Macro Enterprises Inc.
TSX VENTURE : MCR

Macro Enterprises Inc.

June 21, 2011 20:07 ET

Macro Enterprises Inc. Announces 2011 First Quarter Results

FORT ST. JOHN, BRITISH COLUMBIA--(Marketwire - June 21, 2011) -Macro Enterprises Inc. (TSX VENTURE:MCR) -

Summary of financial results 1
(thousands of dollars except per share amounts)

Three months ended
March 31
20112010
(unaudited)(unaudited)
Revenues$43,214$14,938
EBITDA23,0171,180
Net earnings1,35282
Net earnings per share$0.05$0.00
Weighted average common shares outstanding (thousands) – basic
23,931

23,172
Note 1 – Commencing with this quarterly report, all financial information is reported in accordance with International Financial Reporting Standards ("IFRS") including for comparative periods, except where noted.
Note 2 - 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 International Financial Reporting Standards ("IFRS") and does not have a standardized meaning prescribed by IFRS. 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 IFRA) as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) 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

  • Results were substantially above the first quarter of last year due to increased volumes of work.
  • The Company negotiated a temporary increase in its operating credit facility with its principal lender in order to ensure that there were sufficient funds to finance the much greater levels of activity this year.

First quarter results

Consolidated revenue was $43.2 million compared to $14.9 million in the first quarter last year. The Company commenced work on three large contracts in this current quarter compared to very little work last year in the traditionally busy first quarter.

Operating expenses were 90.2% of revenue in the quarter compared to 85.1% in the same quarter last year. This percentage rose this year due mainly to a lower bid margin.

General and administrative expenses were $1.3 million, up from $1.0 million last year. Additional costs were incurred principally due to a higher staff complement, due to the substantially higher levels of activity this year.

Total amortization expense was $0.8 million which was the same as the prior year.

Interest expense of $0.3 million was $0.1 million above last year due mainly to the costs associated with the temporary increase in loans from related parties.

Income tax expense in the quarter of $0.5 million was at an effective tax rate of 28.6% which approximates the statutory rate. In the same quarter last year, the tax rate was higher than statutory rates due in part to the effect of permanent differences between accounting and taxable income.

Net income was $1.4 million ($0.05 per share) compared to a net income last year of $0.1 million ($nil per share).

Outlook

The Company is expecting revenues in the second quarter to be above those recorded in the second quarter last year. The Company continues to actively bid new jobs and is expecting the summer to also be busy. However, the continued low price of natural gas could affect future levels of activity in the areas where the company is active.

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, 2010 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

    Macro Enterprises Inc.
    T. Jerrold Jackson
    C.F.O.
    (403) 705-7302
    www.macroindustries.ca