Phoenix Oilfield Hauling Inc.

Phoenix Oilfield Hauling Inc.

May 27, 2009 18:10 ET

Phoenix Oilfield Hauling Inc. Announces Financial Results for the Three Months Ended March 31, 2009

NISKU, ALBERTA--(Marketwire - May 27, 2009) -


Phoenix Oilfield Hauling Inc. (TSX VENTURE:PHN) is pleased to announce its financial and operating results for the first quarter of 2009.

Financial Summary

The following table summarizes selected financial data for:


(In thousands of dollars, Three months ended March 31,
except per share data) 2009 2008

Revenue $ 15,865 $ 12,192
Operating expenses 10,065 7,896
Operating expenses, % of revenue 63.4% 64.8%
Selling, general and administrative expenses 1,825 1,609
Foreign exchange gain 159 -
(Gain) loss on disposal of assets 16 (12)
EBITDA (1) 4,118 2,699
EBITDA, % of revenue 26.0% 22.1%
Net earnings 1,370 629
Earnings per share - basic 0.02 0.01
Earnings per share - diluted 0.02 0.01
Funds flow from operations $ 2,875 $ (209)

March 31, December 31,
2009 2008
(In thousands of dollars)
Total assets $ 52,564 $ 51,418
Long-term financial liabilities 27,753 28,026

(1) EBITDA is not a recognized measure under GAAP and consequently does not
have a standard prescribed meaning. EBITDA is equal to Net earnings
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

EBITDA (1) is calculated by the Company as follows:


(In thousands of dollars) Three months ended March 31,
2009 2008

Net earnings $ 1,370 $ 629
Add (Deduct):
Depreciation 1,503 1,324
Interest on long-term debt 867 626
Other interest 44 -
Amortization of intangible assets 69 120
Income taxes (reduction) 265 -
EBITDA (1) $ 4,118 $ 2,699

In commenting on results Leo Provencher, President of Phoenix noted "We are encouraged by performance that shows well amongst our peer group and the fact that we were able to increase earnings in what remains a very challenging marketplace". Danny LaChance, the Company's Chief Operating Officer - USA noted "despite declining rig counts in the U.S. our customer base continues to grow and with sustained commitment to the highest levels of service may provide growth opportunities in other North American markets in the future".

The Company's consolidated financial statements and 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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