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Pulse Seismic Inc. Reports Q2 2019 Results

CALGARY, Alberta, July 18, 2019 (GLOBE NEWSWIRE) – Pulse Seismic Inc. (TSX: PSD) (OTCQX: PLSDF) ("Pulse" or "Company") expresses its satisfaction with its financial and operational outcomes for 3 and six months, that ended June 30, 2019. The unaudited condensed consolidated monetary statements, accompanying notes and MD&A have been deposited with SEDAR (www.sedar.com) and are available on the Pulse website at www.pulseseismic.com. 19659002] THIRD AND TWO MONTHS JUNE 30, 2019

  • Internet sales of libraries for the three months ended June 30, 2019, in comparison with $ 1.9 million within the three months ended June 30, 2018. internet sales have been $ 15.9 million for the six months ended June 30, 2019, compared with $ four.2 million for the six months ended June 30, 2018. Gross sales in the second quarter of 2019 had prolonged cost terms and resulted within the transfer of $ 183,000 from the sale of knowledge libraries to deferred sales knowledge, which shall be recorded over time till ultimate cost is acquired.
  • $ 0.05 per share and diluted) compared to a internet loss of $ 1.zero million ($ zero.02 per share and diluted) for the three months ended June 30, 2018. The six months ended June 30, 2019 have been $ 209,000 ( $ 0.00 per share and diluted) in comparison with a internet lack of $ 1.7 million ($ 0.03 per share primary and diluted) for the six months ended June 30, 2018,
  • Money EBITDA (a) was $ 9.3 million ( $ 0.17 per share primary and diluted) for the three months ended June 30, 2019, compared to $ 482,000 ($ zero.01 per share per us and diluted) for the three months ended June 30, 2018. Cash EBITDA was $ 12.four million ($ zero.23 per share primary and diluted) for the six months ended June 30, 2019 in comparison with $ 1.four million ($ 0.03 per share). primary and diluted) for the six months ended June 30, 2018
  • Shareholde Free cash circulate (a) was $ 6.9 million ($ 0.13 per share and diluted) within the second quarter of 2019 compared to $ 630,000 (zero , $ 01 per share and diluted) for the corresponding interval in 2018. Shareholder Free Cash Move was $ 9.6 million ($ zero.18 per share and diluted) for the six months ended June 30, 2019 compared to $ 1.5 million (0 , $ 03 per share and diluted) for the six months ended June 30, 2018; and
  • As at June 30, 2019, non-current liabilities excluding deferred finance costs have been $ 30.zero million. Roughly $ 3.0 million has been paid for the corporate's term of operation and revolving credit score amenities. The sale of $ 5.zero million of the sale-based contingent legal responsibility associated to the acquisition of Seitel Canada Oy (“Seitel”) was absolutely paid in early July. As of June 30, $ 24.6 million was obtainable and the corporate had a revolving credit facility.

As said in earlier purposes for the Seitel acquisition, in addition to the $ 58.6 million buy worth, Pulse took on quite a few future liabilities which are thought-about to be a part of the Firm's complete acquisition value. These estimated prices of $ 4.2 million shall be expensed over time, with a big share occurring in the first yr, together with $ 2.2 million in the first half of 2019. These non-recurring expenses are categorised as restructuring prices and are added again to the Firm's cash stream from operations and shareholders' free cash stream

SELECTED FINANCIAL AND OPERATING INSTRUCTIONS

(Hundreds of dollars, excluding inventory info, ] Six months ended June 30, Yr ended
Variety of shares and kilometers of seismic info) 2019 2018 2019 2018 31. December,
(unaudited) (unaudited) 2018
Revenue
]
Gross sales of knowledge libraries 10,617 1,905 15,894 four,193 10,zero76
Different income 167 167 167 167 19659021] 36 76 112
Complete Revenue 10,784 1,941 16,204 4,269 10,188
1]
Seismic Libraries Deletion 3,577 1,836 7,143 3,714 7,337
Internet Revenue (Loss) 2880 ] 2880 ) 209 (1.712) (1.730)
per particle primary and diluted zero.05 (0.02) zero, 00 (0.03) (zero.03))
Business Cash 3,691 213 5,149 (eight,379) (three,250) )
Base and diluted fraction zero.07 0.07 0.00 [19659046] 0.10 (0.16) (zero.06) [19659013] Money EBITDA (a) 9,256 482 12,353 1,416 5,037
diluted (a) zero.17 zero.01 zero.23 0.03 0.09
Shareholder Free Cash Movement (a) 6.852 630 9,552 9,552 four,671 [19659058] per share primary and diluted (a) 0.13 zero.01 0.18 [19659046] zero.03 zero.09
Investments
Seismic Knowledge, Digitization and Associated Prices [19659026] 62 62
Material and gear 63 2 398 4 18
Complete investments 63 2 63 [19659026] 2 ] 61427 66 80

Weighted Average Shares

Primary and diluted 53,793,317 53,793,317 53,850,917 53,850,917 53,850,917 53,850,917 53,850,917 53,850,917] 106
Episodes Remaining at End of Episode 53,793,317 53,850,917 53,89,917 53,793,317

Seismic Library

in 2D kilometers 829,207 829,207 829,207 450,000 450,000 450,000
in 3D square kilometers 65,310 28,956 28,956
30. June 19, 30. June 31, 19659012 December
(excluding hundreds of dollars) 19659051] 2019 2018 2018
Working capital (deficit) (2,282) 22,586 25,804
25,804
ratio zero.eight: 1 15: 1 15: 1
Cash and cash equivalents 464 464 18,040 18,zero40
T 77,673 39,246 38,847
Lengthy-term debt 29,696 29,696 35,475 35,305 35,238
Ratio of long-term debt to equity zero.84 0.84 (a) Discussion and analysis of the Firm's ongoing disclosure documents on money circulate from operations, cash from working margin, shareholder free cash stream and shareholder free cash move per share. These financial instruments should not have commonplace definitions in accordance with IFRS and is probably not corresponding to those of different entities. The Company has included these non-GAAP monetary measures as a result of they’re utilized by administration, buyers, analysts and others as a measure of the company's monetary performance. The willpower of the Firm's operating cash circulate is money obtainable for interest payments, cash taxes, debt repayments, share purchases, discretionary investments and dividend funds, and is calculated from operating revenue (loss) before interest, taxes, depreciation and amortization, one-time bills. The cash move margin doesn’t embrace participation analysis revenue, if any, as a result of it’s used on to fund specific participation surveys, and this revenue is just not out there for discretionary investments. The corporate believes that money profitability helps buyers to match Pulse's outcomes persistently, regardless of participation revenue and non-cash belongings, reminiscent of depreciation, which may range significantly in accordance with accounting strategies or non-operating elements akin to historical prices. . EBITDA per share is defined as cash EBITDA divided by the weighted average number of shares outstanding in the course of the interval. Shareholders' free cash stream additional refines the calculation of obtainable capital by investing in growing the company's 2D and 3D seismic database, paying off money owed, buying shares and paying dividends by deducting discretionary bills from internet working margin. Non-discretionary expenses are defined as debt financing prices (internet of deferred financial bills for the present interval) and current tax rules. Shareholder free money movement per share is outlined because the shareholders' free money stream divided by the weighted average variety of shares in the course of the period.

These non-GAAP financial measures are defined, calculated and adjusted to the closest GAAP financial measures by administration Discussion and Analysis

OUTLOOK

Pulse felt a robust beginning of the yr. Seismic Knowledge gross sales have been $ 15.9 million, representing 156 % of Pulse's full-year 2018 gross sales and 110 % of its full-year 2018 gross sales of both Pulse and Seitel datasets. In the course of the second quarter, the web gross sales of the previous Seitel database grew significantly in the second quarter, which strengthened the company's confidence that the Seitel acquisition might double the gross sales of the essential seismic knowledge library in Pulse (all different things being equal). The acquisition of

has been confirmed. The corporate can also be happy that robust first-half gross sales have been greater than enough to finish a $ 5 million sales-based deferral cost.

Nevertheless, Pulse is a cautious outlook in the direction of the top of 2019 and opening Some indicators in the business have strengthened, others are nonetheless weak or unresolved. Highlights:

  • Home fuel prices remain very low. Although AECO's day by day spot worth strengthened by greater than $ 2.00 per gigajoule (GJ) in mid-July, it averaged less than $ zero.90 per GJ in June, and in mid-July the subsequent yr's futures worth ranges from around $ 1.00 to GJ. and GJ. up to $ 2.25 per GJ. This isn’t enough to promote the expansion of natural fuel sales and drilling
  • Western Canada Select (WCS) home oil worth rally, as the worth crisis experienced final autumn expanded to the second quarter. After increasing to a report $ 45.93 a barrel final fall, the West Texas Intermediate (WTI) to WCS worth differential narrowed sharply in the course of the winter, averaging simply $ eight.39 a barrel in Might. Mixed with the fastened WTI worth, WCS thus averaged $ 46.71 a barrel from January to Might. The narrower consecutive months have already added billions of dollars in income to the western Canadian oil business, and if this development continues, it might increase the oil-centric business.
  • After drilling for oil and pure fuel, activity remains modest in spring, however drilling forecasts. On Might 1, the Canadian Petroleum Providers Association lowered its 2019 drilling forecast by 300 wells to 5,300 wells. This was a drop of 1,300 from the unique 2019 forecast and 300 lower than it had predicted in its replace on the finish of January. From July 14, Canada's Oilwell Drilling Contractors' Association retained its 6,962 wells for 2019
  • Mineral leasing auctions or land gross sales in Western Canada have continued to fall. As of June 30, 2019, that they had fallen 77 % from the comparative interval of 2018 and 2017. Through the first six months of 2019, solely $ 53.5 million was leased to Alberta and a total of only $ 2.7 million to British Columbia;
  • Although the mountain pipeline extension venture was permitted in February by the brand new nationwide power authorities and the political approval of the Canadian government in June, the development continues to be uncertain due to the pending legal challenges introduced by the opponents of the challenge. Enlargement is essential to getting access to Pacific Rim's crude oil market, and its delay will subsequently affect oil drilling in Western Canada. As well as, the Liberal Federal Government just lately authorised two regulatory legal guidelines which are expected to scale back major future oil export tasks if they don’t forestall
  • The Keystone XL pipeline challenge appears to maneuver ahead after it has acquired new president approval from the US Administration in late March, [19659206] Canada's first major LNG export undertaking continues to advance
  • LNG exports rose to more than 6 bcf / day in early July, an already document 4 bcf a day set in April when liquid trains flush with the worldwide rise in LNG trade is now over 40 bcf a day worldwide. The export growth will help domestic pure fuel costs within the US and increase the Canadian LNG tasks. and
  • The lately elected Alberta authorities has swiftly shifted business-friendly policies, including a gradual 33% discount in Alberta company tax, to scale back regulatory burdens on many industries, together with oil and pure fuel, and to aggressively push Alberta's international power marketing campaign.

The oil and fuel sector in Western Canada continues to endure from financial weaknesses and uncertainty. As well as, the heart beat is more likely to experience a delay before new industrial investment and operations result in seismic knowledge gross sales. In consequence, the corporate continues to be getting ready for quarters of weak traditional sales, while warning that event-based gross sales will not be seen.

Pulse's management workforce remains glad with the company's value construction and financial place, and with confidence. means to pay the debt on a specified schedule and worth. Seitel's acquisition financing structure allows Pulse to satisfy its obligations comfortably. The low value construction of the Pulse enterprise model facilitates vital synergies for future sales.

The company has been constructed to outlive and even develop via numerous levels of the business. Throughout 2019, Pulse intends to pay off debt, continue to manage prices conservatively, and hold a firm eye on potential new alternatives. Pulses have unused borrowing capability of up to $ 24.6 million when needed.

Being Canada's largest pure-minded seismic knowledge library provider, Pulse's gross sales are highly scalable with no capital investment or larger operating prices and transactional gross sales of any measurement can happen at any time. The corporate's favorable construction and in depth coverage of the seismic database make Pulse's internet gross sales, money margin and shareholders' free money stream a serious asset in all industries and seismic demand in Western Canada's oil and long-term recovery.

COMPANY PROFILE

Pulse is the market chief within the acquisition, advertising and licensing of 2D and 3D seismic knowledge for the western Canadian power sector. Pulse owns Canada's largest licensed seismic database, presently consisting of roughly 65,310 square kilometers of 3D seism and 829,207 kilometers of 2D seismic. The Library extensively covers the Canadian groundwater space, which is the most important supply of Canadian oil and natural fuel exploration and improvement

Further info:
Neal Coleman, Managing Director
or
Pamela Wicks, Government Vice President and CFO
Tel. 403-237-5559
Free: 1-877-460-5559
E-mail: information@pulseseismic.com
Visit our website at www.pulseseismic.com

This document incorporates info that constitutes "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information").

The Outlook section incorporates forward-looking info, together with statements on:

  • Pulse holds cautious prospects for the rest of 2019 and opening quarters in 2020
  • The heart beat is prepared for an increase quarterly from weak conventional sales, but warned that event-based gross sales aren’t seen
  • Pulse depends on its means to repay debt at a specified time and worth
  • Pulse's capital allocation technique; 19659256] Pulse Dividend Policy
  • Oil and Natural Fuel Drilling and Selling – business and progress technique; and
  • Different Expectations, Beliefs, Plans, Objectives, Objectives, Assumptions, Info, and Statements of Potential Future Occasions, Circumstances, Results, and Efficiency.

Over-reliance should not be used on forward-looking info. Forward-looking info is predicated on present expectations, estimates and forecasts, which contain quite a few dangers and uncertainties which will cause precise results to differ and, in some instances, materially differ from the estimates. Pulse doesn’t publish particular financial targets or in any other case present steerage on the visibility of seismic revenues