduled to be
received in Q3 2012.
1 Frac Flowback unit and auxiliary equipment.
Progress payments for 1 Frac Flowback unit expected to be received in Q3
2012.
Progress payments for auxiliary Frac Flowback equipment to replace
equipment currently rented from third party providers.
The original USCS capital expenditure budget for 2012 included the
purchase of 8 Wireline units and 6 Frac Flowback units.�� As noted in
the Outlook section, Pure is postponing the purchase of 4 Wireline
units and 4 Frac Flowback units until 2013.
The Corporation has the following operating lease commitments, purchase
commitments and debt commitments over the next five years:
�� | �� | |||||||||||
�� | Payments for years ending June 30 | |||||||||||
�� | �� | |||||||||||
(Unaudited)�� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | After |
($000's) | �� | Total | �� | 2013 | �� | 2014 | �� | 2015 | �� | 2016 | �� | 2017 |
Long-term debt obligations (1) | $ | 28,136 | $ | 6,437 | $ | 6,510 | $ | 7,515 | $ | 3,484 | $ | 4,190 |
Purchase commitments (2) | �� | 19,566 | �� | 17,530 | �� | 1,018 | �� | 1,018 | �� | - | �� | - |
Operating leases | �� | 26,453 | �� | 6,580 | �� | 6,004 | �� | 4,390 | �� | 3,831 | �� | 5,648 |
Total contractual obligations | $ | 74,155 | $ | 30,547 | $ | 13,532 | $ | 12,923 | $ | 7,315 | $ | 9,838 |
|
At June 30, 2012, Pure had aggregate debt facilities from its Canadian
and US lenders of approximately $67 million (Canada - $45 million plus
US - $22 million).�� The Canadian debt facilities include a $20 million
operating loan and a $25 million, three year extendible revolving loan
which is scheduled to mature on September 30, 2014. The full $45
million was available under the Canadian debt facilities as at June 30,
2012.
The US debt facilities include a USD $5 million, three year revolving
facility that matures on September 30, 2014 and a USD $17 million
equipment financing facility.�� The equipment financing facility
revolves until September 30, 2012, at which time any outstanding
amounts on the facility are converted to a term loan which is repayable
over a five year period.�� An aggregate USD $3.3 million was available
under the US debt facilities as at June 30, 2012 (USD $2.6 million
under the revolving facility and USD $0.7 million under the equipment
financing facility).
The covenants for both the Canadian and US debt facilities are
calculated on a consolidated basis in accordance with the terms of the
respective credit agreements.�� Pure was in compliance with all of its
debt covenants at June 30, 2012.
The Corporation believes that its available debt facilities, combined
with funds flow from operations, will provide sufficient capital
resources to fund the 2012 capital expenditure program and ongoing
operations.�� In addition to the weak natural gas prices forecasted for
the remainder of 2012, the current global economic concerns (including
the sluggish US economy and the sovereign debt issues in several
European countries) could have a negative impact on market confidence,
which in turn could potentially lower the demand for energy products as
well as the demand for Pure's services.�� Management continues to
monitor its capital and operational spending programs in response to
these market conditions.
SHARE CAPITAL
As at August 8, 2012, the Corporation had 24.5 million shares
outstanding and 1.9 million options outstanding, of which 0.9 million
were vested.
RISKS AND UNCERTAINTIES
A complete discussion of risks faced by the Corporation may be found
under "Risk Factors" in the Corporation's Annual Information Form dated
March 13, 2012 which is available under the Corporation's profile at www.sedar.com.
NON-IFRS MEASURES
EBITDAS and funds flow from operations do not have standardized meanings
prescribed by IFRS. Management believes that, in addition to net
earnings, EBITDAS is a useful supplemental measure. EBITDAS is provided
as a measure of operating performance without reference to financing
decisions, depreciation, income tax or stock-based compensation
impacts, which are not controlled at the operating management level.
Investors should be cautioned that EBITDAS should not be construed as
an alternative to net earnings determined in accordance with IFRS as an
indicator of Pure's financial performance. Pure's method of calculating
EBITDAS may differ from that of other entities and accordingly may not
be comparable to measures used by other entities. See section titled
"Reconciliation of EBITDAS to Net Earnings" below.
Funds flow from operations is defined as cash from operating activities
before changes in non-cash working capital, as presented on Pure's
statement of cash flows. Funds flow from operations is a measure that
provides investors with additional information regarding Pure's
liquidity and its ability to generate funds to finance its operations.
Funds flow from operations does not have a standardized meaning
prescribed by IFRS and may not be comparable to similar measures
provided by other entities.
RECONCILIATION OF EBITDAS TO EARNINGS BEFORE INCOME TAXES
�� | �� | �� | |||||||
(Unaudited) | Three months ended June 30, | Six months ended June 30, | |||||||
($000's) | �� | 2012 | �� | 2011 | �� | 2012 | �� | 2011 | |
Earnings (Loss) before income taxes | $ | (3,184) | $ | (3,660) | $ | 11,592 | $ | 6,577 | |
Add: Depreciation and amortization | �� | 4,922 | �� | 3,618 | �� | 9,538 | �� | 7,003 | |
�� | Finance costs (1) | �� | 231 | �� | 240 | �� | 496 | �� | 472 |
�� | Other expenses (income) (2) | �� | (364) | �� | 265 | �� | 173 | �� | 473 |
�� | Stock-based compensation | �� | 311 | �� | 445 | �� | 794 | �� | 629 |
EBITDAS | $ | 1,916 | $ | 908 | $ | 22,593 | $ | 15,154 |
|
FORWARD-LOOKING STATEMENTS
This document contains certain forward-looking statements and other
information that are based on the Corporation's current expectations,
estimates, projections and assumptions made by management in light of
its experience and perception of historical trends, current conditions,
anticipated future developments and other factors believed by
management to be relevant.
All statements and other information contained in this document that
address expectations or projections about the future are
forward-looking statements. Some of the forward-looking statements may
be identified by words such as "may", "would", "could", "will",
"intends", "targets", "expects", "believes", "plans", "anticipates",
"estimates", "continues", "maintains", "projects", "indicates",
"outlook", "proposed", "objective" and other similar expressions. These
statements speak only as of the date of this document. Forward-looking
statements involve significant risks and uncertainties, should not be
read as guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results will
be achieved. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking
statements, including, but not limited to, the factors discussed in the
"Risks and Uncertainties" section in the most recent Annual Information
Form, Information Circular, quarterly reports, material change reports
and news releases. The Corporation cannot assure investors that actual
results will be consistent with the forward-looking statements and
readers are cautioned not to place undue reliance on them. The
forward-looking statements are provided as of the date of this document
and, except as required pursuant to applicable securities laws and
regulations, the Corporation assumes no obligation to update or revise
such statements to reflect new events or circumstances.
The forward-looking statements and information contained in this
document reflect several major factors, expectations and assumptions of
the Corporation, including without limitation, that the Corporation
will continue to conduct its continuing operations in a manner
substantially consistent with past operations; the general continuance
of current or, if applicable, assumed industry conditions; the
continuance of existing (and in certain circumstances, the
implementation of proposed) taxation, royalty and regulatory regimes;
certain presumptions relating to the prices of the Corporation's
services and its costs of services; certain commodity prices and other
cost assumptions; certain conditions regarding oil and natural gas
supply, demand and storage in North America; the continued availability
of adequate debt and/or equity financing and cash flow from the
Corporation's operations to fund its capital and operating requirements
as needed; and the extent of its liabilities. Many of these factors,
expectations and assumptions are based on management's knowledge and
experience in the industry and on public disclosure of industry
participants and analysts relating to anticipated exploration and
development programs of oil and natural gas producers, the effect of
changes to regulatory, taxation and royalty regimes, expected active
rig counts and industry equipment utilization in the WCSB and the
Corporation's US operating regions and other matters. The Corporation
believes that the material factors, expectations and assumptions
reflected in the forward-looking statements and information are
reasonable; however, no assurances can be given that these factors,
expectations and assumptions will prove to be correct.
In particular, this document contains forward-looking information
pertaining to the following: ability to manage costs in response to
industry activity levels; success of marketing programs and the
increase and diversification of the Corporation's customer base; amount
and timing of both the Corporation's and its customers' capital
expenditure programs; ability to redeploy equipment and personnel
within operating locations; availability of debt financing and ability
to renew the Corporation's existing credit facilities at acceptable
terms; supply and demand for oilfield services and industry activity
levels and the impact on equipment utilization; oil, natural gas
liquids and natural gas prices; oil, natural gas and liquids rich
natural gas drilling activity; horizontal drilling activity; treatment
under governmental royalty programs or regimes; collection of accounts
receivable; operating risk liability; expectations regarding market
prices and costs for the Corporation's services and the impact of these
changes on gross margins; expansion of services and operations in
Canada and the US through organic growth or by acquisition; financial
results for new operating bases; working capital net of long-term debt
levels; the amount and timing of recognition of income tax recoveries,
income tax losses and deferred expense pools; future customer work;
expected levels of the Corporation's sales, general and administrative
expenses; ability to crew equipment; the recruitment and retention of
local employees for the Corporation's field operations; and competitive
conditions.
Consolidated Statements of Financial Position
�� | �� | �� | �� | �� | |
(Unaudited) ($000's) | �� | As at June 30, 2012 | �� | As at December 31, 2011 | |
Assets | �� | �� | �� | �� | |
Current Assets | �� | �� | �� | �� | |
������������ | Cash and cash equivalents�� | $ | 2,017 | $ | 999 |
������������ | Trade and other receivables�� | �� | 44,259 | �� | 53,037 |
������������ | Inventories�� | �� | 3,234 | �� | 2,628 |
������������ | Deposits and prepaid expenses | �� | 1,830 | �� | 2,028 |
�� | �� | ��51,340 | �� | ��58,692 | |
Non-Current Assets | �� | �� | �� | �� | |
������������ | Property and equipment �� | �� | 137,002 | �� | 125,162 |
������������ | Intangible assets���� | �� | 1,509 | �� | 647 |
������������ | Deferred tax assets���� | �� | 8,449 | �� | 12,212 |
�� | $ | 198,300 | $ | 196,713 | |
Liabilities and Shareholders' Equity | �� | �� | �� | �� | |
Current Liabilities | �� | �� | �� | �� | |
������������ | Operating loans������ | $ | - | $ | 4,912 |
������������ | Trade and other payables�� | �� | 25,711 | �� | 29,169 |
������������ | Current portion of long-term debt �� | �� | 6,437 | �� | 4,157 |
�� | �� | ��32,148 | �� | ��38,238 | |
Non-Current Liabilities | �� | �� | �� | �� | |
������������ | Long-term debt ������ | �� | 21,699 | �� | 18,515 |
�� | �� | 53,847 | �� | 56,753 | |
Shareholders' Equity | �� | �� | �� | �� | |
������������ | Share capital �� | �� | 122,971 | �� | 122,686 |
������������ | Contributed surplus �� | �� | 6,649 | �� | 5,952 |
������������ | Accumulated other comprehensive income (loss)�� | �� | (293) | �� | (350) |
������������ | Retained earnings | �� | 15,126 | �� | 11,672 |
�� | �� | 144,453 | �� | 139,960 | |
�� | $ | 198,300 | $ | 196,713 |
Consolidated Statements of Net Earnings (Loss)
For the three and six-month periods ended June 30,
�� | �� | �� | |||||||
(Unaudited) | �� Three months ended June 30, | Six months ended June 30, | |||||||
($000's, except per share amounts) | �� | 2012 | �� | 2011 | �� | 2012 | �� | 2011 | |
Revenue�� | $ | 54,986 | $ | 40,877 | $ | 138,049 | $ | 101,849 | |
Operating expenses�� | �� | 46,027 | �� | 34,680 | �� | 101,257 | �� | 75,444 | |
Gross margin | �� | 8,959 | �� | 6,197 | �� | 36,792 | �� | 26,405 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
Selling, general and administrative �� | �� | 7,043 | �� | 5,289 | �� | 14,199 | �� | 11,251 | |
Stock-based compensation�� | �� | 311 | �� | 445 | �� | 794 | �� | 629 | |
Depreciation and amortization�� | �� | 4,922 | �� | 3,618 | �� | 9,538 | �� | 7,003 | |
Finance costs�� | �� | 231 | �� | 240 | �� | 496 | �� | 472 | |
Other expenses�� | �� | (364) | �� | 265 | �� | 173 | �� | 473 | |
Earnings (Loss) before income taxes�� | �� | (3,184) | �� | (3,660) | �� | 11,592 | �� | 6,577 | |
Income Taxes�� | �� | �� | �� | ������������������������ �� | �� | �� | �� | �������������� | |
������������ | Current tax expense (recovery)�� | �� | - | �� | (53) | �� | - | �� | - |
������������ | Deferred tax expense (reduction)�� | �� | (816) | �� | (587) | �� | 3,740 | �� | 2,638 |
�� | �� | (816) | �� | (640) | �� | 3,740 | �� | 2,638 | |
Net Earnings (Loss) | $ | (2,368) | $ | (3,020) | $ | 7,852 | $ | 3,939 | |
�� | �� | �� | �� | �� | �� | �� | �� | �� | |
Earnings (Loss) Per Share�� | �� | ������������������������ �� | �� | ������������������������ �� | �� | ������������������������ �� | �� | ������������������������ �� | |
������������������������ | Basic�� | $ | (0.10) | $ | (0.12) | $ | 0.32 | $ | 0.16 |
������������������������ | Diluted | �� | (0.10) | �� | (0.12) | �� | 0.31 | �� | 0.16 |
Consolidated Statements of Comprehensive Income (Loss)
For the three and six-month periods ended June 30,
�� | �� | �� | |||||||
(Unaudited) | Three months ended June 30, | Six months ended June 30, | |||||||
($000's) | �� | 2012 | �� | 2011 | �� | 2012 | �� | 2011 | |
Net Earnings (Loss) | $ | (2,368) | $ | (3,020) | $ | 7,852 | $ | 3,939 | |
Other comprehensive income (loss) items:�� | �� | �� | �� | �� | �� | �� | �� | �� | |
������������ | Currency translation adjustment on foreign operations�� | �� | ������������������������ 735 | �� | ������������������������ (30) | �� | ������������������������ 57 | �� | ������������������������ (952) |
������������ | Realized foreign exchange loss�� | �� | - | �� | 53 | �� | - | �� | 53 |
�� | �� | ������������������������735 | �� | ������������������������23 | �� | ������������������������57 | �� | ������������������������(899) | |
Comprehensive Income (Loss) | $ | (1,633) | $ | (2,997) | $ | 7,909 | $ | 3,040 |
Consolidated Statements of Cash Flows
For the three and six-month periods ended June 30,
�� | ||||||||||
(Unaudited) | �� Three months ended June 30, | Six months ended June 30, | ||||||||
($000's) | �� | 2012 | �� | 2011 | �� | 2012 | �� | 2011 | ||
Operating Activities �� | �� | �� | �� | �� | �� | �� | �� | �� | ||
�� | Net Earnings (Loss)�� | $ | (2,368) | $ | (3,020) | $ | 7,852 | $ | 3,939 | |
�� | Non-cash items:�� | �� | �� | �� | �� | �� | �� | �� | �� | |
�� | �� | Stock-based compensation�� | �� | 311 | �� | 445 | �� | 794 | �� | 629 |
�� | �� | Depreciation and amortization�� | �� | 4,922 | �� | 3,618 | �� | 9,538 | �� | 7,003 |
�� | �� | Finance costs | �� | 231 | �� | 240 | �� | 496 | �� | 472 |
�� | �� | Loss on sale of property and equipment�� | �� | 88 | �� | 82 | �� | 182 | �� | 171 |
�� | �� | Unrealized foreign exchange loss (gain)�� | �� | (403) | �� | 178 | �� | 38 | �� | 258 |
�� | �� | Income tax expense (recovery) | �� | (816) | �� | (640) | �� | 3,740 | �� | 2,638 |
�� | �� | Interest paid | �� | (219) | �� | (236) | �� | (492) | �� | (471) |
�� | �� | Income taxes refunded | �� | - | �� | - | �� | - | �� | 657 |
�� | �� | 1,746 | �� | 667 | �� | 22,148 | �� | 15,296 | ||
�� | Changes in non-cash working capital | �� | 14,098 | �� | 11,512 | �� | 6,155 | �� | 3,613 | |
Net Operating Cash Flows | �� | 15,844 | �� | 12,179 | �� | 28,303 | �� | 18,909 | ||
Investing Activities �� | �� | �� | �� | �� | �� | �� | �� | �� | ||
�� | Purchases of property and equipment�� | �� | (11,625) | �� | (11,618) | �� | (20,251) | �� | (18,706) | |
�� | Purchases of intangible assets�� | �� | (606) | �� | - | �� | (862) | �� | - | |
�� | Proceeds from sale of property and equipment�� | �� | 733 | �� | 676 | �� | 1,106 | �� | 895 | |
�� | Changes in non-cash working capital�� | �� | 1,205 | �� | 1,706 | �� | (1,234) | �� | 2,284 | |
Net Investing Cash Flows �� | (10,293) | �� | (9,236) | �� | (21,241) | �� | (15,527) | |||
Financing Activities �� | �� | �� | �� | �� | �� | �� | �� | �� | ||
�� | Repayment of operating loans�� | �� | (4,281) | �� | - | �� | (4,912) | �� | (3,194) | |
�� | Proceeds from long-term debt�� | �� | 3,655 | �� | - | �� | 5,077 | �� | 1,975 | |
�� | Repayment of long-term debt�� | �� | (966) | �� | (2,121) | �� | (1,990) | �� | (3,594) | |
�� | Dividends paid�� | �� | (2,199) | �� | - | �� | (4,395) | �� | - | |
�� | Issue of share capital�� | �� | 65 | �� | 568 | �� | 188 | �� | 694 | |
Net Financing Cash Flows | �� | (3,726) | �� | (1,553) | �� | (6,032) | �� | (4,119) | ||
Increase (Decrease) in Cash and Cash Equivalents | �� | 1,825 | �� | 1,390 | �� | 1,030 | �� | (737) | ||
Effect of translation on foreign currency cash and cash equivalents | �� | 19 | �� | (14) | �� | (12) | �� | (77) | ||
Cash and Cash Equivalents, Beginning of Period | �� | 173 | �� | 2,409 | �� | 999 | �� | 4,599 | ||
Cash and Cash Equivalents, End of Period | $ | 2,017 | $ | 3,785 | $ | 2,017 | $ | 3,785 |
Consolidated Statements of Changes in Equity
For the six months ended June 30, 2012 and 2011
2012 | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | ||
�� | �� | Share Capital | �� | �� | �� | �� | �� | �� | �� | �� | ||
(Unaudited) ($000's) | �� | 000's of Shares | �� | Carrying Value | �� | Contributed Surplus | �� | AOCI* | �� | ������������Retained Earnings | �� | Total Equity |
Balance at January 1, 2012 | �� | 24,372 | $ | 122,686 | $ | 5,952 | $ | (350) | $ | 11,672 | $ | 139,960 |
Common shares issued under stock option plan | �� | 79 | �� | 285 | �� | (97) | �� | - | �� | - | �� | 188 |
Stock-based compensation | �� | - | �� | - | �� | 794 | �� | - | �� | - | �� | 794 |
Net Earnings | �� | - | �� | - | �� | - | �� | - | �� | 7,852 | �� | 7,852 |
Other comprehensive income | �� | - | �� | - | �� | - | �� | 57 | �� | - | �� | 57 |
Dividends declared | �� | - | �� | - | �� | - | �� | - | �� | (4,398) | �� | (4,398) |
Balance at June 30, 2012 | �� | 24,451 | $ | 122,971 | $ | 6,649 | $ | (293) | $ | 15,126 | $ | 144,453 |
2011 | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� |
�� | �� | Share Capital | �� | �� | �� | �� | �� | Retained | �� | �� | ||
(Unaudited) ($000's) | �� | 000's of Shares | �� | Carrying Value | �� | Contributed Surplus | �� | AOCI* | �� | ������������Earnings (Deficit) | �� | Total Equity |
Balance at January 1, 2011 | �� | ������������23,830 | $ | 121,156 | $ | 4,904 | $ | (2,084) | $ | (7,756) | $ | 116,220 |
Common shares issued under stock option plan | �� | 382 | �� | 1,050 | �� | (356) | �� | - | �� | - | �� | 694 |
Stock-based compensation | �� | - | �� | - | �� | 629 | �� | - | �� | - | �� | 629 |
Net Earnings | �� | - | �� | - | �� | - | �� | - | �� | 3,939 | �� | 3,939 |
Other comprehensive loss | �� | - | �� | - | �� | - | �� | (899) | �� | - | �� | (899) |
Balance at June 30, 2011 | �� | 24,212 | $ | 122,206 | $ | 5,177 | $ | (2,983) | $ | (3,817) | $ | 120,583 |
*��AOCI represents accumulated other comprehensive income (loss). AOCI
comprises all foreign currency differences (net of tax) arising from
the translation of the net investment in the Corporation's US
subsidiary.
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PDF available at: http://stream1.newswire.ca/media/2012/08/09/20120809_C5602_DOC_EN_16720.pdf
PDF available at: http://stream1.newswire.ca/media/2012/08/09/20120809_C5602_DOC_EN_16721.pdf
PDF available at: http://stream1.newswire.ca/media/2012/08/09/20120809_C5602_DOC_EN_16722.pdf
SOURCE: Pure Energy Services Ltd.
For further information:
Kevin Delaney
Chief Executive Officer
E-mail:��kevin.delaney@pureenergyservices.com
Chris Martin
Vice President, Finance and Chief Financial Officer
E-mail:��chris.martin@pureenergyservices.com
Address: 10th Floor, 333 11th Avenue S.W.
Calgary, Alberta T2R 1L9
Phone: (403) 262-4000
Fax: (403) 262-4005
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