Phoenix Oilfield Hauling Inc.

Phoenix Oilfield Hauling Inc.

November 28, 2008 14:17 ET

Phoenix Oilfield Hauling Inc. Announces Financial Results for the Third Quarter Ended September 30, 2008

NISKU, ALBERTA--(Marketwire - Nov. 28, 2008) -


Phoenix Oilfield Hauling Inc. (TSX VENTURE:PHN) is pleased to announce its financial and operating results for the third quarter of 2008.

Financial Summary

The following table summarizes selected financial data for:

(In thousands of dollars, Three months ended Nine months ended
except per share data) September 30, September 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue $ 14,194 $ 4,863 $ 31,984 $ 18,563
Operating expenses 8,541 3,123 20,812 10,927
Operating expenses,
% of revenue 60% 64% 65% 59%
Selling, general and
administrative expenses 1,894 984 4,973 3,022
Due diligence costs
respecting abandoned
acquisition - - - 330
Foreign exchange gain (91) - (91) -
(Gain) loss on disposal
of assets 21 38 (11) 26
EBITDA (1) 3,829 718 6,301 4,258
EBITDA, % of revenue 27% 15% 20% 23%
Net earnings (loss) 432 (265) (1,135) 1,170
Earnings (loss) per share
- basic 0.01 - (0.02) 0.02
Earnings (loss) per share
- diluted 0.01 - (0.02) 0.02
Funds flow from
operations $ (404) $ (1,307) $ 804 $ 5,609

(1) EBITDA is not a recognized measure under GAAP and consequently does not
have a standard prescribed meaning. EBITDA is equal to Net Income
adjusted to exclude amortization expense, depreciation expense, interest
expense, impairment charges related to goodwill and intangibles and
income taxes. EBITDA includes stock based compensation expense. EBITDA
is commonly used by investors and financial analysts in the oilfield
services industry as a supplementary non-GAAP financial measure in order
to evaluate a company's operating performance. Phoenix's method of
calculating EBITDA may differ from other companies, and accordingly, it
may not be comparable to a similarly described measure used by another

In commenting on results Leo Provencher, President of Phoenix noted "the acquisition of Rodan during the period has established a vital presence in the U.S. market, expanding relationships with existing customers cross border and allowing us to redistribute our fleet to improve utilization and margins. While industry conditions are challenged today by lower commodity prices and reduced access to capital, both threatening capital spending by producers in 2009, U.S. exposure remains a logical expansion for our Company to better balance our capacity to market demand over the long-term. We are extremely pleased to have added Danny LaChance as Chief Operating Officer, U.S.A and look forward to developing our rig moving operations south of the border; our essential strength remains our ability to attract and integrate young, talented and aggressive leaders into our business."

In reviewing its continuous disclosure obligations for the period the Company noted that there was an error in the subordinated debenture in favour of Epic Holding Corporation dated July 7, 2008 and posted on SEDAR on July 17, 2008. The Company has filed an amending document on SEDAR correcting certain financial covenants.

Financial information for the three and nine month periods ended September 30, 2008 and 2007 including the Company's interim unaudited consolidated financial statements and interim Management, Discussion and Analysis are available on the SEDAR website at

"Reader Advisory

This news release may contain certain forward-looking statements, which include assumptions with respect to (i) future operations; (ii) future economic conditions; (iii) future capital expenditures; and (iv) cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other companies, ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances 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, including the amount of proceeds, that the Corporation will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements."

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the contents of this news release.

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