CALGARY, May 24, 2013 /CNW/ - MATRRIX Energy Technologies Inc. ("MATRRIX" or the "Corporation") (TSX-V: MXX) announces financial results for the first quarter 2013.
HIGHLIGHTS OF MATRRIX FIRST QUARTER 2013 (COMPARED WITH FIRST QUARTER 2012)
- Revenue of $6,137,570 up 13% from $5,428,770
- Gross margin of $2,037,158 (33%) up 30% from $1,565,122 (29%) primarily as a result of increased utilization of MATRRIX owned equipment and fewer rentals.
- EBITDA of $691,761 down 19% from $850,420 primarily resulting from USA startup costs.
- The Corporation maintained a strong balance sheet with $5,740,887 of cash and cash equivalents at March 31, 2013 and working capital of $9,900,987.
- The Corporation's concurrent job capacity was 23 directional and horizontal drilling systems at the end of Q1 2013, with the addition of 3 systems completed during the period.
- MATRRIX commenced expansion of its directional and horizontal drilling business into the USA to complement its current USA performance motor business with the hiring of local operational and sales staff and the transfer of 4 systems to date. Deployment of the first directional and horizontal drilling system to the field in the US occurred in late April 2013.
- MATRRIX expects capital expenditures of approximately $4,300,000 during 2013 for additional horizontal and directional drilling related equipment with approximately $1,500,000 having been spent in Q1 2013.
FINANCIAL SUMMARY HIGHLIGHTS
|
|
Three Months Ended |
|
|
|
March 31, 2013 |
|
March 31, 2012 |
% Change |
| Revenue |
|
$6,137,570 |
|
$5,428,770 |
13% |
| EBITDA |
(i) |
$691,761 |
|
$850,420 |
-19% |
| EBITDA per share |
|
|
|
|
|
|
Basic |
|
$0.02 |
|
$0.03 |
nm |
|
Diluted |
|
$0.02 |
|
$0.03 |
nm |
| Net income |
|
$323,633 |
|
598,764 |
-46% |
| Net income per share |
|
|
|
|
|
|
Basic |
|
$0.01 |
|
$0.02 |
nm |
|
Diluted |
|
$0.01 |
|
$0.02 |
nm |
Weighted Average diluted
common shares outstanding |
|
32,176,938 |
|
31,454,884 |
2% |
|
|
|
|
|
|
|
|
March 31, 2013 |
|
December 31, 2012 |
|
| Working capital |
|
$9,900,987 |
|
$10,375,669 |
-5% |
| Total assets |
|
$28,146,885 |
|
$29,474,785 |
-5% |
| Long-term debt |
|
$ Nil |
|
$ Nil |
nm |
| Shareholders' equity |
|
$26,345,337 |
|
$25,867,864 |
2% |
| Common shares outstanding |
|
32,184,638 |
|
$32,151,638 |
0% |
| nm - not meaningful |
|
|
|
|
|
|
At the date of this press release, MATRRIX had a total of 23 directional and horizontal systems available for deployment in Alberta, Saskatchewan, British Columbia, Manitoba and the USA. MATRRIX commenced expansion of its directional and horizontal drilling business into the USA to complement its drilling motor operations in Q1 2013. A base for operations was established in Oklahoma City where operating and sales staff have been hired and deployment of the first system to the field in the USA occurred in Q2 2013. The Corporation continued its drilling motor operations in Texas and continues to expand operations in this region as well.
President Richard Ryan stated, "With MATRRIX now firmly established in the Canadian market, with 21 months of operational history, we're pleased with our growth in market share and the uptake of our technology and services from an expanding list of Canadian oil and gas Clients. The USA market is estimated to be 5 times larger than Canada, with far less seasonal fluctuations in activity. In Q1 2013, MATRRIX introduced its directional drilling technology and services to an American market that we understand, and we have experience as a management team. We see 2013 as a year to position the company for continued growth in a North American market that continues to expand. With a strong balance sheet and technical success in each core market, we'll be prepared to take advantage of a lift in North American land based drilling activity that is being forecasted for 2014."
The Corporation's financial statements and management's discussion and analysis for the three months ended March 31, 2013 will be available on SEDAR at www.sedar.com.
NON-GAAP MEASURES
This press release contains references to EBITDA and gross margin. These financial measure are not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-GAAP measure. The non-GAAP measures used by the Corporation may not be comparable to similar measures used by other companies.
(i) EBITDA is defined as "income (loss) before interest, taxes, business acquisition transaction costs, reverse takeover adjustments, depreciation, stock based compensation expense, gains on disposal of property and equipment and foreign exchange." Management believes that in addition to net and total comprehensive income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Corporation's principal business activities prior to consideration of how these activities are financed, how the results are taxed in various jurisdictions, or how the results are effected by the accounting standards associated with the Corporation's stock based compensation plan.
|
|
Three Months Ended |
|
|
|
|
March 31, 2013 |
|
March 31, 2012 |
% Change |
Income before income taxes and
interest & other income |
|
$ |
59,258 |
$ |
506,514 |
-88% |
| Depreciation |
|
|
513,041 |
|
201,233 |
155% |
| Share based payments |
|
|
83,888 |
|
140,307 |
-40% |
| Foreign exchange loss |
|
|
35,574 |
|
2,366 |
nm |
| EBITDA(i) |
|
$ |
691,761 |
$ |
850,420 |
-19% |
| nm - not meaningful |
(ii) Gross margin is defined as "gross profit from services revenue before stock based compensation and depreciation". Gross margin is a measure that provides shareholders and potential investors additional information regarding the Corporation's cash generating operating performance. Management utilizes this measure to assess the Corporation's operating performance.
|
|
|
Three Months Ended |
|
|
|
|
March 31, 2013 |
|
March 31, 2012 |
% Change |
| Revenue |
|
$ |
6,137,570 |
$ |
5,428,770 |
13% |
| Direct operating expenses |
|
$ |
4,100,412 |
$ |
3,863,648 |
6% |
| Gross margin (ii) |
|
$ |
2,037,158 |
$ |
1,565,122 |
30% |
| Gross margin % |
|
|
33% |
|
29% |
15% |
MATRRIX is engaged in the acquisition and supply of horizontal and directional drilling technologies for the oil and gas industry in North America.
FORWARD-LOOKING INFORMATION
This press release contains certain statements or disclosures relating to MATRRIX that are based on the expectations of MATRRIX as well as assumptions made by and information currently available to MATRRIX which may constitute forward-looking information under applicable securities laws. In particular, this press release contains forward-looking information related to: business plans and strategies; the ability of the Corporation to achieve growth and operational success consistent with management's expectations; the performance of the drilling industry; and future operational results. Such forward-looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond MATRRIX's control. Many factors could cause the performance or achievement by MATRRIX to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking information. MATRRIX's documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. MATRRIX disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
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.
SOURCE: MATRRIX Energy Technologies Inc.
