CALGARY, Alberta, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or the “Company”) is pleased to report its financial and operating results for the three and nine months ended September 30, 2021. The unaudited condensed consolidated interim financial statements, accompanying notes and MD&A are being filed on SEDAR (www.sedar.com) and will be available on Pulse’s website at www.pulseseismic.com.
In the third quarter of 2021 the Company continued to generate robust transaction-based sales as well as traditional sales, driving a significant improvement in all key performance indicators over both the quarterly and year-to date results of the prior year.
“We are very pleased with the level of sales generated so far in 2021. Total revenue of $32.8 million converts to $21.3 million of shareholder free cash flow generated in the first three quarters of the year,” stated Neal Coleman, Pulse’s President and CEO. “The Company has now repaid the full $38.0 million of debt related to the 2019 acquisition of Seitel Canada Ltd., having repaid its remaining September 30, 2021 debt balance of $3.2 million. Since the acquisition, capital allocation has been focused on debt repayment. We are extremely pleased at having fully repaid all borrowings in less than three years, considering the economic environment.”
The strong quarterly and year-to-date results have enabled Pulse’s Board of Directors to make additional capital allocation decisions. Since 2003, Pulse has returned approximately $109.1 million to its shareholders through dividends and share buybacks. Total dividends paid were $62.9 million and the shares repurchased cost $46.2 million. Regular quarterly dividends were suspended in 2015, early in the energy sector downturn. Since that time, one special dividend was paid in 2017. The Board has now made the decision to resume regular quarterly dividends and has declared a dividend in the amount of $0.0125 per share. In addition, the Board has declared a special one-time dividend of $0.04 per share. Together the special and regular dividends will result in a distribution of approximately $2.8 million, based on 53,793,317 shares outstanding as of this date. As well, the Company will file a notice with the Toronto Stock Exchange (TSX) to undertake a Normal Course Issuer Bid which will allow for approximately 3.1 million shares to be purchased and cancelled in a one-year period. The details will be released following TSX approval.
These decisions reflect Pulse’s strong balance sheet and the anticipated delivery in the first half of 2022 of the remaining $9.7 million of seismic data under a transaction–based sale announced in the second quarter. “Pulse is a pure-play seismic data library company with very low cash operating costs,” continued Coleman. “Having this $9.7 million sales backlog for early 2022 provides improved clarity for the short-term.”
HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021
- Data library sales revenue was $8.8 million for the three months ended September 30, 2021 compared to $1.8 million for the three months ended September 30, 2020. Data library sales revenue was $32.5 million for the nine months ended September 30, 2021 compared to $5.9 million for the nine months ended September 30, 2020;
- Net earnings for the three months ended September 30, 2021 were $3.2 million ($0.06 per share basic and diluted) compared to a net loss of $1.9 million ($0.04 per share basic and diluted) for the three months ended September 30, 2020. Net earnings for the nine months ended September 30, 2021 were $13.4 million ($0.25 per share basic and diluted) compared to a net loss of $7.1 million ($0.13 per share basic and diluted) for the nine months ended September 30, 2020;
- Cash EBITDA(a) was $7.5 million ($0.14 per share basic and diluted) for the three months ended September 30, 2021, compared to $1.2 million ($0.02 per share basic and diluted) for the three months ended September 30, 2020. Cash EBITDA was $28.8 million ($0.53 per share basic and diluted) for the nine months ended September 30, 2021 compared to $3.4 million ($0.06 per share basic and diluted) for the nine months ended September 30, 2020;
- Shareholder free cash flow(a) was $5.9 million ($0.11 per share basic and diluted) for the third quarter of 2021 compared to $855,000 ($0.02 per share basic and diluted) for the comparable period in 2020. Shareholder free cash flow was $21.3 million ($0.40 per share basic and diluted) for the nine months ended September 30, 2021 compared to $2.4 million ($0.04 per share basic and diluted) for the nine months ended September 30, 2020;
- During the three first quarters of 2021, the Company repaid a total of $24.8 million of long-term debt including all $10.0 million of its subordinated debt and $14.8 million on the balance of its revolving facility. At September 30, 2021, long-term debt (net of deferred financing cost) was $3.1 million. The outstanding balance was subsequently repaid and the Company now has the full $25.0 million available on its revolving credit facility;
- In the second quarter of 2021 the Company signed a $17.0 million seismic data licensing contract. The Company delivered a portion of the data and recognized revenue of $7.3 million in the second quarter. The remainder of the data must be selected by the customer before April 15, 2022. If the data is selected before that date, revenue will be recognized upon data delivery. There is an additional $9.7 million in licensing fees to be recognized as revenue no later than April 15, 2022. Invoices will be issued when the remainder of the data is delivered, with payment due in 30 days; and
- Pulse’s Board of Directors declared a special dividend of $0.04 per share as well as a regular quarterly dividend of $0.0125 per share. The total of the special and regular dividend will be approximately $2.8 million based on Pulse’s 53,793,317 common shares outstanding as of October 27, 2021, to be paid on November 29, 2021 to shareholders of record on November 12, 2021. This dividend is designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse’s dividends are subject to Canadian withholding tax.
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