Impax Energy Services Income Trust
TSX : MPX.UN

Impax Energy Services Income Trust

May 14, 2009 19:00 ET

Impax Energy Services Income Trust Releases Financial Results for the First Quarter Ended March 31, 2009

TORONTO, ONTARIO--(Marketwire - May 14, 2009) - Impax Energy Services Income Trust (TSX:MPX.UN) ("Impax" or the "Trust") today announced its financial results for the first quarter ended March 31, 2009.

During the first quarter of 2009, Impax recorded revenue of approximately $9.8 million, EBITDA(1) of $2.1 million and net loss of $1.1 million.



IMPAX ENERGY SERVICES INCOME TRUST
HIGHLIGHTS

(in 000's of Canadian dollars, Three months ended Three months ended
except per unit amounts) March 31, 2009 March 31, 2008
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Revenue 9,778 $ 15,170
Net (loss) income (1,139) 2,109
EBITDA(1) 2,111 6,384
Total assets 70,625 108,707
(Loss) earnings per unit
- basic and diluted $ (0.08) $ 0.17
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Revenue for the three months ended March 31, 2009 decreased by $5.4 million or approximately 36% compared to the same period in 2008, reflecting the general slow down in both drilling and service rig utilization activity within the industry, and a subsequent reduction in the demand for Impax's services. EBITDA for the same comparative period decreased by $4.3 million due to lower revenues, lower gross margins and a one-time charge of $1.0 million related to severance and relocation costs. The Trust expects that the previously announced relocation of its corporate offices to Calgary will be completed by the end of May.

The significant drop in total assets, year over year, is primarily attributable to the fourth quarter 2008 non-cash impairment charge of $28.4 million relating to the Trusts' goodwill and intangible assets.

On April 28, 2009 the Trust, signed a new credit facility that, effective as of March 1, 2009 replaced the demand nature of its previous facility with a two year term facility, reduced the interest rates on the facility and significantly reduced mandatory principal re-payments over the two year period. Overall, the new credit facilities are less costly and have been structured on a more conventional operating basis.

The long-term fundamentals of the oil and gas business are still intact although management expects 2009 to exhibit significantly reduced levels of activity from the prior year. To compete in this constrained environment the Trust will continue to eliminate costs not essential to sustained operations and to reduce the erosion of operating margins through improved synergies between operating units.

Impax, with its capable operating units, reduced head office costs and a more flexible balance sheet and repayment schedule, is now positioned to address, through other strategic initiatives, enhancement of unit holder value. The Trust is committed to proactively seeking out strategic opportunities during the next several quarters.

Impax Energy Services Income Trust is an open-ended trust, providing oilfield services in western Canada. The Trust indirectly owns an approximate 72% interest in Impax Energy Services Master Limited Partnership, which indirectly acquired and now operates through its subsidiaries the businesses of McClelland Oilfield Rentals Limited Partnership, EGOC Enviro Group Limited Partnership, Denray Rathole Drilling Limited Partnership and Dwayne Hommy Trucking Limited Partnership. These businesses provide services in the areas of oilfield rental, specialized equipment rental, access mat rental, waste management services, rat hole drilling and specialty fluid hauling.

This news release may contain forward-looking statements relating to expected future events and financial and operating results of the Trust that involve known and unknown risks and uncertainties. Although the Trust has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking information, actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed in the Trust's March 30, 2009 Annual Information Form filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Notes:

(1) As discussed in the Management's Discussion and Analysis, EBITDA is not an earnings measurement recognized by GAAP and does not have a standardized meaning prescribed by GAAP. References to "EBITDA" are to net earnings before interest expense, income taxes, amortization, impairment charges, unit based compensation and non-controlling interest. Management believes that, in addition to net earnings, EBITDA is a useful supplemental measure of both performance and cash available for distribution before debt service, changes in working capital, capital expenditures and income taxes.

Additional Financial Information

The unaudited consolidated financial statements with accompanying notes and Management's Discussion and Analysis will be filed on SEDAR.

Contact Information

  • Impax Energy Services Income Trust
    William McClelland
    President and Chief Executive Officer
    (780) 539-3656
    or
    Impax Energy Services Income Trust
    John Anderson
    Chief Financial Officer
    (416) 913-3684
    or
    Impax Energy Services Income Trust
    Raymond P. Cej
    Chairman
    (587) 888-1900
    www.impaxenergy.com