CALGARY, ALBERTA--(Marketwired - Oct. 10, 2013) - Pulse Seismic Inc. ("Pulse" or "the Company") (TSX:PSD)(OTCQX:PLSDF) announces preliminary selected unaudited financial results for the three and nine months ended September 30, 2013.
These financial results are based upon management's estimates and have not yet been approved by the Company's Audit Committee or Board of Directors or reviewed by the Company's auditors.
Pulse expects to release its full financial results for the three and nine months ended September 30, 2013 on November 8, 2013.
Due to the record level of data library sales achieved in the first nine months of 2012, the period over period comparative financial results have decreased substantially. One transaction in the first quarter of 2012 led to a $27.8 million data library sale, which improved an already strong financial position, provided greater financial flexibility, and led to a return of capital to the shareholders through an increased dividend and Pulse share purchases. Revenue fluctuations are a normal part of the seismic data library business.
"Pulse's third quarter data library sales came in at $4.2 million," stated Neal Coleman, Pulse's President and CEO. "Although Q3 is typically a slower quarter in our business, and even though sales were about the same as in the third quarter of 2012, we had hoped to close more deals in light of the particularly slow pace of second quarter 2013 sales."
This lower level of data sales still leads to Pulse generating significant amounts of cash. "The quarter's $4.2 million of sales resulted in $2.5 million of cash EBITDA(a)," Coleman continued. "That was higher than in the same quarter last year, and is enough to pay the quarterly interest on our revolving credit facility and cover the quarterly dividend we paid on September 20, 2013, and still have cash to allocate to share purchases and database growth opportunities."
HIGHLIGHTS FOR THE PERIODS ENDED SEPTEMBER 30, 2013
- Seismic data library sales for the third quarter of 2013 were $4.2 million compared to $4.1 million for the comparable period in 2012. Seismic data library sales for the nine months ended September 30, 2013 were $22.5 million compared to $52.2 million for the first nine months of 2012.
- Total seismic revenue (including revenue from participation surveys) was $4.2 million for the three months ended September 30, 2013 and $35.9 million for the nine months ended September 30, 2013 compared to $8.7 million and $58.6 million for the respective periods in 2012.
- Cash EBITDA was $2.5 million ($0.04 per share basic and diluted) for the third quarter of 2013 compared to $2.0 million ($0.03 per share basic and diluted) for the comparable period in 2012. Cash EBITDA was $16.2 million ($0.27 per share basic and diluted) for the nine months ended September 30, 2013 compared to $45.0 million ($0.71 per share basic and diluted) for the nine months ended September 30, 2012.
- Funds from operations(b) totalled $2.4 million ($0.04 per share basic and diluted) for the third quarter of 2013 compared to $6.3 million ($0.10 per share basic and diluted) for the comparable period in 2012. Funds from operations totalled $25.1 million ($0.41 per share basic and diluted) for the nine months ended September 30, 2013 compared to $49.0 million ($0.78 per share basic and diluted) for the nine months ended September 30, 2012.
- At September 30, 2013 Pulse's cash balance was $2.2 million and long-term debt(c) was $20.8 million, resulting in a net debt position of $18.7 million.
- In the third quarter of 2013 Pulse purchased and cancelled, through its normal course issuer bid, 690,150 common shares, bringing the total shares purchased in the first nine months of 2013 to 2,108,822 for a total cost of approximately $7.1 million, or $3.36 per share including commissions. The number of shares outstanding has been reduced to approximately 59.7 million.
- Pulse paid a dividend of $0.02 per share in the third quarter, totalling $1.2 million.
- The Company's continuous disclosure documents provide discussion and analysis of "cash EBITDA", and "cash EBITDA per share". These financial measures do not have standard definitions prescribed by IFRS and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because management, investors, analysts and others use them as measures of the Company's financial performance. The Company's definition of cash EBITDA is cash available for interest payments, cash taxes if applicable, debt servicing, discretionary capital expenditures and the payment of dividends, and is calculated as earnings (loss) from operations before interest, taxes, depreciation and amortization less participation survey revenue, plus any non-cash and non-recurring expenses. Cash EBITDA excludes participation survey revenue as these funds are directly used to fund specific participation surveys and this revenue is not available for discretionary capital expenditures. The Company believes cash EBITDA assists investors in comparing Pulse's results on a consistent basis without regard to participation survey revenue and non-cash items, such as depreciation and amortization, which can vary significantly depending on accounting methods or non-operating factors such as historical cost. Cash EBITDA per share is defined as cash EBITDA divided by the weighted average number of shares outstanding for the period
- Funds from operations is an additional GAAP measure. Funds from operations is defined as cash provided by operations as prescribed by IFRS, excluding the impact of changes in non-cash working capital. Funds from operations represents the cash that was generated during the period, regardless of the timing of collection of receivables and payment of payables. Funds from operations per share is defined as funds from operations divided by the weighted average number of shares outstanding for the period.
- Long-term debt is defined as total long-term debt, including current portion, net of deferred financing costs.
Q3 2013 CONFERENCE CALL
Pulse will host a conference call on Friday, November 8, 2013 at 11:00 am MST (1:00 pm EST) where Neal Coleman, President & CEO and Pamela Wicks, VP Finance & CFO will discuss the Company's results for the third quarter. A question-and-answer period will follow an update on the Company's strategy and outlook.
To participate please dial 416-340-8530 or 877-440-9795 approximately 10 minutes before the commencement of the call. To listen to the audio webcast of the conference call please visit the Company's website at www.pulseseismic.com.
An archival recording of the conference call will be available approximately one hour after the completion of the call until November 16, 2013. To access the replay, please dial 905-694-9451 or 800-408-3053 and enter the pass code 3376392.
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 28,300 net square kilometres of 3D seismic and 340,000 net kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occur.