TSX: PSD
OTCQX: PLSDF
CALGARY, April 13, 2015 /CNW/ - Pulse Seismic Inc.
("Pulse" or "the Company") reports its preliminary selected
unaudited financial and operating results for the three months
ended March 31, 2015.
These financial results are based on 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 months ended March 31, 2015 on
May 8, 2015.
"Data library sales for the quarter were a record low of
$1.3 million due to the drastic
cutback in the E&P sector's capital spending so far in
2015," stated Neal Coleman, Pulse's
President and CEO. "Although we frequently note that the Company's
results vary from quarter to quarter and should be viewed annually,
the fact that the data library did not generate positive
shareholder free cash flow in the quarter highlights the severity
of the downturn."
HIGHLIGHTS FOR THE THREE MONTHS ENDED
MARCH 31, 2015
Pulse's key performance metrics all declined in
the three-month period ending March 31,
2015 from the prior year's first quarter, due to the
period's record low level of data library sales. Highlights for the
quarter:
- Total seismic revenue of $4.5
million, consisting of data library sales of $1.3 million and participation survey revenue of
$3.2 million, compared to
$5.5 million during the three months
ended March 31, 2014, consisting
entirely of data library sales;
- Cash EBITDA(a) was negative $240,000 compared to $3.8
million in the comparable period in 2014;
- Shareholder free cash flow(a) was negative
$347,000 compared to $3.6 million in the comparable period in
2014;
- Funds from operations(b) were $2.9 million compared to $3.6 million for the three months ended
March 31, 2014;
- Net loss of $3.3 million
($0.06 per share basic and diluted)
compared to a net loss of $1.8
million ($0.03 per share basic
and diluted) in the comparable period in 2014;
- Pulse purchased and cancelled, through its normal course issuer
bid, a total of 335,200 common shares at a total cost of
approximately $1.0 million (at an
average cost of $3.01 per common
share including commissions);
- At March 31, 2015 Pulse's cash
balance was $586,000 and total
debt(c) was $5.5 million,
resulting in a net debt (d) position of $4.9 million. This was an improvement of
$12.8 million from net debt of
$17.7 million at March 31, 2014; and
- The Company added 136 square kilometres of new high quality 3D
seismic data to the library through the completion of a survey in
west central Alberta which
commenced in January and was completed in March 2015.
(a) The Company's continuous disclosure documents
provide discussion and analysis of "cash EBITDA", "cash EBITDA per
share", "shareholder free cash flow" and "shareholder free cash
flow 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. Shareholder free cash flow further
refines the calculation of capital available to invest in growing
the Company's 2D and 3D seismic data library, to repay debt, to
purchase its common shares and to pay dividends by deducting
non-discretionary expenditures from cash EBITDA. Non-discretionary
expenditures are defined as debt financing costs (net of deferred
financing expenses amortized in the current period) and current tax
provisions. Shareholder free cash flow per share is defined as
shareholder free cash flow divided by the weighted average number
of shares outstanding for the period.
(b) 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.
(c) Total debt is defined as long-term debt,
excluding deferred financing costs.
(d) Net debt is defined as total debt less cash.
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 28,400 square kilometres of 3D seismic
and 340,000 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.
SOURCE Pulse Seismic Inc.