MCR Macro Enterprises Inc

Macro Enterprises Inc. (TSX VENTURE:MCR) - 



                                              Summary of financial results 
                                              (thousands of dollars except 
                                                   per share amounts)      
                                             ------------------------------
                                                   Three months ended      
                                                        March 31           
                                             ------------------------------
                                                        2014           2013
                                             ------------------------------
                                                 (unaudited)    (unaudited)
                                                                           
Revenues                                             $87,779        $60,122
                                                                           
EBITDA1                                                5,104         15,021
                                                                           
Net earnings                                           2,153          9,685
                                                                           
Net earnings per share                                 $0.07          $0.40
                                                                           
Weighted average common shares outstanding                                 
 (thousands) - basic                                  29,944         24,118
                                             ------------------------------



Note 1 - References to EBITDA are to net income from continuing operations
before interest, taxes, amortization and impairment charge. EBITDA is not an
earnings measure recognized by International Financial Reporting Standards
("IFRS") and does not have a standardized meaning prescribed by IFRS. Management
believes that EBITDA is an appropriate measure in evaluating the Company's
performance. Readers are cautioned that EBITDA should not be construed as an
alternative to net income (as determined under IFRS) as an indicator of
financial performance or to cash flow from operating activities (as determined
under IFRS) as a measure of liquidity and cash flow. The Company's method of
calculating EBITDA may differ from the methods used by other issuers and,
accordingly, the Company's EBITDA may not be comparable to similar measures used
by other issuers.


Highlights 



--  Revenue increased significantly to $87.8 million in first quarter 2014
    from $60.1 million in first quarter 2013 due to increased pipeline and
    facility construction activity 
--  EBITDA and net income were lower than anticipated primarily as a result
    of a loss on one particular pipeline construction project in the Fort
    McMurray region. For strategic reasons this project was originally bid
    at lower than normal margins but the resulting loss was unexpected. 



First quarter results 

Macro Enterprises Inc. posted consolidated revenue of $87.8 million, a
significant increase over last year's first quarter revenue of $60.1 million.
This growth in revenue is partially attributable to two large big inch pipeline
projects near Fort McMurray, Alberta. 


Increased operating costs associated with one of the pipeline projects in Fort
McMurray have resulted in lower than anticipated profits for the Company. For
strategic reasons, Macro originally bid this job at low margins but
unanticipated problems with this project resulted in a loss on the project of
$6.9 million. 


Macro has entered into discussions with the pipeline operator requesting
additional compensation. Additional compensation, if any, will be recorded when
such further compensation has been formally agreed to. 


"While we are disappointed that we lost money on this particular job, it was an
important strategic move for the Company to take on this project to be able to
show the pipeline operator that we have the requisite experience to handle these
projects," said Frank Miles, Chief Executive Officer. "We believe our customer
was pleased with the quality of our work and that we will continue to work on
significant projects for this operator." 


General and administrative expenses in the quarter were $2.5 million, up from
$2.2 million in the same period last year. Expenses were higher this year due
mainly to additional staff costs. 


Total amortization expense of $2.0 million increased by $0.2 million due to a
greater amount of capital assets. 


Interest expense of $0.2 million in the quarter was below the first quarter last
year due to the conversion (into common shares) of the interest-bearing
shareholder loan in June 2013. 


Income tax expense in the quarter of $770,000 was at an effective tax rate of
26.3% which approximates the statutory rate. 


Net income was $2.5 million ($0.08 per share) compared to $9.7 million ($0.40
per share).


Outlook 

Activity in the oil and gas industry in western Canada remains very active,
particularly in the Peace River region and the Fort McMurray area. Macro is
continuing to actively bid on numerous pipeline and facility construction
projects in targeted regions of western Canada. However, due to the timing of
our customers' projects, the Company is expecting revenues in the second quarter
of fiscal 2014 to be below those recorded in second quarter of fiscal 2013. 


In addition, the Company is seeking out pipeline construction contracts in
connection with the Liquefied Natural Gas (LNG) projects being planned on the
west coast of British Columbia, an industry that is anticipated to bring
substantial economic activity to British Columbia over the next 30 years. Macro
has entered into discussions with several of the LNG project owners regarding
future pipeline and facilities construction. 


Macro's core business is providing pipeline and facilities construction and
maintenance services to major companies in the oil and gas industry. The Company
is based in Fort St. John, B.C. Its shares are listed on the TSX Venture
Exchange under the symbol MCR. Information on the Company's principal operating
unit, Macro Industries Inc., can be found at www.macroindustries.ca.


Conference call 

The Company will host a conference call at 8 am PDT on Thursday, May 29, 2014 to
discuss the 2014 first quarter results. The conference call can be accessed by
dialing 1-888-390-0605 and referencing conference ID 57831328. 


Forward Looking Statements 

Certain statements in this news release may include forward-looking information
that involves various risks and uncertainties. These may include, without
limitation, statements regarding expected revenues, expenses and industry trends
and the pursuit of strategic acquisitions. These risks and uncertainties
include, but are not restricted to, global economic conditions, government
regulation of energy and resource companies, seasonal weather patterns,
maintaining and increasing market share, terrorist activity, the price and
availability of alternative fuels, the availability of pipeline capacity, and
potential instability or armed conflict in oil producing regions. These risks
and uncertainties may cause actual results to differ from information contained
herein. There can be no assurance that such forward-looking statements will
prove to be accurate. Actual results and future events could differ materially
from those anticipated in such statements. These statements are based on the
estimates and opinions of management on the dates they are made and are
expressly qualified in their entirety by this notice. Except as required by law,
the Company assumes no obligation to update forward-looking statements should
circumstances or management's estimates or opinions change. 


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Macro Enterprises Inc.
Frank Miles
President and C.E.O.
(250) 785-0033


Macro Enterprises Inc.
T. Jerrold Jackson
C.F.O.
(403) 705-7302
www.macroindustries.ca

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