Click here to close now.




















Welcome!

News Feed Item

Ceiba Energy Services Announces Strong 2014 Second Quarter Financial and Operating Results

CALGARY, ALBERTA -- (Marketwired) -- 08/25/14 -- Ceiba Energy Services Inc. ("Ceiba" or the "Company") (TSX VENTURE:CEB) has filed its Financial Statements and related Management's Discussion and Analysis for the three and six months ended June 30, 2014 on the Company's profile at www.sedar.com.

Ceiba continues to deliver strong growth in received volumes, revenue, and adjusted EBITDA. Revenue in Q2 2014 of $1,884,087, an increase of $640,510 (54%) compared to Q1 2014 and an increase of $1,240,776 (193%) compared to Q2 2013. Adjusted EBITDA improved to $322,085 in Q2 2014 from $15,282 in Q1 2014 and negative $1,006,899 in Q2 2013.

OPERATIONAL AND FINANCIAL HIGHLIGHTS


                                For the three months ended                  
                                             2014 Q2                2014 Q2 
($ unless      June 30, 2014     March 31,  vs. 2014 June 30, 2013 vs. 2013 
 noted)                 (Q2)     2014 (Q1)        Q1          (Q2)       Q2 
----------------------------------------------------------------------------
Total received                                                              
 volume (m3)         103,000        76,800       +34%       26,300     +292%
                                                                            
Revenue            1,884,087     1,243,577       +52%      643,311     +193%
Gross margin(1)    1,016,569       563,116       +81%      231,372     +339%
Gross margin                                                                
 %(1)                     54%           45%       +9%           36%     +18%
Adjusted                                                                    
 EBITDA(1)           322,085        15,282       NMF    (1,006,899)     N/A 
                                                                            
Total assets      37,265,577    27,858,494       N/A    22,701,733      N/A 
Net working                                                                 
 capital(1)           24,268    (6,960,560)      N/A         7,117      N/A 
Convertible                                                                 
 debentures        8,086,072     8,002,030       N/A     7,750,284      N/A 

                         For the six months ended         
                                                 June 30, 
                                                 2014 vs. 
($ unless                                        June 30, 
 noted)          June 30, 2014  June 30, 2013        2013 
----------------------------------------------------------
Total received                                            
 volume (m3)           179,800         58,700        +206%
                                                          
Revenue              3,127,665      1,388,022        +125%
Gross margin(1)      1,579,685        507,695        +211%
Gross margin                                              
 %(1)                       51%            37%        +14%
Adjusted                                                  
 EBITDA(1)             337,367     (1,311,495)        N/A 
                                                          
Total assets                                              
Net working                                               
 capital(1)                                               
Convertible                                               
 debentures                                               
(1) Refer to "NON-GAAP MEASURES AND OPERATIONAL DEFINITIONS" below          
NMF = not meaningful                                                        

Operating results


--  Overall, the Company continued to successfully execute its growth
    strategy, receiving a record 103,000 m3 of fluid in Q2 2014, an increase
    of 26,200 m3 (34%) over Q1 2014 and an increase of 76,700 m3 (292%) over
    Q2 2013. Volume growth compared to the prior quarter came from all our
    facilities and was as a result of continued sales efforts by Company
    staff to make producers aware of our new facilities and strong producer
    drilling activities in Q1 2014 which led to strong production during Q2
    2014. 
--  The Company continued to ramp up the Chamberlain custom treating
    facility, which opened for business in the last week of November 2013,
    processing 26,800 m3 of emulsion fluid in the quarter, an increase of
    9,200 m3 (52%) over the prior quarter. Chamberlain is expected to
    continue to increase in volume throughput going forward through normal
    Company sales activities. 
--  The Company entered into new agreements with Astra Energy Canada Inc.
    effective April 1, 2014 as disclosed in our July 7, 2014 press release.
    The new Astra agreements have resulted in higher revenues for Ceiba as
    it is now receiving more value for its oil sales. 
--  Higher volume and the new Astra agreements contributed to record revenue
    in Q2 2014 of $1,884,087, an increase of $640,510 (54%) compared to Q1
    2014 and an increase of $1,240,776 (193%) compared to Q2 2013. 
--  The Company achieved gross margins in Q2 2014 of $1,016,569 (54% of
    revenue). Gross margins increased $453,453 (81%) compared to Q1 2014 and
    $785,197 (339%) compared to Q2 2013. Gross margin percentage improved by
    9% compared to Q1 2014 and 18% compared to Q2 2013. The improvement in
    gross margin and gross margin percentage was the result of higher
    volumes and higher revenue compared to operating costs which have some
    fixed components. 
--  Ceiba achieved its second consecutive quarter of positive Adjusted
    EBITDA. Adjusted EBITDA improved to $322,085 in Q2 2014 from $15,282 in
    Q1 2014. The increase in Adjusted EBITDA was the result of higher gross
    margin offset slightly by higher general and administrative costs. 

Balance sheet


--  The Company completed a bought deal private placement of equity
    including full exercise of over-allotment option for gross proceeds of
    $9,197,700. The receipt of the net proceeds from this bought deal
    contributed to Ceiba having a working capital surplus of $24,267 at June
    30, 2014 compared to a working capital deficit of $6,960,560 at March
    31, 2014. 

Activities subsequent to June 30, 2014


--  On July 24, 2014, the Company filed a final short form prospectus
    qualifying the distribution of the common shares in the capital of
    Ceiba, which are issuable upon the exercise of the warrants issued in a
    bought deal private placement which closed on April 15, 2014. Each
    warrant was deemed exercised on July 24, 2014 and converted into
    21,390,000 common shares on a one-for-one basis without further payment.
--  On July 24, 2014, the Company closed a $16,100,000 bought deal financing
    of 23,000,000 common shares at $0.70 per common share on a private
    placement basis. 
--  On July 26, 2014, the Company repaid and canceled its term credit
    facilities. 
--  On July 30, 2014, the Company repaid the mezzanine debt in full. 
--  With approximately $15 million of cash pro forma the July private
    placement and repayment of the term credit facilities and mezzanine
    debt, the Company will move forward with its previously announced
    capital expansions and will work with potential lenders to develop
    traditional credit facilities. The repayment of the term credit
    facilities and mezzanine debt will result in approximately $700,000 of
    interest savings on an annualized basis. 

FUTURE PLANS AND OUTLOOK

The Company plans to continue to execute its growth strategy which includes continued sales efforts for all its currently operating facilities. With the New Astra Agreements, Ceiba assumes responsibility for the sales efforts for its waste fluid and waste disposal sites. Ceiba believes that these sales efforts will result in higher volumes at all of its sites. Ceiba is also developing its Athabasca Class 1B waste fluid and water disposal site and expanding services at Silver Valley and Chamberlain through their conversion to Class 1B facilities. These projects are expected to be completed in late 2014 and the first half of 2015. Currently, the Silver Valley facility is running at approximately 85% disposal capacity and the Company believes that developing the Silver Valley II site as a Class 1B facility will increase capacity and expand revenue streams which may double revenue given the robust market activity in the region. Ceiba is also evaluating the prospect of upgrading its Ponoka property into a Class 1B facility. The Company has planned approximately $13,000,000 for growth capital for the remainder of 2014 and in 2015 at its existing operations. The Company will also actively pursue suitable locations to develop new facilities in under serviced or constrained markets and evaluate potential acquisitions that are consistent with the Company's long-term strategy.

Demand for the Company's services is dependent on oil and gas production in areas where it has facilities. Uncertainty in oil, gas and natural gas liquids pricing may influence capital spending decisions relating to production and ultimately demand for the Company's services. Demand for the Company's services is also affected by seasonal variations in the Western Canadian Sedimentary Basin. Any adverse changes in the global economy/markets may impact the oil prices and hence the oil field industry in the region. This may impact the ability of the Company to raise capital to support its future growth plans and working capital needs.

NON-GAAP MEASURES AND OPERATIONAL DEFINITIONS

Certain supplementary measures in this MD&A do not have any standardized meaning as prescribed under GAAP and, therefore, are considered non-GAAP measures. These measures are described and presented in order to provide information regarding the Company's financial results, liquidity and its ability to generate funds to finance its operations. These measures are identified and presented, where appropriate, together with reconciliations to the equivalent GAAP measure. However, they should not be used as an alternative to GAAP measures because they may not be consistent with calculations of other companies. These non-GAAP measures, and certain operational definitions used by the Company, are further explained below.

Gross Margin and Gross Margin %

Gross margin is calculated as revenue less operating expenses which includes direct product costs for services but excludes depreciation, depletion and amortization and general and administrative. Management analyzes gross margin as a key indicator of cost control and operating efficiency. Gross margin % is calculated as Gross margin as a percentage of revenue.

EBITDA and Adjusted EBITDA

EBITDA refers to net income before finance cost, taxes and depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before costs associated with non-recurring business acquisition costs and share based compensation. These measures do not have standardized definition prescribed by IFRS and therefore may not be comparable to similar captioned terms presented by other users.

Management believes that EBITDA and adjusted EBITDA are key indicators for the results generated by the Company's core business activities as they eliminate non-recurring items, certain non-cash items and the impact of finance and tax structure variables that exist between entities.


                               Three months ended                           
                                         June 30, Six months ended June 30, 
                           -------------------------------------------------
                                2014         2013        2014          2013 
                           -------------------------------------------------
Total loss and                                                              
 comprehensive loss for the                                                 
 period                     (687,856)  (2,002,902) (1,436,013)   (2,960,171)
Add back:                                                                   
Finance costs                601,299      287,017   1,078,062       530,476 
Depreciation                 190,501       71,807     442,256       138,978 
Deferred tax recovery              -            -    (387,000)            - 
                           -------------------------------------------------
EBITDA                       103,944   (1,644,078)   (302,695)   (2,290,717)
Add back:                                                                   
Stock-based compensation      90,179      406,226     212,272       679,921 
Accretion                     56,816       33,071     102,238        62,981 
Transaction costs             71,146      197,882     325,552       236,320 
                           -------------------------------------------------
Adjusted EBITDA              322,085   (1,006,899)    337,367    (1,311,495)
                           -------------------------------------------------
                           -------------------------------------------------

Net Working Capital

Net Working Capital is calculated as total current assets less total current liabilities. Management analyzes net working capital as a measure of our ability to settle short term liabilities with currently available assets.

About Ceiba Energy Services Inc.

Ceiba provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in Western Canada. Ceiba develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production water.

Reader Advisory

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

Forward-looking statements

Certain information regarding Ceiba in this news release, including management's assessment of its future development plans and access to various external sources of capital, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with facility construction and oilfield services operations, general risks associated with oil and gas exploration, development, production, marketing and disposal of waste, loss of markets, environmental risks, competition from other service providers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Ceiba's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements or information contained in this news release are made as of the date hereof and Ceiba does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contacts:
Ceiba Energy Services Inc.
Ian Simister
President
403-262-2783

Ceiba Energy Services Inc.
Peter Cheung
CFO and Corporate Secretary
403-262-2783

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
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
"Alert Logic is a managed security service provider that basically deploys technologies, but we support those technologies with the people and process behind it," stated Stephen Coty, Chief Security Evangelist at Alert Logic, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
"ProfitBricks was founded in 2010 and we are the painless cloud - and we are also the Infrastructure as a Service 2.0 company," noted Achim Weiss, Chief Executive Officer and Co-Founder of ProfitBricks, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
"We specialize in testing. DevOps is all about continuous delivery and accelerating the delivery pipeline and there is no continuous delivery without testing," noted Marc Hornbeek, Sr. Solutions Architect at Spirent Communications, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.