The Motley Fool Discussion Boards
Canadian Investing / Canada - Microcaps
|Subject: Dalmac (DAL) .52 earns .07 for Qtr||Date: 3/14/2012 11:14 AM|
|Author: LTMatt1||Number: 3294 of 3296|
Probably one of the most under the radar companies out there. Only trades on the Venture exchange, no pink sheet/adr.
They ought to be able to make another .04 quarter to close out their fiscal 2012. That would put them at .14 EPS TTM. Stock is trading at about a 5 P/E.
Based on their utilization rates they still have excess capacity to feed into the growing oil industry buildout in Canada (well workovers, recompletions, water/fluid hauling, etc). One time expenses related to the hiring of new employees in Q1 to meet the growing demand put a hit on earnings out of the gate this year. We're starting to see that investment pay off and should continue to see increased earnings throughout the remainder of the year.
EDMONTON , AB, March 13, 2012 /CNW/ - John Babic , President and CEO of Dalmac Energy Inc. ("Dalmac") (TSXV: DAL.V - News) is pleased to announce third quarter financial results for the three and nine month periods ended January 31, 2012 .
Revenues for Q3'12 increased by 33% to $11M in comparison to $8M in Q3'11. YTD'12 revenues increased 38% to $25M as compared to $18M for YTD'11. The gross margin for the quarter was $3.7M and $7.7M for the year to date. The gross margin, as a percentage of revenue, remained firm at 34% for both Q3'12 and Q3'11. The YTD'12 gross margin was 31% compared to 34% reported in YTD'11. This slight decrease is in good part associated with the implementation of safety ($250K) and employee training ($75K) costs referenced in the Q1'12 MD&A.
Pre-tax net earnings for Q3'12 increased by 54% over Q3'11 to $1.8M ( $0.09 /share) compared to $1.1M ( $0.06 /share). YTD'12 pre-tax net earnings increased by 52% over YTD'11 to $2.4M ( $0.12 /share) compared to $1.6M ( $0.09 /share). Following a $448,605 future tax allocation in the current quarter, the Company's net earnings increased by 15%, to $1.3M ( $0.07 /share) on the quarter and 24% to $1.9M ( $0.10 /share) for the year to date. There were no future tax accruals entered in Q3'11 or YTD'11.
(in thousands of dollars,
except per share data) Q3 2012 Q3 2011 YTD 2012 YTD 2011
Revenues $10,931 $ 8,219 $ 24,708 $17,943
Gross margin 3,716 2,824 7,688 6,133
Gross margin % 34% 34% 31% 34%
EBITDAS(1) 2,502 1,966 4,568 3,869
EBIDTAS per share -- basic 0.13 0.11 0.23 0.21
Net income 1,305 1,139 1,943 1,571
Net income per share -- basic 0.07 0.06 0.10 0.09
Net income per share -- diluted 0.06 0.06 0.10 0.08
(1) EBITDAS stands for earnings before interest, taxes, depreciation,
Amortization, and stock based compensation.
Despite the relatively mild winter which signaled a delayed start to the normal winter well servicing demands, Q3'12 turned out to be a record setting quarter for Dalmac, one in which the activity levels significantly surpassed those of Q3'11. This trend is consistent with the overall industry utilization rates which are surging at record levels. The metrics driving the current activity stem mainly from strong oil prices. The producers are being compensated for the weaker natural gas prices by making a shift from natural gas to liquids and crude oil. Concurrent with this development is the resulting trend towards more complex well completions which are deeper and take longer to drill. This trend is serving to provide an increased revenue stream for Dalmac's servicing of the drilling and production sectors. In order to gain more exposure to the increased oilfield service activity Dalmac decided to focus more attention on the west central Alberta resource play known as the "Deep Basin" which is situated along the eastern slope of the Rocky Mountains and is expected to generate a great deal of drilling and production activity for many years to come.
In comparison to the comparable periods in the previous year, the expenses for Q3'12 increased by 16% to $2.0 M and the YTD'12 expenses also increased by 16% to $5.3M .
The long-term debt, excluding capital leases, decreased by 32% to $2.6M from the $3.9M reported at YE'11. Working capital also showed significant improvement in Q3'12 and now sits at a current ratio of 0.97:1, from 0.76:1.
In Q3'12 the Company increased its line of credit with its main lender to $8.0M from $6.0M . This increase is also concurrent with a 1% reduction in the overall interest rate which now stands at 2.75% above bank prime. Other developments in the quarter include previously issued warrants were fully exercised raising additional proceeds of $745K, and the Company disposed of two older underutilized hydro vac units for $625K plus GST. The proceeds of the above were used to reduce the levels of existing debt and to improve the Company's balance sheet.
As of the date of release, Dalmac has 23,127,408 shares issued and outstanding and 24,936,742 shares on a fully diluted basis.
Utilization rates in the industry are continuing at record levels and the forecast for the upcoming year is expected to continue on an equally strong footing. The metrics driving the current activity stem mainly from strong oil prices. The current weakness in natural gas prices has been offset by the producers making a shift from natural gas to liquids and crude oil. Concurrent with this development is the resulting trend towards more complex well completions which are deeper and take longer to drill. Over the past decade, vertical wells would yield about 500 meters of exposure to a formation whereas the new horizontal wells are yielding 2,000 to 4,000 directional meters in optimal positions within the formations. This trend is serving to provide an increased revenue stream for Dalmac's servicing of the drilling and production sectors. The Company is confident that current positive industry indicators will continue to translate into higher revenues and earnings for Dalmac throughout the remainder of fiscal 2012 and well into the future.
A conference call to discuss the results will be held on Tuesday, March 13, 2012 , at 4:15 p.m. EST / 2:15 p.m. MST .
To participate in the conference call, please dial 416-644-3414 local in Toronto or toll-free 1-800-814-4859 and request the Dalmac Energy conference.
|Copyright 1996-2016 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|