Phoenix Oilfield Hauling Inc.

Phoenix Oilfield Hauling Inc.

August 28, 2009 18:55 ET

Phoenix Oilfield Hauling Inc. Announces Financial Results for the Three and Six Months Ended June 30, 2009

NISKU, ALBERTA--(Marketwire - Aug. 28, 2009) -


Phoenix Oilfield Hauling Inc. (TSX VENTURE:PHN) announces its financial and operating results for the second quarter of 2009.

Financial Summary

The following table summarizes selected financial data for:

Three months ended Six months ended
(In thousands of dollars, except June 30, June 30,
per share data) 2009 2008 2009 2008

Revenue $ 5,040 $ 5,598 $20,905 $ 17,790
Operating expenses 4,898 4,375 14,963 12,271
Operating expenses, % of revenue 97% 78% 72% 69%
Selling, general and administrative
expenses 1,619 1,470 3,444 3,079
Foreign exchange loss 436 - 277 -
(Gain) loss on disposal of assets 3 (20) 19 (32)
EBITDA (1) (1,916) (227) 2,202 2,472
EBITDA, % of revenue (38%) (4%) 11% 14%
Net loss (4,006) (2,196) (2,636) (1,567)
Loss per share - basic (0.06) (0.04) (0.04) (0.03)
Loss per share - diluted (0.06) (0.04) (0.04) (0.03)
Funds flow from operations $ 2,237 $ 1,417 $ 5,112 $ 1,208

June 30, December 31,
(In thousands of dollars) 2009 2008

Total assets $ 45,388 $ 51,418
Long-term financial liabilities 26,634 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:

Three months ended Six months ended
(In thousands of dollars) June 30, June 30,
2009 2008 2009 2008
Net loss $ (4,006) $ (2,196) $ (2,636) $ (1,567)
Add (Deduct):
Depreciation 1,480 1,272 2,983 2,596
Interest on long-term debt 808 599 1,675 1,225
Other interest 23 - 67 -
Amortization of intangible assets 54 98 123 218
Income taxes (reduction) (275) - (10) -
EBITDA (1) $ (1,916) $ (227) $ 2,202 $ 2,472

In commenting on results Leo Provencher, President of Phoenix noted "Oilfield service companies across North America are facing some of the most difficult market conditions ever with intense pricing pressure caused by reduced demand for exploration and production of, in particular, natural gas. We remain focused on finding ways to manage and reduce costs during these trying times."

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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