Macro Enterprises Inc.
TSX VENTURE : MCR

Macro Enterprises Inc.

August 17, 2007 15:17 ET

Macro Enterprises Inc. Announces 2007 Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Aug. 17, 2007) - Macro Enterprises Inc. (TSX VENTURE:MCR) -



Summary of financial results
(thousands of dollars except per share amounts)

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Three months ended Six months ended
June 30 June 30
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2007 2006 2007 2006
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Revenues $12,672 $7,810 $54,184 $59,166

Net earnings (loss) (564) (1,505) 4,463 5,981

Net earnings (loss)
per share - basic ($0.03) ($0.07) $0.20 $0.30

Net earnings (loss)
per share - diluted ($0.03) ($0.07) $0.17 $0.29

Weighted average common
shares outstanding
(thousands) 21,574 20,111
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Highlights

- Revenues increase in traditionally slow quarter to $12.6 million from $7.8 million last year

- Facilities maintenance revenue increased this quarter in keeping with the Company's strategic plan to supplement traditional seasonal construction revenue

- New heavy equipment purchase expands the Company's field capability

- New facilities expansion in the Fort St. John area proceeding well, and will enhance operations service capability and capacity

Second quarter results

Consolidated revenue was $12.7 million, up from $7.8 million in the second quarter last year. The second quarter, historically the slowest quarter of the year due to spring break up and adverse weather conditions, was positively impacted by additional scheduled facilities maintenance work.

Direct costs were 84% of revenue in the quarter compared to 92.8% last year. This improvement was due in part to improved labour utilization associated with the increased work volume this year. Other factors improving the margin include an increased labour/materials revenue ratio associated with maintenance work versus construction activities.

General and administrative expenses were $1.6 million, up slightly from $1.5 million last year.

Amortization expense increased to $1.0 million compared to $0.7 million in the second quarter last year due to higher levels of fixed assets.

Interest expense was $0.3 million compared to $0.4 million last year, as a result of lower levels of debt this year.

Income taxes recovered in the quarter were $0.3 million, representing an effective tax recovery of 34.6%, which approximates statutory rates.

Net loss for the quarter was $0.6 million (a loss of $0.03 per share) compared to net loss of $1.5 million (a loss of $0.07 per share) last year.

Outlook

Drilling activity for oil and gas wells in the market region remains lower than was the case in 2006. Industry sources predict that this reduced drilling activity will continue for the remainder of 2007. This reduced activity may impact the volume of work and margins for Macro for the remainder of the year related to facility tie in. Facilities maintenance work should remain more stable through this period, although some clients may defer maintenance should gas prices continue to remain below historic levels.

The Company will continue to focus on its core business, and will maintain and build its relationships with key customers active the northern B.C. and northwest Alberta markets. The Company will also continue to actively pursue new service offerings to its client base, and may grow these offerings through organic growth or through strategic acquisitions to strengthen its expertise and customer base.

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern British Columbia and northwestern Alberta. The Company's corporate office is in Calgary, Alberta. Its shares are listed on the TSX Venture exchange under the symbol MCR. Information on the Company's principal operating unit, Macro Industries Inc., can be found at www.macroindustries.ca.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Macro Enterprises Inc.
    J. Norman Rokosh
    President and C.E.O.
    (403) 229-1881
    (403) 229-1889 (FAX)
    Website: www.macroindustries.ca