TSX: PSD
CALGARY, July 10 /CNW/ - Mr. Douglas Cutts, President and CEO of Pulse Data Inc. ("Pulse" or the "Company") is pleased to announce that Pulse has achieved record second quarter seismic data sales for the three months ended June 30, 2007. Pulse generated seismic data sales of $10.5 million in Q2 2007, compared to $6.6 million for the second quarter of 2006. These results complement Pulse's Q1 2007 record seismic data sales of $10.6 million, and have propelled the Company to record first half seismic data sales of $21.1 million, a 26 percent increase over the first half of 2006 at $16.7 million.
Free cash flow (1) from continuing operations for Q2 2007 amounted to approximately $6.7 million compared to negative free cash flow of $1.2 million for the comparable period in 2006. The negative free cash flow in the second quarter of 2006 was primarily due to the completion of a $6.7 million participation survey - activity that decreases the Company's free cash flow. For the first six months of 2007 free cash flow from continuing operations was approximately $14.5 million, compared to $5.7 million for the six month period ended June 30, 2006. Free cash flow for Q2 2007 and the first half of 2007 did not increase proportionately to the increase in revenues as a result of unexpected M&A transactions costs and a higher current income tax provision. The Company's working capital position at June 30, 2007 was approximately $8.4 million (including cash of $8.9 million). At June 30, 2006 working capital was $16.4 million including cash of $17.6 million. Mr. Cutts stated, "Our seismic data sales have exceeded our expectations given the general current market conditions facing the oil and gas industry. We are extremely pleased with the efforts of our sales team and we continue to see strong demand for our high-quality seismic data library."
The financial information contained in this news release is based upon management's estimates only and has not been approved by the Audit Committee or Board of Directors, or reviewed by the Company's auditors.
Pulse intends to release its complete unaudited financial results for the three and six months ended June 30, 2007 along with details concerning its seventeenth consecutive quarterly dividend after the close of trading on the Toronto Stock Exchange Tuesday, August 14, 2007. A Conference Call will be also held the next day with more details to follow.
As announced on June 25, 2007, during this week Pulse will commence a 3D seismic participation survey in the Deep Basin area of west-central Alberta. The survey consists of a minimum of 150 net square kilometres of 3D seismic data. Pulse expects to obtain at least 65% pre-funding for this planned survey and anticipates delivery of the data to our customers by the end of the third quarter of 2007.
On June 25, 2007 Pulse announced that the process for the disposition of Pulse's wholly owned business unit, Terrapoint, is continuing on schedule. Confidentiality agreements with 15 interested potential purchasers have now been signed. A call for written proposals has been sent to the prospective purchasers, and the disposition of Terrapoint continues to be targeted for completion by the end of Q3 2007.
Pulse is a Calgary-based company specializing in seismic data acquisition, licensing and marketing. Including the planned purchase of seismic data from Arcis announced on June 25, 2007, Pulse's seismic library will grow to more than 11,100 net square kilometres of 3D seismic data and approximately 257,000 net kilometres of 2D seismic data.
Pulse trades on the Toronto Stock Exchange under the symbol PSD.
(1) The Company's continuous disclosure documents provide discussion and
analysis of "free cash flow". This financial measure does not have a
standard definition prescribed by generally accepted accounting
principles in Canada (GAAP) and therefore it may not be comparable to
similar measures disclosed by other companies. The Company has included
this non-GAAP financial measure because it is used by management,
investors, analysts and others as a measure of the Company's financial
performance. The Company's definition of free cash flow is cash available
for debt servicing, discretionary capital expenditures and the payment of
dividends, and is calculated as funds from operations less total
participation survey additions to the data library.
Disclaimer: Certain information contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Investors are encouraged to review the "Risk Factors" section of the Management's Discussion and Analysis in the Company's most recent Annual Report and interim reports for a discussion of risks that could affect the Company's operations and financial results. Forward-looking statements are based upon management's assumptions, expectations and estimates at the time that such statements are made. Pulse does not update forward-looking statements should circumstances change or management's assumptions, expectations or estimates change, except as required by law.