Lonestar West Announces 2016 Year End Financial Results
(firmenpresse) - SYLVAN LAKE, ALBERTA -- (Marketwired) -- 04/24/17 -- Lonestar West Inc. (TSX VENTURE: LSI) today announced the financial results for the year ended December 31, 2016.
Key points for the year ended December 31, 2016 include:
The Company reported normalized EBITDAC(2) of $1,191,588 for the year ended December 31, 2016, which is a decrease from $4,400,657 for the prior year comparable period. The decrease in normalized EBITDAC is due primarily to a significant decrease in revenue offset by a marginal decrease in operating expenses. Other factors directly impacted the revenues were a delay in contract negotiations with a major account in the United States, and the continued impact of the wildfires in Fort McMurray, Alberta that occurred in the second quarter of the year.
Key points for the three months ended December 31, 2016 include:
The Company reported negative normalized EBITDAC(2) of $(1,042,388) for the three month period ended December 31, 2016, which is a decrease from $11,107 for the prior year equivalent period. The decrease in normalized EBITDAC for the three month period ended December 31, 2016 is related primarily to a lower gross margin resulting from a more competitive operating environment. In addition, there were costs associated with the closure and reorganization of bases that were not performing.
"Results for the fourth quarter were disappointing. Significant cost cutting was partially completed but the additional selling, general and administration expenses and the continued decline of the revenue offset the impact of the cuts we made," commented James Horvath, President of Lonestar. "We are focused on working towards our goal of returning the business to its historical operating and profit margins. This includes continued cost cutting into Q1 of 2017. The Company has also reduced the number of bases in the US, and we will continue to direct our business development activities on expanding in our most profitable locations."
About Lonestar West
Based in Sylvan Lake, Alberta, Lonestar West Inc. operates a fleet of 140 Hydrovac, Vacuum and Auxiliary units throughout Western Canada, Ontario, California, and the South Eastern United States. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.
For more information please visit the Lonestar West website at .
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
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 expectations regarding the Company''s revenue, normalized EBITDAC and equipment utilization. Lonestar 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. Specific material factors and assumptions include, but are not limited to:
Readers are cautioned that these factors are difficult to predict. Accordingly readers are cautioned that the actual results achieved will vary from the information provided herein and the variations may be material. Readers are also cautioned that the list of factors above are not exhaustive. Before placing reliance on any forward-looking statements to make decisions with respect to an investment in securities in Lonestar, prospective investors and others should carefully consider the factors identified above and other risks, uncertainties and potential changes that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
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 Lonestar''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 Lonestar''s annual information form and management discussion and analysis for the year ended December 31, 2016 (the "MD&A"), which are available for viewing on SEDAR at . In addition, the forward-looking statements contained in this News Release are made as of the date of this News Release. Lonestar does not undertake any obligation to publicly update or to revise any forward-looking statements except as expressly required by applicable securities laws. The forward-looking statements contained in this Press Release are expressly qualified by the cautionary statements contained herein.
Notes:
NEITHER THE 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:
Lonestar West Inc.
James Horvath
President & CEO
403-887-2074
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Datum: 24.04.2017 - 16:32 Uhr
Sprache: Deutsch
News-ID 1500133
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