Macro Enterprises Inc. Announces 2013 Fourth Quarter and Year End Results
March 12 2014 - 6:20PM
Marketwired
Macro Enterprises Inc. Announces 2013 Fourth Quarter and Year End
Results
FORT ST. JOHN, BRITISH COLUMBIA--(Marketwired - Mar 12, 2014) -
Macro Enterprises Inc. (TSX-VENTURE:MCR) -
|
Summary of financial results |
|
(thousands of dollars except per share amounts) |
|
Three months ended December 31 |
Year ended December 31 |
|
2013 |
2012 |
2013 |
2012 |
|
(unaudited) |
|
|
|
|
|
|
Revenues |
$54,386 |
$43,827 |
$211,846 |
$148,314 |
|
|
|
|
|
EBITDA1 |
8,625 |
7,576 |
47,743 |
30,626 |
|
|
|
|
|
Net income |
6,670 |
5,643 |
31,285 |
19,345 |
|
|
|
|
|
Net income per share |
$0.22 |
$0.23 |
$1.13 |
$0.79 |
|
|
|
|
|
Weighted average common shares outstanding (thousands) |
|
|
27,464 |
23,882 |
|
|
|
|
|
Highlights
- Revenues increased from the fourth quarter last year due in
part to revenues from the new business acquired in November
2012
- EBITDA and net income were above the fourth quarter of last
year due to increased activity
Note 1 - 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
IFRS) 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.
Fourth quarter results
Consolidated revenue
was $54.4 million compared to $43.8 million in the fourth quarter
last year. During the fourth quarter this year, the Company was
active in two pipeline construction projects in the Fort McMurray
area. The Company was also involved in pipeline integrity work for
two customers and performed some pipeline repair work. Lastly, the
Company performed some smaller facility work for several customers.
Last year, the Company was involved in pipeline integrity work for
several customers and obtained additional revenue from pipeline
construction and facility work for two customers.
Operating expenses
were 80.2% of revenue in the quarter compared to 77.3% in the same
quarter last year. Operating expenses were relatively higher this
quarter compared to the previous three quarters due to somewhat
lower bid margins in the current quarter.
Amortization of
property, plant and equipment was $2.2 million compared to $1.4
million in the prior period reflecting a higher level of fixed
assets in the current year. This is due principally to the
acquisition of pipeline construction equipment and related assets
from North American Energy partners completed in the fourth quarter
of last year (the "NAEP acquisition"). Last year, the Company
recorded $1.7 million of amortization of the value attributed to a
customer contract. This charge completely amortized this asset as
the benefit of this asset was obtained during the fourth quarter of
last year.
General and
administrative expenses were $2.2 million, down marginally from the
$2.3 million recorded last year. However, last year's costs
included $0.5 million related to one-time acquisition costs on the
NAEP acquisition. Expenses were up this year due to the greater
level of activity throughout the year.
Finance costs of
$0.2 million were approximately the same as last year.
Last year, the
Company recorded a one-time non-cash gain of $2.2 million related
to the NAEP acquisition. This gain arose because the value of the
assets obtained in this acquisition exceeded the purchase
price.
Income taxes
recovered in the quarter were $0.5 million. This recovery arose due
to the effect of a change in estimate in the current quarter which
resulted in a reduction in tax expense of $2.3 million ($0.08 per
share). Excluding this change in estimate, income tax expense would
have been $1.8 million which would have equated to an effective tax
rate of 29.1% which is in excess of statutory rates in the quarter.
This was due to adjusting the year end tax rate to reflect the
jurisdictions in which the company operated in the year. Last year,
the effective tax rate in the quarter was 12.2% as the inclusion of
the gain from business combination was not subject to tax.
In the fourth
quarter of last year, the Company recorded $1.7 million of
amortization of customer contracts and a $2.2 million gain, both
related to the NAEP acquisition. The Company also recorded a
reduction in income tax expense of $0.5 million related to the NAEP
acquisition. The net impact of these three items was to increase
earnings per share in the fourth quarter of last year by $0.04.
Net income in the
quarter was $6.7 million ($0.22 per share) compared to $5.6 million
($0.23 per share).
Outlook
The Company continues to be active throughout British Columbia,
Alberta, Saskatchewan and Manitoba, in particular in the Fort
McMurray region of Alberta carrying out pipeline and facility
construction and performing pipeline integrity work. The Company is
also actively pursuing new opportunities, including those related
to possible LNG projects and related infrastructure.
The Company is expecting revenues in the first quarter of 2014
to be above those recorded in the first quarter of 2013, mainly due
to pipeline construction and integrity work in the Fort McMurray
area and increased pipeline integrity work in Saskatchewan and
Manitoba. The Company does not expect to duplicate the margins
experienced by the Company in the first quarter of 2013.
Conference call
The Company will host a conference call at 8 am PDT on Thursday,
March 13, 2014 to discuss the 2013 fourth quarter and year end
results. The conference call can be accessed by dialing
1-888-390-0605 and referencing conference ID 26685807.
Macro's core business is providing pipeline and facilities
construction and maintenance services to major companies in the oil
and gas industry. The Company is based in Fort St. John, B.C. and
has a corporate office 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. 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.
Neither 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.
Macro Enterprises Inc.Frank MilesPresident and C.E.O.(250)
785-0033Macro Enterprises Inc.T. Jerrold JacksonC.F.O.(403)
705-7302
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