Macro Enterprises Inc. Announces 2011 First Quarter Results

Macro Enterprises Inc. (TSX VENTURE:MCR) - 



                                              Summary of financial results 
                                                (1)(thousands of dollars   
                                                except per share amounts)  
                                             ------------------------------ 
                                                      Three months ended   
                                                           March 31        
                                             ------------------------------
                                                        2011           2010
                                             ------------------------------
                                                  (unaudited)    (unaudited)
                                                                           
Revenues                                             $43,214        $14,938
                                                                           
EBITDA(2)                                              3,017          1,180
                                                                           
Net earnings                                           1,352             82
                                                                           
Net earnings per share                                 $0.05          $0.00
                                                                           
Weighted average common shares outstanding                                 
 (thousands) - basic                                  23,931         23,172
                                             ------------------------------
Note 1 - Commencing with this quarterly report, all financial information  
is reported in accordance with International Financial Reporting Standards 
("IFRS") including for comparative periods, except where noted.            

Note 2 - References to EBITDA are to net income from continuing operations 
before interest, taxes, amortization and impairment charge. EBITDA is not  
an earnings measure recognized by International Financial Reporting        
Standards ("IFRS") and does not have a standardized meaning prescribed by  
IFRS. Management believes that EBITDA is an appropriate measure in         
evaluating the Company's performance. Readers are cautioned that EBITDA    
should not be construed as an alternative to net income (as determined     
under IFRA) as an indicator of financial performance or to cash flow from  
operating activities (as determined under IFRS) as a measure of liquidity  
and cash flow. The Company's method of calculating EBITDA may differ from  
the methods used by other issuers and, accordingly, the Company's EBITDA   
may not be comparable to similar measures used by other issuers.           



Highlights



--  Results were substantially above the first quarter of last year due to
    increased volumes of work. 

--  The Company negotiated a temporary increase in its operating credit
    facility with its principal lender in order to ensure that there were
    sufficient funds to finance the much greater levels of activity this
    year. 



First quarter results

Consolidated revenue was $43.2 million compared to $14.9 million in the first
quarter last year. The Company commenced work on three large contracts in this
current quarter compared to very little work last year in the traditionally busy
first quarter. 


Operating expenses were 90.2% of revenue in the quarter compared to 85.1% in the
same quarter last year. This percentage rose this year due mainly to a lower bid
margin. 


General and administrative expenses were $1.3 million, up from $1.0 million last
year. Additional costs were incurred principally due to a higher staff
complement, due to the substantially higher levels of activity this year.


Total amortization expense was $0.8 million which was the same as the prior year. 

Interest expense of $0.3 million was $0.1 million above last year due mainly to
the costs associated with the temporary increase in loans from related parties.


Income tax expense in the quarter of $0.5 million was at an effective tax rate
of 28.6% which approximates the statutory rate. In the same quarter last year,
the tax rate was higher than statutory rates due in part to the effect of
permanent differences between accounting and taxable income.


Net income was $1.4 million ($0.05 per share) compared to a net income last year
of $0.1 million ($nil per share).


Outlook

The Company is expecting revenues in the second quarter to be above those
recorded in the second quarter last year. The Company continues to actively bid
new jobs and is expecting the summer to also be busy. However, the continued low
price of natural gas could affect future levels of activity in the areas where
the company is active. 


Macro's core business is providing pipeline and facilities construction and
maintenance services to major companies in the oil and gas industry in
northeastern B.C. and northwestern Alberta. The Company's corporate office is in
Calgary, Alberta. Its shares are listed on the TSX Venture Exchange under the
symbol MCR. Information on the Company's principal operating unit, Macro
Industries Inc., can be found at www.macroindustries.ca


Forward Looking Statements

Certain statements in this news release may include forward-looking information
that involves various risks and uncertainties. These may include, without
limitation, statements regarding expected revenues, expenses and industry trends
and the pursuit of strategic acquisitions. These risks and uncertainties
include, but are not restricted to, global economic conditions, government
regulation of energy and resource companies, seasonal weather patterns,
maintaining and increasing market share, terrorist activity, the price and
availability of alternative fuels, the availability of pipeline capacity, and
potential instability or armed conflict in oil producing regions. For a more
detailed description of these risks and uncertainties, please see the section
"Risk Factors" in the Company's Annual Information Form for the year ended
December 31, 2010 available on SEDAR at www.sedar.com. These risks and
uncertainties may cause actual results to differ from information contained
herein. There can be no assurance that such forward-looking statements will
prove to be accurate. Actual results and future events could differ materially
from those anticipated in such statements. These statements are based on the
estimates and opinions of management on the dates they are made and are
expressly qualified in their entirety by this notice. Except as required by law,
the Company assumes no obligation to update forward-looking statements should
circumstances or management's estimates or opinions change.