Phoenix Oilfield Hauling Inc.
TSX VENTURE : PHN

Phoenix Oilfield Hauling Inc.

April 29, 2009 21:59 ET

Phoenix Oilfield Hauling Inc. Announces Financial Results for the Year Ended December 31, 2008 and Cancellation of Stock Options

NISKU, ALBERTA--(Marketwire - April 29, 2009) -

THIS PRESS RELEASE IS NOT TO BE DISTRIBUTED TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Phoenix Oilfield Hauling Inc. (TSX VENTURE:PHN) is pleased to announce its financial and operating results for 2008.



Financial Summary

The following table summarizes selected financial data for:

----------------------------------------------------------------------------

(In thousands of dollars, except per share data) Year ended December 31,
2008 2007
----------------------------------------------------------------------------

Revenue $ 49,176 $ 25,936
Operating expenses 32,059 16,406
Operating expenses, % of revenue 65.2% 63.3%
Selling, general and administrative expenses 7,382 4,386
Due diligence costs respecting abandoned acquisition - 330
Foreign exchange gain (350) -
Loss on disposal of assets 12 283
EBITDA (1) 10,073 4,531
EBITDA, % of revenue 20.5% 17.5%
Net loss (12,377) (15,797)
Loss per share - basic (0.20) (0.29)
Loss per share - diluted (0.20) (0.29)
Funds flow from operations $ 4,988 $ 4,774
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) EBITDA is not a recognized measure under GAAP and consequently does not
have a standard prescribed meaning. EBITDA is equal to Net Loss adjusted
to exclude amortization expense, depreciation expense, interest expense,
impairment charges related to goodwill and intangibles and income taxes.
EBITDA includes stock based compensation expense. EBITDA is commonly
used by investors and financial analysts in the oilfield services
industry as a supplementary non-GAAP financial measure in order to
evaluate a company's operating performance. Phoenix's method of
calculating EBITDA may differ from other companies, and accordingly,
it may not be comparable to a similarly described measure used by
another company.


EBITDA (1) is calculated by the Company as follows:

----------------------------------------------------------------------------

(In thousands of dollars) Year ended December 31,
2008 2007
----------------------------------------------------------------------------

Net loss $ (12,377) $ (15,797)
Add (Deduct):
Depreciation 5,674 3,206
Interest on long-term debt 2,980 1,214
Other interest 398 68
Amortization of intangible assets 1,709 1,351
Impairment of goodwill and intangible assets 11,089 15,864
Income taxes (reduction) 600 (1,375)
----------------------------
EBITDA (1) $ 10,073 $ 4,531
----------------------------------------------------------------------------


The following table summarizes selected financial data for the fourth
quarter:

----------------------------------------------------------------------------
Three months ended
(In thousands of dollars, except per share data) December 31,
2008 2007
----------------------------------------------------------------------------

Revenue $ 17,192 $ 7,373
Operating expenses 11,247 5,479
Operating expenses, % of revenue 65% 74%
Selling, general and administrative expenses 2,409 1,363
Due diligence costs respecting abandoned acquisition - -
Foreign exchange gain (259) -
Loss on disposal of assets 23 257
EBITDA (1) 3,772 274
EBITDA, % of revenue 22% 4%
Net loss $ (11,242) $ (16,967)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


In commenting on results Leo Provencher, President of Phoenix noted "We are pleased with the progress that the Company has made in 2008. The success of our Rodan USA division during the period has firmly established a substantial presence for us in the U.S. market, allowing Phoenix to expand our relationships with existing customers cross-border and allowing us to redistribute our fleet to improve utilization and margins. Despite industry conditions that remain challenged today by lower commodity prices and reduced access to capital, both threatening capital spending by producers in 2009, U.S. exposure remains a logical expansion for our Company to better balance our capacity to market demand over the long-term."

The Company also announces that it is cancelling stock options with respect to 1,275,000 shares. Following the cancellation the Company will have 4,535,000 options issued under its rolling 10% stock option plan. The Company has 66,247,716 issued and outstanding common shares. Any future options to directors, officers, employees and consultants will be granted, subject to TSX Venture Exchange acceptance, on terms in accordance with the Company's Stock Option Plan and with Exchange policy.

The Company's consolidated financial statements and Management, Discussion and Analysis are available on the SEDAR website at www.sedar.com.

"Reader Advisory

This news release may contain certain forward-looking statements, which include assumptions with respect to (i) future operations; (ii) future economic conditions; (iii) future capital expenditures; and (iv) cash flow. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other companies, ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Corporation will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements."

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the contents of this news release.

Contact Information