LONESTAR REPORTS 2011 SECOND QUARTER FINANCIAL RESULTS

SYLVAN LAKE, AB, Feb. 28 /CNW/ -- SYLVAN LAKE, AB, Feb. 28 /CNW/ - Lonestar West Inc. (TSXV: LSI) today announced its business performance for the second quarter of fiscal 2011.
Results:


    
    -   generated revenue of $2.9 million in the three months ended
        December 31, 2010, this is a 41% increase in relation to the
        comparative quarter in the prior year.
    -   income generated in the quarter of $220,677, an increase in earnings
        in relation to the $86,846 loss in the prior year quarter.
    -   second quarter EBITDAC of $472,566 has increased by 57% in relation
        to prior year quarter EBITDAC of $201,181.
    


President and CEO James Horvath commented, "We experienced an increase in activity as the weather improved which was reflected in an increase in performance. Our success this quarter was due primarily to the usage of lease operators, weather conditions and overall oilfield activity. Our geographical expansion is starting to affect our performance as the potential market is increasing and our cash flows are improving. Subsequent to the quarter end we have seen a noted improvement in revenue and our customer satisfaction is still extremely high."

CONSOLIDATED RESULTS

Financial Results (000's except per share amounts)


    
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                                                        3 months ended
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                                                  December 31    December 31
                                                     2010           2009
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    Revenue                                          $  2,882      $   2,038
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    Operating expenses                                  2,134          1,507
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    Gross margin                                          748            531
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    Net income (loss)                                     221            (87)
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    EBITDAC                                               473            201
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    Earnings per share - basic                          0.017         (0.007)
    -------------------------------------------------------------------------
    


The complete MD&A and interim financial statements for the 2011 Second Quarter are available on SEDAR at www.sedar.com.

Business Description

Lonestar West Inc. (www.lonestarwest.com) currently operates a fleet of HVAC and vacuum trucks throughout Western Canada from its base in Sylvan Lake, Alberta. It is focussed 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.




James Horvath, President and CEO, (403) 887 - 2074; Bev Roome, CA, Chief Financial Officer, (403) 887 - 2074

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