Welcome!

News Feed Item

Lonestar West Announces Q3 2016 Financial Results

SYLVAN LAKE, ALBERTA -- (Marketwired) -- 11/29/16 -- Lonestar West Inc. (TSX VENTURE: LSI) today announced the financial results for the three and nine month periods ended September 30, 2016.

Highlights for the three months ended September 30, 2016 include:

--  Revenues decreased by 27.2% to $10,277,917 from $14,123,380 in the
    previous year equivalent period.
--  Gross margin(1) decreased to 14.1% from 25.0% in the previous year
    equivalent period.
--  Normalized EBITDAC(2) decreased 95.3% to $74,014 from $1,562,412 in the
    previous year equivalent period.
--  Normalized EBITDAC(3) per basic share decreased to $0.003 from $0.05 in
    the previous year equivalent period.
--  Loss before taxes was $1,621,228, a decrease of $911,515 in comparison
    to loss before taxes of $709,713 in the previous year equivalent period.
--  Net loss for the period was $1,614,900, a decrease of $1,111,369 in
    comparison to a net loss of $503,531 in the previous year equivalent
    period.

The Company achieved normalized EBITDAC(2) of $74,041 for the quarter ended September 30, 2016, which is a decrease from $1,562,412 for the prior year equivalent period. The normalized EBITDAC margin was 0.7% for the quarter ended September 30, 2016 as compared to 11.1% for the prior year comparable period. The decrease in normalized EBITDAC is due primarily to a significant decrease in revenue offset by a marginal decrease in operating expenses. In the third quarter the operating costs did not decrease with revenue as there were start-up costs to redeploy assets and obtain local crews.

Highlights for the nine months ended September 30, 2016 include:

The Company achieved normalized EBITDAC(2) of $2,126,002 for the nine month period ended September 30, 2016, which is a decrease from $4,389,551 for the prior year equivalent period. The normalized EBITDAC margin was 6.5% for the nine month period ended September 30, 2016 as compared to 11.5% for the prior year comparable period. The decrease in normalized EBITDAC for the nine month period ended September 30, 2016 is related primarily to a lower gross margin in the first quarter of 2016 due to decreased pricing resulting from a more competitive operating environment. The other contributing factor to the decreased normalized EBITDAC for the nine month period ended September 30, 2016 is related to the decreased revenue, start-up costs and costs to redeploy assets in the third quarter of 2016.

"Results for the third quarter were disappointing. As a result, we have taken a number of steps to effect stronger cost controls, and reduce overhead," commented James Horvath, President of Lonestar. "Our goal is to return the business to its historical operating and profit margins. The Company has taken steps to optimize the number and location of our bases in both Canada and the US, and we will continue to direct our business development activities on expanding in our most profitable locations."

About Lonestar West

Based in Sylvan Lake, Alberta, Lonestar West Inc. operates a fleet of 151 Hydrovac, Vacuum and Auxiliary units throughout Western Canada, Ontario, California, and the Southern United States. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.

For more information please visit the Lonestar West website at www.lonestarwest.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes. In particular, this News Release contains forward-looking statements relating to: demand for the Company's services and general industry activity level; the Company's growth opportunities; and expectations regarding the Company's revenue, normalized EBITDAC and equipment utilization. Lonestar believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Various material factors and assumptions are typically applied in drawing conclusions. Specific material factors and assumptions include, but are not limited to:

--  Changes in industry conditions (including the levels of capital
    expenditures made by oil and gas producers and explorers)
--  Credit risk to which the Company is exposed in the conduct of its
    business
--  Fluctuations in prevailing commodity prices, currency and interest rates
--  The competitive environment to which the business is, or may be, exposed
    in all aspects of its business
--  The ability of the Company to access equipment and new technologies
--  The Company's ability to maintain relationships with key suppliers
--  The ability of the Company to attract and maintain key personnel and
    other qualified employees
--  Various environmental risks to which the Company is exposed in the
    conduct of its operations
--  Inherent risks associated with the conduct of the business in which the
    Company operates
--  Timing and costs associated with the acquisition of capital equipment
--  The impact of weather and other seasonal factors that affect business
    operations
--  Availability of financial resources or third-party financing, and;
--  The impact of new laws or changes in administrative practices on the
    part of regulatory authorities.

Readers are cautioned that these factors are difficult to predict. Accordingly readers are cautioned that the actual results achieved will vary from the information provided herein and the variations may be material. Readers are also cautioned that the list of factors above are not exhaustive. Before placing reliance on any forward-looking statements to make decisions with respect to an investment in securities in Lonestar, prospective investors and others should carefully consider the factors identified above and other risks, uncertainties and potential changes that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Lonestar's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in Lonestar's annual information form and management discussion and analysis for the year ended December 31, 2015 (the "MD&A"), which are available for viewing on SEDAR at www.sedar.com. In addition, the forward-looking statements contained in this News Release are made as of the date of this News Release. Lonestar does not undertake any obligation to publicly update or to revise any forward-looking statements except as expressly required by applicable securities laws. The forward-looking statements contained in this Press Release are expressly qualified by the cautionary statements contained herein.

Notes:

(1)  Gross margin is calculated as gross profit as a percentage of revenues.
(2)  This News Release contains the term Normalized EBITDAC as presented and
     does not have any standardized meaning prescribed by international
     financial reporting standards ("IFRS") and therefore it may not be
     comparable with the calculation of similar measures for other entities.
     Management uses normalized EBITDAC to analyze the operating performance
     of the business. Normalized EBITDAC as presented is not intended to
     represent cash provided by operating activities, net earnings or other
     measures of financial performance calculated in accordance with IFRS.
     It is defined as Earnings before interest, taxes, depreciation,
     amortization, and stock based compensation excluding foreign exchange
     gains or losses which are primarily related to the US dollar activities
     of the Company and can vary significantly depending on exchange rate
     fluctuations, which are beyond the control of the Company.
(3)  Normalized EBITDAC per share is calculated as Normalized EBITDAC
     divided by the weighted average shares outstanding for the period.

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 ACCURACY OF THIS RELEASE.

Contacts:
Lonestar West Inc.
James Horvath
President & CEO
403-887-2074
[email protected]
www.lonestarwest.com

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 next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous a...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...