Business
Western Energy Services Corp. Announces Results
Western Energy Services Corp. Announces Results.
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, April 30 /CNW/ - Western Energy Services Corp. ("Western" or the\n"Company") announces improved results for 2006 over 2005. Revenues of\n$14.1 million reflect a 75% year over year increase. Earnings before Interest,\nTaxes Depreciation and Amortization ("EBITDA") have improved by $1,397,732 or\n73% over 2005. When the one time restructuring costs of $399,450 that resulted\nfrom the operational realignment and base closures are added back, EBITDA from\ncontinuing operations has improved by $1,797,182 to a small loss of $114,229\nfor the year. This result, when viewed in the context of the year over year\nincrease in revenues of $6,072,483, means that the Company has been able to\nretain 29.5% of each new dollar of revenue generated in 2006.\n\n\nSignificant efficiencies in general and administrative ("G&A") costs have\nalso been achieved. Even with the $6,072,483 or 75.4% increase in revenues,\ntotal G&A costs have increased only $92,700 or 4.2%. For the entire year G&A\ncosts have averaged 16.4% of revenues down from 27.7% for the previous period.\nMore importantly the changes implemented by the new management team during the\nthird and fourth quarters resulted in G&A costs dropping to a more acceptable\nlevel of 12.1% of revenues for this period.\n\n\nThe decision was taken to write down the Company's mining properties.\nAlthough these properties do have economic value, the realizable value and the\ntiming of any realization cannot be reasonably determined at this time. The\nwrite off will help simplify Western's corporate structure making it more\nunderstandable to the investment community and the investing public. The\nmining properties are considered to be discontinued operations.\n\n\nSelected Financial Information\n\n Eight months\n Year ended Year ended ended\n December 31, December 31, December 31,\n 2006 ($) 2005 ($) 2004 ($)\n -----------------------------------------\nRevenue 14,118,622 8,046,139 711,438\nRestructuring costs 399,450 - -\nLoss from continuing operations,\n before amortization, interest\n and income taxes 513,679 1,911,411 984,629\nCash outflow from continuing\n operations 921,005 2,059,014 905,052\nLoss from continuing operations 3,222,375 3,487,461 1,211,364\n - per share 0.03...