Macro Enterprises Inc.
TSX VENTURE : MCR

Macro Enterprises Inc.

August 18, 2009 18:36 ET

Macro Enterprises Inc. Announces 2009 Second Quarter Results

FORT ST. JOHN, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2009) - Macro Enterprises Inc. (TSX VENTURE:MCR) -



Summary of financial results
(thousands of dollars except share amounts)
-----------------------------------------
Three months ended Six months ended
June 30 June 30
-----------------------------------------
2009 2008 2009 2008
-----------------------------------------
(Unaudited)

Revenues $11,617 $8,088 $39,068 $36,376

EBITDA(1) 622 (446) 5,066 (815)

Net earnings (loss) from continuing
operations (279) (1,336) 1,901 (2,578)

Net loss from discontinued operations (235) (114) (353) (275)

Net earnings (loss) per share from
continuing operations ($0.01) ($0.06) $0.08 ($0.12)

Net loss per share from discontinued
operations ($0.02) ($0.01) ($0.02) ($0.02)

-----------------------------------------
Weighted average common shares
outstanding (thousands) 22,117 22,117
----------------

Note 1 - References to EBITDA are to net income from continuing operations
before interest, taxes, amortization and impairment charge. EBITDA
is not an earnings measure recognized by GAAP and does not have a
standardized meaning prescribed by GAAP. Management believes that
EBITDA is an appropriate measure in evaluating the Company's
performance. Readers are cautioned that EBITDA should not be
construed as an alternative to net income (as determined under
GAAP) as an indicator of financial performance or to cash flow
from operating activities (as determined under GAAP) as a measure
of liquidity and cash flow. The Company's method of calculating
EBITDA may differ from the methods used by other issuers and,
accordingly, the Company's EBITDA may not be comparable to similar
measures used by other issuers.


Highlights

- Revenue was up in the second quarter of this year, compared to the same period last year, due to increased levels of activity from several customers.

- Results improved reflecting the higher revenue levels.

- The Company's financial position remains strong, with $6.0 million of cash and no operating loan at quarter end. In addition, since December 31, 2008, the Company has repaid $1.6 million of long-term debt. Total long-term debt, including current portion, was $6.1 million at June 30, 2009.

Second quarter results

Consolidated revenue was $11.6 million compared to $8.1 million in the second quarter last year. Activity was up this year due to work principally with several customers in NE BC and Alberta.

Direct costs were 81.2% of revenue in the quarter compared to 89.4% in the same quarter last year. As in the first quarter, the improvement from last year is due to improved project execution and an increased proportion of cost reimbursable work.

General and administrative expenses were $1.4 million, up slightly from $1.3 million last year due in part to the timing of professional fees.

Total amortization expense was $0.9 million compared to $1.1 million in the second quarter last year. Amortization expense was slightly lower due to reduced levels of fixed asset additions in the prior year and the goodwill and intangible asset impairment charge taken in the fourth quarter of last year.

Interest expense of $0.3 million was unchanged from the prior year period. Long-term debt levels are similar to last year. There was no operating debt at quarter end this year, due to improved results and collections of accounts receivable.

Net loss from continuing operations was $0.2 million (a loss of $0.01 per share) compared to a loss from continuing operations last year of $1.3 million (a loss of $0.06 per share).

Discontinued operations

The loss from Access Manufacturing, a business that the Company has classified as discontinued, was $0.2 million in the quarter (a loss of $0.02 per share) compared to a loss of $0.1 million (a loss of $0.01 per share) in the same quarter last year.

As reported in the Company's 2009 first quarter results, effective May 15, 2009, the Company sold most of the inventory and fixed assets of Access for gross proceeds of $750,000. The Company is not expecting any significant additional gain or loss from discontinued operations.

Outlook

The demand for oilfield services in Western Canada continues to be weak due to several factors, including the economic slowdown, low natural gas prices and balance sheet issues in users of oilfield services. The Company believes keeping a strong balance sheet is important in order to weather this downturn.

The Company is expecting revenue in the balance of 2009 to be below levels of the prior year. The Company continues to reduce capital expenditures and operating costs where possible.

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. 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.

Forward Looking Statements

Certain statements in this news release may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements regarding expected revenues, expenses and industry trends and the pursuit of strategic acquisitions. These risks and uncertainties include, but are not restricted to, global economic conditions, government regulation of energy and resource companies, seasonal weather patterns, maintaining and increasing market share, terrorist activity, the price and availability of alternative fuels, the availability of pipeline capacity, and potential instability or armed conflict in oil producing regions. For a more detailed description of these risks and uncertainties, please see the section "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2008 available on SEDAR at www.sedar.com. These risks and uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

Contact Information

  • Macro Enterprises Inc.
    Frank Miles
    President and C.E.O.
    (250) 785-0033
    or
    Macro Enterprises Inc.
    T. Jerrold Jackson
    C.F.O.
    (403) 705-7302
    www.macroindustries.ca