|By Marketwired .||
|May 13, 2014 05:25 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 05/13/14 -- Logan International Inc. (TSX:LII) ("Logan" or the "Company") today reported the results of its first quarter ended March 31, 2014. The financial reports for the quarter ended March 31, 2014 include the post-acquisition operating results of the Sup-R-Jar product line, which was acquired in April 2013.
-- The Company has rebuilt Logan Oil Tools backlog to approximately $25 million at April 30, 2014, which is its greatest level since early 2013. -- Reorganization of the downhole tool segment's supply chain and the rental tool segment structure. -- Logan appointed David MacNeill as President and Chief Executive Officer beginning June 16, 2014, ensuring outstanding leadership. Gerald Hage will remain as a director and will provide assistance during the transition.
Logan recorded revenue of $43.6 million in this year's first quarter and $49.2 million in the prior year's first quarter. For the three month period ended March 31, 2014, Logan earned $2.9 million, $.09 per share, as compared to $5.2 million, $.16 per share in the prior year period. Modified EBITDA declined in this year's first quarter to $9.3 million from $12.1 million in last year's first quarter. Management utilizes Modified EBITDA to evaluate its operating results because this measurement eliminates the effects of noncash and nonrecurring revenue and cost.
For the quarter ended March 31, 2014, the downhole tool segment, which includes Logan Oil Tools, Logan Completion Systems ("Logan Completions"), Kline Oilfield Equipment ("Kline"), Logan SuperAbrasives ("SuperAbrasives") and Scope Production Developments ("Scope"), recorded revenue of $40.4 million as compared to $44.3 million for the quarter ended March 31, 2013. For the quarter ended March 31, 2014, this segment generated EBITDA of $9.9 million as compared to $10.9 million for the quarter ended March 31, 2013. For the first quarter of 2014, the rental tool segment, which includes Xtend Energy Services ("Xtend") and Logan Jar, recorded revenue of $3.2 million and EBITDA of approximately $780 thousand as compared to revenue of $4.9 million and EBITDA of $2.8 million in last year's first quarter.
Gerald Hage, President and Chief Executive Officer, commented, "Our first quarter performance was below expectations as revenue in both segments trailed last year's first quarter and also fell short of our plan. The decline in the downhole tool segment's EBITDA was a direct result of the decline in revenue. Logan Oil Tools' sales declined by approximately $5 million, most of which was related to a decline in sales of stroking tools. We believe the weakness in Logan Oil Tools is short term and we fully expect to see a recovery in the remainder of the year as the order flow has rebounded. We have booked orders totaling approximately $48 million during the four months ended April 30, 2014 as compared to approximately $32 million in the corresponding period last year. SuperAbrasives' sales declined by approximately $500 thousand in the current year quarter from the prior year quarter, primarily due to a reduction in international sales, which tend to be sporadic. We also expect an improvement in SuperAbrasives' operating results throughout the remainder of the year due to recently booked international orders and anticipated increases in bearings sales and service work. Logan Completions and Kline both reported stronger operating results in this year's first quarter as compared to last year's first quarter.
"Logan Completions' improved operating results were due to an increase in sales of approximately $2.5 million, while Kline's improvement resulted from increased operating margins due to better execution. Scope reported modest declines in both revenue and operating results in this year's first quarter. In the rental tool segment, Xtend's first quarter revenue declined to $2.9 million from $4.9 million in 2013. The decline occurred mostly in our Canadian operations and was attributable to a decline in demand and, to a lesser extent, a slower startup in 2014 drilling activity and a decrease in the value of the Canadian dollar relative to the U.S. dollar. We also experienced a decline in U.S. operations, which was related to customer drilling efficiencies in the Eagle Ford basin, which was our largest U.S. market. As a result, drilling days per well have been reduced, which has led to lower rental revenue. We have recently expanded to West Texas and the Mid-Continent markets to reduce our dependence on the South Texas market."
Looking forward, Mr. Hage added, "While the first quarter results did not meet our expectations, we have not changed our outlook for the year. We believe the downhole tool segment's operating results will recover in the second quarter due to the upward trend in order flow for Logan Oil Tools and SuperAbrasives. Except for the seasonal slowdown in Logan Completions' Canadian operations, we also expect strong performance from our completion operations, Logan Completions and Kline, for the remainder of 2014. We recently initiated the reorganization of Logan Completions' and Kline's supply chains by combining their engineering and manufacturing operations with those of Logan Oil Tools. We have also initiated a reorganization of the rental tool segment by combining the operations of the Xciter and Sup-R-Jar drilling tools with the fishing jar rentals into a single business unit. We believe this will broaden both the North American and international markets for the rental tools and will also allow for improved management accountability for operating results."
"In our last report, we announced the addition of David MacNeill as our Chief Operating Officer. I am pleased to announce Mr. MacNeill's appointment as my successor as the President and Chief Executive Officer. Dave's experience in drilling engineering in the West African, Eastern European and Far Eastern markets will accelerate Logan's international business. I want to emphasize that I will continue my relationship with Logan as a director and will assist Dave in the transition period," said Mr. Hage.
Logan manufactures and sells a comprehensive line of quality fishing and intervention tools, including retrieving, surface, stroking and remedial tools for a variety of well workover, intervention, drilling, and completion activities (Logan Oil Tools, Inc.); manufactures and sells high-performance polycrystalline diamond compact (PDC) cutters and bearings (Logan SuperAbrasives), manufactures and sells packers, bridge plugs, and other completion products (Kline Oilfield Equipment, Inc.); provides proprietary multi-zonal completion technology and conventional completion production products and services (Logan Completion Systems Inc.); provides proprietary and patented products and services that are focused on production optimization in sand-laden heavy oil wells (Scope Production Development Ltd.); and provides proprietary tools that enhance the effectiveness of horizontal drilling (Xtend Energy Services Inc. and Logan Jar, LLC). Common shares of Logan are traded on the Toronto Stock Exchange (TSX) under the ticker symbol "LII".
Selected Consolidated Financial Information (in thousands of US dollars, except per share data) Three month periods ended March 31, ----------------------------- 2014 2013 -------------- -------------- Revenue $ 43,644 $ 49,194 Net earnings for the period 2,901 5,238 Earnings per share: Basic $ 0.09 $ 0.16 Diluted $ 0.09 $ 0.16 EBITDA (1) $ 8,840 $ 11,770 Modified EBITDA (1) $ 9,321 $ 12,139 -------------- -------------- March 31, December 31, 2014 2013 -------------- -------------- -------------- -------------- Working Capital $ 36,387 $ 82,399 Total Assets $ 278,659 $ 283,559 Debt (2) $ 55,460 $ 57,788 Shareholders' Equity $ 192,357 $ 191,144 Note: On April 17, 2013, the Company, through its wholly-owned subsidiaries Logan Oil Tools, Inc. and Logan Jar, LLC, purchased certain assets and operations related to the Sup-R-Jar drilling jar product line. As such, none of the Sup-R-Jar product line's operating results have been included in the Company's condensed interim consolidated financial statements for the three month period ended March 31, 2013. (1) Non-IFRS Measurements: The MD&A presents: (a) EBITDA as earnings before net finance cost, income taxes, and depreciation and amortization ("EBITDA"), and (b) Modified EBITDA as EBITDA before acquisition accounting adjustments, transaction fees, share-based compensation and severance costs ("Modified EBITDA"). Neither of these measurements should be considered an alternative to, or more meaningful than, "net earnings for the period" or "cash flow from operating activities" as determined in accordance with IFRS as an indicator of the Company's financial performance. EBITDA and Modified EBITDA do not have standardized definitions as prescribed by IFRS; therefore, the Company's presentation of these measurements may not conform to similar presentations by other companies. Management calculates EBITDA and Modified EBITDA each period and evaluates the Company's operating performance based on these measurements. Management believes that Modified EBITDA, which eliminates significant non-cash or non-recurring items of revenue or cost, more accurately presents the results of the Company's ongoing operations and its ability to generate the cash required to fund or finance future growth, acquisitions and capital investments. A reconciliation of EBITDA and Modified EBITDA with net earnings for each period follows. Three month periods ended March 31, ------------------------------ 2014 2013 ------------- ------------- Net earnings for the period $ 2,901 $ 5,238 Addbacks: Depreciation and amortization 3,249 2,791 Finance cost, net 1,323 1,250 Income tax expense 1,367 2,491 ------------- ------------- EBITDA 8,840 11,770 Adjustments: Acquisition accounting adjustments 188 - Transaction fees 16 92 Severance costs 140 - Share-based compensation payments 137 277 ------------- ------------- Modified EBITDA $ 9,321 $ 12,139 ------------- ------------- ------------- ------------- EBITDA and Modified EBITDA are provided as measures of the Company's operating performance without regard to financing decisions, share-based compensation payments, age and cost of equipment used and income tax impacts, all of which are factors that are not controlled at the operating management level. The acquisition accounting adjustments reverse the effect of the increase or step-up in cost basis of inventories and subsequently sold fixed assets acquired in business combinations. The transaction fees include the professional and other fees incurred in connection with acquisitions in 2012 and 2013. Share-based compensation relates to expense recognized from the granting of stock appreciation rights, stock options and restricted share units. (2) Includes bank and other borrowed debt and capital leases. Reconciliation of EBITDA by Segment Three months ended March 31, Three months ended March 31, 2014 2013 ------------------------------ ------------------------------ Downhole Rental Downhole Rental Tool Tool Corporate Tool Tool Corporate ------------------------------ ------------------------------ Revenue $ 40,395 $ 3,249 $ - $ 44,318 $ 4,876 $ - Earnings (loss) from operations $ 7,691 $ (176) $ (1,924) $ 8,606 $ 2,369 $ (1,996) Depreciation and amortization 2,244 956 49 2,312 432 47 ------------------------------- ----------------------------- EBITDA $ 9,935 780$ $ (1,875) $ 10,918 $ 2,801 $ (1,949) ------------------------------- -----------------------------
This press release contains forward-looking statements. These statements relate to future events or future performance of Logan. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect Logan's current views with respect to certain events, including the previously announced strategic review process and fourth quarter operating results, and are subject to certain risks, uncertainties and assumptions. Although Logan believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Many factors could cause Logan's actual results, performance, or achievements to materially differ from those described in this press release. Readers are referred to Logan's Annual Information Form filed on www.sedar.com, which identifies significant risk factors that could cause actual results to differ from those contained in the forward-looking statements. Should one or more risks or uncertainties materialize or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Logan does not intend and does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein in any jurisdiction.
For more information about Logan International Inc., please visit our website at www.loganinternationalinc.com.
Logan International Inc.
Chief Operating Officer
Logan International Inc.
Chief Financial Officer
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Jul. 23, 2016 11:00 AM EDT Reads: 1,116
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
Jul. 23, 2016 11:00 AM EDT Reads: 1,796
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Jul. 23, 2016 11:00 AM EDT Reads: 434
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Jul. 23, 2016 11:00 AM EDT Reads: 436
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
Jul. 23, 2016 10:45 AM EDT Reads: 1,949
"C2M is our digital transformation and IoT platform. We've had C2M on the market for almost three years now and it has a comprehensive set of functionalities that it brings to the market," explained Mahesh Ramu, Vice President, IoT Strategy and Operations at Plasma, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 10:00 AM EDT Reads: 1,026
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 10:00 AM EDT Reads: 1,887
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
Jul. 23, 2016 09:45 AM EDT Reads: 948
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Jul. 23, 2016 09:45 AM EDT Reads: 1,720
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 23, 2016 09:15 AM EDT Reads: 1,000
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jul. 23, 2016 09:00 AM EDT Reads: 1,912
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Jul. 23, 2016 09:00 AM EDT Reads: 809
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Jul. 23, 2016 08:30 AM EDT Reads: 650
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Jul. 23, 2016 08:15 AM EDT Reads: 1,432
Much of IT terminology is often misused and misapplied. Modernization and transformation are two such terms. They are often used interchangeably even though they mean different things and have very different connotations. Indeed, it is somewhat safe to assume that in IT any transformative effort is likely to also have a modernizing effect, and thus, we can see these as levels of improvement efforts. However, many businesses are being led to believe if they don’t transform now they risk becoming ...
Jul. 23, 2016 08:00 AM EDT Reads: 1,045