Welcome!

News Feed Item

Pulse Seismic Inc. Reports 2013 Results and Declares Quarterly Dividend

CALGARY, ALBERTA -- (Marketwired) -- 03/17/14 -- Pulse Seismic Inc. (TSX: PSD)(OTCQX: PLSDF) ("Pulse" or "the Company") reports the financial and operating results of the Company for the year ended December 31, 2013. The year-end audited financial results were in line with the preliminary unaudited financial results announced in the Company's news release on January 16, 2014. The audited consolidated 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.

Pulse has declared a quarterly dividend of $0.02 per common share. This dividend will be paid on April 11, 2014 to shareholders of record at the close of business on March 28, 2014. Dividends are designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse's dividends are subject to Canadian withholding tax.

HIGHLIGHTS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2013


--  Seismic data library sales of $27.1 million, a 58 percent decrease from
    the record $64.0 million achieved in 2012;
--  Total seismic revenue (including participation survey revenue) of $40.5
    million compared to $86.4 million in 2012;
--  Cash EBITDA(a) of $19.1 million, a 65 percent decrease from $54.7
    million in 2012, and a 63 percent decrease on a per-share basis from
    $0.87 to $0.32 per share basic and diluted;
--  Shareholder free cash flow(a) of $20.7 million, a 59 percent decrease
    from $50.0 million in 2012, and a 58 percent decrease on a per-share
    basis from $0.80 to $0.34 per share basic and diluted;
--  Funds from operations(b) of $27.8 million ($0.46 per share basic and
    diluted) compared to $74.3 million ($1.19 per share basic and diluted)
    for 2012(i);
--  Pulse completed three 3D participation surveys totalling 1,182 square
    kilometres, with total gross capital expenditures amounting to $58.0
    million. Some of these survey costs were incurred in 2012 when the
    surveys were initiated;
--  Pulse purchased and cancelled, through its normal course issuer bid, a
    total of 2,447,222 common shares (4 percent of the total outstanding at
    December 31, 2012) at a total cost of approximately $8.4 million (at an
    average cost of $3.42 per common share including commissions);
--  Pulse paid four quarterly dividends of $0.02 per common share at a total
    cost of $4.8 million; and
--  At December 31, 2013 Pulse's cash balance was $1.7 million and long-term
    debt(c) was $21.8 million, resulting in a net debt position of $20.1
    million.

HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2013


--  Seismic data library sales of $4.6 million, down 62 percent from $11.9
    million in the same period of 2012;
--  Total seismic revenue consisting of data library sales of $4.6 million
    compared to $27.8 million, including participation survey revenue of
    $15.9 million, for the comparable period in 2012;
--  Cash EBITDA(a) of $3.0 million or $0.05 per share basic and diluted
    compared to $9.7 million or $0.16 per share basic and diluted in the
    fourth quarter of 2012;
--  Shareholder free cash flow(a) of $3.7 million or $0.06 per share basic
    and diluted compared to $7.4 million or $0.12 per share basic and
    diluted in the fourth quarter of 2012;
--  Funds from operations of $2.7 million ($0.05 per share basic and
    diluted) compared to $25.3 million ($0.41 per share basic and diluted)
    for the three months ended December 31, 2012(i).

(i) Funds from operations for the comparative three and twelve month periods ended December 31, 2012 reflect a reclassification to conform to the current year's financial statement presentation.


Selected Financial and Operating Information
(thousands of dollars except per share data and number of shares)

                                       Three months                    Year
                                  ended December 31,      ended December 31,
                                   2013        2012        2013        2012
Revenue
  Data library sales            $ 4,565    $ 11,885    $ 27,079    $ 64,040
  Participation surveys               -      15,887      13,429      22,313
---------------------------------------------------------------------------
Total revenue                   $ 4,565    $ 27,772    $ 40,508    $ 86,353

Amortization of seismic
 data library                   $ 6,215     $ 6,351    $ 55,619    $ 36,568

Net earnings (loss)            $ (2,572)   $ 13,951   $ (18,834)   $ 27,446
  Per share basic and
   diluted                      $ (0.04)     $ 0.23     $ (0.31)     $ 0.44

Cash EBITDA (a)                 $ 2,962     $ 9,737    $ 19,145    $ 54,692
  Per share basic and
   diluted (a)                   $ 0.05      $ 0.16      $ 0.32      $ 0.87

Shareholder free cash flow
 (a)                            $ 3,655     $ 7,381    $ 20,682    $ 50,046
  Per share basic and
   diluted (a)                   $ 0.06      $ 0.12      $ 0.34      $ 0.80

Funds from operations (b)       $ 2,736    $ 25,333    $ 27,751    $ 74,346
  Per share basic and
   diluted (b)                   $ 0.05      $ 0.41      $ 0.46      $ 1.19

Capital expenditures:
  Participation surveys
   (cost reduction)               $ (67)   $ 27,961    $ 21,265    $ 40,261
  Seismic data purchases
   and related costs                183       1,095         961       1,908
  Property and equipment
   additions (cost
   reduction)                       (41)        577         127         790
---------------------------------------------------------------------------
Total capital expenditures         $ 75    $ 29,633    $ 22,353    $ 42,959

Weighted average shares
 outstanding:
  Basic                      59,434,027  61,104,706  60,280,876  62,526,761
  Diluted                    59,434,027  61,109,999  60,280,876  62,526,761
Shares outstanding at
 period end                                          59,349,120  61,140,442

---------------------------------------------------------------------------
Seismic library:
2D in net kilometres                                    339,991     339,991
3D in net square kilometres                              28,284      27,089
---------------------------------------------------------------------------

Financial Position and Ratios
(thousands of dollars except ratio calculations)
                                                          As at December 31,
                                                           2013        2012
---------------------------------------------------------------------------
Working capital                                         $ 6,476    $ (1,462)
Working capital ratio                                    3.71:1      0.96:1
Total assets                                           $ 98,017   $ 162,454
Long-term debt (c)                                     $ 21,850    $ 26,688
TTM cash EBITDA (d)                                    $ 19,145    $ 54,692
Shareholders' equity                                   $ 65,962    $ 96,550
Long-term debt to equity
 ratio                                                   0.33:1      0.28:1
Long-term debt to TTM cash
 EBITDA ratio                                            1.14:1      0.49:1
---------------------------------------------------------------------------

(a) 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.

(b) Funds from operations is an additional GAAP measure. Funds from operations is defined as cash provided by operations as prescribed by IFRS, excluding the impact of changes in non-cash working capital. Funds from operations represents the cash that was generated during the period, regardless of the timing of collection of receivables and payment of payables. Funds from operations per share is defined as funds from operations divided by the weighted average number of shares outstanding for the period.

(c) Long-term debt is defined as total long-term debt, including current portion, net of debt finance cost.

(d) TTM cash EBITDA is defined as the sum of the trailing 12 month's cash EBITDA and is used to provide a comparable annualized measure.

OUTLOOK

Pulse remains financially strong and very well positioned operationally, even though the timing and level of data library sales continue to be unclear. The Company can continue to operate under low revenue levels and still provide returns to shareholders. At the same time, individual data library sales can be very large, and Pulse's annual revenues could increase substantially with no advance indicators. As 2012 demonstrated, Pulse and its shareholders benefit greatly when revenues accelerate, because Pulse can deliver a major increase in revenue with little increase in costs, resulting in an increase in shareholder free cash flow, which provides flexibility and options for capital allocation. Once Pulse is past break-even, profitability has tremendous leverage against revenues.

Overall, Pulse is cautious going into 2014. On a positive note, natural gas pricing is markedly higher than a year ago, having climbed to what could be a sustained level above $4 per GJ, not counting the cold-weather-related price spike in February. In addition, there is better visibility for expansion of takeaway capacity for oil and natural gas out of western Canada. This is offset by the much lower provincial mineral lease auction revenue or land sales in 2013, historically a leading indicator of seismic activity, as well as forecasts for another year of relatively low oil and natural gas well drilling.

Energy services companies generally reported weaker activity in 2013, consistent with Pulse's experience. More recently, some reported a pickup in activity and financial results for the fourth quarter and/or issued considerably stronger outlooks for 2014. Greater drilling and hydraulic fracturing activity for service companies implies higher capital budgets among oil and natural gas producers. While traditional leading indicators are less directly linked to Pulse's seismic data sales than in the past, they are still positive, as are recent reports of asset transactions plus some investment research anticipating a busier year for mergers and acquisitions.

Regarding the longer term, the producing sector and investment community have shown great interest in proposed liquefied natural gas (LNG) export facilities on British Columbia's Pacific Coast. This is a complex story, with many factors remaining uncertain. The gas demand from two or three LNG projects would be enormous, triggering increased upstream activity. A typical, 1.5-billion-cubic-foot-per-day liquefaction facility would take in 12 percent of Canada's current gas production. This is equivalent to the output of the country's largest natural gas producer, or over half the gas currently produced by the entire Montney play. One published research report estimated that providing a dedicated 20-year gas supply for one LNG export facility would require drilling 6,000 Montney wells.

Pulse offers good data coverage over some of the critical LNG supply areas - the Montney and Duvernay in particular - as well as areas likely to experience secondary effects, such as the Alberta Deep Basin. Strong gas demand for LNG could even revive drilling for traditional "dry" gas. Anything that stimulates field activity should be good for Pulse's business. In principle, the same goes for any added takeaway capacity, such as new pipelines or greater oil-by-rail exports. LNG should exert the greatest leverage, however, because the product would go to markets where natural gas has been priced at $12-$18 per GJ for years. Even modest capture of the price differential would be highly beneficial to Canada's gas producers.

So far in 2014, sales have tracked to the Company's modest first quarter budget. Pulse has a record of delivering strong years set amidst weaker years, and its revenues could accelerate at any time. In the meantime, Pulse will practise prudent cost and capital management and remain focused on generating returns for shareholders.

Q4 2013 CONFERENCE CALL

Pulse will hold a conference call and live audio webcast on Tuesday, March 18, 2014 at 11:00 am MT (1:00 pm ET) where Neal Coleman, President & CEO and Pamela Wicks, VP Finance & CFO will discuss the Company's fourth quarter and year-end 2013 results. A question-and-answer period will follow an update on the Company's strategies and outlook.

To participate please dial 416-340-8530 or 1-877-440-9745 approximately 10 minutes before the commencement of the call. To listen to the webcast of the conference call please visit the Company's website at www.pulseseismic.com.

An archival recording of the conference call will be available approximately one hour after the completion of the call until March 25, 2014. To access the replay, please dial 1 800-408-3053 or 905-694-9451 and enter the pass code 4144913.

CORPORATE PROFILE

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 28,300 square kilometres of 3D seismic and 340,000 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.

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:


--  Pulse remains financially strong and very well positioned operationally,
    even though the timing and level of data library sales continue to be
    unclear;
--  The Company can continue to operate under low revenue levels and still
    provide returns to shareholders;
--  Individual data library sales can be very large, and Pulse's annual
    revenues could increase substantially with no advance indicators;
--  Pulse has a record of delivering strong to record years set amidst
    weaker years, and revenues could accelerate at any time;
--  General economic and industry outlook;
--  Pulse's capital allocation strategy;
--  Pulse's dividend policy;
--  Industry activity levels and capital spending;
--  Forecast commodity prices;
--  Forecast oil and natural gas drilling activity;
--  Forecast oil and natural gas company capital budgets;
--  Forecast horizontal drilling activity in unconventional oil and natural
    gas plays;
--  Potential future development of liquefied natural gas (LNG) export
    facilities and the potential associated effects on gas drilling;
--  Estimated future demand for seismic data;
--  Estimated future seismic data sales;
--  Estimated future demand for participation surveys;
--  Management's expectations on the sufficiency of Pulse's capital
    resources;
--  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: "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:


--  oil and natural gas prices;
--  seismic industry cycles and seasonality;
--  the demand for seismic data and participation surveys;
--  the pricing of data library license sales;
--  relicensing (change of control) fees and partner copy 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;
--  competition;
--  dependence upon qualified seismic field contractors;
--  dependence upon key management, operations and marketing personnel;
--  loss of seismic data;
--  protection of Intellectual Property; and
--  the introduction of new products.

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
"Tintri focuses on the Ops side of the DevOps, which basically is pushing more and more of the accessibility of the infrastructure to the developers and trying to get behind the scenes," explained Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...