New West Energy Services Inc. Announces 2018 Financial Results

CALGARY, April 30, 2019 /CNW/ - New West Energy Services Inc. (TSX Venture: NWE), an oil and gas and environmental services company focused on Western Canada, today announced its 2018 financial results.

CHANGE IN FINANCIAL YEAR-END

NWE has changed its financial year-end from April 30 to December 31 to better conform with other similar energy services companies in the industry and to line up the company's quarterly filings with more traditional quarters.  Consequently, NWE is reporting audited financial results for the twelve and eight months, as well as quarterly results for the three and two months, ended December 31, 2018 and 2017, respectively.  

FINANCIAL HIGHLIGHTS

• Revenue was $20,296,011 in the twelve months ended December 31, 2018 compared to $13,383,615 in the eight months ended December 31, 2017, and $5,468,036 in the three months ended December 31, 2018 compared to $3,671,672 in the two months ended December 31, 2017, reflecting a consistency on an average monthly basis.
  
  
• Gross margin was 19% in the twelve months ended December 31, 2018 compared to 17% in the eight months ended December 31, 2017, representing a consistency between reporting periods, and 18% in the three months ended December 31, 2018 compared to a near break-even for the two months ended December 31, 2017, reflecting a reduction in direct costs relative to revenues in all divisions.
  
  
• General and administrative expenses were $4,118,750 in the twelve months ended December 31, 2018 compared to $2,478,715 in the eight months ended December 31, 2017, and $1,117,272 in the three months ended December 31, 2018 compared to $721,841 in the two months ended December 31, 2017, reflecting a consistency on an average monthly basis.
  
  
• Normalized EBITDAC was negative $76,500 in the twelve months ended December 31, 2018 compared to $85,316 in the eight months ended December 31, 2017, and negative $96,375 in the three months ended December 31, 2018 compared to negative $326,949 in the two months ended December 31, 2017.

	For the twelve months ended December 31,					For the eight months ended December 31,
	2018					2017
	Vacuum Truck & Fluid Transportation Services	Environmental Services	Corporate	Total		Vacuum Truck & Fluid Transportation Services	Environmental Services	Corporate	Total
	$	$	$	$		$	$	$	$
Revenue	16,432,695	3,863,316	-	20,296,011		10,025,549	3,358,066	-	13,383,615
Direct costs	13,806,156	2,506,014	-	16,312,170		8,876,817	2,285,518	-	11,162,335
Gross margin	2,626,539	1,357,302	-	3,983,841		1,148,732	1,072,548	-	2,221,280
G & A expenses	2,312,521	1,427,904	378,325	4,118,750		1,344,646	917,926	216,143	2,478,715
Share based pmts	-	-	109,043	109,043		-	-	356,067	356,067
Finance charges	643,087	65,750	134,253	843,090		443,991	34,354	102,618	580,963
Depreciation	1,462,006	-	-	1,462,006		1,170,421	-	-	1,170,421
Loss on disposal of assets	287,774	-	-	287,774		1,247,131	-	-	1,247,131
Miscellaneous income	-	-	(11,271)	(11,271)		-	-	(2,751)	(2,751)
Gain on debt settlement	-	-	(352,611)	(352,611)		-	-	-	-
Net loss before tax	(2,078,849)	(136,352)	(257,739)	(2,472,940)		(3,057,457)	120,268	(672,077)	(3,609,266)
Total assets	11,730,619	932,011	14,413	12,677,043		12,713,646	1,164,457	42,179	13,920,282
EBITDAC*	349,885	(70,602)	(355,783)	(76,500)		144,086	154,622	(213,392)	85,316

 

	For the three months ended December 31,					For the two months ended December 31,
	2018					2017
	Vacuum Truck & Fluid Transportation Services	Environmental Services	Corporate	Total		Vacuum Truck & Fluid Transportation Services	Environmental Services	Corporate	Total
	$	$	$	$		$	$	$	$
Revenue	4,718,644	749,392	-	5,468,036		2,841,146	830,526	-	3,671,672
Direct costs	4,044,501	413,909	-	4,458,410		2,993,173	626,358	-	3,619,531
Gross margin	674,143	335,483	-	1,009,626		(152,027)	204,168	-	52,141
G & A expenses	634,287	368,487	114,498	1,117,272		417,734	251,317	52,790	721,841
Share based pmts	-	-	-	-		-	-	92,538	92,538
Finance charges	199,975	20,005	56,260	276,240		112,897	9,256	20,271	142,424
Depreciation	350,004	-	-	350,004		266,362	-	-	266,362
Loss on disposal of assets	145,880	-	-	145,880		1,167,918	-	-	1,167,918
Miscellaneous income	-	-	-	-		-	-	(2,751)	(2,751)
Gain on debt settlement	-	-	(352,611)	(352,611)		-	-	-	-
Net loss before tax	(656,003)	(53,009)	181,853	(527,159)		(2,116,938)	(56,405)	(162,848)	(2,336,191)
Total assets	11,730,619	932,011	14,413	12,677,043		12,713,646	1,164,457	42,179	13,920,282
EBITDAC*	39,856	(33,004)	(103,227)	(96,375)		(229,761)	(47,149)	(50,039)	(326,949)

 

* Normalized EBITDAC is earnings from continuing operations before interest, taxes, depreciation, amortization and share-based payments and is a measure of NWE's operating profitability. The calculation is further adjusted to normalize EBITDAC by removing any non-reoccurring transactions that are not in the normal course of operations.

** Copies of NWE's financial statements, MD&A and other public filings are available under the company's profile on SEDAR at www.sedar.com.

 

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.

Cautionary Note Regarding Forward-Looking Information

Certain statements in this news release may constitute "forward-looking information" within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information and financial outlook.  Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions.  Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations or future actions.  Forward-looking information in this news release includes, without limitation, statements with respect to: the use of proceeds of its loans; the use of the acquired equipment; planned changes in NWE's business and revenues; the competitive environment in which NWE operates; and the assessment of future plans and operations.  Actual events or results may differ materially.  The forward-looking information in this news release is based on assumptions which includes, but is not limited to: NWE realizing the expected benefits of its loans and acquired equipment; the general state of the economy and the oil and gas industry not worsening; NWE not losing any key personnel; NWE sustaining or increasing their level of revenues and EBITDAC  NWE growing its businesses long term and managing its growth; NWE complying with existing regulations and not becoming subject to more stringent regulations; and, NWE's insurance being sufficient to cover losses that may occur as a result of its operations.  The forward-looking information in this news release is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information.  The factors which could cause results to differ from current expectations include, but are not limited to: failure to realize the expected benefits of its loans and acquired equipment; potential undisclosed liens associated with the acquired equipment; NWE's results being dependent upon the general state of the economy and the oil and gas industry; NWE being dependent on key personnel, the loss of which could harm its business; NWE may not be able to sustain or increase their revenues or EBITDAC; NWE may be unable to grow its business long term or to manage any growth; NWE may be unable to integrate the acquired equipment into its business; competition in NWE's markets may lead to reduced revenues and EBITDAC; NWE may fail to comply with existing regulations or become subject to more stringent regulations; NWE's insurance may be insufficient to cover losses that may occur as a result of NWE's operations; the market price of NWE's common shares will fluctuate; and, there is a possibility of dilution of existing holders of NWE's common shares due to future financings or acquisitions.  Although NWE has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements in this news release, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of the factors are beyond the control of NWE.  Accordingly, readers should not place undue reliance on the forward-looking information in this news release.  The forward-looking information is made as of the date of this news release, and NWE does not assume any obligation to publicly update or revise such forward-looking information to reflect new information, subsequent or otherwise, except as may be required by applicable law.  The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement.

SOURCE New West Energy Services Inc.

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