CALGARY, ALBERTA--(Marketwired - July 16, 2013) - Pulse Seismic Inc. ("Pulse" or "the Company") (TSX:PSD) (OTCQX:PLSDF) announces preliminary selected unaudited financial results for the three and six months ended June 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 six months ended June 30, 2013 on August 2, 2013.
Pulse's key performance metrics, which include cash EBITDA(a), shareholder free cash flow(a) and net earnings, all declined in the three and six-month periods ended June 30, 2013 from the prior year's comparative periods. Following quarterly records achieved in the first two quarters of 2012, lower data library sales were experienced in both the first and second quarters of 2013, accounting for the weaker results.
"Seismic data library sales have innately poor visibility, being influenced by a number of industry drivers and ultimately depending on capital spending decisions by individual energy producers," stated Neal Coleman, Pulse's President and CEO. "We are currently seeing fewer of the asset and corporate transaction-based sales of seismic data that contributed to last year's record results."
Pulse continues to benefit from its low cost structure and strong financial position, Coleman commented, which includes period-end debt of only 1.5 times its first-half 2013 cash EBITDA. Low costs enabled Pulse to continue delivering positive cash EBITDA and shareholder free cash flow in the first half of 2013, as well as to make significant debt repayments.
HIGHLIGHTS FOR THE PERIODS ENDED JUNE 30, 2013
"Revenue fluctuations are part of the seismic data library business, and Pulse's current results further confirm the Board of Directors' decision to set the Company's dividend at a conservative, sustainable level, one that has been maintained over the past 8 quarters," Coleman stated.
(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) | Long-term debt is defined as total long-term debt, including current portion, net of deferred financing costs. |
Q2 2013 CONFERENCE CALL
Pulse will host a conference call on Friday, August 2, 2013 at 11:00 am MDT (1:00 pm EDT) to discuss the Company's results for the second quarter. Neal Coleman, President & CEO, will chair the call with Pamela Wicks, VP Finance & CFO, taking part. 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 August 10, 2013. To access the replay, please dial 905-694-9451 or 800-408-3053 and enter the pass code 3376392.
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 28,300 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.
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