Losses increase by 170 percent?
Intercept loses $1.13-million in Q1
2015-05-26 21:13 ET - News Release
Mr. Swapan Kakumanu reports
INTERCEPT ENERGY SERVICES REPORTS FIRST QUARTER -- MARCH 31, 2015, RESULTS
Intercept Energy Services Inc. has released its financial results for the first quarter ended March 31, 2015.
First quarter ended March 31, 2015, highlights:
- Gross revenues were lower by 15 per cent to $1.2-million for the three months ended March 31, 2015, compared with $1.4-million for the same quarter last year, mainly due to a decrease in the average charge-out rates for its heating units in the United States due to the general overall slowdown of the oil and gas activities in the regions where the corporation operates.
- During the first quarter of 2015 the Corporation closed on a non-brokered private placement and issued 20-million units at $0.05 per unit for gross proceeds of $1-million. Each unit consists of one common share of the Corporation and one share purchase warrant that entitles the holder to purchase one additional common share of the Corporation for a period of two years from the closing date at a price of $0.075 per share for the first twelve months and $0.10 for the remaining twelve months.
- The Corporation had a total of 5 Heating Units operating as at the end of March 31, 2015 compared with 4 Heating Units as at the end March 31, 2014;
- Net loss before other items for the quarter ended March 31, 2015 was $0.9-million compared with a net loss before other items of $0.3-million for the same quarter last year and increase in loss before other items by 166 percent , mainly due to decrease in overall revenues and decrease in average charge out rates for its Heating Units during the current quarter due to slower oil and gas activities in the regions where the Corporation operates;
- Net loss for the quarter ended March 31, 2015 was $1.1-million compared with a net loss of $0.4-million for the same quarter last year an increase in loss by 170 percent, mainly due decrease in overall revenues and decrease in average charge out rates for its Heating Units during the current quarter due to slower oil and gas activities in the regions where the Corporation operates and increase in finance expenses as the Corporation entered into higher rate lease financing for its Equipment during the second half of 2014.
Commenting on first quarter ended March 31, 2015 results, Mr. Swapan Kakumanu, IES, Chief Financial Officer stated, "Our first quarter results were impacted by the overall slowdown of in oil and gas activities in the regions we currently operate. The Company is taking necessary steps to stream line operations and adjust costs with the new changed economic environment. We expect to see continued pressure on our charge out rates on our Heating Units during the remainder of 2015."
CONDENSED INTERIM STATEMENTS OF NET LOSS AND COMPREHENSIVE LOSS (Expressed in Canadian dollars) Three months ended Three months ended March 31, March 31, 2015 2014 REVENUE Rental income $ 1,159,273 $ 1,365,34 EXPENSES Consulting fees 202,451 127,241 Depreciation 176,057 144,294 Equipment maintenance and rental 138,479 50,042 Fuel and sundry direct operating costs 368,850 587,067 Occupancy costs 90,159 44,102 Office and sundry 141,844 49,309 Professional fees 80,571 67,014 Royalties 108,056 217,083 Salaries and wages 535,074 362,161 Share based compensation 8,433 33,189 Travel, marketing and conferences 38,764 33,167 Allowance for doubtful debts 347,181 - Foreign exchange (gain) loss (147,493) - 2,088,426 1,714,669 Loss before other items (929,153) (349,323) OTHER ITEMS Gain (loss) on derivative liability (14,256) (814) Finance expense (186,713) (68,132) Total (200,969) (68,946) Net loss and total comprehensive loss for the period$ (1,130,122) $ (418,269) Basic and diluted loss per common share (0.01) (0.00)
We seek Safe Harbor.