CALGARY, ALBERTA--(Marketwire - July 16, 2012) - Pulse Seismic Inc. ("Pulse" or "the Company") (TSX:PSD) is pleased to announce preliminary record financial results for the three and six months ended June 30, 2012.
- For the second consecutive quarter, Pulse achieved record seismic data library sales. For the three months ended June 30, 2012 seismic data library sales were approximately $13.5 million compared to $5.6 million for the same period in 2011. For the six month period ended June 30, 2012 seismic data library sales were approximately $48.1 million compared to $17.0 million for the period ended June 30, 2011. Seismic data library sales for the first six months of 2012 already exceed all of 2011.
- Total seismic revenue (including participation survey revenue) was approximately $13.5 million for the three months ended June 30, 2012 and $49.9 million for six months ended June 30, 2012 compared to $6.6 million and $20.7 million for the respective periods in 2011.
- Cash EBITDA(a) increased to approximately $42.9 million ($0.67 per share basic and diluted) for the six months ended June 30, 2012 compared to $13.0 million ($0.19 per share basic and diluted) for the period ended June 30, 2011, representing an increase of 230% (a 253% increase per share basic and diluted).
- Shareholder free cash flow(a) was approximately $41.8 million ($0.65 per share basic and diluted) for the six months ended June 30, 2012, an increase of 280% (a 306% increase per share basic and diluted) from $11.0 million ($0.16 per share basic and diluted) from the same period in 2011.
Pulse continues to effectively execute its capital allocation strategy. During the second quarter of 2012, the Company:
- Further reduced its long term debt(b) with a $7 million penalty-free payment. Total long term debt at June 30, 2012 was approximately $33.1 million;
- Increased its annual dividend by 60 percent to $0.08 from $0.05 per common share; and
- Purchased and cancelled approximately 2.0 million of its common shares reducing the number of outstanding common shares to approximately 61.8 million.
The financial information contained in this news release is based on management's estimates and has not yet been approved by the Company's Audit Committee or Board of Directors, or reviewed by the Company's auditors.
Pulse is also pleased to announce it has executed an agreement with a major oil and natural gas company to conduct two large 3D seismic participation surveys totalling approximately 835 net square kilometres for total gross capital expenditure of approximately $42.0 million. These surveys are located in the Fox Creek vicinity of west central Alberta and encompass the Kaybob, Waskahigan, McKinley and Tony Creek areas. These areas have the potential for multi-zone production of liquids-rich gas, oil and natural gas, and include the extensive Montney and Duvernay shales. Field operations are expected to commence as soon as ground conditions allow, and both surveys are currently expected to be delivered by the end of the first quarter of 2013.
||The Company's continuous disclosure documents provide discussion and analysis of "cash EBITDA", "cash EBITDA per share", "shareholder free cash flow" and "shareholder free cash flow per share". These financial measures do not have standard definitions prescribed by IFRS and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because management, investors, analysts and others use them as measures of the Company's financial performance. The Company's definition of cash EBITDA is cash available for interest payments, cash taxes if applicable, debt servicing, discretionary capital expenditures and the payment of dividends, and is calculated as earnings (loss) from operations before interest, taxes, depreciation and amortization less participation survey revenue, plus any non-cash and non-recurring expenses. Cash EBITDA excludes participation survey revenue as these funds are directly used to fund specific participation surveys and this revenue is not available for discretionary capital expenditures. The Company believes cash EBITDA assists investors in comparing Pulse's results on a consistent basis without regard to participation survey revenue and non-cash items, such as depreciation and amortization, which can vary significantly depending on accounting methods or non-operating factors such as historical cost. Cash EBITDA per share is defined as cash EBITDA divided by the weighted average number of shares outstanding for the period. Shareholder free cash flow further refines the calculation of capital available to invest in growing the Company's 2D and 3D seismic data library, to repay debt, to purchase its common shares and to pay dividends by deducting non-discretionary expenditures from cash EBITDA. Non-discretionary expenditures are defined as debt financing costs (net of deferred financing expenses amortized in the current period) and current tax provisions. Shareholder free cash flow per share is defined as shareholder free cash flow divided by the weighted average number of shares outstanding for the period.
||Long-term debt is defined as total long-term debt, including current portion, net of debt finance cost.
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 27,100 net square kilometres of 3D seismic and approximately 340,000 net kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occur.
Please visit our website at www.pulseseismic.com.
Forward Looking Information
This news release contains information that constitutes "forward looking information" or "forward looking statements" (collectively, "forward looking information") within the meaning of applicable securities legislation. This forward looking information includes, among other things, statements regarding:
- Expected size, commencement, completion and delivery dates for participation surveys;
- Pulse's capital allocation strategy;
- Pulse's business and growth strategy; and
- Other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results and performance.
Often, but not always, forward looking information uses words or phrases such as: "is confident that", "expects", "does not expect" or "is expected", "anticipates" or "does not anticipate", "plans" or "does not plan", "estimates" or "estimated", "projects" or "projected", "forecasts" or "forecasted", "believes" or "does not believe", "intends" or "does not intend", "likely" or "unlikely", "possible", "probable", "scheduled", "positioned", "goal", "objective", "hopes", "optimistic" or states that certain actions, events or results "should", "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Undue reliance should not be placed on forward-looking information. Forward looking information is based upon current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward looking information.
The material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to:
- economic risks;
- the demand for seismic data and participation surveys;
- the pricing of data library license sales;
- the level of pre-funding of participation surveys, and the ability of the Company to make subsequent data library sales from such participation surveys;
- the ability of the Company to complete participation surveys on time and within budget;
- environment, health and safety risks;
- the effect of seasonality and weather conditions on participation surveys;
- federal and provincial government laws and regulation, including taxation, royalty rates, environment and safety;
- dependence upon qualified seismic field contractors;
- dependence upon key management, operations and marketing personnel;
- loss of seismic data; and
- protection of Intellectual Property.
The foregoing list of risks is not exhaustive. Additional information on these risks and other factors which could affect the Company's operations or financial results are included in the Risk Factors section of the Company's MD&A for the most recent calendar year and interim periods. Forward looking information is based upon the assumptions, expectations, estimates and opinions of the Company's management at the time the information is presented.