Cordy Oilfield Services Inc.
TSX VENTURE : CKK

Cordy Oilfield Services Inc.

August 28, 2013 16:36 ET

Cordy Oilfield Services Inc. Reports Second Quarter and Year to Date Results

CALGARY, ALBERTA--(Marketwired - Aug. 28, 2013) - CORDY OILFIELD SERVICES INC. (the "Corporation" or "Cordy") (TSX VENTURE:CKK) released today its second quarter results for the period ending June 30, 2013.

The Corporation's revenues from continuing operations for the six months ended June 30, 2013 increased $3.4 million from the same period in 2012 to $57.7 million. For the three month period ended June 30, 2013 Cordy had revenue of $19.5 million, a $1.5 million increase from the comparative 2012 period. The Corporation experienced growth primarily in the oil sands sector in the first quarter of 2013 as well as an increase at the end of the second quarter due to the 2013 Alberta flood which increased demand for our equipment as part of the flood clean-up. Both of these factors contributed to increased revenues for our Heavy Construction and our Environmental segments.

Earnings before interest, taxes, depreciation, amortization and impairment and share-based compensation ("EBITDAS") from continuing operations for the six months ended June 30, 2013 were $4.0 million compared to $3.8 million for the six months ended June 30 of 2012, representing an increase of $0.2 million. Cordy had an EBITDAS loss for the three months ended June 30, 2013 of $1.9 million, an improvement of $0.5 million from the loss of $2.4 million in the comparative period in 2012.

The net loss from continuing operations of $2.8 million or $0.03 per share for the three months ended June 30, 2013 represents an improvement of $0.4 million compared to a loss from continuing operations of $3.2 million or $0.04 per share for the three months ended June 30, 2012. For the six months ended June 30, 2013 Cordy had a net loss from continuing operations of $0.1 million, a change of $0.4 million from the six months ended June 30, 2012 earnings of $0.3 million.

For the quarters ended June 30,
($ millions except share price and per share amounts)

Q2 2013


Q2 2012


$ Change
Q2 YTD
2013

Q2 YTD
2012

$ Change

FINANCIAL RESULTS
Revenue 19.5 18.0 1.5 57.7 54.3 3.4
EBITDAS(1) (1.9 ) (2.4 ) 0.5 4.0 3.8 0.2
Net earnings (loss) and total comprehensive income (loss) from all operations (2.8 ) (3.5 ) 0.7 (0.1 ) 0.3 (0.4 )
Cash flows generated from (used in) operating activities from all operations 5.3 2.3 3.0 4.2 5.5 (1.3 )
SHARE INFORMATION
Earnings per share from continuing operations ($) (0.03 ) (0.04 ) 0.01 - - -
Earnings per share from discontinued operations ($) - - - - - -
Earnings per share from all operations ($) (0.03 ) (0.04 ) 0.01 - - -

(1) Earnings before interest, taxes, depreciation, amortization, impairment and share-based compensation (see reader advisory).

OUTLOOK

Cordy has diverse business units within four segments. Historically these business segments have had stronger first and fourth quarters. The second quarter was seasonally slower due to spring break-up and activity has picked up as of the end of the second quarter and appears it will continue into the third quarter.

The Corporation is dependent, to a degree, on the overall health of western Canada's oil, natural gas, and mining sectors. For the balance of 2013 the prospects for the oil sands sector is expected to be the primary driver for our Heavy Construction segment. Work resulting from both the 2013 Alberta flood clean-up and in the oil sands sector is expected to benefit our Environmental segment. Clean-up services with respect to pipeline spills are expected to be the main activity for our Pipeline segment. In our Manufacturing segment we anticipate continued challenges due to loss of customers and drop in demand for drill bits. Management continues to seek opportunities to expand Cordy's operations in sectors where its business segments operate and to refinance the business to support the Corporation.

Complete copies of Cordy's reviewed consolidated financial statements for the quarter ended June 30, 2013 and the associated Management's Discussion and Analysis are available on our website www.cordy.ca or on SEDAR at www.sedar.com.

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.

READER ADVISORY

Effective January 1, 2011, Cordy began reporting its financial results in accordance with International Financial Reporting Standards (IFRS). Prior-year's comparative amounts were changed to reflect results as if Cordy had always prepared its financial results using IFRS.

This News Release contains certain statements that constitute forward-looking statements. These statements relate to future events or the Corporation's future performance. All statements, other than statements of historical fact, that address activities, events or developments that the Corporation or a third party expects or anticipates will or may occur in the future, are forward-looking statements. These include the Corporation's future growth, results of operations, performance and business prospects and opportunities; prevailing economic conditions; commodity prices; sourcing, pricing and availability of raw materials, components and parts, equipment, suppliers, facilities and skilled personnel; dependence on major customers; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; regional competition; and other factors, many of which are beyond the Corporation's control. These other factors include future prices of oil and natural gas and oil and natural gas industry activity, including the effect of changes in commodity prices on oil and natural gas exploration and development activity, the ability to complete strategic acquisitions and realize the anticipated benefits of any acquisitions that are completed, the Corporation's outlook regarding the competitive environment it operates in, and the assumptions underlying any of the foregoing. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Corporation's control, including those discussed under "Risks and Uncertainties" and elsewhere in this News Release, that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this News Release should not be unduly relied upon. These statements speak only as of the date of this News Release. The Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws. The forward-looking statements contained in this News Release are expressly qualified by this cautionary statement.

Cordy uses the measures Earnings Before Interest, Taxes, Depreciation, Amortization and Impairment and Share Based Compensation (EBITDAS) in this news release. This measure does not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS). It is, therefore, considered to be non-IFRS term and may not be comparable to similar measures presented by other entities. Management of Cordy uses these non-IFRS measures to improve its ability to compare financial results among reporting periods and to enhance its understanding of operating performance, liquidity and ability to generate funds to finance operations. This non-IFRS measure is also provided to readers as additional information on Cordy's operating performance, liquidity and ability to generate funds to finance operations. EBITDAS is an approximate measure of the Cordy's pre-tax operating cash flow and is generally used to better measure performance and evaluate trends of individual assets. EBITDAS comprises earnings before deducting interest and other financial charges, income taxes, depreciation and amortization, net income attributable to non-controlling interests and preferred share dividends.

Contact Information

  • For general information, please contact:
    Cordy Oilfield Services Inc.
    David Mullen, Chairman & Chief Executive Officer
    403-266-2067
    403-266-2087 (FAX)
    david.mullen@cordy.ca

    For investor relations information, please contact:
    Cordy Oilfield Services Inc.
    David Boomer, CA, Chief Financial Officer
    403-266-2067
    403-266-2087 (FAX)
    dave.boomer@cordy.ca