Impax Energy Services Income Trust

Impax Energy Services Income Trust

November 11, 2008 20:31 ET

Impax Energy Services Income Trust Releases Financial Results for the Third Quarter Ended September 30, 2008 and Approves Option Plan

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2008) - Impax Energy Services Income Trust (TSX:MPX.UN) ("Impax" or the "Trust") today announced its financial results for the third quarter ended September 30, 2008.

During the third quarter of 2008, Impax recorded revenue of approximately $10.3 million, EBITDA(1) of $2.9 million and net loss of $0.3 million.


(in 000's of Canadian Three months Nine months
dollars, except ended Sept 30, ended Sept 30,
per unit amounts) 2008 2007 2008 2007
(restated) (restated)

Revenue $ 10,266 $ 9,407 $ 30,549 $ 30,592
Net loss (346) (1,534) (2,489) (6,955)
EBITDA(1) 2,862 2,354 8,917 8,378
Total assets 102,693 139,750 102,693 139,750
Loss per unit -
basic and diluted $ (0.03) $ (0.13) $ (0.20) $ (0.60)

Revenue for the three months ended September 30, 2008 increased by $0.9 million or approximately 9% compared to the same period in 2007, reflecting a moderate pick up in both drilling and service rig utilization activity within the industry, resulting in an increase in the demand for Impax's services. EBITDA for the same period increased by $0.5 million or approximately 22% as a result of margin improvements.

Activity levels in the third quarter of 2008 improved over the third quarter of 2007 given significantly higher commodity prices and lower natural gas storage levels. More recently, the unfolding global financial crisis and recent volatility in the prices for oil & gas have created uncertainty within the industry. This is likely to have an impact on the capital spending of exploration and production companies, given the challenges faced by accessing capital markets. The new Alberta royalty program also continues to negatively affect the sector although incentives have been introduced to encourage ongoing deep gas exploration. In addition, the positive indicators identified for the third quarter of 2008 appear to be continuing into the fourth quarter with rig utilization still ahead of fourth quarter 2007 levels. Issued well licenses in the Western Canadian Sedimentary Basin are also up 8% above last year's levels and we are seeing increased activity in British Columbia and Saskatchewan where many of our customers do business.

"While our operations will continue to be affected by the cyclicality of the oil and gas operations in western Canada, we are pleased with our 2008 results thus far and remain focused on the efficient operation of our existing businesses," commented Scott Delaney, President and CEO of Impax. "We have also entered into an amended and restated credit agreement with our lenders and are focused on the reduction of current indebtedness."

Impax also announced that the Trustees approved a Unit Option Plan on the terms and conditions approved by the unitholders at their annual and special meeting held on May 21, 2008.

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 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 28, 2008 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 is not an earnings measure 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
    Scott D. Delaney
    President and Chief Executive Officer
    (416) 304-6867