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Petrowest Corporation Announces Record Third Quarter 2013 Financial Results

Petrowest Corporation Announces Record Third Quarter 2013 Financial Results 
CALGARY, Nov. 12, 2013 /CNW/ - Petrowest Corporation (TSX:PRW) announced today 
its consolidated financial results for the three and nine month periods ended 
September 30, 2013. 
Rick Quigley, Chief Executive Officer, stated that "with a return to normal 
operating conditions and continuing strong customer activity in the regions 
the Company operates, the Company recorded record revenues and record Adjusted 
EBITDA in the third quarter. In the first nine months of 2013 the Company 
increased its fleet by 90 pieces of heavy equipment resulting in increased 
capacity. Although there was a recovery in our margins this quarter, the 
year to date results remain below anticipated levels due to the unseasonable 
weather we experienced with the rest of the industry during the first half of 
the year." Mr. Quigley further stated that "we are proud of the record 
financial results for this quarter and continue to be encouraged by the amount 
of backlog currently in place. These results confirm that work has not been 
lost during periods of unseasonable weather and is deferred to subsequent 
periods." 
Subsequent to quarter end, on November 5, 2013 the Company completed the sale, 
on a "bought deal" basis, of 21,562,500 class A common shares at a price of 
$0.80 per common share, for aggregate gross proceeds of $17.25 million. The 
net proceeds from the offering were approximately $15.9 million after 
deduction of the underwriter's fee and closing costs and were utilized to 
reduce the Company's long-term debt in addition to increasing its working 
capital position. 
FINANCIAL HIGHLIGHTS 
In the three months ended September 30, 2013 compared to the same period of 
2012, the Company: 


    --  Reported record revenue of $73.5 million, an increase of $13.6
        million compared to the same quarter in 2012
    --  Reported record Adjusted EBITDA of $14.6 million, an increase
        of $1.8 million  compared to the same quarter in 2012
    --  Reported Adjusted EBITDA margin of 19.8% compared to 21.4% in
        the same quarter in 2012
    --  Entered into a revolving credit facility with availability of
        up to $30.0 million
    --  Repaid the outstanding balance of the $22.2 million Canadian
        term facility

In the nine months ended September 30, 2013 compared to the same period of 
2012, the Company:
    --  Reported revenue of $169.7 million, an increase of $14.1
        million compared to the same period in 2012
    --  Reported Adjusted EBITDA of $29.1 million compared to $33.0
        million in the same period in 2012
    --  Reported Adjusted EBITDA margin of 14.8% compared to 18.6% in
        the same period in 2012
    --  Closed a $50.0 million syndicated loan facility and repaid the
        outstanding balance of the US$31.7 million
        long-term debt facility and $1.8 million of convertible
        debentures
    --  Commenced construction of the $78.0 million Highway 43 twinning
        project
    --  Commenced operations at the landfill site in northeastern
        British Columbia

FINANCIAL RESULTS
                                                              
                              Three months ended   Nine months ended
                                   September 30,         September 30,

($000's)                          2013      2012        2013      2012

Revenue                         73,475    59,872     168,673   154,546

Operating expenses            (57,591)  (45,719)   (139,536) (121,558)

Gross margin                    15,884    14,153      29,137    32,988

General and administrative     (1,334)   (1,370)     (4,220)   (4,194)

Adjusted EBITDA                 14,550    12,783      24,917    28,794

Amortization of property and   (5,250)   (4,304)    (15,155)  (12,073)
equipment

Amortization of intangible        (96)      (58)       (357)     (614)
assets

Share-based compensation         (234)      (39)       (665)     (224)

Gain(loss) on disposal of          165     (299)         329     (279)
property and equipment

Foreign exchange gain (loss)         -     1,346       (642)     1,361

Operating profit (loss)          9,135     9,429       8,427    16,965

Net finance expense            (1,883)   (2,660)     (9,959)   (7,939)

Loss on fair value of                -     (114)         (6)     (384)
financial instruments

Net income (loss) and
comprehensive income (loss)      7,252     6,655     (1,538)     8,642
before income tax

Deferred income tax expense        760   (1,375)       (357)     1,403
(recovery)

Net and comprehensive income     6,492     5,280     (1,181)    10,045
(loss)
                                                                      

Total assets                   147,180   129,278                      

Total long-term liabilities     69,176    61,318                      

Funds from Operations           12,785    10,502      18,652    21,935
                                                    

SELECTED FINANCIAL INFORMATION AND NON-IFRS MEASURES

Selected financial information for the three and nine month periods ended 
September 30, 2013 and 2012 is set out above and includes the following 
non-IFRS financial measures: Gross margin, Gross margin percentage, Adjusted 
EBITDA, Adjusted EBITDA margin percentage and Funds from Operations. This 
information should be read in conjunction with the consolidated financial 
statements for the three and nine month periods ended September 30, 2013 and 
the Company's Management, Discussion and Analysis ("MD&A"), available under 
the Company's profile on the SEDAR website at www.sedar.com. Further 
information respecting the non-IFRS financial measures is contained in the 
Company's MD&A.

FORWARD LOOKING INFORMATION

This news release contains forward-looking statements that involve substantial 
known and unknown risks and uncertainties. These forward-looking statements 
are identified by their use of terms and phrases such as "anticipate", 
"achievable", "believe", "expect", "estimate", "plan", "intend", 
"project", "may", "should", "could", "predict", "will", or similar 
words suggesting future outcomes or language suggesting an outlook. 
Forward-looking statements and information are based on Petrowest's current 
beliefs as well as assumptions made by and information currently available to 
Petrowest concerning anticipated business performance. Although management of 
Petrowest considers these assumptions to be reasonable based on information 
currently available to it, they may prove to be incorrect. Forward-looking 
statements are subject to many external variables that are beyond Petrowest's 
control, such as fluctuating prices for crude oil and natural gas, changes in 
drilling activity, and general local and global economic, political, business 
and weather conditions. If any of these or other uncertainties materialize, 
the actual results of Petrowest may vary materially from those expected.

ABOUT PETROWEST

Petrowest is an Alberta corporation involved in pre-drilling and 
post-completion energy services as well as industrial and civil infrastructure 
projects, gravel crushing and hauling for non-energy sector customers. 
Petrowest's primary operations are based in the Grande Prairie area of 
northern Alberta and in northeastern British Columbia.







SOURCE  Petrowest Corporation 
Richard Quigley, President and Chief Executive Officer, at (780)  830-0881, or 
Ian Hogg, Vice President, Corporate Affairs, at (403)  384-0407, or Lloyd 
Wiggins, Chief Financial Officer, at (416) 572-2160,  orinfo@petro-west.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2013/12/c6735.html 
CO: Petrowest Corporation
ST: Alberta
NI: OIL ERN  
-0- Nov/12/2013 21:23 GMT
 
 
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