InvestmentPitch: Aveda Transportation and Energy (TSXV:AVE) Grows Market Share
with Acquisition of Precision Drilling Corporation's U.S. Rig Moving Assets -
Video News Alert Summary on InvestmentPitch.com
Vancouver, BC, June 17, 2014 - Aveda Transportation and Energy Services
(TSXV:AVE), a leading provider of oilfield hauling services and equipment
rentals to the energy industry, continues to grow its market share, with the
announcement that it has signed an asset purchase agreement to acquire
Precision Drilling Corporation's U.S. rig moving assets.
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A significant portion of Aveda's 2014 capital expenditure budget is being
allocated to this US$24 million acquisition, which is expected to close on
July 1st, subject to customary documentation and approvals. The rig moving
equipment being acquired includes 13 bed/tandem trucks, 59 winch/conventional
tractors, 69 trailers, and 12 cranes.
Kevin Roycraft, President and CEO of Aveda stated, "Through this transaction
we are acquiring a modern and well maintained fleet that shares the same
specifications and equipment configuration as our current U.S. assets. This
will support a smooth integration into our operations and drive utilization.
It also strengthens our relationship with Precision and we look forward to
working with Precision on internal and customer rig moves in the future.
Strategically, this will further reduce Aveda's reliance on third-party
equipment suppliers, helping to improve margins, and allow us to allocate
equipment to both current and new operating areas to take advantage of high
activity levels and further growth opportunities in certain regions."
The company expects to deploy these assets sometime in the third quarter of
2014. Management intends to increase planned capital expenditures for 2014
with an eye to funding additional growth initiatives and reducing the
company's third party costs.
Aveda provides specialized transportation services and equipment required for
the exploration, development and production of petroleum resources in the
Western Canadian Sedimentary Basin and in the United States, principally in
and around the states of Texas, Pennsylvania and North Dakota.
Aveda recently reported that revenue for the quarter ended March 31, 2014 grew
by $12.0 million to $35.5 million, compared with revenue of $23.5 million for
the same period in 2013. US revenue increased by 82.5% and Canadian revenue
increased by 6.9% which resulted in overall revenue increase of 51.1%.
The company has received commitment letters from its banking syndicate which
will increase its lending facility, effective June 30th, from $75 million to
between $115 to $125 million, subject to the customary due diligence.
Bharat Mahajan, Vice President, Finance and CFO stated "This latest increase
provides us with access to capital that will allow us to act on an array of
strategic growth initiatives both organic and acquisitive."
The shares are currently trading at $4.95, up 110% over the last 12 months.
For more information, please visit the company's website www.avedaenergy.com,
contact Bharat Mahajan CFO at 403-264-5769 or email
email@example.com. Please also review Aveda's MD & A and news
releases for a detailed list of risk factors.
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Barry Morgan, CFO
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: InvestmentPitch via Globenewswire
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