TSX: PSD
OTCQX: PLSDF
CALGARY, Oct. 13, 2015 /CNW/ - Pulse Seismic Inc. ("Pulse"
or "the Company") reports its preliminary selected unaudited
financial and operating results for the three and nine months ended
September 30, 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 and nine months ended September 30,
2015 on November 6, 2015.
"Data library sales of $4.7
million for the third quarter bring our year-to-date sales
to $12.5 million," stated
Neal Coleman, Pulse's President and
CEO. "The $7.8 million in shareholder
free cash flow(a) Pulse has generated year to date even
amidst a prolonged downturn has enabled us to become debt-free,
having repaid the $5.5 million
balance on our revolving credit facility during the third quarter
and early in the fourth quarter."
HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2015
Lower period-over-period data library sales decreased Pulse's
key performance metrics for 2015 versus 2014. Highlights for the
three-month and nine-month periods are:
- Seismic data library sales for the third quarter of 2015
decreased to $4.7 million from
$14.5 million for the comparable
period in 2014. Seismic data library sales for the nine months
ended September 30, 2015 were
$12.5 million compared to
$27.4 million for the comparable
period of 2014;
- Total seismic revenue was $15.7
million for the nine months ended September 30, 2015 compared to $27.4 million for the nine months ended
September 30, 2014. There was one
participation survey completed during the first quarter of 2015
which generated $3.2 million of
participation survey revenue;
- Cash EBITDA(a) was $3.3
million ($0.06 per share basic
and diluted) for the third quarter of 2015 compared to $12.7 million ($0.21 per share basic and diluted) for the
comparable period of 2014. Cash EBITDA was $8.1 million ($0.14
per share basic and diluted) for the nine months ended September 30, 2015 compared to $22.0 million ($0.37 per share basic and diluted) for the nine
months ended September 30, 2014;
- Shareholder free cash flow(a) was $3.2 million ($0.06
per share basic and diluted) for the third quarter of 2015 compared
to $12.5 million ($0.21 per share basic and diluted) for the
comparable period in 2014. Shareholder free cash flow was
$7.8 million ($0.14 per share basic and diluted) for the nine
months ended September 30, 2015
compared to $21.3 million
($0.36 per share basic and diluted)
for the nine months ended September 30,
2014;
- In the nine-month period ended September
30, 2015 Pulse purchased and cancelled, through its normal
course issuer bid, a total of 865,100 common shares at a total cost
of approximately $2.4 million (at an
average cost of $2.72 per common
share including commissions);
- At September 30, 2015 Pulse had
total debt(b) of $1.5
million and cash of $845,000,
The debt balance was repaid on October
6 upon the collection of accounts receivable. The
$50.0 million revolving credit
facility is undrawn and fully available to the Company;
- In 2015, Pulse has paid three quarterly dividends of
$0.02 per share totalling
$3.4 million; 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, repayment of debt, purchase of its shares,
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) Total debt is defined as long-term debt,
excluding deferred financing costs.
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.