Logan International Reports Fourth Quarter and Fiscal 2015 Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 03/30/16 -- (All reported figures are in US dollars unless otherwise noted)
Logan International Inc. (TSX: LII) ("Logan" or the "Company") today reported the results of its fourth quarter and year ended December 31, 2015.
Recent highlights include:
Logan recorded revenue from continuing operations of $14.1 million in the fourth quarter of 2015 and $33.3 million in the prior year''s fourth quarter. For the three month period ended December 31, 2015, Logan reported a net loss from continuing operations of $9.9 million, $(0.29) per diluted share, as compared to a net loss from continuing operations of $8.0 million, $(0.24) per diluted share, in the prior year''s fourth quarter. The Company recorded an impairment loss on goodwill of $6.5 million, $0.19 per diluted share, in this year''s fourth quarter and also recorded an impairment loss of $10.6 million, $0.31 per diluted share, in the fourth quarter of 2014. Both impairment losses were recorded in the Company''s Xtend rental operations. Excluding the effects of the impairment losses, the Company would have reported a net loss from continuing operations of $3.4 million, $(0.10) per diluted share, for the 2015 fourth quarter and net earnings from continuing operations of $2.6 million, $0.08 per diluted share, in the corresponding period in 2014. Modified EBITDA, which excludes the effects of the impairment losses and the results of the discontinued operations, declined from $6.4 million in the fourth quarter of 2014 to a loss of $0.1 million in the fourth quarter of 2015. Management utilizes Modified EBITDA to evaluate its operating results because this measurement eliminates the revenue and cost effects of significant noncash and nonrecurring items.
The Company has presented the results of Logan Completion Systems'' operations as discontinued operations in all periods. In the fourth quarter of 2015, Logan reported a net loss from discontinued operations of $9.6 million, $(0.29), per diluted share, which included total impairment losses of $10.0 million, as compared to a net loss from discontinued operations of $1.5 million, $(0.04) per diluted share in the previous year''s fourth quarter.
For the quarter ended December 31, 2015, the downhole tool segment, which includes Logan Oil Tools, Logan Kline Tools, Logan SuperAbrasives and Scope Production Developments, recorded revenue of $13.0 million as compared to $29.6 million for the quarter ended December 31, 2014. For the fourth quarter of 2015, this segment generated EBITDA of $1.2 million as compared to $6.7 million for the previous year''s fourth quarter. For the fourth quarter of 2015, the rental tool segment, which includes Xtend Energy Services and Logan Jar, recorded revenue of $1.1 million and an EBITDA loss of $0.3 million as compared to revenue of $3.7 million and EBITDA of $0.5 million in the previous year''s fourth quarter.
For the year ended December 31, 2015, Logan''s revenue from continuing operations declined to $77.7 million from $147.2 million in 2014, or by 47%. For the fiscal year 2015, Logan reported a net loss from continuing operations of $12.9 million, $(0.38) per diluted share, as compared to net earnings from continuing operations of $2.6 million, $0.08 per diluted share, in the prior year. The Company recorded an impairment loss on goodwill of $6.5 million, $0.19 per diluted share, in 2015 and $10.6 million, $0.31 per diluted share in 2014. Excluding the effects of the impairment loss, the Company would have reported a net loss from continuing operations of $6.4 million, $(0.19) per diluted share, in 2015 and net earnings from continuing operations of $13.2 million, $0.39 per diluted share in 2014. Modified EBITDA for the year ended December 31, 2015 decreased to $7.9 million from $34.7 million in the prior year.
The Company has presented the results of Logan Completion Systems'' operations as discontinued operations in all periods. For 2015, Logan reported a net loss from discontinued operations of $20.4 million, $(0.61) per diluted share, which included impairment losses of $18.9 million, as compared to a net loss from discontinued operations of $2.4 million, $(0.07) per diluted share in 2014.
The downhole tool segment recorded revenue of $71.8 million and EBITDA of $13.4 million in 2015. This segment recorded revenue of $133.4 million and EBITDA of $36.7 million in 2014. The rental tool segment recorded revenue of $5.9 million and EBITDA of $0.7 million in 2015 as compared to revenue of $13.8 million and EBITDA of $2.9 million in 2014.
David MacNeill, President and Chief Executive Officer, commented, "Our fourth quarter operating results were consistent with the trends in the industry. Each quarter was marked with lower oilfield activity, which caused weaker operating results. The entire year presented very stressful times for everyone in the oilfield. The exploration and production companies spending continued to fall through the entire year as the prospect of a meaningful recovery in oil prices was moved out into 2017. Our operating results certainly reflected the industry trends. This year''s revenues from continuing operations fell by 47% from last year. Each of our business units was affected. Logan Oil Tools, which is our strongest performer, experienced a significant decline in annual revenue. The decreased revenues led to reduced plant hours which, in turn, led to lower profit margins as we were unable to fully recover our fixed costs. On a positive note, we were able to reduce overhead costs which allowed us to report positive Modified EBITDA of $7.9 million in 2015."
Mr. MacNeill continued, "Unfortunately, the start to 2016 has not provided much relief. This year began as 2015 left off; commodity prices and rig counts have continued their downward trends, as exploration and production companies continue to reduce capital budgets to new lows. Recently, we have seen an improvement in commodity prices; however, we have not yet felt the effects in our order book. Furthermore, we do not anticipate a significant uptick as recently announced exploration and production capital budgets are materially less than last year''s."
Mr. MacNeill added, "Last year we made significant cuts to our costs, both in direct costs and in administrative expenses. In 2016, we will continue to challenge our cost structure and adjust accordingly. In addition, it is our intention to sell Logan Completion Systems in 2016 and will pursue the disposition of any asset that does not contribute to profitability. Finally, we have begun the process to replace the current credit facility which matures in December 2016."
About Logan
Logan provides specialized downhole tools and services to oilfield service providers, drilling contractors and exploration and production operators. It is organized into three classifications:
Common shares of Logan are traded on the Toronto Stock Exchange (TSX) under the ticker symbol "LII".
EBITDA and Modified EBITDA are provided as measures of the Company''s operating performance without regard to financing decisions, share-based compensation payments, age and cost of equipment used and income tax impacts, all of which are factors that are not controlled at the operating management level. The acquisition accounting adjustments reverse the effect of the increase or step- up in cost basis of inventories and fixed assets acquired in business combinations when they are sold. The transaction fees include the professional and other fees incurred in connection with the Company''s strategic review, as well as business acquisitions. Share-based compensation relates to expense recognized from the granting of stock appreciation rights, stock options and restricted share units.
Reconciliation of EBITDA by Segment
Forward-Looking Statements
This press release contains forward-looking statements. These statements relate to future events or future performance of Logan. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect Logan''s current views with respect to certain events. The forward-looking statements included in this press release include statements relating to future demand for the Company''s products and services, further cost saving initiatives to be undertaken by the Company, potential asset dispositions, including the sale of Logan Completion Systems and the replacement of the Company''s current credit facility. The forward-looking statements included in this press release are subject to certain risks, uncertainties and assumptions. Although Logan believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Many factors could cause Logan''s actual results, performance, or achievements to materially differ from those described in this press release. Readers are referred to Logan''s Annual Information Form filed on , which identifies significant risk factors that could cause actual results to differ from those contained in the forward-looking statements. Should one or more risks or uncertainties materialize or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Logan does not intend and does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein in any jurisdiction.
For more information about Logan International Inc., please visit our website at .
Contacts:
Logan International Inc.
David MacNeill
Chief Executive Officer
281-617-5300 (Houston)
Logan International Inc.
Larry Keister
Chief Financial Officer
832-386-2534 (Houston)
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Datum: 30.03.2016 - 17:59 Uhr
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News-ID 1424998
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