Click here to close now.




















Welcome!

News Feed Item

Macro Enterprises Inc. Announces 2014 Second Quarter Results

FORT ST. JOHN, BRITISH COLUMBIA -- (Marketwired) -- 08/27/14 -- Macro Enterprises Inc. (TSX VENTURE: MCR) -


                                          Summary of financial results
                                     (thousands of dollars except per share
                                                    amounts)
                                    ----------------------------------------
                                     Three months ended   Six months ended
                                           June 30             June 30
                                    ----------------------------------------
                                          2014      2013      2014      2013
                                    ----------------------------------------
                                                   (unaudited)
                                    ----------------------------------------

Revenue                               $ 36,698  $ 37,282  $124,477  $ 97,404

EBITDA1                                  2,726     9,814     7,830    24,835

Net earnings                               495     5,710     2,648    15,395

Net earnings per share                $   0.01  $   0.21  $   0.08  $   0.61

                                    ----------------------------------------
Weighted average common shares
 outstanding (thousands)                                    30,007    25,120
                                                        --------------------

Note 1 - References to EBITDA are to net income from continuing operations before interest, taxes, amortization and impairment charge. EBITDA is not an earnings measure recognized by International Financial Reporting Standards ("IFRS") and does not have a standardized meaning prescribed by IFRS. Management believes that EBITDA is an appropriate measure in evaluating the Company's performance. Readers are cautioned that EBITDA should not be construed as an alternative to net income (as determined under IFRS) as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) as a measure of liquidity and cash flow. The Company's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, the Company's EBITDA may not be comparable to similar measures used by other issuers.

Highlights


--  The Company continues to build on and maintains a strong working capital
    position increasing it from $40.3 million as at December 31, 2013 to
    $41.4 million as at June 30, 2014

--  The Company added a net $4.7 million of new property, plant and
    equipment. In addition, the Company obtained a 3rd party valuation of
    its existing fleet of equipment that shows a surplus in excess of $30
    million over book value

--  The Company reduced total long-term debt by $1.5m from year end to $18.8
    million as at June 30, 2014

--  Revenues were comparable to 2013 Q2 revenues, however, operating margins
    decreased as a result of the absorption of a loss from a strategic job

Second quarter results

Consolidated revenue was $36.7 million compared to $37.3 million in the second quarter last year. Most of the revenue in the quarter was derived from two larger facility jobs, the completion of a big inch pipeline project and a series of integrity digs for one of the Company's key customers. In the second quarter last year, the Company worked on three larger facility and pipeline projects as well as maintenance and pipeline integrity work for two other customers.

Operating expenses were $31.9 million or 87% of revenue compared to $25.5 million or 68% of revenue in the second quarter last year. The decline in operating margins as reported was the result of carry over completion work performed on a large pipeline project in Fort McMurray which had commenced in December 2013 and was materially accounted for in the first quarter 2014. The increased costs have resulted in lower than anticipated profits for the Company. For strategic reasons, Macro originally bid this job at low margins but unanticipated problems with the project resulted in a final loss of $8.0 million dollars of which an addition $1.1 million dollars was accounted for this quarter completing and demobilizing the job. Total operating expenditures incurred in the second quarter of 2014 for a strategic job amounted to $4.9 million dollars compared to $3.8 million dollars recognized as revenue.

Macro has entered into discussions with the pipeline operator requesting additional compensation. Additional compensation, if any, will be recorded when such further compensation has been formally agreed to.

During the prior year three month period ended June 30th the Company realized improved bid margins and a greater percentage of non-fixed price work that resulted in improved operating margins compared to prior periods.

General and administrative expenses were $2.4 million, up from $2.2 million last year, but consistent with levels of the most recent quarter. Costs were higher compared to prior year as a result of increased professional fees and additional staff costs associated with the increased work activity. As part of the Company's strategy to pursue large scale projects, it incurred significant expenditures in connection with the bid process. It anticipates that this will continue. In addition, the Company has engaged the advisory services of an investment bank to assist in evaluating its financial requirements for large scale projects. In this regard, the Company also commissioned an independent valuation of its existing fleet of equipment which provided for a fair market value in excess of $82 million before fiscal 2014 additions.

Total depreciation expense of $1.8 million was comparable to prior year period reflecting the additional assets obtained in the November 2012 acquisition.

Interest expense of $0.2 million was approximately $0.1 million lower than the second quarter last year as a result of improved interest rates and a decrease in total amount of debt outstanding.

Income tax expense in the quarter of $0.2 million was in line with current enacted tax rates of approximately 26.6%.

Net income was $0.5 million ($0.01 per share) compared to $5.7 million ($0.21 per share). The decrease in net income is a result of increased operating costs being incurred during the quarter.

OUTLOOK

Activity in the oil and gas industry in western Canada remains very active. Macro is strategically pursuing multiple large scale potential projects that combine commercial, logistic, and time scheduled criteria that are conducive to minimizing risk and maximizing the synergies of pipeline and facility construction. Macro is continuing to see benefits from numerous pipeline integrity and facility projects derived from its multiple major clients. However, primarily as a result of customer project scheduling delays within the industry, the Company is expecting revenues in the third quarter of fiscal 2014 to be below those recorded in third quarter of fiscal 2013 with total revenues being recognized for the nine months ended September 30, 2014 to be slightly less than prior year. With the completion of the strategic pipeline project in the second quarter, the Company is targeting margins more in line with historical averages and as such expects to see significant financial improvements to its operations over the balance of fiscal 2014.

In addition, the Company is seeking out pipeline construction contracts in connection with the Liquefied Natural Gas (LNG) projects being planned on the west coast of British Columbia, an industry that is anticipated to bring substantial economic activity to British Columbia over the next 30 years. Macro has completed bid processes and has entered into discussions with several of the LNG project owners regarding future pipeline and facilities construction.

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry. The Company's corporate office is in Fort St. John, British Columbia. Its shares are listed on the TSX Venture Exchange under the symbol MCR. Information on the Company's principal operating unit, Macro Industries Inc., can be found at www.macroindustries.ca.

Forward Looking Statements

Certain statements in this news release may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements regarding expected revenues, expenses and industry trends and the pursuit of strategic acquisitions. These risks and uncertainties include, but are not restricted to, global economic conditions, government regulation of energy and resource companies, seasonal weather patterns, maintaining and increasing market share, terrorist activity, the price and availability of alternative fuels, the availability of pipeline capacity, and potential instability or armed conflict in oil producing regions. These risks and uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

Neither 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 accuracy of this release.

Contacts:
Macro Enterprises Inc.
Frank Miles
President and C.E.O.
(250) 785-0033

Macro Enterprises Inc.
Jeff Redmond
Interim C.F.O.
(250) 785-0033

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 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...
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
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...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
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.
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at @DevOpsSummit, Haseeb Budhani, CEO and Co-founder of Soha, shared five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the friction an...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
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,...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...