Red Deer, Canada – February 19, 2013– High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) is pleased to announce that its Board of Directors has approved a monthly dividend payment of $0.01 per share to holders of common shares. The dividend is payable on March 14, 2013, to holders of High Arctic common shares of record at the close of business on February 28, 2013. The ex-dividend date is February 26, 2013. The dividend is designated as an “eligible dividend” for Canadian Income Tax purposes.
High Arctic Reports $39.6 Million in Adjusted EBITDA for 2012
FOR IMMEDIATE RELEASE Red Deer, Canada – March 13, 2013 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) today announced its operating and financial results for the fourth quarter and year ended December 31, 2012. Highlights for 2012 High Arctic continued its strong year over year growth in revenue, EBITDA and net earnings in 2012. Adjusted EBITDA increased 19% to $39.6 million for the year. Consolidated net earnings for the year increased by 60% to $28.8 million from $18.0 million earned in 2011. The operations in Papua New Guinea (PNG) generated higher revenue and EBITDA in the fourth quarter which helped to offset slower activity in the Canadian operation. The Corporation continues to see increased revenues derived from the capital additions made in PNG during 2011 and early 2012. Consolidated revenue for the fourth quarter increased 4% to $38.6 million compared to $37.1 million for the same quarter last year. Year to date revenues of $146.2 million were up 15% compared to 2011. Consolidated operating margins continued to be strong at 31% for the quarter, (2011 – 35%) and 33% for 2012 year to date compared to 32% last year. The margins benefitted from the favourable returns generated during 2012 on capital invested in new rental equipment offset somewhat by lower margins during 2012 on nitrogen sales and the supply of additional personnel services in PNG carrying a lower margin. Commenting on the results, Bruce Thiessen, High Arctic’s Chief Executive Officer, stated: “2012 proved to be a strong year for High Arctic and one which saw growth and adaptation in our chosen markets. In PNG, we continued to invest in our rental fleet, both with our primary customer and with new customers, helping us to grow our revenue base. We continue to strengthen our relationship with our primary customer by delivering solutions to them in a challenging environment. In Canada, we experienced a strong start to the year as our operations focused on liquids rich wells and are evolving to also provide services in the oil basins. This adaptation is important for the Corporation given the continuing low gas prices and the associated reduction in gas field activity.” The strong growth in revenue for the year was driven by increased activity in PNG and by the deployment of a 250K UB Unit in Canada. In PNG, the fourth quarter revenue was $27.8 million compared to $21.3 million in 2011, the 31% increase primarily from the growth in the matting and equipment rental business and from the start-up of a second drilling rig that went on full operating rate on November 1, 2012. Year to date revenues in PNG of $99.0 million are up 23% for the same reasons and because of the operation of Rig 102 for all of 2012 compared to seven months in 2011. Revenue for Canada was $47.2 million for 2012, relatively unchanged from 2011. The fourth quarter saw significantly reduced revenue levels in the core snubbing and nitrogen businesses as both activities were softer with overall industry activity down. In addition to the strong financial results, some of the accomplishments for the Corporation during 2012 include: High Arctic instituted a monthly dividend of $0.01 per share with the first monthly dividend paid on June 14, 2012. At that monthly rate, the annual dividend would total $6.0 million, which represents 17.2% of cash flows provided by operations during 2012. The Company expanded its rental business in PNG deploying additional mats, cranes and other ancillary equipment, as well as commissioning a newly built 104 person camp that was placed in use in January 2013. In Canada, land was acquired for a new facility in Grande Prairie with construction set to begin in 2013 as part of the strategy to grow in that region. High Arctic continues to maintain a very strong balance sheet. At December 31, 2012, the Corporation had $27.4 million of cash on hand, well in excess of its debt of $13.8 million. The Corporation also continues to generate strong cash flows from its operations. For the year, High Arctic generated $34.9 million (2011- $29.8 million) of cash flows provided by operations, an increase of 17%. The annual Adjusted EBITDA was $39.6 million for 2012 compared to $33.4 million for the year ended December, 2011. Selected Comparative Financial Information The following is a summary of selected financial information of the Corporation. All figures are presented in accordance with the International Financial Reporting Standards (“IFRS”): Three Months Ended December 31 Years Ended December 31 $ millions (except per share amounts) 2012 2011 Change % 2012 2011 Change % Revenue 38.6 37.1 1.5 4 146.2 127.2 19.0 15 EBITDA(1) 9.8 11.0 (1.2) (11) 38.2 32.0 6.2 19 Adjusted EBITDA(1) 10.0 11.2 (1.2) (11) 39.6 33.4 6.2 19 Operating earnings 7.1 8.8 (1.7) (19) 28.5 23.3 5.2 22 Net earnings 5.9 7.8 (1.9) (24) 28.8 18.0 10.8 60 per share (basic)(2) 0.12 0.17 (0.05) 0.62 0.40 0.22 per share (diluted)(2) 0.12 0.16 (0.04) 0.59 0.37 0.22 Cash flows provided by operations(1) 8.7 10.7 (2.0) (19) 34.9 29.8 5.1 17 Dividends 1.5 – 1.5 – 4.0 – 4.0 – Capital expenditures 2.9 0.2 2.7 1350 19.9 13.3 6.6 50 Total assets 118.9 93.5 25.4 27 Total non-current financial liabilities 13.7 12.4 1.3 10 Net cash (net … Read more