Impax Energy Services Income Trust

Impax Energy Services Income Trust

November 08, 2007 19:10 ET

Impax Energy Services Income Trust Releases Financial Results for the Third Quarter Ended September 30, 2007

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2007) - Impax Energy Services Income Trust (TSX:MPX.UN) ("Impax" or the "Trust") today announced its financial results for the third quarter ending September 30, 2007.

During the third quarter of 2007, Impax recorded revenue of $9.4 million, EBITDA(1) of $2.4 million and net loss of $(1.7) million.


For the
from March
15, 2006,
Nine from
months June 14,
Three months ended 2006 to
(in 000's of Canadian dollars, ended September 30, September September
except per unit amounts) 2007 2006 30, 2007 30, 2006

Revenue $9,407 $16,803 $30,592 $19,832
Net loss (1,676) 3,435 (10,647) 4,036
EBITDA(1) 2,354 7,714 8,378 9,134
Standardized Distributable
Cash(1) (288) (2,150) 8,015 (1,940)
Total assets 139,750 162,361 139,750 162,361
Loss per unit - basic $(0.14) $0.30 $(0.91) $0.35
- diluted $(0.14) $0.29 $(0.89) $0.34

Revenue for the three months ended September 30, 2007 decreased by $7.4 million or 44% compared to the same period in 2006, while EBITDA for the same period decreased by $5.4 million or 69%. The revenue decrease resulted primarily from adverse weather and a decline in industry activity. Approximately $1.5 million of the revenue decrease can also, in part, be attributed to lost rental revenue associated with access mats that were sold in late December 2006. The decline in revenue from access mats and one-time costs associated with strategic initiatives at the Trust level negatively impacted EBITDA by at least $1.0 million for the quarter, approximately half of which pertains to each item.

Total distributions to unitholders for the quarter ended September 30, 2007 of $0.31875 per unit were previously announced.

"During this period of uncertainty, we are pleased to see that all of our businesses are maintaining their respective market shares, our prices with respect to re-completion activities are holding and we have ensured the continued availability of financing." said Impax President & Chief Executive Officer, Scott Delaney. "Management continues to look for strategic opportunities for the Trust both within and outside of our existing scope of services and regional areas of focus." said Mr. Delaney.

Impax Energy Services Income Trust is an open-ended trust, providing oilfield services in western Canada. The Trust indirectly owns an approximate 55% 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 risks and uncertainties. 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 27, 2007 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.


(1) As discussed in the Management's Discussion and Analysis, EBITDA and Standardized Distributable Cash are not earnings measures recognized by GAAP and do 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 and references to "Standardized Distributable Cash" are to cash available for distribution to Unitholders in accordance with the distribution policies of the Trust. 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. Standardized Distributable Cash is a measure generally used by income trusts as an indicator of financial performance and is a useful supplemental measure that may assist prospective investors in assessing an investment in the Trust. Management has calculated Standardized Distributable Cash as cash flow from operations including non-cash working capital changes less all capital expenditures net of any proceeds from sales of capital assets.

Additional Financial Information

The full quarterly report including the unaudited interim consolidated financial statements with accompanying notes and Management's Discussion and Analysis will be filed on SEDAR.

Contact Information

  • Impax Energy Services Income Trust
    Scott D. Delaney
    President and Chief Executive Officer
    (416) 304-6867
    Impax Energy Services Income Trust
    John R. Anderson
    Chief Financial Officer
    (416) 913-3684
    Impax Energy Services Income Trust
    Jon Pinchuk
    Vice-President, Corporate Development
    (416) 601-2592