Lonestar West Inc.
TSX VENTURE : LSI

Lonestar West Inc.

May 29, 2013 13:38 ET

Lonestar Reports Record Third Quarter & Nine Month Results

SYLVAN LAKE, ALBERTA--(Marketwired - May 29, 2013) - Lonestar West Inc. (TSX VENTURE:LSI) announced today that the Company revenues rose to new highs in the third quarter and nine-month reporting period for Fiscal 2013. The record revenues were driven by growth in its HVAC and Vacuum fleet as well as continued expansion into the United States.

Highlights for the third quarter and nine months of Fiscal 2013 (March 31) include:

Quarterly:

  • Revenues increased 50.6% to $8,776,667 from $5,828,653 in the previous year equivalent quarter.
  • EBITDA increased 22.7% to $1,556,431 compared to $1,268,324 in the previous year equivalent quarter.
  • EBITDA per share remained unchanged at $0.09 for the corresponding quarters as a result of the issuance of 2.17 million shares in F2013 for gross proceeds of approximately $3 million. Net income before taxes increased 17.8% to $1,019,320 in comparison to the $865,106 net income before taxes in the previous year equivalent quarter.
  • Net earnings for the quarter were $762,218 compared to $666,566 in the third quarter of F2012.
  • Earnings per fully diluted share remained unchanged at $0.04 for the corresponding third quarters.
  • Acquisition of PLJ Enterprises LLC an Oilfield Services Company based in Oklahoma USA.

Nine Months:

  • Revenues for the nine months of the current fiscal year rose 53% to $21,683,347 compared to $14,176,245 for the first nine months of Fiscal 2012.
  • EBITDA increased 50.7% to $3,972,238 compared to $2,635,964 in the first nine months of Fiscal 2012.
  • EBITDA per share increased 33.3% to $0.24 compared to $0.18 in the first nine months of Fiscal 2012.
  • Net income before taxes increased 45% to $2,472,227 compared to $1,705,072 for the corresponding nine months of F2012.
  • Net earnings jumped 25% to $1,895,125 for the first nine months of F2013 compared to $1,506,532 in the same period of the previous fiscal year,
  • Earnings per fully diluted share for the nine months of F2013 were $0.11 compared to $0.10 for the same period of the previous fiscal year.

The expansion program resulted in a 48.5% increase in fleet size as the Company grew from 33 units available for work at the end of the third quarter of fiscal 2012 to 49 units available for work at the end of the third quarter of fiscal 2013. As of the date of this report the total units available for work is 51.

Management estimates that approximately 4 HVACs will be added in the fourth fiscal quarter and anticipates selling 1 HVAC unit, thereby resulting in approximately 54 units in the fleet by the end of the fiscal year.

During the quarter the Company continued its expansion into the United States through the purchase of all outstanding units in PLJ Enterprises LLC, an Oklahoma based HVAC and Vacuum services Company. The acquisition will help mitigate the seasonality that the company experiences in its Canadian operations and is in line with management's growth strategy.

President and CEO James Horvath commented "Lonestar West Inc. has continued the growth trend with increased revenues and EBITDA over the prior year quarters. Management's focus on managing costs and strategically growing our fleet and operations both organically and through acquisition has had a positive impact on our earnings. We are continuing our strategy of reducing the seasonality of our operations through expansion to the U.S. and growing our fleet and expect this growth rate will continue into the future."

About Lonestar West

Based in Sylvan Lake, Alberta, Lonestar West Inc. operates a fleet of 51 HVAC and Vacuum trucks throughout Western Canada and has recently expanded into California and Oklahoma. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.

For more information please visit the Lonestar West website at www.lonestarwest.com

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