Welcome!

News Feed Item

Logan International Reports First Quarter 2014 Financial Results

(All reported figures are in US dollars unless otherwise noted)

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.

Highlights include:


--  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)
              ------------------------------- -----------------------------

Forward-Looking Statements

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.

Contacts:
Logan International Inc.
David MacNeill
Chief Operating Officer
281-617-5300 Houston

Logan International Inc.
Larry Keister
Chief Financial Officer
832-386-2534 Houston

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
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor 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.
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation