Macro Enterprises Inc.
TSX VENTURE : MCR

Macro Enterprises Inc.

August 17, 2011 14:07 ET

Macro Enterprises Inc. Announces 2011 Second Quarter Results

FORT ST. JOHN, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2011) - Macro Enterprises Inc. (TSX VENTURE:MCR) -

Summary of financial results
(thousands of dollars except per share amounts)
Three months ended
June 30
Six months ended
June 30
2011 2010 2011 2010
(unaudited)
Revenues $14,748 $14,643 $57,962 $29,581
EBITDA1 926 771 3,943 1,954
Net earnings (loss) (296) (245) 1,056 (164)
Net earnings (loss) per share ($0.01) ($0.01) $0.04 ($0.01)
Weighted average common shares outstanding (thousands) 23,931 23,172

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 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

  • Revenues were basically flat compared to the prior year as the Company completed work on contracts commenced in the first quarter.
  • EBITDA improved marginally from last year.
  • Third quarter revenues are expected to exceed the same period last year.

Second quarter results

Consolidated revenue was $14.7 million compared to $14.6 million in the second quarter last year. During the second quarter this year, the Company completed work on the three large contracts commenced in the first quarter of the year. In addition, work commenced on a compressor move and re-installation for another customer.

Operating expenses were 83.6% of revenue in the quarter compared to 87.2% in the same quarter last year. This percentage fell this year due to improved performance on jobs.

General and administrative expenses were $1.5 million, up from $1.1 million last year. Additional costs were incurred principally due to a higher staff complement, due to the substantially higher levels of activity in the first quarter and what we expect to be a continued busy year.

Total amortization expense was $0.9 million which was the same as the prior year.

Net finance costs of $0.4 million were $0.2 million above last year due mainly to the costs associated with the temporary increase in loans from related parties. These loans were fully repaid by the Company on May 31, 2011.

Income tax recovery in the quarter of $(0.1 million) was at an effective tax rate of 23.9% which was slightly below the statutory rate.

Net loss was $0.3 million (a loss of $0.01 per share) compared to a net loss last year of $0.2 million (a loss of $0.01 per share).

Outlook

The Company is expecting revenues in the third quarter to be above those recorded in the third quarter last year. The Company continues to actively bid new jobs and is expecting the remainder of the year to also be busy. However, the continued low price of natural gas and uncertain financial markets 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. 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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