Leader Energy Services Ltd.

TSX VENTURE : LEA


Leader Energy Services Ltd.

May 23, 2014 16:00 ET

Leader Energy Services Reports First Quarter 2014 Results

CALGARY, ALBERTA--(Marketwired - May 23, 2014) - Leader Energy Services Ltd. ("Leader" or the "Company") (TSX VENTURE:LEA) has released its financial and operating results for the three month period ended March 31, 2014. Leader's first quarter financial statements and MD&A will be filed to SEDAR on May 23, 2014.

In the first quarter of 2014, the Company reported a 3% increase in revenue to $8.5 million as compared to the $8.3 million reported in the first three months of 2013. After a slow start in January, activity was strong until the second week of March where activity was reduced as a result of an early spring break-up. With colder weather returning in the last half of March, activity levels improved and the Company was able to coordinate the completion of work around road restrictions through the end of March with activity extending into the second week of April. Average pricing for the Company's services was consistent with the same period in 2013. The Company continues to see demand for its services where the Company concentrates its operations in north-central Alberta and northeast British Columbia.

As a percentage of revenue, operating costs have decreased 3% as compared to operating costs reported in the first quarter of the prior period. These cost savings are mainly attributed to lower third party charges, lower repair and maintenance, partially offset by higher nitrogen costs and field staff variable compensation. The Company reported a loss of $0.1 million for the three month period ended March 31, 2014, compared to a loss of $0.8 million in the three month period ended March 31, 2013. The improvement in results is attributed to higher revenues, lower operating costs leading to improved field profitability and lower financing and related expenditures.

Performance Summary
(000's) (unaudited)
Quarter ended Mar. 31,
2014
Mar. 31,
2013
$ Change % Change
Revenue $ 8,510 $ 8,267 $ 243 3 %
Operating expenses 5,543 5,619 (76 ) (1 )%
2,967 2,648 319 12 %
General and administrative 1,042 1,011 31 3 %
Amortization 1,021 991 30 3 %
Finance costs 989 1,190 (201 ) (17 )%
Loss on settlement of loans and borrowings - 233 (233 ) n/a
Other losses 20 59 (39 ) (66 )%
Net Loss $ (105 ) $ (836 ) $ 731 n/a
Loss per share - Basic and Diluted $ (0.00 ) $ (0.03 ) $ 0.03
EBITDA $ 1,905 $ 1,345 $ 560 42 %
Adjusted EBITDA $ 1,913 $ 1,610 $ 303 19 %
EBITDA refers to net income before finance costs, taxes, depreciation, and amortization. As the Company has not recorded any provision for income taxes, taxes have been excluded from the reconciliation. Adjusted EBITDA is calculated as EBITDA before non-cash losses on the settlement of loans and borrowings and share based payments. EBITDA and Adjusted EBITDA are not measures that have a standardized meaning and accordingly may not be comparable to similar measures used by other companies. Management believes that EBITDA and Adjusted EBITDA are useful measures of cash flow generated from operations as they eliminate non-cash items, non-recurring items and the effects of finance costs and financial restructuring.

Forward-looking information

This press release contains certain statements or disclosures relating to the Company that are based on the expectations of the Company as well as assumptions made by and information currently available to the Company which may constitute forward-looking information under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that the Company anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking information.

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 news release.

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