Pulse Seismic Inc. Reports 2019 Results

Source Company Press Release
Company Pulse Seismic Inc.
Tags Corporate: Corporate Results, Guidance, Overview/Strategy, Country: Canada, United States
Date February 13, 2020

Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or “the Company”) is pleased to report its financial and operating results for the year ended December 31, 2019. The audited consolidated financial statements, accompanying notes and MD&A are being filed on SEDAR (sedar.com) and will be available on Pulse’s website at pulseseismic.com.

“Despite 2019 being year five of the ongoing downturn in Western Canada’s oil and natural gas sector, Pulse generated strong levels of cash EBITDA and shareholder free cash flow throughout the year,” stated Neal Coleman, Pulse’s President and CEO. “In January 2019 Pulse closed the opportunistic and transformative acquisition of Seitel Canada Ltd. The result for 2019 was a 64% increase in sales over the sales generated from the combined data libraries in 2018. Having doubled our database, and therefore doubled our opportunity sets, Pulse has been able to capitalize on a larger range of traditional data sales, and has continued potential to benefit from a greater number of industry transactions that generate relicensing fees.”

HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2019

  • Total revenue for the year ended December 31, 2019 was $24.2 million compared to $10.2 million for the year ended December 31, 2018.
  • The Company incurred a net loss of $3.4 million ($0.06 per share basic and diluted) for 2019 compared to a net loss of $1.7 million ($0.03 per share basic and diluted) for 2018;
  • Cash EBITDA(a) was $17.6 million ($0.33 per share basic and diluted) for the year ended December 31, 2019, compared to $5.0 million ($0.09 per share basic and diluted) for the year ended December 31, 2018;
  • Shareholder free cash flow(a) was $13.6 million ($0.25 per share basic and diluted) for the year ended December 31, 2019, compared to $4.7 million ($0.09 per share basic and diluted) for the year ended December 31, 2018; and
  • At December 31, 2018, the Company had a cash balance of $23.0 million and no debt. That cash was subsequently utilized as partial consideration for the $58.6 million acquisition of Seitel. At year end 2019, the cash balance was $1.4 million, long-term debt was $31.5 million and the Company had $22.1 million available on the revolving credit facility.

HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2019

  • Total revenue for the three months ended December 31, 2019 was $5.4 million compared to $4.3 million for the three months ended December 31, 2018;
  • Net loss was $759,000 ($0.01 per share basic and diluted) compared to net earnings of $1.0 million or ($0.02 per share basic and diluted) in the fourth quarter of 2018;
  • Cash EBITDA was $3.9 million ($0.07 per share basic and diluted) compared to $3.2 million ($0.06 per share basic and diluted) in the fourth quarter of 2018; and             
  • Shareholder free cash flow was $3.0 million ($0.06 per share basic and diluted) compared to $2.6 million ($0.05 per share per share basic and diluted) in the fourth quarter of 2018.      
 
SELECTED FINANCIAL AND OPERATING INFORMATION  
 
(thousands of dollars except per share data,  Three months ended December 31,  Years ended December 31, 
numbers of shares and kilometres of seismic data)  2019  2018  2019  2018 
     
Revenue       
Data library sales  5,281    4,286    23,635    10,076   
Other Revenue  83    27    520    112   
Total revenue  5,364    4,313    24,155    10,188   
           
Amortization of seismic data library  3,500    1,811    14,200    7,337   
Net earnings (loss)  (759  1,024    (3,411  (1,730 
Per share basic and diluted  (0.01  0.02    (0.06  (0.03 
Cash provided by operating activities  1,127    2,457    8,605    (3,250 
Per share basic and diluted  0.02    0.05    0.16    (0.06 
Cash EBITDA (a)  3,879    3,209    17,557    5,037   
Per share basic and diluted (a)  0.07    0.06    0.33    0.09   
Shareholder free cash flow (a)  2,981    2,616    13,605    4,671   
Per share basic and diluted (a)  0.06    0.05    0.25    0.09   
           
Capital expenditures           
Seismic data purchases, digitization and related costs      61,029    62   
Property and equipment  41      439    18   
Total capital expenditures  41      61,468    80   
           
Weighted average shares outstanding           
Basic and diluted  53,793,317    53,793,317    53,793,317    53,838,106   
Shares outstanding at period-end        53,793,317    53,793,317   
           
Seismic library           
2D in kilometres        829,207    450,000   
3D in square kilometres        65,310    28,956   
           
FINANCIAL POSITION AND RATIOS         
        December 31,    December 31,   
(thousands of dollars except ratios)        2019    2018   
Working capital        596    25,804   
Working capital ratio        1.11:1    15:1   
Cash and cash equivalents        1,356    23,016   
Total assets        69,807    38,847   
Long-term debt        31,511     
Cash EBITDA        17,737    5,037   
Shareholders’ equity        31,973    35,238   
Long-term debt to Cash EBITDA ratio        1.79     
Long-term debt to equity ratio        0.99   
Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd