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Zedcor Energy Inc. Announces 2017 Year End Results

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Zedcor Energy Inc. Announces 2017 Year End Results

Canada NewsWire

CALGARY, March 29, 2018 /CNW/ - Zedcor Energy Inc. (the "Company") (TSX:ZDC) today announced its financial and operating results for the year ended December 31, 2017.

Zedcor Energy Inc. (CNW Group/Zedcor Energy Inc.)

Highlights

Amounts in the following tables are presented in thousands of dollars, except for per share amounts and percentages.


Three months ended
December 31

Twelve months ended
December 31

(in $000s)

2017

2016

2017

2016

Revenue

4,306

3,444

14,636

10,598






Adjusted EBITDA1,2

1,417

258

3,931

(349)






Adjusted EBIT1,2

(555)

(3,346)

(2,579)

(18,114)






Net loss from continuing operations

(2,618)

(3,106)

(8,369)

(19,617)






Net loss per share from continuing
operations






Basic

($0.05)

($0.08)

($0.17)

($0.49)


Diluted

($0.05)

($0.08)

($0.17)

($0.49)







Amounts in table represents continuing operations, which are comprised of the Energy Services segment and Corporate

1Adjusted for severances, business acquisition costs, provision for onerous lease and refinancing costs

2See Financial Measures Reconciliations below

 

SELECT FINANCIAL RESULTS

  • Revenues for the quarter ended December 31, 2017 increased by $0.9 million or 20% from $3.4 million to $4.3 million compared to the similar quarter in 2016. Commodity prices in the fourth quarter of 2017 were stronger than the fourth quarter of 2016, which in part resulted in increased demand for drilling services and ancillary support equipment.
  • Net loss from continuing operations for the quarter ended December 31, 2017 decreased by $0.5 million from a loss of $3.1 million to a loss of $2.6 million compared to the similar quarter in 2016. The decrease in the net loss from continuing operations quarter over quarter, excluding the provision for onerous lease, is $1.5 million. This is directly related to the increase in revenues and a decrease in general administrative costs quarter over quarter resulting from the corporate restructuring that occurred in early 2017.
  • Adjusted EBITDA for the quarter ended December 31, 2017 increased by $1.1 million or 82% from $0.3 million to $1.4 million compared to the similar quarter in 2016. This increase is a result of increased revenue and a decrease in general and administrative costs of $1.0 million resulting from the cost saving initiatives put in place over the past year.
  • For the year ended December 31, 2017, revenues increased by $4.0 million or 28% from $10.6 million to $14.6 million compared to the year ended December 31, 2016. In direct relation, Adjusted EBITDA increased by $4.3 million from $(0.3) million to $3.9 million. This is due in part to increased commodity prices and in direct relation increased drilling activity in Western Canada when compared to 2016. As a result there has been an increase in demand for rental equipment and a modest improvement in rental rates.
  • On April 27, 2017, the Company entered into a Loan and Security Agreement with a new lender for a term of 12 months. See Liquidity and Capital Resources section.
  • On January 31, 2017, the Company announced that it had entered into an asset purchase and sale agreement with Cooper Rentals Canada Inc. to sell all the assets of 4-Way Equipment Rentals. The transaction closed on February 9, 2017. Net proceeds were used to pay down senior debt.

SELECTED QUARTERLY FINANCIAL INFORMATION



















(Unaudited – in $000s)

Dec

31

2017

Sept

30

2017

June

30

2017

Mar

31

2017

Dec

31

2016

Sept

30

2016

June

30

2016

Mar

31

2016










Revenue

4,306

3,539

2,348

4,442

3,444

2,374

1,469

3,311




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