Today Wednesday Thursday Friday Saturday Sunday
It is forcast to be Fog at 11:00 PM EDT on September 30, 2014
Fog
77°/52°
It is forcast to be Partly Cloudy at 11:00 PM EDT on October 01, 2014
Partly Cloudy
73°/55°
It is forcast to be Partly Cloudy at 11:00 PM EDT on October 02, 2014
Partly Cloudy
77°/59°
It is forcast to be Chance of Rain at 11:00 PM EDT on October 03, 2014
Chance of Rain
72°/36°
It is forcast to be Chance of Rain at 11:00 PM EDT on October 04, 2014
Chance of Rain
50°/37°
It is forcast to be Mostly Cloudy at 11:00 PM EDT on October 05, 2014
Mostly Cloudy
66°/46°
Sponsored by:
CJ Maggies

Aveda Transportation and Energy Services Announces Record Revenue …


CALGARY, ALBERTA, Nov 04, 2013 (Marketwired via COMTEX) –
Aveda Transportation and Energy Services Inc. (“Aveda” or the
“Company”)

/quotes/zigman/10676995/realtime CA:AVE
-2.86%


, a leading provider of oilfield hauling
services and equipment rentals to the energy industry, today
announced record revenue, Adjusted EBITDA(1) and net income for the
nine and three months ended September 30, 2013.

2013 Third Quarter Business Highlights







        
        --  Revenue for the three months ended September 30, 2013 grew by almost
            $3.5 million to $23.4 million, compared with revenue of $19.9 million
            for the same period in 2012;
        --  Reported 14 consecutive quarters of record revenue growth as compared to
            the same period of the prior year. US revenues grew by 39.4% to $17.4
            million compared to $12.5 million in the third quarter of 2012;
        --  Generated net income for the three months ended September 30, 2013 of
            $2.7 million, an increase of $3.1 million compared to a $0.4 million
            loss for the same period in 2012. Net income per share increased to
            $0.27 compared to a loss per share of $0.04 in the comparative period;
        --  Increased Adjusted EBITDA(1) by 57.9% to $4.5 million in the third
            quarter of 2013 as compared to $2.9 million in the same period of 2012;
        --  Received a $2.3 million (net of fees) refund for Scientific Research and
            Investment Tax Credits related to Aveda's predecessor company from 1993
            - 1999;
        --  Disposed of redundant capital assets for proceeds of $1.3 million
            recording a gain from disposal of assets of $0.6 million;
        --  The Company's solid EBITDA results and positive cash flow generation
            reduced bank debt by $1.7 million during the three months ended
            September 30, 2013;
        --  Commenced operation of a new satellite branch in Buckhannon, West
            Virginia; and
        --  The Company recently announced that it has gained the unilateral right
            to convert $4.7 million of convertible debentures to common shares of
            the Company. If the debentures had been converted at September 30, 2013,
            the Company's Debt to EBITDA(1) ratio would have improved from 1.65 to
            1.33.
        
        


2013 First Three Quarters’ Business Highlights







        
        --  Revenue for the nine months ended September 30, 2013 grew by $6.6
            million to $66.9 million, compared with revenue of $60.3 million for the
            same period in 2012. Aveda achieved this revenue growth despite an
            average year-over-year rig count decline of approximately 7% in the
            areas the Company operates in;
        --  Generated net income for the nine months ended September 30, 2013 of
            $4.8 million, an increase of $5.6 million compared to a $0.8 million
            loss for the same period in 2012. Net income per share increased to
            $0.48 compared to a loss per share of $0.09 in the comparative period;
        Note:
          (1) See the Financial Overview table of this news release for definition
          of Adjusted EBITDA and Debt to EBITDA.
        --  Generated Adjusted EBITDA(1) for the nine months ended September 30,
            2013 of $12.0 million, an increase of $4.8 million compared with
            Adjusted EBITDA(1) of $7.2 million for the same period in 2012, an
            increase of 66.3% year over year;
        --  Generated net cash provided by operating activities for the nine months
            ended September 30, 2013 of $10.9 million, an increase of $6.6 million
            compared to $4.3 million for the same period in 2012;
        --  Repaid loans and borrowings of $9.5 million in the nine months ended
            September 30, 2013 after investing $2.1 million in new capital assets
            and $0.4 million in the Company's new ERP system; and
        --  Relocated the Company's Pennsylvania branch from New Columbia to
            Williamsport, Pennsylvania.
        
        


In addition, to accommodate Aveda’s expected growth, the Company will
be moving its US Corporate Office from Mineral Wells, TX to Houston
TX in the first quarter of 2014. This move will put the Company in
close proximity to the headquarters of many current and potential
customers.

“The Aveda team has repeatedly demonstrated our ability to execute
and deliver solid results every quarter this year,” said Kevin
Roycraft, President and Chief Executive Officer of Aveda. “I thank
our team for their efforts and look forward to continued success.”

The Company will host its third quarter fiscal 2013 results
conference call on Tuesday, November 5th at 9:00 a.m. Eastern Time
(ET). Executive Chairman David Werklund, President and CEO Kevin
Roycraft and Vice-President, Finance and CFO Bharat Mahajan will
discuss Aveda’s financial results for the quarter and then take
questions from securities analysts.

To access the conference call by telephone, dial (647) 427-7450 or
1-888-231-8191. A live audio webcast of the conference call will be
available at

http://www.newswire.ca/en/webcast/detail/1249937/1377223.

The conference call webcast will be archived and available at

http://www.avedaenergy.com/investors/Conference-Calls/default.aspx

until December 31, 2013.

The Company’s consolidated financial statements and Management’s
Discussion and Analysis are available on the Company’s website at
www.avedaenergy.com or the SEDAR website at www.sedar.com.







        
        Financial Overview
        (in thousands, except per share and ratio amounts)
                              Nine       Nine              Three      Three
                            Months     Months       %     Months     Months       %
                             Ended      Ended  Change      Ended      Ended  Change
                         September  September  2012 -  September  September  2012 -
                          30, 2013   30, 2012    2013   30, 2013   30, 2012    2013
                        ------------------------------------------------------------
        Revenue             66,871     60,316    10.9%    23,376     19,936    17.3%
        Gross profit(5)     14,002     10,596    32.1%     5,166      3,492    47.9%
        Gross margin          20.9%      17.6%    N/A       22.1%      17.5%    N/A
        Gross profit(5)
         excluding
         depreciation
         and
         amortization       19,875     15,203    30.7%     7,112      5,426    31.1%
        Gross margin
         excluding
         depreciation
         and
         amortization         29.7%      25.2%    N/A       30.4%      27.2%    N/A
        Adjusted
         EBITDA(1)          11,987      7,208    66.3%     4,520      2,863    57.9%
        Adjusted
         EBITDA(1) as a
         percentage of
         revenue              17.9%      12.0%    N/A       19.3%      14.4%    N/A
        Net income
         (loss)              4,812       (761)  732.3%     2,689       (431)  723.9%
        Net income
         (loss) as a
         percentage of
         revenue               7.2%      -1.3%    N/A       11.5%      -2.2%    N/A
        Adjusted
         EBITDA(1) per
         share                1.20       0.86    39.5%      0.45       0.29    55.2%
        Earnings per
         share - basic        0.48      (0.09)  633.3%      0.27      (0.04)  775.0%
        Earnings per
         share - diluted      0.45      (0.09)  600.0%      0.25      (0.04)  725.0%
        Current ratio(2)      2.16       2.94   -26.5%      2.16       2.94   -26.5%
        Debt to equity
         ratio(3)             0.81       1.52   -46.7%      0.81       1.52   -46.7%
        Debt to EBITDA
         ratio(3, 4)          1.65       3.76   -56.1%      1.65       3.76   -56.1%
        Adjusted debt to
         EBITDA ratio(6)      1.33        N/A     N/A       1.33        N/A     N/A
        Notes:
        (1) This News Release contains the term Adjusted EBITDA. Adjusted EBITDA as
        presented does not have any standardized meaning prescribed by international
        financial reporting standards (IFRS) and therefore it may not be comparable
        with the calculation of similar measures for other entities. Management uses
        Adjusted EBITDA to analyze the operating performance of the business.
        Adjusted EBITDA as presented is not intended to represent cash provided by
        operating activities, net earnings or other measures of financial
        performance calculated in accordance with IFRS. It is defined as earnings
        before interest, taxes, depreciation and amortization excluding foreign
        exchange gains or losses which are primarily related to the US dollar
        activities of the Company and can vary significantly depending on exchange
        rate fluctuations, which are beyond the control of the Company, and write
        downs of intangible assets, goodwill impairment, financing costs, gains or
        losses on disposal of assets, stock based compensation, fees and expenses on
        settlement of debt and losses on extinguishment of debt.
        (2) Current ratio calculated as current assets divided by current
        liabilities.
        (3) Debt includes loans and borrowings as per their carrying amounts on the
        balance sheet.
        (4) EBITDA used is Adjusted EBITDA for the trailing twelve months.
        (5) Gross profit calculated as revenue less direct operating expense.
        (6) Aveda recently announced that it has gained the unilateral right to
        convert $4.7 million of convertible debentures to common shares of the
        Company. Management intends to convert these debentures into common shares
        of Aveda before the end of the year. For the purposes of this calculation,
        it is assumed that these debentures had been converted to equity on
        September 30, 2013.
        
        


Outlook

Aveda earns revenue primarily by providing specialized transportation
services to companies engaged in the exploration, development and
production of petroleum resources. As a result, demand for Aveda’s
transportation services are generally linked to the economic
conditions of the energy industry and the general level of drilling
activity in the exploration, development and production of petroleum
resources in Western Canada and United States.

In recent history, total drilling activity in the WCSB and United
States has been negatively impacted due to, in part, lower natural
gas prices. This has largely been the result of increased supply
driven by the fast development of shale gas resources in the United
States. Countering the decline in natural gas drilling has been a
relatively strong price for oil which has resulted in oil-focused
regions, such as those surrounding Aveda’s Pleasanton and Midland, TX
branches, to experience robust rig counts. In the third quarter of
2013, the average West Texas Intermediate spot price was
approximately $106 per barrel, compared to $94 per barrel during the
first half of 2013(1).

In Alberta’s portion of the WCSB, third quarter rig counts increased
approximately 9% relative to the same period in 2012. Despite this
increase, overall counts remain below 2011 levels due to, in part,
on-going export capacity bottlenecks and limited capital
expenditures, particularly in natural gas plays. Instead, many
companies with natural gas assets have shifted their focus towards
cautious investments in liquids-rich plays, divesting from dry gas
assets and reducing overall capital expenditure in expectation of
market improvements(2).

Although future natural gas activity remains uncertain in Canada, a
recent CIBC report(3) suggests that several years of declining
natural gas production has resulted in a gradual decrease in supply.
As a result, in combination with the expectation of increasing
demand, they are forecasting higher natural gas prices in 2014
relative to what has been experienced in 2013. CIBC also suggests
that recent events in Canada such as British Columbia’s efforts to
reach an agreement on a tax framework for LNG exports have focused
attention on Canada’s world class shale gas resources. Increasing
confidence in Canada’s natural gas market may be illustrated through
the recent announcement by Petronas (a Malaysian state-owned oil and
gas company) that they intend to invest $36 billion in the building
of both a liquid natural gas plant in British Columbia, as well as
the pipeline to feed it. If this occurs, it will represent one of the
largest direct investments in Canada by any country(4).

Although there is no shortage of future opportunities in Canada, it
appears that at this time, opportunities for expansion and growth are
strongest in the US. According to the Baker Hughes Rig Count(5),
drilling activity in the Eagleford and Permian basins remain close to
the highest levels experienced in the last ten years. The slight
decline compared to previous years is not expected to represent any
significant reduction in Aveda’s activity levels in these regions as
rig efficiencies have resulted in more frequent rig moves. The
consistently high activity levels have allowed Aveda to grow
significantly in these areas, with the opening of two new branches
(Pleasanton and Midland) in 2012. In contrast, the Barnett basin,
which is primarily serviced by the Mineral Wells, TX branch,
continues to face significant declines in rig counts. As a result,
the Mineral Wells branch continues to work on maximizing revenue and
EBITDA by focusing efforts on acquiring new customers in higher
activity, liquids-rich areas to the north.

(1) U.S. Energy Information Administration, accessed on October 21,
2013, at

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pets=rwtcf=d

(2)

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/encana-puts-brakes-on-liquids-plays/article8656404/

(3)

http://www.theglobeandmail.com/globe-investor/investment-ideas/research-reports/article14748216.ece/BINARY/NaturalGas.pdf

(4)

http://www.vancouversun.com/technology/Petronas+potential+investment+pegged+billion/9004488/story.html

(5) Baker Hughes Rig Count, accessed on October 21, 2013, at

http://phx.corporate-ir.net/phoenix.zhtml?c=79687p=irol-reportsother

As with the Barnett basin, the Marcellus, which is serviced by
Aveda’s Williamsport, PA branch, continues to experience significant
decreases in rig count and it is expected that rig counts will
continue a slow downward trend in Pennsylvania gas plays. However,
despite the declines, overall, the branch continued to maintain a
solid revenue stream. Aveda’s new satellite branch in Buckhannon, WV,
which is managed by Aveda’s Williamsport team, began operations at
the beginning of the third quarter. The branch is strategically
located to service clients in the Utica basin, an area that has
experienced significant growth in rig counts over the last two years.
However, the branch is experiencing slower than expected growth. The
Company will closely monitor this branch’s performance and implement
action plans for improvement, before evaluating its options on
whether it will maintain operations at the current location.

The Company continues to assess the market conditions for its
services and allocates resources accordingly. The Company plans to
expend approximately $2.5 – $3.0 million on capital expenditures for
the remainder of the year. The Company is evaluating the merits of
acquiring cranes, instead of relying on third party crane operators.
The result of the crane evaluation may result in additional capital
expenditure of up to $1.5 million in 2013.

About Aveda Transportation and Energy Services

Aveda provides specialized transportation services and equipment
required for the exploration, development and production of petroleum
resources in the Western Canadian Sedimentary Basin and in the United
States of America principally in and around the states of Texas and
Pennsylvania. Transportation services include both the equipment
necessary to move the load as well as a trained, professional driver
capable of securing, moving and manipulating the load at its origin
and destination. Aveda’s rental operations include the rental of
tanks, mats, pickers, light towers and other equipment necessary for
oilfield operations.

Aveda was incorporated in 1994 as a private company to serve the oil
and gas industry. In the spring of 2006 the Company went public on
the TSX Venture Exchange. Aveda has major operations in Calgary, AB,
Slave Lake, AB, Leduc, AB, Sylvan Lake, AB Mineral Wells, TX,
Pleasanton, TX, Midland, TX, Williamsport, PA and Buckhannon, WV.
Aveda is publicly traded on the TSX Venture Exchange under the symbol
AVE. For more information on Aveda please visit www.avedaenergy.com.

This News Release contains certain forward-looking statements and
forward-looking information (collectively referred to herein as
“forward-looking statements”) within the meaning of applicable
Canadian securities laws. All statements other than statements of
present or historical fact are forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as “anticipate”, “achieve”, “could”, “believe”,
“plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”,
“outlook”, “expect”, “may”, “will”, “project”, “should” or similar
words, including negatives thereof, suggesting future outcomes. In
particular, this News Release contains forward-looking statements
relating to: demand for the Company’s services and general industry
activity level; the Company’s growth opportunities; and expectation
to maintain revenue and equipment utilization. Aveda believes the
expectations reflected in such forward-looking statements are
reasonable as of the date hereof but no assurance can be given that
these expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon.

Various material factors and assumptions are typically applied in
drawing conclusions or making the forecasts or projections set out in
forward-looking statements. Those material factors and assumptions
are based on information currently available to Aveda, including
information obtained from third party industry analysts and other
third party sources. In some instances, material assumptions and
material factors are presented elsewhere in this News Release in
connection with the forward-looking statements. Readers are cautioned
that the following list of material factors and assumptions is not
exhaustive. Specific material factors and assumptions include, but
are not limited to:







        
        --  the performance of Aveda's businesses, including current business and
            economic trends;
        --  oil and natural gas commodity prices and production levels;
        --  the effect of the rebranding on Aveda's businesses;
        --  capital expenditure programs and other expenditures by Aveda and its
            customers:
        --  the ability of Aveda to retain and hire qualified personnel;
        --  the ability of Aveda to obtain parts, consumables, equipment,
            technology, and supplies in a timely manner to carry out its activities;
        --  the ability of Aveda to maintain good working relationships with key
            suppliers;
        --  the ability of Aveda to market its services successfully to existing and
            new customers;
        --  the ability of Aveda to obtain timely financing on acceptable terms;
        --  currency exchange and interest rates;
        --  risks associated with foreign operations;
        --  changes under governmental regulatory regimes and tax, environmental and
            other laws in Canada and the United States; and
        --  a stable competitive environment.
        
        


Forward-looking statements are not a guarantee of future performance
and involve a number of risks and uncertainties, some of which are
described herein. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause Aveda’s
actual performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking statements. These risks
and uncertainties include, but are not limited to, the risks
identified in Aveda’s annual information form and management
discussion and analysis for the year ended December 31, 2012 (the
“MDA”). Any forward-looking statements are made as of the date
hereof and, except as required by law, Aveda assumes no obligation to
publicly update or revise such statements to reflect new information,
subsequent or otherwise.

This News Release contains the terms EBITDA and Adjusted EBITDA which
are defined in the MDA. EBITDA and Adjusted EBITDA as presented do
not have any standardized meaning prescribed by international
financial reporting standards (IFRS) and therefore may not be
comparable with the calculation of similar measures for other
entities. Management uses Adjusted EBITDA to analyze the operating
performance of the business. Adjusted EBITDA as presented is not
intended to represent cash provided by operating activities, net
earnings or other measures of financial performance calculated in
accordance with IFRS.

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.







        
        Contacts:
        Aveda Transportation and Energy Services Inc.
        Bharat Mahajan, CA
        Vice President, Finance and Chief Financial Officer
        (403) 264-5769
        bharat.mahajan@avedaenergy.com
        www.avedaenergy.com
        
        
        


SOURCE: Aveda Transportation and Energy Services

(C) 2013 Marketwire L.P. All rights reserved.

/quotes/zigman/10676995/realtime




add Add to portfolio

CA:AVE

loading...

<< Oct 2014 >>
MTWTFSS
29 30 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2
Upcoming Events
  • No events
Sports News
  • WVILL - Home
  • headlines-featured

Cunningham finished eighth at Lock H

Reparaz and Izquierdo claim ITA titl

Fall three spots after loss to Urban