Macro Enterprises Inc.
TSX VENTURE : MCR

Macro Enterprises Inc.

August 19, 2010 18:25 ET

Macro Enterprises Inc. Announces 2010 Second Quarter Results

FORT ST. JOHN, BRITISH COLUMBIA--(Marketwire - Aug. 19, 2010) - Macro Enterprises Inc. (TSX VENTURE:MCR) -

  Summary of financial results
  (thousands of dollars except per share amounts)
  Three months ended June 30 Six months ended June 30
  2010 2009 2010 2009
  (unaudited)
         
Revenues $14,643 $11,617 $29,581 $39,068
         
EBITDA1 770 683 1,950 5,135
         
Net earnings (loss) from continuing operations (256) (279) (186) 1,901
         
Net loss from discontinued operations - (235) - (353)
         
Net earnings (loss) per share from continuing operations ($0.01) ($0.01) ($0.01) $0.08
         
Net loss per share from discontinued operations $0.00 ($0.02) $0.00 ($0.02)
         
Weighted average common shares outstanding (thousands)     23,397 22,117
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 GAAP and does not have a standardized meaning prescribed by GAAP. 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 GAAP) as an indicator of financial performance or to cash flow from operating activities (as determined under GAAP) 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

  • Revenues increased from the second quarter last year due to additional pipeline and facility construction work from several customers.
  •  EBITDA and operating results also improved in the second quarter, reflecting the higher revenue levels.

Second quarter results

Consolidated revenue was $14.6 million compared to $11.6 million in the second quarter last year. Volumes increased as the Company was successful in obtaining new pipeline and facility construction work from several customers. 

Direct costs were 87.2% of revenue in the quarter compared to 81.2% recorded in the second quarter last year. The direct cost percentage was higher this year due to mainly to lower bid margins and an increased proportion of bid vs. hourly work. 

General and administrative expenses were $1.1 million, down from $1.4 million last year. Savings were realized principally through lower compensation costs and reduced professional services.

Total amortization expense was $0.9 million which was the same as last year's second quarter. 

Interest expense of $0.2 million was marginally below last year as there was no operating loan usage this year and reduced levels of term loans.

Income tax recovery in the quarter of $106,000 was at an effective tax rate of 29.3% which is similar to statutory rates. The effect of permanent differences between accounting and taxable income was very minor in the quarter.

Net loss was $0.3 million (a loss of $0.01 per share) compared to a net loss from continuing operations last year of $0.3 million (a loss of $0.01 per share).

Outlook

The Company continues to operate in a challenging environment particularly due to low natural gas prices. However, oil and gas drilling activity remains well above the prior year. The Company is maintaining a strong balance sheet in order to position itself for future growth.

The Company is expecting revenues in the third quarter of 2010 to be somewhat above the same period last year due to work obtained on several new projects. The Company continues to reduce operating costs where possible. 

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. and northwestern Alberta. The Company's corporate office is in Calgary, Alberta. 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. For a more detailed description of these risks and uncertainties, please see the section "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2009 available on SEDAR at www.sedar.com. 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.

Contact Information

  • Macro Enterprises Inc.
    Frank Miles
    President and C.E.O.
    (250) 785-0033
    or
    Macro Enterprises Inc.
    T. Jerrold Jackson
    C.F.O.
    (403) 705-7302
    www.macroindustries.ca