TSX: PSD
OTCQX: PLSDF
CALGARY, Jan. 19, 2015 /CNW/ - Pulse Seismic Inc.
("Pulse" or "the Company") reports the following preliminary
selected unaudited financial and operating results for the three
months and year ended December 31,
2014. The financial results are based on management's
estimates and have not yet been approved by the Company's Audit
Committee or Board of Directors, or audited by the Company's
auditors.
HIGHLIGHTS FOR THE 12 MONTHS ENDED
DECEMBER 31, 2014
Pulse achieved the following results:
- Seismic data library sales of $35.7
million, an increase of 32 percent over $27.1 million in 2013;
- Cash EBITDA(a) of $28.6
million, a 49 percent increase from $19.1 million in 2013 and a 53 percent
increase on a per-share basis to $0.49 from $0.32
per share basic and diluted;
- Shareholder free cash flow(a) of $27.9 million, a 35 percent increase from
$20.7 million in 2013 and a 38
percent increase on a per-share basis to $0.47 from $0.34
per share basic and diluted;
- Funds from operations(b) of $31.6 million ($0.54 per share basic and diluted) compared to
$27.8 million ($0.46 per share basic and diluted) for 2013;
- The purchase and cancellation, through the Company's normal
course issuer bid, of 2,101,277 million common shares (3.5 percent
of the total outstanding at December 31,
2013) at a total cost of approximately $6.3 million;
- Payment of four quarterly dividends of $0.02 per common share, totalling $4.7 million paid to shareholders; and
- At December 31, 2014, a cash
balance of $901,000 with total
long-term debtc) of $5.5
million, resulting in net debt of $4.6 million.
"These results demonstrate that 2014 was a successful year for
Pulse," stated Neal Coleman,
President and CEO. "Having a lean organization with low fixed costs
enabled Pulse to transform 78 percent of sales into shareholder
free cash flow."
In addition, Coleman said, "Our financial position continues to
improve. Shareholders benefited directly from our shareholder free
cash flow through a return of $11.0
million of capital, consisting of $4.7 million in dividends and $6.3 million in share buybacks. Additionally, we
repaid $16.6 million of debt,
reducing our net debt at year-end to only $4.6 million. This further strengthens Pulse
during a period of industry uncertainty."
HIGHLIGHTS FOR THE THREE MONTHS ENDED
DECEMBER 31, 2014
Pulse achieved the following results:
- Seismic data library sales of $8.4
million, up by 84 percent from $4.6
million in the same period of 2013;
- Cash EBITDA of $6.7 million or
$0.12 per share basic and diluted
compared to $3.0 million or
$0.05 per share basic and diluted in
the fourth quarter of 2013;
- Shareholder free cash flow of $6.5
million or $0.11 per share
basic and diluted compared to $3.7
million or $0.06 per share
basic and diluted in the fourth quarter of 2013; and
- Funds from operations of $6.6
million ($0.11 per share basic
and diluted) compared to $2.7 million
($0.05 per share basic and diluted)
for the three months ended December 31,
2013.
CREDIT FACILITY
The Company is pleased to announce the extension and amendment
of its credit facility with a syndicate led by TD Bank and
including ATB Financial. The balance owing on the facility is
currently $5.5 million with
$44.5 million available.
The credit facility was initially structured as a three-year
extendible facility maturing on February 13,
2016. The lenders have approved the second extension with
the facility now maturing on February 13,
2018. The amendment comprises removal of a negative covenant
that restricted the payment of dividends without lender approval if
the total debt to adjusted EBITDA ratio exceeded 1.5:1.0.
Henceforth dividends (other than special dividends) are
unrestricted.
Other highlights of the facility continue to be:
- An accordion feature allowing Pulse to increase the facility's
size by up to an additional $20.0
million, subject to the consent of the lenders; and
- No regularly scheduled payments against the revolving
facility's principal and no prepayment penalties, with voluntary
payments permitted at any time.
"We value the lenders' continued support of Pulse's business
model," said Coleman. "The removal of the negative covenant is
acknowledgment of the Company's very strong balance sheet."
OTHER MATTERS
The Company is also pleased to announce that it has executed an
agreement with a large oil and gas company to conduct a 137 square
kilometer 3D participation survey in west-central Alberta. Field operations commenced earlier
this month and are expected to be complete, with data delivered, by
the end of the first quarter of 2015.
On Thursday, March 5, 2015 Pulse
intends to release its complete audited financial results for the
year ended December 31, 2014. A
conference call and webcast to review the 2014 results is scheduled
for Friday, March 6, 2015 at
1:00 EST (11:00 am MST). Further details of the conference
call, including dial-in numbers, will be provided at a later
date.
(a) The Company's continuous disclosure documents
provide discussion and analysis of "cash EBITDA", "cash EBITDA per
share", "shareholder free cash flow" and "shareholder free cash
flow per share". These financial measures do not have standard
definitions prescribed by IFRS and, therefore, may not be
comparable to similar measures disclosed by other companies. The
Company has included these non-GAAP financial measures because
management, investors, analysts and others use them as measures of
the Company's financial performance. The Company's definition of
cash EBITDA is cash available for interest payments, cash taxes if
applicable, debt servicing, discretionary capital expenditures and
the payment of dividends, and is calculated as earnings (loss) from
operations before interest, taxes, depreciation and amortization
less participation survey revenue, plus any non-cash and
non-recurring expenses. Cash EBITDA excludes participation
survey revenue as these funds are directly used to fund
specific participation surveys and this revenue is not available
for discretionary capital expenditures. The Company believes cash
EBITDA assists investors in comparing Pulse's results on a
consistent basis without regard to participation survey revenue and
non-cash items, such as depreciation and amortization, which can
vary significantly depending on accounting methods or non-operating
factors such as historical cost. Cash EBITDA per share is defined
as cash EBITDA divided by the weighted average number of shares
outstanding for the period. Shareholder free cash flow further
refines the calculation of capital available to invest in growing
the Company's 3D and 2D seismic data library, to repay debt, to
purchase its common shares and to pay dividends by deducting
non-discretionary expenditures from cash EBITDA. Non-discretionary
expenditures are defined as debt financing costs (net of deferred
financing expenses amortized in the current period) and current tax
provisions. Shareholder free cash flow per share is defined as
shareholder free cash flow divided by the weighted average number
of shares outstanding for the period.
(b) Funds from operations is an additional GAAP
measure. Funds from operations is defined as cash provided by
operations as prescribed by IFRS, excluding the impact of changes
in non-cash working capital. Funds from operations represents the
cash that was generated during the period, regardless of the timing
of collection of receivables and payment of payables. Funds from
operations per share is defined as funds from operations divided by
the weighted average number of shares outstanding for the
period.
(c) Total debt is defined as long-term debt excluding
deferred financing costs.
CORPORATE PROFILE
Pulse is a market leader in the acquisition, marketing and
licensing of 2D and 3D seismic data to the western Canadian energy
sector. Pulse owns the second-largest licensable seismic data
library in Canada, currently
consisting of approximately 28,300 square kilometres of 3D seismic
and 340,000 kilometres of 2D seismic. The library extensively
covers the Western Canada Sedimentary Basin where most of
Canada's oil and natural gas
exploration and development occur.
DISCLAIMER:
This news release contains preliminary unaudited financial
results. These financial results are based upon management's
estimates, and have not yet been approved by the Company's Audit
Committee or Board of Directors or audited by the Company's
auditors. The final audited financial results could differ from
these preliminary unaudited financial results.
FORWARD LOOKING INFORMATION:
This news release contains information that constitutes "forward
looking information" or "forward looking statements" (collectively,
"forward looking information") within the meaning of applicable
securities legislation. This forward looking information includes,
among other things, statements regarding the size and expected
completion and delivery dates of a participation survey.
Undue reliance should not be placed on forward-looking
information. Forward looking information is based upon current
expectations, estimates and projections that involve a number of
risks and uncertainties which could cause actual results to vary
and in some instances to differ materially from those anticipated
in the forward looking information.
SOURCE Pulse Seismic Inc.