Macro Enterprises Inc. Announces 2013 Fourth Quarter and Year End Results
12 Marzo 2014 - 11:20PM
Marketwired Canada
Macro Enterprises Inc. (TSX VENTURE:MCR) -
Summary of financial results
(thousands of dollars except per share amounts)
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Three months ended Year ended
December 31 December 31
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2013 2012 2013 2012
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(unaudited)
Revenues $54,386 $43,827 $211,846 $148,314
EBITDA1 8,625 7,576 47,743 30,626
Net income 6,670 5,643 31,285 19,345
Net income per share $0.22 $0.23 $1.13 $0.79
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Weighted average common
shares outstanding
(thousands) 27,464 23,882
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Highlights
-- Revenues increased from the fourth quarter last year due in part to
revenues from the new business acquired in November 2012
-- EBITDA and net income were above the fourth quarter of last year due to
increased activity
Note 1 - References to EBITDA are to net income from continuing operations
before interest, taxes, amortization and impairment charge. EBITDA is not an
earnings measure recognized by International Financial Reporting Standards
("IFRS") and does not have a standardized meaning prescribed by IFRS. Management
believes that EBITDA is an appropriate measure in evaluating the Company's
performance. Readers are cautioned that EBITDA should not be construed as an
alternative to net income (as determined under IFRS) as an indicator of
financial performance or to cash flow from operating activities (as determined
under IFRS) as a measure of liquidity and cash flow. The Company's method of
calculating EBITDA may differ from the methods used by other issuers and,
accordingly, the Company's EBITDA may not be comparable to similar measures used
by other issuers.
Fourth quarter results
Consolidated revenue was $54.4 million compared to $43.8 million in the fourth
quarter last year. During the fourth quarter this year, the Company was active
in two pipeline construction projects in the Fort McMurray area. The Company was
also involved in pipeline integrity work for two customers and performed some
pipeline repair work. Lastly, the Company performed some smaller facility work
for several customers. Last year, the Company was involved in pipeline integrity
work for several customers and obtained additional revenue from pipeline
construction and facility work for two customers.
Operating expenses were 80.2% of revenue in the quarter compared to 77.3% in the
same quarter last year. Operating expenses were relatively higher this quarter
compared to the previous three quarters due to somewhat lower bid margins in the
current quarter.
Amortization of property, plant and equipment was $2.2 million compared to $1.4
million in the prior period reflecting a higher level of fixed assets in the
current year. This is due principally to the acquisition of pipeline
construction equipment and related assets from North American Energy partners
completed in the fourth quarter of last year (the "NAEP acquisition"). Last
year, the Company recorded $1.7 million of amortization of the value attributed
to a customer contract. This charge completely amortized this asset as the
benefit of this asset was obtained during the fourth quarter of last year.
General and administrative expenses were $2.2 million, down marginally from the
$2.3 million recorded last year. However, last year's costs included $0.5
million related to one-time acquisition costs on the NAEP acquisition. Expenses
were up this year due to the greater level of activity throughout the year.
Finance costs of $0.2 million were approximately the same as last year.
Last year, the Company recorded a one-time non-cash gain of $2.2 million related
to the NAEP acquisition. This gain arose because the value of the assets
obtained in this acquisition exceeded the purchase price.
Income taxes recovered in the quarter were $0.5 million. This recovery arose due
to the effect of a change in estimate in the current quarter which resulted in a
reduction in tax expense of $2.3 million ($0.08 per share). Excluding this
change in estimate, income tax expense would have been $1.8 million which would
have equated to an effective tax rate of 29.1% which is in excess of statutory
rates in the quarter. This was due to adjusting the year end tax rate to reflect
the jurisdictions in which the company operated in the year. Last year, the
effective tax rate in the quarter was 12.2% as the inclusion of the gain from
business combination was not subject to tax.
In the fourth quarter of last year, the Company recorded $1.7 million of
amortization of customer contracts and a $2.2 million gain, both related to the
NAEP acquisition. The Company also recorded a reduction in income tax expense of
$0.5 million related to the NAEP acquisition. The net impact of these three
items was to increase earnings per share in the fourth quarter of last year by
$0.04.
Net income in the quarter was $6.7 million ($0.22 per share) compared to $5.6
million ($0.23 per share).
Outlook
The Company continues to be active throughout British Columbia, Alberta,
Saskatchewan and Manitoba, in particular in the Fort McMurray region of Alberta
carrying out pipeline and facility construction and performing pipeline
integrity work. The Company is also actively pursuing new opportunities,
including those related to possible LNG projects and related infrastructure.
The Company is expecting revenues in the first quarter of 2014 to be above those
recorded in the first quarter of 2013, mainly due to pipeline construction and
integrity work in the Fort McMurray area and increased pipeline integrity work
in Saskatchewan and Manitoba. The Company does not expect to duplicate the
margins experienced by the Company in the first quarter of 2013.
Conference call
The Company will host a conference call at 8 am PDT on Thursday, March 13, 2014
to discuss the 2013 fourth quarter and year end results. The conference call can
be accessed by dialing 1-888-390-0605 and referencing conference ID 26685807.
Macro's core business is providing pipeline and facilities construction and
maintenance services to major companies in the oil and gas industry. The Company
is based in Fort St. John, B.C. and has a corporate office in Calgary, Alberta.
Its shares are listed on the TSX Venture Exchange under the symbol MCR.
Information on the Company's principal operating unit, Macro Industries Inc.,
can be found at www.macroindustries.ca.
Forward Looking Statements
Certain statements in this news release may include forward-looking information
that involves various risks and uncertainties. These may include, without
limitation, statements regarding expected revenues, expenses and industry trends
and the pursuit of strategic acquisitions. These risks and uncertainties
include, but are not restricted to, global economic conditions, government
regulation of energy and resource companies, seasonal weather patterns,
maintaining and increasing market share, terrorist activity, the price and
availability of alternative fuels, the availability of pipeline capacity, and
potential instability or armed conflict in oil producing regions. These risks
and uncertainties may cause actual results to differ from information contained
herein. There can be no assurance that such forward-looking statements will
prove to be accurate. Actual results and future events could differ materially
from those anticipated in such statements. These statements are based on the
estimates and opinions of management on the dates they are made and are
expressly qualified in their entirety by this notice. Except as required by law,
the Company assumes no obligation to update forward-looking statements should
circumstances or management's estimates or opinions change.
Neither 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Macro Enterprises Inc.
Frank Miles
President and C.E.O.
(250) 785-0033
Macro Enterprises Inc.
T. Jerrold Jackson
C.F.O.
(403) 705-7302
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