Lonestar West Inc.
TSX VENTURE : LSI

Lonestar West Inc.

September 30, 2013 12:49 ET

Lonestar West Reports Record Year End Results

SYLVAN LAKE, ALBERTA--(Marketwired - Sept. 30, 2013) - Lonestar West Inc. (TSX VENTURE:LSI) today announced record revenues, earnings and EBITDAC with the release of financial results for Fiscal 2013 ended June 30th.

Lonestar achieved strong performance throughout the 2013 fiscal year driven by rapid expansion of its fleet size that exceeded projected growth targets. Aggressive geographical expansion continued with the establishment of the U.S. operations in California and Oklahoma.

Highlights for the fiscal year include:

  • Revenues increased 49.8% to $27,895,601 from $18,618,413 in the previous fiscal year.
  • EBITDAC increased 38.6% to $4,181,410 compared to $3,016,609 in the previous fiscal year.
  • EBITDAC per share rose 25% to $0.25 from $0.20 in the previous fiscal year.
  • Earnings before taxes increased 11.5% to $1,939,400 in comparison to the $1,740,095 earnings before taxes in the previous fiscal year.
  • Net earnings for the year were $1,446,429 an increase of 10.5% in comparison to the $1,308,708 net earnings in the previous fiscal year.

The Company also reported results for the fourth quarter of Fiscal 2013, ended June 30th.

  • Revenues increased 39.8% to $6,212,254 from $4,442,167 in the previous year equivalent quarter.
  • EBITDAC decreased 47.0% to $201,869 compared to $380,645 in the previous year equivalent quarter.
  • EBITDAC per share decreased 66.7% to $0.01 from $0.03 for the corresponding quarters as a result in part of the issuance of 2.17 million shares in F2013 for gross proceeds of approximately $3 million.
  • Loss before taxes was $540,130 a $575,153 decrease in comparison to the $35,023 earnings before taxes in the previous year equivalent quarter.
  • Net loss for the quarter was $455,999 compared to a net loss of $197,824 in the previous year equivalent quarter.

The Company experienced strong revenues in the fourth quarter as a result of management implementing its strategy of growing its fleet and market presence in Western Canada and in the U.S. In order to achieve this strategy, the Company increased its infrastructure to support current and future growth by adding bases in California, Oklahoma, Alberta, and Manitoba, as well as hiring additional personnel to accommodate the growth. Although these increased costs have had a direct impact on fourth quarter earnings and EBITDAC, management believes they are an essential part of executing the growth strategy of the Company.

The fourth quarter is historically the Company's slowest quarter due to the negative impact of spring break up on utilization rates. In addition to normal spring breakup there were extraordinary weather conditions experienced during this fourth quarter such as the flooding in Alberta and tornados in Oklahoma that had a direct impact on the Company's utilization rates for the fourth quarter, and thereby had a direct impact on the earnings and EBITDAC.

The Company is focused on continuing its expansion program by increasing its fleet of HVAC and Vacuum trucks. Subsequent to June 30, 2013, Lonestar added 9 units to its fleet to bring the total to 62 units available to work. Dependent upon the delivery schedule of HVAC and Vacuum units, management estimates that it will add an additional 13 units by December 31, 2013 which would bring the total of units available to approximately 75.

"Lonestar management is extremely pleased with our achievements in Fiscal 2013" said James Horvath, CEO and President of Lonestar. "We are positioned for further strong growth throughout Canada and the U.S. and are well financed to achieve this as a result of our recent $10 million bought deal financing".

About Lonestar West

Based in Sylvan Lake, Alberta, Lonestar West Inc. operates a fleet of 62 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.

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 RELEASE.

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