Lonestar West Reports Record Year-End Results
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SYLVAN LAKE, AB, Sept. 27, 2012 /CNW/ – Lonestar West Inc. (TSXV: LSI) today announced its business performance for the fiscal year end June 30, 2012 and the fourth quarter of fiscal 2012.
Lonestar continued its strong performance throughout the 2012 fiscal year including growth in fleet size, revenue and operating profit. The results reflect the growth in its Canadian HVAC and Vacuum truck businesses driven in part by favourable commodity prices and strong infrastructure development activities in Western Canada.
HIGHLIGHTS FOR THE FISCAL YEAR INCLUDE:
- Revenues increased 67.0% to $18,618,413 from $11,146,314 in the previous fiscal year.
- EBITDAC increased 73.3% to $3,016,609 compared to $1,741,146 in the previous fiscal Year.
- EBITDAC per share rose 53.8% to $0.20 from $0.13 in the previous fiscal year.
- Net income of $1,308,708 in comparison to the $514,477 net income in the previous fiscal year.
The fleet expansion program resulted in a 32.0% increase in fleet size as the Company went from 25 units available for work at the end of fiscal 2011 to 33 units available at the end of fiscal 2012.
Subsequent to the Fiscal 2012 year end, the Company purchased another four units and disposed of one, which has increased the number of units to 36. The Company also incorporated two subsidiaries in the USA with expectations of expanding its geographic market in the future.
HIGHLIGHTS FOR FOURTH QUARTER INCLUDE:
The Company generated revenues of $4,442,167 in the three months ended June 30, 2012, an increase of 64.9% over the prior year equivalent period revenue of $2,694,146. The EBITDAC for the three months ended June 30, 2012 increased to $380,644 over the $165,688 in the prior year equivalent period. The net loss of $197,825 for the three months is an increase in net earnings in comparison to the net loss of $343,315 in the prior year equivalent period.
President and CEO James Horvath commented, “We have had another remarkable year in fiscal 2012 resulting in increases in both revenue and EBITDAC over the prior fiscal year. The utilization rates of our VAC and HVAC fleets have increased substantially during fiscal 2012 which had a direct impact on our profits. During this 2012 fiscal year we placed a strong emphasis on building our earning potential by building our fleet; and I believe the company’s year-end performance shows the success of our strategy. As always, Lonestar is committed to customer service, safety and our employees which enable us to continue to grow into a major national HVAC competitor.”
Financial Results (000′s except per share data)
|12 months ended||3 months ended|
|June 30, 2012||June 30, 2011||June 30, 2012||June 30, 2011|
|Net earnings (loss)||1,309||514||(198)||(343)|
|Basic earnings per share (“EPS”)||0.09||0.04||(0.01)||(0.03)|
|Diluted earnings per share (“EPS”)||0.08||0.04||(0.01)||(0.03)|
(i) EBITDAC means earnings before interest, taxes, depreciation, amortization and stock based compensation and for the purposes of analyzing Lonestar is equal to earnings before income taxes plus interest on debt plus depreciation plus share-based payments. EBITDAC is not a recognized measure under International Financial Reporting Standards (“IFRS”). Management believes that in addition to net earnings, EBITDAC is a useful supplemental measure as it provides an indication of the results generated by the Company’s primary business activities prior to consideration of how those activities are financed, depreciated or how the results are taxed. Readers should be cautioned, however, that EBITDAC should not be construed as an alternative to net earnings determined in accordance with IFRS or as an indicator of Lonestar’s performance. Lonestar’s method of calculating EBITDAC may differ from other organizations and may not be comparable to measures used by other organizations.
For complete details on the audited consolidated year-end financial statements and MD&A for the June 30, 2012 year-end, please refer to SEDAR at www.sedar.com
Lonestar West Inc. (www.lonestarwest.com) operates a fleet of 36 HVAC and vacuum trucks throughout Western Canada from its base in Sylvan Lake, Alberta. It is focused on profitably growing its HVAC services to become a major national competitor in the market area.
Lonestar’s shares trade on the TSX Venture Exchange under the symbol LSI.
Certain information and statements contained herein constitute forward-looking information, including the anticipated costs associated with the purchase of capital equipment, expectations concerning the nature and timing of growth within the business operated by Lonestar, expectations respecting the competitive position of such business, expectations concerning the financing of future business activities and statements as to future economic and operating conditions. Readers should review the cautionary statement respecting forward-looking information that appears in Lonestar’s complete MD&A.