Business
Western Energy Services Corp. Announces Q1 2008 Results
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/ CALGARY, May 27 /CNW/ - Western Energy Services ...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/\n\n\nCALGARY, May 27 /CNW/ - Western Energy Services Corp. (WSV on the Tsx-V),\nCalgary, Alberta is pleased to announce its results for the first quarter of\n2008. Highlights for the first quarter of 2008 include:\n\n\n- A new operations centre was opened in Ashdown Arkansas.\n\n- Income from operations before amortization, interest, income taxes,\n non-cash stock compensation expense and loss or gains on sale was\n $240,714 for the first quarter of 2008 compared to $854,152 for the\n first quarter of 2007. Income before amortization, interest and\n income taxes ("EBITDA") for the first quarter of 2008 was $106,996\n compared to $668,796 for the first quarter of 2007.\n\n- Nitrogen pumping and transport assets were purchased to equip the new\n operations centre. Contributions to revenue and EBITDA from this new\n investment will be noticed in the second quarter of 2008.\n\n- Revenues improved 10% from Q4 2007 but dropped 34% from the results\n in Q1 of 2007. Revenues from the Company's core business of remedial\n stimulation were comparable for the three months ended March 31, 2008\n versus 2007. The revenue reduction is attributable to the sale of the\n well testing assets, the downsizing of the coiled tubing business and\n reductions experienced in the downhole tool rental business.\n\n- General and administrative expenses ("G&A") are down 29% compared to\n the first quarter of 2007.\n\n\nManagement's focus for the 2008 will be to continue to grow revenues and\nincrease profitability, to continue rationalizing non core assets and to\naddress the maturities of the current liabilities which will occur in the fall\nof 2008.\n\n\nQuarterly revenues totalled $3,336,081 during the three months ended\nMarch 31, 2008 contrasted with $3,029,342 for the three months ended December\n31, 2007 and $5,215,618 for the three months ended March 31, 2007. The 2008\nrevenues reflect stable revenues from the core business of remedial\nstimulation services, which were offset by declines in revenues of $436\nthousand from well testing, $797 thousand from Canadian shallow coiled tubing\nservices and $596 thousand from tool rental revenues.\n\n\nRevenues from US operations, in US dollars, increased 12% in the three\nmonths ended March 31, 2008 as compared to the three mo...