New West Energy Services Inc. Announces First Quarter 2018 Financial Results

CALGARY, May 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 first quarter 2019 financial results.

FINANCIAL HIGHLIGHTS

• Revenue was $4,300,801 in the three months ended March 31, 2019 compared to $7,908,139 in the same period last year. This reduction was mostly due to a significant decrease in revenue from NWE's fluid transportation services offered in Grand Prairie stemming from the decline in completions activity in northwestern Alberta associated with reduced oil prices and the Government of Alberta's mandatory production cut. As a result of the continuing uncertainty brought by such conditions, NWE has ceased conducting business in Grande Prairie and is taking steps to wind down its operations in the area. Going forward, NWE's business will focus on its drilling-related vacuum and water truck services from Medicine Hat and environmental services.
  
  
• Gross margin was 29% in the three months ended March 31, 2019 compared to 17% in the same period last year. The environmental and vacuum and water truck services operating in the drilling services sector realized an increase in gross margins offsetting a decrease in gross margin from the fluid transportation services operating in the completions and production sectors.
  
  
• General and administrative expenses were $926,274 in the three months ended March 31, 2019 compared to $944,114 in same period last year, reflecting a consistency between reporting quarters.
  
  
• Normalized EBITDAC was a $335,873 in the three months ended March 31, 2019 compared to $437,810 in the same period last year.

	For the three months ended March 31,					For the three months ended March 31,
	2019					2018
	Vacuum Truck & Fluid Transportation Services	Environmental Services	Corporate	Total		Vacuum Truck & Fluid Transportation Services	Environmental Services	Corporate	Total
	$	$	$	$		$	$	$	$
Revenue	3,101,929	1,198,872	-	4,300,801		6,265,820	1,642,319	-	7,908,139
Direct costs	2,352,082	686,572	-	3,038,654		5,363,965	1,162,250	-	6,526,215
Gross margin	749,847	512,300	-	1,262,147		901,855	480,069	-	1,381,924
G & A expenses	516,603	344,360	65,311	926,274		498,752	371,389	73,973	944,114
Share base pmts	-	-	-	-		-	-	-	-
Finance charges	113,933	19,875	44,853	178,661		178,122	16,305	23,634	218,061
Depreciation	319,580	-	-	319,580		371,082	-	-	371,082
Disposal of assets	-	-	-	-		78,614	-	-	78,614
Net loss before tax	(200,269)	148,065	(110,164)	(162,368)		(224,715)	92,375	(97,607)	(229,947)
Total assets	9,603,814	1,330,306	13,887	10,948,007		14,009,301	1,520,170	11,197	15,540,668
EBITDAC*	233,244	167,940	(65,311)	335,873		403,103	108,680	(73,973)	437,810

* 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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