Pulse Seismic Inc.
TSX : PSD

Pulse Seismic Inc.

January 25, 2011 18:20 ET

Pulse Seismic Inc. Provides Preliminary 2010 Unaudited Financial Results

CALGARY, ALBERTA--(Marketwire - Jan. 25, 2011) - Douglas Cutts, President and Chief Executive Officer of Pulse Seismic Inc. ("Pulse" or "the Company") (TSX:PSD), reports the following preliminary selected unaudited financial and operating results of Pulse for the fourth quarter of 2010 and for the year ended December 31, 2010. The financial information contained in this news release is based on management's estimates and has not yet been approved by the Company's Audit Committee or Board of Directors, or reviewed by the Company's auditors.

HIGHLIGHTS

  • Pulse set a quarterly record for seismic data library sales for the three months ended December 31, 2010 of approximately $17.0 million, compared to $10.2 million for the same period in 2009.
  • Seismic data library sales for the year ended December 31, 2010 were approximately $30.3 million compared to $23.4 million for the year ended December 31, 2009.
  • Total seismic revenue (including revenue from participation surveys) for the year ended December 31, 2010 was approximately $33.0 million compared to $30.7 million for the year ended December 31, 2009.
  • Cash EBITDA from continuing operations(a) for the year ended December 31, 2010 was approximately $21.7 million ($0.38 per share basic and diluted) compared to $16.4 million ($0.31 per share basic and diluted) for the year ended December 31, 2009.
  • Pulse's working capital position was $7.9 million (including cash of $17.0 million and current portion of long term debt of $13.0 million) at December 31, 2010 compared to $19.3 million (including cash of $15.0 million and current portion of long term debt of $7.0 million) at December 31, 2009.
  • One 3D participation survey totalling approximately 72 net square kilometres was completed and delivered in Q4 2010. The survey is located in Pulse's core area in the Edson-Fort St. John multi-zone corridor.
  • Field operations for two additional 3D participation surveys commenced in late 2010. The first survey is located in the Deep Basin area of west central Alberta, and is currently expected to be completed and delivered during the first quarter of 2011. The second survey is located in the Farrell Creek area of northeast British Columbia, and is currently expected to be completed and delivered at the beginning of the second quarter of 2011. Both surveys add to Pulse's extensive 3D data coverage of the prospective Montney and Cardium plays.

"Pulse's acquisition of Divestco's entire seismic data library in September 2010 contributed significantly to the Company achieving record-high quarterly seismic data library sales of $17.0 million. This acquisition not only doubled the size of Pulse's 3D seismic data library to 26,400 net square kilometres, but extends our seismic coverage in areas where exploration of both oil and natural gas is active. Although the past year proved to be challenging for the seismic industry, Pulse was able to take the opportunity to execute its growth strategy. We are firmly positioned to prudently manage the business in the event of a long period of low natural gas prices. It is also expected that our business will grow over the coming years as we continue to look for opportunities to increase the size of our seismic library," commented Douglas Cutts.

On Friday, March 11, 2011, Pulse intends to release its complete audited financial results for the year ended December 31, 2010. A conference call and webcast to review the 2010 results is scheduled for Monday, March 14, 2011 at 1:00 EDT (11:00 am MDT). Further details of the conference call, including dial-in numbers, will be provided at a later date.

(a) The Company's continuous disclosure documents provide discussion and analysis of "cash EBITDA from continuing operations". This financial measure does not have a standard definition prescribed by GAAP in Canada and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included this non-GAAP financial measure because management, investors, analysts and others use it as a measure of the Company's financial performance. The Company's definition of cash EBITDA from continuing operations 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 continuing operations before interest, taxes, depreciation and amortization less participation survey revenue, plus non-cash and non-recurring G&A expenses. Cash EBITDA from continuing operations excludes participation survey revenue as these funds are directly used to fund specific participation surveys and this revenue is not available for discretionary expenditures. The Company believes cash EBITDA from continuing operations 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.

CORPORATE PROFILE

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 26,400 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.

Please visit our website at www.pulseseismic.com.

Forward Looking Information

This news release contains information that constitutes "forward looking information" or "forward looking statements" (collectively, "forward looking information") within the meaning of applicable securities legislation. This forward looking information includes, among other things, statements regarding:

  • expected completion and delivery dates for participation surveys;
  • Pulse's business and growth strategy; and
  • Other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results and performance.

Undue reliance should not be placed on forward-looking information. Forward looking information is based upon current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward looking information.

The sources for forecasts and the material assumptions underlying this forward looking information are noted in the "Outlook" section of this news release.

The material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to:

  • general economic and industry conditions;
  • the demand for seismic data and participation surveys;
  • the pricing of data library license sales;
  • the level of pre-funding of participation surveys, and the ability of the Company to make subsequent data library sales from such participation surveys;
  • the ability of the Company to complete participation surveys on time and within budget;
  • the price and demand for oil and natural gas;
  • the level of oil and natural gas exploration and development activities;
  • the ability of the Company's customers to raise capital;
  • environment, health and safety risks;
  • the effect of seasonality and weather conditions on participation surveys;
  • federal and provincial government laws and regulation, including taxation, royalty rates, environment and safety;
  • competition from other seismic data library companies;
  • dependence upon qualified seismic field contractors;
  • dependence upon key management, operations and marketing personnel;
  • loss of seismic data; and
  • protection of Intellectual Property.

The foregoing list of risks is not exhaustive. Additional information on these risks and other factors which could affect the Company's operations or financial results are included in the Risk Factors section of the Company's MD&A for the most recent calendar year and interim periods. Forward looking information is based upon the assumptions, expectations, estimates and opinions of the Company's management at the time the information is presented.

Contact Information

  • Pulse Seismic Inc.
    Douglas Cutts
    President and CEO
    (403) 237-5559 or Toll-free: 1-877-460-5559
    or
    Pulse Seismic Inc.
    Pamela Wicks
    VP Finance and CFO
    (403) 237-5559 or Toll-free: 1-877-460-5559
    info@pulseseismic.com
    www.pulseseismic.com