Logan International Reports Second Quarter 2016 Financial Results
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 08/15/16 -- (All reported figures are in US dollars unless otherwise noted)
Logan International Inc. (TSX: LII) ("Logan" or the "Company") today reported the results for its second quarter and year-to-date period ended June 30, 2016.
Recent highlights include:
Logan recorded revenue from continuing operations of $8.1 million in this year''s second quarter and $19.7 million in the prior year''s second quarter. For the three month period ended June 30, 2016, Logan reported a loss from continuing operations of $90.6 million, $(2.69) per diluted share, as compared to a loss of $0.9 million, $(0.03) per diluted share in the prior year quarter. The Company recorded an impairment loss of $96.7 million in the current year quarter, as further described below. Excluding the impairment loss, the Company would have reported a net loss from continuing operations of $5.1 million, $(0.15) per diluted share for the three month period ended June 30, 2016. Modified EBITDA from continuing operations declined in this year''s second quarter to a loss of $3.5 million from earnings of $2.7 million in last year''s second quarter. Management utilizes Modified EBITDA to evaluate its operating results because this measurement eliminates the revenue and cost effects of significant noncash and nonrecurring items.
For the quarter ended June 30, 2016, the downhole tool segment, which includes Logan Oil Tools, Kline Oilfield Equipment, Logan SuperAbrasives and Scope Production Developments, recorded revenue of $7.5 million as compared to $18.6 million for the quarter ended June 30, 2015. For the current year quarter, this segment generated an EBITDA loss of $(1.6) million as compared to EBITDA of $4.3 million for last year''s second quarter. For the second quarter of 2016, the rental tool segment, which includes Xtend Energy Services and Logan Jar, recorded revenue of $0.6 million and an EBITDA loss of approximately $0.2 million as compared to revenue of $1.1 million and an EBITDA loss of $0.1 million in the prior year''s second quarter.
Logan recorded revenue from continuing operations of $18.8 million in the six month period ended June 30, 2016 and $45.0 million in the six month period ended June 30, 2015. For the current year-to-date period, Logan reported a loss from continuing operations of $94.5 million, $(2.81) per diluted share, as compared to a loss from continuing operations of $1.0 million, $(0.03) per diluted share, in the prior year period. The Company recorded an impairment loss of $96.7 million in the current year quarter, as further described below. Excluding the impairment loss, the Company would have reported a net loss from continuing operations of $9.1 million, $(0.27) per diluted share, for the six month period ended June 30, 2016. Modified EBITDA from continuing operations for the current year-to-date period decreased to a loss of $5.8 million from earnings of $6.5 million in the prior year-to-date period.
The downhole tool segment recorded revenue of $17.2 million and an EBITDA loss of $(2.6) million in the six month period ended June 30, 2016. This segment recorded revenue of $41.7 million and EBITDA of $9.6 million in the corresponding period in 2015. The rental tool segment recorded revenue of $1.6 million and an EBITDA loss of $(0.2) million in the current year-to-date period as compared to revenue of $3.3 million and EBITDA of $0.6 million in the prior year-to-date period.
David MacNeill, President and Chief Executive Officer, commented, "Our second quarter operating results were consistent with the weak industry conditions. Quarterly revenues declined by 60% in each of our operating segments to levels that only slightly exceeded the cost of goods sold, despite dramatic reductions in plant hours in our manufacturing facilities and in administrative expenses. As a result, we reported an operating loss, before the impairment loss, of $5.1 million. During the quarter, we recorded an impairment loss of $96.7 million, of which $67.1 million was recorded in the downhole tool segment and $29.6 million was recorded in the rental tool segment. We concluded that the combination of our recent operating results, future expectations for our industry in general and for our operating results in particular and the near-term maturity of our bank credit agreement constituted an indication of impairment. The impairment loss is a noncash cost and is not considered in the calculation of Modified EBITDA."
Mr. MacNeill added, "Over the past several quarters, we have been pursuing various alternatives to renew or replace our credit agreement which matures this year in December. While pursuing a more permanent fix, we have negotiated previous temporary remedies of breaches of certain financial covenants. Recently, we have intensified these efforts and have conducted advanced discussions with several parties who could provide long-term solutions. We believe we will successfully complete these negotiations in our third quarter. In parallel, we are also negotiating an interim agreement with our lenders, which we expect will include forbearance provisions and a strong commitment by the Company to actively pursue alternatives to substantially reduce or repay the outstanding borrowings."
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:
Reconciliation of EBITDA by Segment
Common shares of Logan are traded on the Toronto Stock Exchange (TSX) under the ticker symbol "LII".
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, including management''s expectations that negotiations to provide long-term solutions for a replacement to Logan''s credit agreement will be successfully completed in the third quarter of 2016 and management''s expectations that negotiations for an interim agreement with Logan''s lenders will include forbearance provisions and an obligation for the Company to actively pursue alternatives to substantially reduce or repay its outstanding borrowings. These forward-looking statements are subject to certain risks, uncertainties and assumptions. Such statements are based on management''s current assumptions and expectations, including but not limited to Logan''s ability to continue as a going concern and the ability of the Company to complete negotiations with its lenders on a timely basis and on terms acceptable to Logan. 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 such forward-looking statements 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: 15.08.2016 - 17:47 Uhr
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