CALGARY, ALBERTA -- (Marketwired) -- 05/23/13 -- CORDY OILFIELD SERVICES INC. (the "Corporation" or "Cordy") (TSX VENTURE: CKK) released today its first quarter results for the period ending March 31, 2013.
The Corporation's revenues from continuing operations for the year ended March 31, 2013 increased $1.8 million from the same period in 2012 to $38.2 million. The Corporation experienced growth primarily in the oil sands region which contributed positive net earnings in its Heavy Construction and Environmental segments in the first quarter of 2013.
Earnings before interest, taxes, depreciation, amortization and impairment and stock-based compensation ("EBITDAS") from continuing operations were $5.9 million for the first quarter compared to $6.3 million for the first quarter of 2012, representing a quarter-over-quarter decrease of $0.4 million.
The net earnings from continuing operations of $2.7 million or $0.03 per share for the first quarter ended March 31, 2013 represents a decrease of $0.8 million compared to earnings from continuing operations of $3.5 million or $0.04 per share in the first quarter of 2012.
For the year and quarter ended December 31 ($ millions except share price and per share amounts) Q1 2013 Q1 2012 $ Change ---------------------------------------------------------------------------- FINANCIAL RESULTS Revenue 38.2 36.4 1.8 EBITDAS(1) 5.9 6.3 (0.4) Net earnings (loss) and total comprehensive income from all operations 2.7 3.7 (1.0) Cash flows generated from (used in) operating activities from all operations (1.1) 3.2 (4.3) ---------------------------------------------------------------------------- SHARE INFORMATION Earnings per share from continuing operations ($) 0.03 0.04 (0.01) Earnings per share from discontinued operations ($) - - - Earnings per share from all operations ($) 0.03 0.04 (0.01) ---------------------------------------------------------------------------- (1) Earnings before interest, taxes, depreciation, amortization, impairment and stock-based compensation (see reader advisory).
The Corporation is dependent, to a degree, on the overall health of western Canada's oil, natural gas, and mining sectors. The current global economic activity and resulting activity in western Canada are subdued and are antici- pated to remain so throughout the remainder of 2013.
Management has organized its business segments to provide diversity. Historically these business segments have had stronger first and fourth quarters.
There is a current trend towards curtailing spending within the oil, natural gas and mining sectors in western Canada. The expectation within the industry is that operators will continue evaluating and adjusting activities within their oper- ating and capital budgets for the remainder of 2013 depending upon commodity prices and changes in economic or political factors that have a direct impact.
Management continues to seek opportunities to expand Cordy's operations in regions where its business segments operate.
Complete copies of Cordy's audited consolidated financial statements for the quarter ended March 31, 2013 and the associated Management's Discussion and Analysis are available on our website www.cordy.ca or on SEDAR at www.sedar.com.
Effective January 1, 2011, Cordy began reporting its financial results in accordance with International Financial Reporting Standards (IFRS). Prior-year's com- parative amounts were changed to reflect results as if Cordy had always prepared its financial results using IFRS.
This News Release contains certain statements that constitute forward-looking statements. These statements relate to future events or the Corporation's future performance. All statements, other than statements of historical fact, that address activities, events or developments that the Corporation or a third party ex- pects or anticipates will or may occur in the future, are forward-looking statements. These include the Corporation's future growth, results of operations, per- formance and business prospects and opportunities; prevailing economic conditions; commodity prices; sourcing, pricing and availability of raw materials, components and parts, equipment, suppliers, facilities and skilled personnel; dependence on major customers; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; regional competition; and other factors, many of which are beyond the Corporation's control. These other factors include future prices of oil and natural gas and oil and natural gas industry activity, including the effect of changes in commodity prices on oil and natural gas exploration and development activity, the ability to complete strategic acquisitions and realize the anticipated benefits of any acquisitions that are completed, the Corporation's outlook regarding the competitive environment it operates in, and the assumptions underlying any of the foregoing. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Corporation's control, including those discussed under "Risks and Uncertainties" and elsewhere in this News Release, that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this News Release should not be unduly relied upon. These statements speak only as of the date of this News Release. The Corporation does not intend, and does not assume any obligation, to update these forward- looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws. The forward- looking statements contained in this News Release are expressly qualified by this cautionary statement.
Cordy uses the measures Earnings Before Interest, Taxes, Depreciation, Amortization and Impairment and Stock Based Compensation (EBITDAS) in this news release. This measure does not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS). It is, therefore, con- sidered to be non-IFRS term and may not be comparable to similar measures presented by other entities. Management of Cordy uses these non-IFRS measures to improve its ability to compare financial results among reporting periods and to enhance its understanding of operating performance, liquidity and ability to generate funds to finance operations. This non-IFRS measure is also provided to readers as additional information on Cordy's operating performance, liquidity and ability to generate funds to finance operations. EBITDAS is an approximate measure of the Cordy's pre-tax operating cash flow and is generally used to better measure performance and evaluate trends of individual assets. EBITDAS comprises earnings before deducting interest and other financial charges, income taxes, depreciation and amortization, net income attributable to non-controlling interests and preferred share dividends.
Neither the 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.
Cordy Oilfield Services Inc.- General Information
Chairman & Chief Executive Officer
Cordy Oilfield Services Inc. - Investor Relations
David Boomer, CA
Chief Financial Officer