We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| TSXV:LEA | TSX Venture | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
Hot Features
Premium
Leader Energy Services Ltd. ("Leader" or the "Company") (TSX VENTURE:LEA) has
released its financial and operating results for the three and nine month
periods ended September 30, 2012.
Performance Summary
----------------------------------------------------------------------------
(000's) (Unaudited)
Sept. 30, Sept. 30,
Quarter ended 2012 2011 $ Change % Change
----------- -----------------------------------
Revenue - continuing
operations $7,436 $10,020 $(2,584) (26)%
Operating Expenses -
continuing operations 5,113 5,056 57 1%
----------- -----------------------------------
2,323 4,964 (2,641) (53)%
General and Administrative
- continuing operations 983 1,196 (213) (18)%
Amortization - continuing
operations 805 643 162 25%
Finance cost 416 871 (455) (52)%
Loss on settlement of loans
and borrowings - - - n/a
Other (gains) losses 11 32 (21) (66)%
----------- -----------------------------------
Income (loss) - continuing
operations 108 2,222 (2,114) (95)%
----------- -----------------------------------
Income - discontinued
operations - - - n/a
----------- -----------------------------------
Net income (loss) $108 $2,222 $(2,114) (95)%
----------- -----------------------------------
----------- -----------------------------------
Income (Loss) per share -
Basic $0.00 $0.11 $(0.11) n/a
Income (Loss) per share -
Diluted $0.00 $0.11 $(0.11) n/a
EBITDA(i) $1,381 $3,803 $(2,422) (64)%
----------- -----------------------------------
----------- -----------------------------------
----------- -----------------------------------
Sept. 30, Sept. 30,
9 months ended 2012 2011 $ Change % Change
----------- -----------------------------------
Revenue - continuing
operations $20,838 $23,078 $(2,240) (10)%
Operating Expenses -
continuing operations 16,006 14,043 1,963 14%
----------- -----------------------------------
4,832 9,035 (4,203) (47)%
General and Administrative
- continuing operations 3,376 3,437 (61) (2)%
Amortization - continuing
operations 2,343 1,867 476 25%
Finance cost 1,905 2,505 (600) (24)%
Loss on settlement of loans
and borrowings 1,338 1,401 (63) (4)%
Other gains (66) (22) (44) n/a
----------- -----------------------------------
Loss - continuing
operations (4,064) (153) (3,911) n/a
----------- -----------------------------------
Income - discontinued
operations - 31 (31) n/a
----------- -----------------------------------
Net loss $(4,064) $(122) $(3,942) n/a
----------- -----------------------------------
----------- -----------------------------------
Loss per share - Basic $(0.15) $(0.01) $(0.14) n/a
Loss per share - Diluted $(0.15) $(0.01) $(0.14) n/a
EBITDA(i) $1,549 $5,744 $(4,195) (73)%
----------- -----------------------------------
----------- -----------------------------------
(i) EBITDA means income (loss) from continuing operations before finance costs,
loss on settlement of loans and borrowings, taxes, amortization, other (gains)
losses, and share based compensation. Readers are cautioned that EBITDA is
generally regarded as an indirect measure of operating cash flow, and, as such,
the Company believes it is a significant indicator of success of public
companies, and is particularly relevant to readers within the investment
community. EBITDA is not a measure that has a standardized meaning and
accordingly may not be comparable to similar measures used by other companies.
Results of Continuing Operations
--------------------------------------------------------------------------
Well Stimulation Services (000's) (Unaudited)
Sept. 30, Sept. 30,
Quarter ended 2012 2011 $ Change % Change
---------- -----------------------------------
Revenue $7,436 $10,020 $(2,584) (26)%
Operating Expenses 5,113 5,056 57 1%
---------- -----------------------------------
Gross profit(i) $2,323 $4,964 $(2,641) 53%
---------- -----------------------------------
Sept. 30, Sept. 30,
Nine months ended 2012 2011 $ Change % Change
---------- -----------------------------------
Revenue $20,838 $23,078 $(2,240) (10)%
Operating Expenses 16,006 14,043 1,963 14%
---------- -----------------------------------
Gross profit(i) $4,832 $9,035 $(4,203) (47)%
(i) Management believes that gross profit provides investors with an indication
of income before administrative costs, amortization, finance costs, taxes and
other. Readers are cautioned that gross profit should not be considered as an
alternative to income determined in accordance with International Financial
Reporting Standards ("IFRS") as an indicator of the Company's performance.
Revenues from well stimulation services decreased 26% in the third quarter of
2012 as compared to the third quarter of 2011. On a year-to-date basis, revenue
decreased 10% to $20.8 million.
Revenue in the third quarter was $7.4 million as compared to $10.0 million in
the third quarter of the prior year. Activity levels in the third quarter were
slower to recover from spring break-up as industry activity was hampered by wet
weather at various times during the summer. In addition, preceding the start of
the third quarter oil prices declined over 25% in a two-month period causing
customers to re-evaluate their exploration and development budgets for the
remainder of 2012. This reduction in activity resulted in lower than expected
equipment utilization across the industry which had the effect of increased
competition for available work. In addition, the Company continued to experience
a reduction in the number of nitrogen jobs performed in the quarter as compared
to 2011. This decrease is attributed to the reduction in stand-alone nitrogen
work caused by customers reducing activity on gas wells.
For the nine month period ended September 30, 2012, the Company reported revenue
of $20.8 million as compared to $23.1 million reported in the nine month period
of the prior year. Revenue recorded in 2012 continued to reflect demand for
deeper, larger diameter coil equipment applicable to the horizontal drilling
market in north-central Alberta and northeast British Columbia, particularly in
the first quarter of 2012. This concentration on larger diameter deep coil work
focuses on oil and liquids-rich resource plays, and has traditionally resulted
in higher day rates being charged by the Company. These higher revenues reported
in the first quarter were partially offset by an increase in equipment standby
at lower day rates as a result of an industry-wide shortage of class three 2"
and 2 3/8" coiled tubing units. As a result of this shortage in the first
quarter, customers requested equipment stay on location at lower standby rates
in anticipation of further work at these locations, forcing the Company to delay
upcoming jobs and in some circumstances turn down potential projects while this
equipment was deployed. Increases in revenue reported in the first quarter of
2012 as compared to the same period in 2011 were substantially reversed in the
second quarter due to a prolonged spring break-up and wet weather in the WCSB
resulting in lower than expected equipment utilization across the industry which
had the effect of increasing competition for available work. Activity was also
affected as customers evaluated their capital expenditure spending in light of
current commodity price fluctuations. In addition, the Company experienced a
reduction in the number of stand-alone nitrogen jobs. Further reductions in
revenue as compared to 2011 were reported in the third quarter of 2012 as
discussed previously.
The Company exited the quarter with six coil units plus one reel trailer with 2
3/8" coil, seven nitrogen pumpers and three fluid pumpers. At the end of the
third quarter, the Company's new 2 3/8" reel trailer was nearing completion. At
the end of October, the reel trailer was complete and ready for service. Based
on initial interest, the Company expects significant demand for this equipment
on a go forward basis. The Company's current reel trailer will be used to
support operations and provide redundancy during periods of increased activity
levels.
Operating costs totaled $5.1 million during the third quarter of 2012 compared
to $5.1 million reported in the comparable period in 2011. During the current
quarter, the Company retained its qualified mechanics and field personnel and
continued to focus on training and cross-training initiatives. Over the past few
years, the biggest challenge facing the Company has been the ability to hire
enough qualified personnel to operate the equipment in the field. In response to
this challenge, the Company has been able to hire personnel from both within and
outside western Canada. In addition to the above, the Company continued to
concentrate on routine repair and maintenance initiatives and incurred
additional expense for larger diameter coiled tubing charges resulting from
harsh down hole conditions decreasing the life of certain larger diameter coiled
tubing strings. Lower activity levels in the quarter, resulted in the Company
reporting higher costs as a percentage of revenue as a result of the fixed cost
structure required to ensure personnel are available to operate the equipment
and additional costs incurred for rotational personnel from outside western
Canada. These increases were partially offset by savings realized in third party
transportation as a result of new equipment received in the second quarter of
2012. As a result of increased operating costs as a percentage of revenue and
lower than anticipated activity levels, the Company is reviewing its cost
structures and has implemented cost reduction initiatives during the fourth
quarter of 2012.
For the nine month period ended September 30, 2012, the Company reported
operating costs of $16.0 million as compared to $14.0 million in the nine month
period ended September 30, 2011. Operating costs for the first nine months
increased 14% over the same period in 2011 reflecting the increased costs
incurred to hire and retain additional qualified field staff to operate
equipment added to the fleet, the repair and maintenance of equipment in
anticipation of increased activity on a go-forward basis, the inefficiencies
caused by weight re-distribution during spring break-up, and the reliance on
third party transportation services in the first quarter of 2012.
Liquidity and Capital Resources
On June 14, 2012, the Company entered into new credit facilities with a Canadian
chartered bank. The credit facilities include a demand revolving facility of up
to $5 million, a three year committed non-revolving term loan of up to $9.0
million amortized over 60 months with provision to extend for two additional one
year terms subject to lender approval, and a demand revolving reducing capital
expenditure loan of up to $2.0 million. The interest rates on these facilities
were at prime plus 1.25% and the facilities are subject to normal and customary
terms and covenant ratios including working capital, tangible net worth, debt to
EBITDA and fixed charge coverage ratios. During the third quarter of 2012, the
Company negotiated an amendment to its credit facilities which resulted in
changes to the benchmarks on certain covenant ratios as described above.
Included in this amendment is an increase in the interest rate from prime plus
1.25% to prime plus 1.50%. In addition, the Company has drawn $1.0 million on
the capital expenditure demand loan to assist in the funding of capital
expenditures. This loan is repayable on a quarterly basis with the first payment
of $50,000 due in December 2012. Based on projected activity levels, the Company
anticipates paying this capital expenditure demand loan off prior to March 2013.
At September 30, 2012, all covenants have been met under these facilities.
Management reassesses compliance with these covenants on a quarterly basis.
Outlook
U.S. West Texas Intermediate (WTI) crude oil started 2012 above $100 per barrel
and reached a peak in early March of almost $110 per barrel. Crude oil prices
fell during the second quarter due in part, to concerns about lower oil demand
with a slowdown of the global economy. By the end of June, WTI oil prices were
down over 25% from their peak to just under $78 per barrel. The volatility in
oil prices resulted in our customers adjusting their budgets downward for the
remainder of 2012, which had the effect of increasing competition in the coiled
tubing space. In spite of a recovery in oil prices at the end of the third
quarter, we have experienced a reduction in demand at the start of the fourth
quarter. Heading into 2013, Leader has moderated its plans for capital
expenditures and has recently implemented cost savings strategies. Leader has
recently expanded its geographic footprint in the WCSB where activity levels are
robust. Demand for deep coiled tubing services is expected to remain healthy in
2013, with PSAC estimating that 70% of new wells will be drilled horizontally.
Other
Additional information can be found on SEDAR at www.sedar.com or the Company web
site at www.leaderenergy.com. The number of common shares issued and outstanding
at the date hereof was 29,388,021 which does not include 1,948,000 unexercised
stock options and 4,250,000 share purchase warrants.
Forward-looking information
This press release contains certain statements or disclosures relating to the
Company that are based on the expectations of the Company as well as assumptions
made by and information currently available to the Company which may constitute
forward-looking information under applicable securities laws. All such
statements and disclosures, other than those of historical fact, which address
activities, events, outcomes, results or developments that the Company
anticipates or expects may, or will occur in the future (in whole or in part)
should be considered forward-looking information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Leader Energy Services Ltd.
Rod Hauser
President & CEO
(403) 265-5400
r.hauser@leaderenergy.com
Leader Energy Services Ltd.
Jason Krueger, CFA
Executive VP & Director
(403) 265-5400
j.krueger@leaderenergy.com
Leader Energy Services Ltd.
Graham Reid, CA
VP Finance & CFO
(403) 265-5400
g.reid@leaderenergy.com
www.leaderenergy.com
1 Year Chart |
1 Month Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
