|By Marketwired .||
|May 14, 2014 08:52 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 05/15/14 --
FIRST QUARTER 2014 RESULTS
Calmena Energy Services Inc. (TSX:CEZ) ("Calmena" or the "Company") announces its financial results for the first quarter ended March 31, 2014. All figures are reported in Canadian dollars unless otherwise stated. Our unaudited condensed consolidated financial statements and related management's discussion and analysis for the period will be filed separately on SEDAR (www.sedar.com), which should be reviewed in conjunction with this press release.
SELECTED FINANCIAL INFORMATION
The tables below provide a summary of Calmena's financial and operating results as at and for the three months ended
March 31, 2014 and 2013.
Three months March 31, ($ thousands, except per share amounts) 2014 2013 ---------------------------------------------------------------------------- Revenue 18,236 39,510 EBITDAS(i) (502) 4,272 Net loss for the period (2,587) (1,629) Funds flow from operations(i) 996 4,312 ---------------------------------------------------------------------------- Net loss per share - basic and diluted (0.01) (0.01) Funds flow from operations per share - basic and diluted(i) 0.00 0.01 ---------------------------------------------------------------------------- (i) see non-GAAP measures section of this release for a description of this term. March 31, December 31, ($ thousands) 2014 2013 ---------------------------------------------------------------------------- Total assets 133,161 132,578 Borrowings and debt, net of cash 40,028 40,111 Shareholders' equity 71,936 71,878 ----------------------------------------------------------------------------
-- For the three months ended March 31, 2014, the Company recorded revenue of $18.2 million and EBITDAS of negative $0.5 million compared to revenue of $35.9 million and EBITDAS of $4.3 million for the comparable period in 2013. The main drivers of the decrease are the slowdown in industry drilling in Mexico initiated during the second quarter of 2013 which resulted in the termination of our drilling contracts; the closing of contract drilling operations in Brazil and Colombia, and the sale of Calmena's Canadian wireline and contract drilling service lines in the second and third quarters of 2013. -- During 2014 we made the decision to close down the directional operations in Colombia and Mexico to reduce costs and re-deploy the assets to the more profitable US market. These shut downs will be substantially complete in the second quarter of 2014. -- On March 31, 2014, Calmena and its senior lender ("Senior Lender") entered into an extension agreement (the "Extension") pursuant to which the Senior Lender agreed to continue to forbear from demanding payment or enforcing its security under its credit facilities ("Credit Facilities") until the earlier of June 30, 2014 or a default as defined in the Extension. Pursuant to the terms of the Extension, the Company paid $1.0 million to the Senior Lender as a permanent reduction of the amount owing under the Credit Facilities on signing the Extension. Also pursuant to the Extension, the Company was required, on or before April 30, 2014, to pay $9.0 million as a permanent reduction of the amount owing under the Credit Facilities or provide evidence satisfactory to the Senior Lender, by such date, that the Company had entered into one or more binding transactions to sell assets that will allow the Company to fund the required $9.0 million permanent reduction by May 31, 2014. The forbearance term may be further extended to July 31, 2014 if the Company provides evidence satisfactory to the Senior Lender, by June 30, 2014, that the Company has entered into one or more binding transactions to sell assets that will allow the Company to fully repay all amounts owing under the Credit Facilities by July 31, 2014. The April 30, 2014 deadline was subsequently extended to May 9, 2014. -- In May we announced two transactions that will complete the divestiture of all of our remaining Canadian service lines. -- On May 8, 2014 we announced that we had entered into a definitive agreement (the "Agreement") to sell our Equipment Rentals and Frac Fluids Management service lines to Great Prairie Energy Services Inc. (TSX Venture: GPE) ("Great Prairie") for cash consideration of $10.0 million. The closing is subject to certain customary closing conditions, including Great Prairie obtaining approval of the transaction from the TSX Venture Exchange. The sale is expected to close on or about May 15, 2014. Proceeds from this sale in the amount of $9.0 million will fund a reduction of amounts owing by Calmena under its credit facilities with its senior lender. The remaining $1.0 million will fund general working capital requirements. On closing, the $9.0 million repayment will meet the initial repayment condition described in the above noted Extension. -- On May 9, 2014 we announced that we had sold our Canadian based Drilling Technologies research and manufacturing division and certain related assets to FastCAP Systems Corporation ("FastCAP") for consideration comprised of US$1.0 million cash and US$1.2 million of in kind consideration, in the form of services and technology products provided to Calmena by FastCAP over the next four years. The US$1.0 million cash proceeds from this transaction was used to fund a reduction of amounts owing by Calmena under its credit facilities with its senior lender. -- Net debt(i) as at March 31, 2014 was $34.6 million compared to $46.3 million as at March 31, 2013. If the above transactions had occurred on March 31, 2014, net debt would have been $23.6 million.
(i) see non-GAAP measures section of this release for a description of this term.
During the first quarter of 2014, our US directional services business experienced higher levels of activity, revenue and profitability than the same quarter in 2013. We anticipate this trend will continue for the remainder of the year, on a year over year basis. We continue to focus on our core midcontinent operating area, are repatriating equipment from Latin America to service increased activity levels in the U.S., have a number of directional kits tied to key customer rigs, and have taken additional cost reduction measures.
In Mexico, the activity ramp up expected from the Pemex award of eight large projects to integrated service providers during the first quarter of 2014 has not yet materialized. We are continuing to see significant bidding activity which we anticipate will result in improving utilization for our drilling rigs. While we expect improvements may start in the coming months, the timing of initiation of operations on these projects remains difficult to predict. In April we made the decision to close down the directional services operations in Mexico to reduce costs and re-deploy the assets to the more profitable US market. This shut down of directional services in Mexico will be substantially complete in the second quarter of 2014.
In the first quarter of 2014 we made the decision to close down our operations in Colombia to reduce costs and re-deploy the assets to the more profitable US market. We expect the shutdown will be substantially complete in the second quarter of 2014.
Calmena's Brazilian rigs are not currently contracted. The Company continues to explore strategic opportunities to divest of these rigs.
Late in the first quarter of 2014, Calmena received notice from its customer in Libya that operations on both drilling rigs were being suspended for an unspecified period as a result of the political environment. The political environment in Libya remains volatile and will significantly influence financial results.
Management continues to focus on opportunities to deploy our Mexico drilling rigs, increase utilization in the US and manage costs across the Company to reflect current activity levels. In parallel, management continues to explore strategic alternatives to monetize under-utilized assets, and consider business combination opportunities.
ABOUT CALMENA ENERGY SERVICES INC.
Calmena is a diversified energy services company that provides well construction services to its customers operating in Canada, the United States, Latin America and the Middle East and North Africa. The common shares of Calmena trade on the Toronto Stock Exchange under the symbol "CEZ".
This press release contains certain forward-looking statements relating to Calmena's plans, strategies, objectives, expectations and intentions. Expressions such as "may", "anticipate", "expect", "project", "believe", "hope", "estimate", "intend", "will", "continue", "foresee", and "forecast" and similar expressions and statements are intended to identify forward looking statements. Such statements represent Calmena's internal projections, estimates or beliefs concerning, among other things, an outlook for the Company's operations and other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions and actual events or results may differ materially. Although Calmena believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Calmena's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Calmena.
In particular, forward-looking statements included in this press release include, but are not limited to, statements with respect to the anticipated timing of completion of the shut down of Calmena's directional operations in Colombia and Mexico; the deadline for payment by Calmena of amounts owing under its Credit Facilities and the potential for an extension of the deadline if certain conditions are met; the satisfaction of the conditions to closing of the transaction with Great Prairie and the anticipated timing of closing of the transaction; the anticipated use of the proceeds received by Calmena from the transaction with Great Prairie; Calmena's expectations regarding directional services operations in the US for the remainder of the year and the Company's focus on its core midcontinent operating area; anticipated effect of increased bidding activity on utilization for Calmena's drilling rigs; the Company's expectations that improvements in utilization may start in the coming months; the Company's plans to continue to explore strategic opportunities to divest of its Brazilian rigs; the Company's expectations that the volatile political environment in Libya could have a significant impact on financial results; the Company's plans to continue to focus on opportunities to deploy its Mexico drilling rigs, to increase utilization in the US and manage costs across the Company to reflect current activity levels; the Company's plans to explore alternatives to monetize under-utilized assets and consider business combination opportunities; and the statements under the heading Outlook" in this press release.
These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Calmena's control, including, but not limited to, the risk that the Company is unable to refinance or extend the deadline for repayment of the Credit Facilities; risk that the lender under the Credit Facilities will take further steps to demand payment under the Credit Facilities or enforce its security thereunder in the immediate future; failure to realize the anticipated benefits of strategic dispositions; failure to successfully negotiate and/or complete further transactions pursuant to the Company's strategic alternatives process; failure to achieve an increase in demand for the Company's drilling rigs and other product offerings; failure to complete the transaction with Great Prairie on the timing anticipated or at all; the impact of general economic conditions; industry conditions and changes in industry conditions; volatility of commodity prices; decreased demand for energy services; competition from other energy services providers; the lack of availability of qualified personnel or management; ability of Calmena to re-finance or extend the maturity date of its senior debt and generate positive cash flow; failure of counter parties to perform on contracts; failure to successfully negotiate new contracts or renew existing contracts; failure to successfully deploy rigs; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; risks associated with international operations, including, but not limited to, effect of civil unrest on the Company's operations in Libya; seasonality; loss of key customers; fluctuations in foreign exchange or interest rates and stock market volatility; supply and demand for oilfield services relating to the drilling, completion and maintenance of oil and gas wells as well as services related to, oilfield equipment rentals and production and ancillary services; liabilities and risks, including environmental liabilities and risks inherent in oil and natural gas operations; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; ability to access sufficient capital from internal and external sources; and the other risks considered under "Risk Factors" in our annual information form for the year ended December 31, 2013 which is available on www.sedar.com.
With respect to forward-looking statements contained in this press release, Calmena has made assumptions regarding, but not limited to: the implementation of the Company's business prospects and strategies; the ability of the Company to continue as a going concern and continue operations; current commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; ability of Calmena to re-finance or extend the deadline for repayment of its senior debt; that the Senior Lender will forbear from taking further steps to demand repayment or enforcing their security under the Credit Facilities; ability of Calmena to renew existing contracts and enter into new contracts; rig utilization and pricing; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; industry conditions; supply and demand for oilfield services relating to the drilling, completion and maintenance of oil and gas wells as well as services related to oilfield equipment rentals and production and ancillary services; effects of regulation by governmental agencies; trends in Calmena's operations; and future operating costs.
Management has included the above summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide shareholders with a more complete perspective on Calmena's current and future operations and such information may not be appropriate for other purposes. Calmena's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Calmena will derive therefrom. Readers are cautioned that the foregoing lists of factors are not exhaustive.
These forward-looking statements are made as of the date of this press release and Calmena disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
NON GAAP MEASURES
The following measures are used within this release, but not recognized under GAAP. As a result, the method of calculation may not be comparable with other companies. These measures should not be considered alternatives to net (loss) income and net (loss) income per share as calculated in accordance with GAAP:
EBITDAS (Earnings before interest, income taxes, depreciation and amortization, other items of income and expense and share based compensation) - Management believes that EBITDAS as derived from information reported in the unaudited condensed Consolidated Statement of Operations is a useful supplemental measure as it provides an indication of the Company's ability to generate funds by the Company's core business activities prior to consideration of how those activities are financed, the impact of foreign exchange, how the results are taxed, how funds are invested or how non-cash depreciation and amortization charges affect results. See the reconciliation of EBITDAS to net income (loss) in the Company's management's discussion and analysis for the three months ended March 31, 2014. Funds flow from operations: Management believes that in addition to cash generated from operations, funds flow from operations is a useful supplemental measure because it provides an indication of the funds generated by the Corporation's principal business activities prior to the consideration of working capital, which is primarily made up of highly liquid balances. See the reconciliation of funds flow from operations in the Company's management's discussion and analysis for the three months ended March 31, 2014. Net debt: Management believes that net debt is a useful supplemental measure because it provides an indication of the Company's leverage compared to liquid assets. Net debt is computed by taking current assets less current liabilities and long-term borrowings and debt.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
President and Chief Executive Officer
Vice President, Finance & CFO
Calmena Energy Services Inc.
(403) 366-2066 (FAX)
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Oct. 21, 2016 05:00 AM EDT Reads: 3,900
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Oct. 21, 2016 04:45 AM EDT Reads: 371
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Oct. 21, 2016 04:30 AM EDT Reads: 3,062
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
Oct. 21, 2016 04:30 AM EDT Reads: 16,193
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Oct. 21, 2016 04:15 AM EDT Reads: 1,699
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Oct. 21, 2016 04:00 AM EDT Reads: 10,923
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Oct. 21, 2016 03:30 AM EDT Reads: 3,727
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.
Oct. 21, 2016 03:15 AM EDT Reads: 3,834
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
Oct. 21, 2016 03:15 AM EDT Reads: 1,642
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his session at @DevOpsSummit 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will show how customers are able to achieve a level of transparency that enables everyon...
Oct. 21, 2016 02:30 AM EDT Reads: 1,204
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Oct. 21, 2016 02:00 AM EDT Reads: 5,897
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, 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. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
Oct. 21, 2016 01:45 AM EDT Reads: 3,257
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Oct. 21, 2016 01:30 AM EDT Reads: 863
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
Oct. 21, 2016 01:30 AM EDT Reads: 1,346
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
Oct. 21, 2016 01:15 AM EDT Reads: 2,909