(via Thenewswire.ca)
Edmonton, Canada / TheNewswire / April 29, 2015 - Intercept Energy Services Inc. ("IES" or the "Corporation")
(TSX-V: IES / OTCBB: IESCF), a leading Oilfield Services Firm ("OFS") specializing in frac water heating, unconventional energy extraction, oilfield equipment, oilfield waste disposal and recovery of reusable products from waste, today reported financial results for the fourth quarter and year ended December 31, 2014.
Fourth Quarter and Year Ended December 31, 2014 Highlights
-
-Gross revenues were higher by 350 percent to $3.1 million for the fourth quarter ended December 31, 2014 compared to $0.7 million for the same quarter last year and were higher by 173 percent to $5.8 million for the year ended December 31, 2014 compared to $2.1 million last year, mainly due to an increase in the number of Heating Units in operation in 2014 and the entry into the US during the first quarter of 2014.
-
-During the year ended December 31, 2014 the Corporation successfully extinguished its royalty obligation in exchange for two million common shares of the Corporation at a value of $51,062. This resulted in recognizing a onetime gain on extinguishment of royalty obligation of $2.9 million.
-
-During the year ended December 31, 2014, the Corporation successfully re financed its capital lease facility which resulted in repaying its existing capital lease obligation due to a major Canadian bank in full of $1.5 million and establishing a $2.5 million new capital lease facility repayable over five years.
-
-During the first half of 2014 the Corporation successfully entered into the USA and there were 4 Heating Unit working by the end of December 31, 2014 in the USA. These were the first Heating Units working in the USA and the Corporation is working on increasing the number of Heating Units in the US through 2015.
-
-Net income before other items for the quarter ended December 31, 2014 was $0.2 million compared to a net loss before other items of $1.6 million for the same quarter last year and net loss before other items was $1.4 million for the year ended December 31, 2014 compared to $3.0 million last year, mainly due to increase in revenues during current quarter and year.
page 2 of 7
-
-Net income for the quarter ended December 31, 2014 was $0.2 million compared to a net loss of $1.6 million for the same quarter last year and the net income was $1.1 million for the year ended December 31, 2014, compared to a net loss of $3.0 million last year, mainly due to the onetime gain in the current year of $2.9 million on extinguishment of royalty obligation and the general overall increase in revenues and operations.
Commenting on fourth quarter and year ended December 31, 2014 results, Mr. Swapan Kakumanu, IES, Chief Financial Officer stated, "Our fourth quarter financial results continued to show a greater quarter-over-quarter improvement on revenue growth compared to the same quarters of previous years. On a year to date basis 2014 was a successful year for IES with increased revenues and by successfully resolving the royalty liability obligation and refinancing the capital leases during the third quarter of 2014, the Corporation has a more flexible and stronger balance sheet to work with."
"With the recent TSX approval of the acquisition of 640 Energy Inc., we are in a position to evaluate and identifying new opportunities for the Corporation that will enable us to expand our operations throughout North America.," commented Mr. Randy Hayward and CEO of IES. This is a strategic acquisition for IES and we expect the synergies that this acquisition is expected to generate will be beneficial to the combined entities which will enable us to grow our business operations in the USA more quickly and efficiently.
The following pages are taken from the Completed Financial Statements and are available through SEDAR at http://sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00006007 or on the Company's website.
page 3 of 7
Year end financial results summary is as follows:
INTERCEPT ENERGY SERVICES INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT
(Expressed in Canadian dollars)
| |
|
December 31,
2014
|
December 31,
2013
|
| |
|
|
|
|
ASSETS
|
|
|
|
| |
|
|
|
|
Current assets
|
|
|
|
|
Cash
|
|
$ 109,577
|
$ 8,845
|
|
Trade and other receivables
|
|
3,251,976
|
734,272
|
|
Prepaids and deposits
|
|
37,113
|
22,292
|
|
Total current assets
|
|
3,398,666
|
765,409
|
| |
|
|
|
|
Non-current assets
|
|
|
|
|
Equipment
|
|
3,446,677
|
4,014,068
|
|
TOTAL ASSETS
|
|
$ 6,845,343
|
$ 4,779,477
|
| |
|
|
|
|
LIABILITIES
|
|
|
|
| |
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
$ 2,922,406
|
$ 969,223
|
|
Current portion of loans and borrowings
|
|
830,693
|
651,666
|
|
Current portion of finance lease obligations
|
|
346,465
|
1,833,960
|
|
Current portion of royalty obligations
|
|
-
|
453,245
|
|
Current portion of derivative liability
|
|
42,311
|
40,163
|
|
Total current liabilities
|
|
4,141,875
|
3,948,257
|
| |
|
|
|
|
Non-current liabilities
|
|
|
|
|
Loans and borrowings
|
|
340,702
|
313,039
|
|
Finance lease obligations
|
|
2,031,376
|
-
|
|
Royalty obligations
|
|
-
|
2,064,601
|
|
Derivative liability
|
|
38,460
|
88,305
|
|
Total long term liabilities
|
|
2,410,538
|
2,465,945
|
|
TOTAL LIABILITIES
|
|
6,552,413
|
6,414,202
|
| |
|
|
|
|
EQUITY (DEFICIENCY)
|
|
|
|
|
Share capital
|
|
11,554,885
|
11,117,213
|
|
Contributed surplus
|
|
6,078,559
|
5,646,571
|
|
Deficit
|
|
(17,340,514)
|
(18,398,509)
|
|
TOTAL EQUITY (DEFICIENCY)
|
|
292,930
|
(1,634,725)
|
|
TOTAL LIABILITIES AND EQUITY (DEFICIENCY)
|
|
$ 6,845,343
|
$ 4,779,477
|
page 4 of 7
INTERCEPT ENERGY SERVICES INC.
CONSOLIDATED STATEMENTS OF NET INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED
(Expressed in Canadian dollars)
| |
|
December 31,
|
December 31,
|
| |
|
2014
|
2013
|
|
REVENUE
|
|
|
|
|
Rental income
|
|
$ 5,751,999
|
$ 2,103,514
|
| |
|
|
|
|
EXPENSES
|
|
|
|
|
Consulting fees
|
|
527,473
|
479,659
|
|
Depreciation
|
|
691,761
|
366,283
|
|
Equipment maintenance and rental
|
|
533,610
|
129,642
|
|
Fuel and sundry direct operating costs
|
|
2,132,590
|
508,157
|
|
Occupancy costs
|
|
151,578
|
26,857
|
|
Office and sundry
|
|
272,252
|
354,617
|
|
Professional fees
|
|
280,219
|
170,912
|
|
Royalties
|
|
559,623
|
1,109,285
|
|
Salaries and wages
|
|
1,566,071
|
822,671
|
|
Share based compensation
|
|
261,308
|
747,338
|
|
Travel, marketing and conferences
|
|
198,819
|
434,754
|
|
Foreign exchange (gain) loss
|
|
(31,670)
|
-
|
| |
|
7,143,634
|
5,150,175
|
| |
|
|
|
|
Loss before other items
|
|
(1,391,635)
|
(3,046,661)
|
|
OTHER ITEMS
|
|
|
|
|
Interest income
|
|
-
|
1,125
|
|
Amortization of deferred gain on sale leaseback
|
|
-
|
1,070
|
|
Gain on extinguishment of debt
|
|
-
|
161,500
|
|
Gain on extinguishment of royalty obligation
|
|
2,870,848
|
-
|
|
Gain on sale of equipment
|
|
130,000
|
-
|
|
Gain (loss) on derivative liability
|
|
10,139
|
(14,997)
|
|
Finance expense
|
|
(561,357)
|
(136,018)
|
| |
|
2,449,630
|
12,680
|
| |
|
|
|
|
Net income (loss) and comprehensive income (loss) for the year
|
|
$ 1,057,995
|
$ (3,033,981)
|
|
Basic and diluted income (loss) per common share
|
|
$ 0.01
|
$ (0.03)
|
page 5 of 7
CONSOLIDATED STATEMENTS OF CHANGES IN' EQUITY (DEFICIENCY)
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
(Expressed in Canadian dollars)
| |
Share Capital Number of shares
|
Share Capital
Amount
|
Contributed surplus
|
Subscription advances
|
Deficit
|
Total
|
| |
|
|
|
|
|
|
|
Balance at December 31, 2012
|
80,966,462
|
$ 9,293,446
|
$ 4,855,250
|
$ 10,000
|
$(15,364,528)
|
$(1,205,832)
|
| |
|
|
|
|
|
|
|
Private placements
|
22,523,332
|
1,604,250
|
-
|
(10,000)
|
-
|
1,594,250
|
|
Warrants
|
-
|
(57,200)
|
57,200
|
-
|
-
|
-
|
|
Share issue costs
|
-
|
(189,783)
|
10,783
|
-
|
-
|
(179,000)
|
|
Options exercised
|
300,000
|
54,000
|
(24,000)
|
-
|
-
|
30,000
|
|
Issued for purchase of equipment
|
5,500,000
|
412,500
|
-
|
-
|
-
|
412,500
|
|
Share based compensation
|
-
|
-
|
747,338
|
-
|
-
|
747,338
|
|
Net loss and comprehensive loss for the year
|
-
|
-
|
-
|
-
|
(3,033,981)
|
(3,033,981)
|
|
Balance at December 31, 2013
|
109,289,794
|
11,117,213
|
5,646,571
|
-
|
(18,398,509)
|
(1,634,725)
|
| |
|
|
|
|
|
|
|
Private placements
|
10,670,000
|
533,500
|
-
|
-
|
-
|
533,500
|
|
Warrants
|
-
|
(167,720)
|
167,720
|
-
|
-
|
-
|
|
Share issue costs
|
-
|
(9,660)
|
2,960
|
-
|
-
|
(6,700)
|
|
Bonus shares issued
|
900,000
|
30,490
|
-
|
-
|
-
|
30,490
|
|
Shares issued on extinguishment of royalty obligation
|
2,000,000
|
51,062
|
-
|
-
|
-
|
51,062
|
|
Share based compensation
|
-
|
-
|
261,308
|
-
|
-
|
261,308
|
|
Net income and comprehensive income for the year
|
-
|
-
|
-
|
-
|
1,057,995
|
1,057,995
|
|
Balance at December 31, 2014
|
122,859,794
|
$ 11,554,885
|
$ 6,078,559
|
$ -
|
$(17,340,514)
|
$ 292,930
|
| |
|
|
|
|
|
|
page 6 of 7
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED
(Expressed in Canadian dollars)
| |
|
December 31, 2014
|
December 31, 2013
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
Net income (loss) and comprehensive income (loss)
|
|
$ 1,057,995
|
$ (3,033,981)
|
|
Add back (deduct) items not involving cash:
|
|
|
|
|
Amortization of deferred gain on sale leaseback
|
|
-
|
(1,070)
|
|
Depreciation
|
|
691,761
|
366,283
|
|
Write off of loans receivable
|
|
-
|
133,963
|
|
Accretion
|
|
27,663
|
8,215
|
|
Gain on extinguishment of debt
|
|
-
|
(161,500)
|
|
Gain on extinguishment of royalty obligation
|
|
(2,870,848)
|
-
|
|
Gain on sale of equipment
|
|
(130,000)
|
-
|
|
Non cash portion of royalty expense
|
|
-
|
803,884
|
|
Non cash portion of (gain)/loss on derivative liability
|
|
(10,139)
|
14,997
|
|
Share based compensation
|
|
261,308
|
747,338
|
| |
|
(972,260)
|
(1,121,871)
|
|
Changes in non-cash working capital items:
|
|
|
|
|
Trade and other receivables
|
|
(2,517,704)
|
(484,043)
|
|
Prepaids and deposits
|
|
(14,821)
|
(2,272)
|
|
Income taxes recoverable
|
|
-
|
1,292
|
|
Trade and other payables
|
|
2,357,247
|
254,575
|
| |
|
(175,278)
|
(230,448)
|
|
Net cash used in operating activities
|
|
(1,147,538)
|
(1,352,319)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
Loans receivable
|
|
-
|
(38,000)
|
|
Acquisition of equipment
|
|
(74,370)
|
(247,242)
|
|
Proceeds on disposal of equipment
|
|
130,000
|
-
|
|
Net cash generated (used) in investing activities
|
|
55,630
|
(285,242)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
Proceeds from issuance of shares
|
|
533,500
|
1,624,250
|
|
Share issue costs
|
|
(6,700)
|
(179,000)
|
|
Loans and borrowings
|
|
822,724
|
592,727
|
|
Loans and borrowings repayments
|
|
(613,207)
|
-
|
|
Derivative liability
|
|
(37,558)
|
113,471
|
|
Cash received on lease financing of equipment
|
|
2,500,000
|
988,134
|
|
Finance leases repayments
|
|
(2,006,119)
|
(1,534,063)
|
|
Net cash generated by financing activities
|
|
1,192,640
|
1,605,519
|
|
Net increase (decrease) in cash for the year
|
|
100,732
|
(32,042)
|
|
Cash, beginning of the year
|
|
8,845
|
40,887
|
|
Cash, end of the year
|
|
$ 109,577
|
$ 8,845
|
page 7 of 7
About Intercept Energy Services Inc. ("IES")
Intercept Energy Services Inc. employs innovative and proprietary technology to provide the highest efficiency heated water, used by oil and gas exploration and production companies; in the fracturing process in Canada and the United States. Through the utilization of HE Heaters(TM), IES is able to reduce fuel consumption and emissions, enhances safety and productivity, enable extreme cold weather operations with significantly lower operating costs that result in a direct competitive advantage for its customers. For more information, visit http://InterceptES.com
IES is based in Edmonton, Alberta, Canada.
For more information, visit the IES website: www.InterceptES.com
Contacts:
Mr. SwapanKakumanu
Chief Financial Officer
1.403-681-2549
skakumanu@InterceptES.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 the accuracy of this release.
Forward-looking statements
Certain information regarding IES in this news release, including management's assessment of its future development plans and access to various external sources of capital, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with heating technology and oilfield services operations, general risks associated with oil and gas exploration, development, production, marketing and disposal of waste, loss of markets, environmental risks, competition from other service providers, delays resulting from inability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect IES's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements or information contained in this news release are made as of the date hereof and IES does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Copyright (c) 2015 TheNewswire - All rights reserved.