Company experiences strong earnings and fleet expansion
SYLVAN LAKE, AB, Dec. 29, 2011 /CNW/ - Lonestar West Inc. (TSX(V):LSI) today announced the continuation of a strong business performance for the first quarter of fiscal 2012.
Highlights for the quarter include:
- Significant growth in gross revenue and EBITDAC;
- Completion of a $1.3 million equity offering; and,
- Additions to the HVAC and Vacuum fleet after the quarter end.
For the three months ended September 30, 2011 gross revenues were $3,812,418 in comparison to $1,602,157 in the previous year's comparable quarter, an increase of 137.0%. EBITDAC increased 146.2% in the current quarter to $574,892 ($0.041 per share) in relation to the previous year's comparable quarter of $233,463 ($0.018 per share). Earnings for the three-month period ended September 30, 2011, increased $318,207 compared to the net loss of $11,951 for the comparable quarter. Factors for the improvement in performance include the improvement of utilization rates of the HVAC and Vacuum units as well as a significant increase in revenues derived from lease operators.
During the quarter, Lonestar substantially improved its overall equity position. Three factors contributed:
- first, during the quarter Lonestar completed an equity offering of $1.3 million;
- second, as a result of the adoption of IFRS July 1, 2011 the book value increased by $1.7 million; and
- third, Lonestar generated earnings of $0.3 million for the quarter. The overall impact was to increase book value to $4.6 million.
With the additional capital and with strong customer demand, Lonestar implemented a fleet expansion program subsequent to the end of the first fiscal quarter of 2012. The total HVAC fleet rose to 21 trucks consisting of 14 corporate trucks and 7 lease operated trucks (an increase of 3 corporate trucks). In addition, one vacuum truck was added taking the total from 7 to 8 vacuum trucks. Most of the additional trucks were acquired in December and as such will not materially impact financial performance until the third quarter (ending March 30, 2012).
President and CEO James Horvath commented, "We have experienced a very good first quarter. We improved our utilization rates and our customer base continues to increase. The outlook for the second and third quarter is positive and we aim to bring in the New Year with another excellent level of performance."
For complete details on the interim financial statements and MD&A for the 2012 First Quarter please refer to SEDAR at www.sedar.com.
Lonestar West Inc. (www.lonestarwest.com) currently operates a fleet of HVAC and vacuum trucks throughout Western Canada from its base in Sylvan Lake, Alberta. It is focussed on profitably growing its HVAC services to become a major national competitor in the market area.
Lonestar's shares trade on the TSX(Venture) Exchange under the symbol LSI.
Certain information and statements contained herein constitute forward-looking information, including the anticipated costs associated with the purchase of capital equipment, expectations concerning the nature and timing of growth within the business operated by Lonestar, expectations respecting the competitive position of such business, expectations concerning the financing of future business activities and statements as to future economic and operating conditions. Readers should review the cautionary statement respecting forward-looking information that appears in Lonestar's complete MD&A.
|James Horvath, President and CEO||(403) 887 - 2074|
|Bev Roome, CA, Chief Financial Officer||(403) 887 - 2074|