TSX Symbol - (TSX:PSD)
CALGARY, Feb. 14 /CNW/ - Mr. Ken MacDonald, President and Chief Executive
Officer of Pulse Data Inc. ("Pulse" or the "Company") is pleased to provide
the following corporate update.
FINANCIAL
For the year ended December 31, 2005, Pulse generated total revenues of
approximately $54 million. Seismic data licensing revenue amounted to a record
level of approximately $35 million, a 36% increase over 2004. Pulse added
approximately 2,900 net square kilometres of quality 3D seismic data to its
library in 2005. This additional data significantly contributed to the
increased data licensing revenue in 2005.
Free cash flow(1) (funds from operations less total participation survey
capital expenditures) reached a record level of approximately $23 million in
2005, compared to $12 million for the year ended December 31, 2004.
The increase in cash seismic data licensing revenue and the resulting
increased level of free cash flow has significantly improved the Company's
balance sheet. Pulse's working capital position increased four-fold to
approximately $17 million at December 31, 2005 (including a cash position of
approximately $12 million), compared to working capital of $4 million at
December 31, 2004. In addition, the Company's leverage position remains
healthy with a total long-term debt to annualized free cash flow(1) ratio of
approximately 1:1.
The financial information contained in this news release is management's
estimate only and it has not yet been approved by the Company's Audit
Committee or Board of Directors, or audited by the Company's auditors.
INCREASE IN ANNUAL DIVIDEND RATE
Based on the Company's record level of free cash flow(1) in 2005, its
strong balance sheet and confidence that strong free cash flow(1) levels will
continue to be generated by the Company's quality asset base, the Board of
Directors of Pulse has approved a 50% increase in the annual dividend rate to
$0.15 per share. Based on Pulse's closing share price on February 13, 2006,
this annual dividend provides an effective yield of 6%. Pulse expects to
declare the next regular quarterly dividend in conjunction with the release of
its audited 2005 financial results.
2005 AUDITED FINANCIAL RESULTS RELEASE
Pulse intends to release its complete financial results for the year
ended December 31, 2005, along with details regarding the regular quarterly
dividend after close of trading on the Toronto Stock Exchange, Tuesday
March 14, 2006. The year-end news release will be available on the Pulse web
site at the same time.
In addition, a conference call and webcast to review the 2005 results is
scheduled for March 15, 2006 at 1:00 pm EST (11:00 am MST). Further details of
the conference call, including dial-up numbers, will be provided at a later
date.
Pulse is a Calgary-based company specializing in data ownership through
acquisition, marketing and information management, with a current focus on the
energy sector. Through its three operating segments, Pulse Seismic, Terrapoint
and Trango, the Company has evolved into an industry leader in providing
better information faster.
Pulse Seismic is at the forefront with regard to acquiring, marketing and
licensing seismic data in Western Canada. Pulse Seismic's library currently
consists of approximately 240,000 net kilometres of 2D data and more than
9,200 net square kilometres of 3D data. Cash is generated through licensing of
our seismic data library to the oil and gas industry in Western Canada.
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 participation survey additions to the data
library.
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 Annual Report for 2004
and 2005 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 or
expectations change.
