TSX Symbol - PSD
CALGARY, Nov. 6 /CNW/ - Douglas Cutts, President and Chief Executive Officer of Pulse Data Inc. ("Pulse" or "the Company") reports the financial and operating results of Pulse for the three and nine months ended September 30, 2008.
Mr. Cutts is also pleased to announce that Pulse has declared its twenty second consecutive quarterly dividend. This dividend is $0.05 per common share and will be paid on December 19, 2008 to shareholders of record at the close of business on December 5, 2008. The Company's Dividend Reinvestment Plan for eligible shareholders will be available for this dividend.
A conference call to review the third quarter results has been scheduled for 1:00 pm EDT (11:00 am MDT) on Friday, November 7, 2008. The conference call dial-in number is 1 800-594-3615 and (416) 644-3424 (Toronto). A live webcast of the conference call will be available at: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)2443320.
HIGHLIGHTS
- Total seismic revenue was $14.0 million for the three-month period
ended September 30, 2008, compared to $11.6 million for the same
period in 2007, representing a 20 percent increase and second highest
quarter recorded for total seismic revenue. Total seismic revenue
was $33.1 million for the nine-month period ended September 30, 2008,
compared to $32.8 million for the same period in 2007.
- Seismic data library sales were $8.1 million for the three months
ended September 30, 2008 ($26.8 million for nine months) compared to
$9.1 million during the same period in 2007 ($30.2 million for nine
months), and participation survey revenue increased to $5.9 million
for the three months ended September 30, 2008 from $2.5 million
(restated)(c) for the same period in 2007.
- Net earnings for the three month period ended September 30, 2008 were
$2.2 million ($0.04 per share basic and diluted) compared to a net
loss of $4.2 million ($0.08 per share basic and diluted) for the same
period in 2007. Net earnings for the nine months ended September 30,
2008 were also $2.2 million ($0.04 per share basic and diluted)
compared to a net loss of $4.7 million ($0.09 per share basic and
diluted) for the same period in 2007.
- Cash EBITDA(b) for the three months ended September 30, 2008 were
$6.1 million compared to $7.2 million for the same period in 2007,
and Cash EBITDA for the nine months ended September 30, 2008 were
$20.8 million compared to $24.1 million for the same period in 2007.
- The working capital position was $7.3 million (including cash of $8.9
million) at September 30, 2008 compared to $9.9 million (including
cash of $11.8 million) at September 30, 2007.
- In Q3 2008 Pulse added 193 net square kilometres of 3D seismic data
with the completion of one participation survey in the west central
area of Alberta. The second participation survey that commenced in
July 2008, consisting of 355 net square kilometres of 3D seismic
data, was approximately 73% completed at September 30, 2008 and is
scheduled to be delivered in the fourth quarter of 2008.
Financial Highlights
('000's except per share data)
Three months ended Nine months ended Year ended
September 30, September 30, December 31,
2008 2007 2008 2007 2007
(restated)(c) (restated)(c)
(unaudited) (unaudited)
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Revenue from continuing operations:
Data
library
sales $ 8,103 $ 9,070 $ 26,827 $ 30,220 $ 41,215
Partici-
pation
surveys 5,870 2,549 6,307 2,549 3,010
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Total revenue
from
continuing
operations $ 13,973 $ 11,619 $ 33,134 $ 32,769 $ 44,225
Amortization
of seismic
data library $ 8,321 $ 7,291 $ 21,549 $ 19,867 $ 28,345
Net earnings
from
continuing
operations $ 2,189 $ 320 $ 2,520 $ 1,493 $ 2,511
Net earnings
from
continuing
operations
per share:
Basic and
diluted $ 0.04 $ 0.00 $ 0.05 $ 0.03 $ 0.05
Net earnings
(loss) $ 2,189 $ (4,168) $ 2,226 $ (4,688) $ (4,982)
Net earnings
(loss) per
share:
Basic and
diluted $ 0.04 $ (0.08)(a) $ 0.04 $ (0.09)(a) $ (0.10)(a)
Funds from
continuing
operations(b)$ 11,640 $ 8,418 $ 25,950 $ 22,749 $ 31,208
Funds from
continuing
operations
per share(b):
Basic $ 0.22 $ 0.16 $ 0.48 $ 0.46 $ 0.61
Diluted $ 0.21 $ 0.16 $ 0.48 $ 0.45 $ 0.61
Cash
EBITDA(b) $ 6,105 $ 7,180 $ 20,845 $ 24,147 $ 33,038
Working
capital:
Cash $ 8,860 $ 11,827 $ 8,860 $ 11,827 $ 6,528
Non-cash
working
capital 6,468 6,027 6,468 6,027 13,735
Current
portion
of long-
term debt (8,004) (8,004) (8,004) (8,004) (8,004)
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Total working
capital $ 7,324 $ 9,850 $ 7,324 $ 9,850 $ 12,259
Total assets $ 110,634 $ 134,978 $ 110,634 $ 134,978 $ 124,473
Capital
expenditures:
Seismic
data
purchases $ - $ 11,738 $ 2,033 $ 11,738 $ 11,738
Partici-
pation
surveys 5,075 2,279 5,075 2,279 6,979
Changes to
partici-
pation
surveys in
progress 7,438 3,991 8,261 3,991 -
Property &
equipment
additions 45 (242) 544 (53) 422
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Total capital
expenditures $ 12,558 $ 17,766 $ 15,913 $ 17,955 $ 19,139
Total long-
term debt
(net of debt
financing
costs) $ 25,337 $ 33,518 $ 25,337 $ 33,518 $ 31,547
Shareholders'
equity $ 71,498 $ 82,574 $ 71,498 $ 82,574 $ 79,174
Weighted
average
shares
outstanding:
Basic 53,843,690 52,634,778 54,067,344 49,544,392 50,828,071
Diluted 54,293,635 53,609,240 54,476,972 50,303,149 51,378,310
Shares
outstanding
at period-
end 53,894,946 54,589,002 53,894,946 54,589,002 54,481,601
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Operational
Highlights:
Seismic
library:
2D in net
kilometres 257,281 257,281 257,281 257,216 257,281
3D in net
square
kilometres 11,972 11,438 11,972 11,438 11,607
(a) Basic weighted average shares outstanding are used to calculate loss
per share.
(b) These non-GAAP financial measures are defined below.
(c) See Financial Summary below.
FINANCIAL SUMMARY
The Company's continuous disclosure documents provide discussion and analysis of "cash EBITDA", "funds from operations" and "funds from operations per share". These financial measures do not have standard definitions prescribed by GAAP in Canada and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because management, investors, analysts and others use them as measures of the Company's financial performance. The Company's definition of cash EBITDA is cash available for interest payments, cash taxes if applicable, debt servicing, discretionary capital expenditures and the payment of dividends, and is calculated as earnings before interest, taxes, depreciation and amortization less participation survey revenue, plus non-cash and non-recurring general and administrative expenses. The Company's definition of funds from operations is cash flow from operations as prescribed by Canadian GAAP but excluding the impact of changes in non-cash working capital. Funds from operations per share is defined as funds from operations divided by the weighted average number of shares outstanding for the period.
On July 1, 2008 the Company changed its participation survey revenue recognition policy from the completed contract method to the percentage of completion method. Under the percentage of completion method, participation survey revenue is recognized proportionately with the degree of completion of the participation survey projects.
Management considers that the new policy is preferable because it results in a more transparent treatment of participation survey revenue and is consistent with industry practice, making the Company's financial statements more comparable. This change in accounting policy has been accounted for retrospectively, and the comparative statements for 2007 have been restated. The percentage of completion method is compliant with the current International Financial Reporting Standards for revenue recognition.
The effect of this change in participation survey revenue recognition on the interim financial statements for the three-month and nine-month periods ended September 30, 2008 and 2007 is as follows:
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Three months Nine months
ended September 30, ended September 30,
-------------------- --------------------
2008 2007 2008 2007
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Income statement
Increase in participation
survey revenue $ 2,456 $ 849 $ 2,893 $ 849
(Increase) in future
income tax expense (712) (250) (839) (250)
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Increase in net earnings $ 1,744 $ 599 $ 2,054 $ 599
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Increase in net
earnings per share
(basic and diluted) $ 0.03 $ 0.01 $ 0.04 $ 0.01
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Balance sheet
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September December
30, 31,
2008 2007
-------------------------------------------------------------------------
Decrease in deferred revenue $ 1,527 $ -
Increase in accounts receivable
and accrued revenue $ 1,366 $ -
(Increase) in future income tax liability $ (839) $ -
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Increase in retained earnings,
end of period $ 2,054 $ -
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Overview
Total seismic revenue for the three months ended September 30, 2008 was $14.0 million, comprised of $8.1 million in data library sales and $5.9 million in participation survey revenue, compared to $11.6 million for the third quarter of 2007, comprised of $9.1 million in data library sales and $2.5 million (restated) in participation survey revenue. These results represent a 20 percent increase in total seismic revenue for the three-month period, and the second highest quarter for total seismic revenue in Pulse's history.
Total seismic revenue for the nine months ended September 30, 2008 was $33.1 million, compared to $32.8 (restated) million for the nine months ended September 30, 2007. Data library sales for the nine months ended September 30, 2008 were $26.8 million, an 11 percent decrease from $30.2 million for the comparable period in 2007. Participation survey revenue for the nine months ended September 30, 2008 was $6.3 million, compared to $2.5 million (restated) for the same period in 2007. The slight increase in total seismic revenue for the nine month period ended September 30, 2008 was due mainly to the increase in participation survey revenue, partially offset by a decrease in data library sales.
Sixty-four percent of seismic data library revenue was generated from the 2D library and 36 percent from the 3D library for the third quarter of 2008, while 51 percent of seismic data library revenue was generated from the 2D library and 49 percent from the 3D library for the first nine months of 2008. Geographically, the sales breakdown of seismic data library in the third quarter of 2008 was 53 percent from data located in Alberta, 42 percent from British Columbia and the remaining 5 percent from Saskatchewan and the Northwest Territories. For the nine months ended September 30, 2008 the Alberta seismic data generated 65 percent of the seismic data library sales, British Columbia generated 27 percent and the remaining 8 percent came from data located in Saskatchewan, Manitoba and the Northwest Territories.
Net earnings from continuing operations for the three months ended September 30, 2008 were $2.2 million ($0.04 per share basic and diluted) compared to $320,000 ($0.00 per share basic and diluted) for the comparable period in 2007. This improvement reflects higher total seismic revenue for the period and a decrease in interest and general and administrative expenses, including corporate transaction costs. This was partially offset by higher seismic data library amortization expense, resulting in an overall increase of $1.9 million in net earnings from continuing operations for the three months ended September 30, 2008 from the comparable period in 2007.
Net earnings from continuing operations for the nine months ended September 30, 2008 were $2.5 million ($0.05 per share basic and diluted), compared to $1.5 million ($0.03 per share basic and diluted) for the same period in 2007. The increase reflects higher participation survey revenue for the period and decreased interest and general and administrative expenses, including corporate transaction costs. This was partially offset by a decrease in data library sales and higher seismic data library amortization expense, resulting in an overall increase of $1.0 million in net earnings from continuing operations for the nine months ended September 30, 2008 from the comparable period in 2007.
Net earnings for the three months ended September 30, 2008 were $2.2 million ($0.04 per share basic and diluted) compared to a net loss of $4.2 million ($0.08 per share basic and diluted) for the same period in 2007. Net earnings for the nine months ended September 30, 2008 were $2.2 million ($0.04 per share basic and diluted) compared to a net loss of $4.7 million ($0.09 per share basic and diluted) for the same period in 2007. Both the three and nine month periods ended September 30, 2007 included losses from discontinued operations. The three month loss from discontinued operations was $4.5 million and the nine month loss from discontinued operations was $6.2 million. When calculating the loss per share for the three and nine months ended September 30, 2007, the basic number of shares outstanding was utilized, as using diluted shares would have the effect of inappropriately decreasing the net loss per share.
Funds from continuing operations for the three months ended September 30, 2008 were $11.6 million ($0.22 per share basic and $0.21 per share diluted), compared to $8.4 million ($0.16 per share basic and diluted) for the third quarter of 2007. Funds from continuing operations per share for the third quarter of 2008 are based on the weighted average shares outstanding of 53,843,690 (diluted - 54,293,635), compared to 52,634,778 (diluted - 53,609,240) for the comparable period in 2007.
Funds from continuing operations for the first nine months of 2008 totaled $26.0 million ($0.48 per share basic and diluted), compared to $22.7 million ($0.46 per share basic and $0.45 per share diluted) for the first nine months of 2007. Funds from continuing operations per share for the first nine months of 2008 are based on the weighted average shares outstanding of 54,067,344 (diluted - 54,476,972), compared to 49,544,392 (diluted - 50,303,149) for the comparable period in 2007.
Cash EBITDA for the third quarter of 2008 was $6.1 million compared to cash EBITDA of $7.2 million for the same period in 2007, and cash EBITDA for the first nine months of 2008 was $20.8 million compared to cash EBITDA of $24.1 million for the comparable period in 2007.
Pulse had working capital of $7.3 million (including cash of $8.9 million) at September 30, 2008 compared to working capital of $9.9 million (including cash of $11.8 million) at September 30, 2007 and $12.3 million (including cash of $6.5 million) at December 31, 2007. At each date, working capital included $8.0 million of current portion of long-term debt.
During the nine months ended September 30, 2008 the Company repurchased and cancelled 1,459,200 common shares under its Normal Course Issuer Bid at an average purchase price of $2.72 per share, before brokerage fees, for a total cost of approximately $4.0 million. No shares were repurchased during the third quarter of 2008.
During the third quarter of 2008 the Company added 193 net square kilometres of 3D seismic data with the completion of one participation survey in the west central area of Alberta for a total cost of $5.1 million. This brings the total 3D seismic data acquired for the first nine months of 2008 to 365 net square kilometres.
On September 19, 2008, Pulse paid its twenty-first consecutive quarterly dividend. The dividend rate for the third quarter of 2008 was $0.05 per common share.
Liquidity, Capital Resources and Capital Requirements
At September 30, 2008 the working capital position of Pulse, including the current portion of long-term debt of $8.0 million, was $7.3 million, a decrease of $5.0 million from $12.3 million at December 31, 2007. For the nine months ended September 30, 2008 Pulse generated $26.0 million in funds from continuing operations, had a positive net change of $5.2 million in non-cash working capital items relating to continuing operations and investing, generated $1.4 million from the exercise of stock options and had net cash flow from discontinued operations of $3.7 million. Pulse utilized working capital for long-term debt repayment of $6.0 million and for payment of dividends (net of DRIP receipts) of $7.7 million. Additionally, the Company purchased $2.0 million of seismic data, incurred a total of $13.3 million in participation survey costs, including participation surveys in progress, acquired $544,000 of property and equipment, incurred $302,000 in deferred charges and purchased $4.0 million of its common shares through the Company's Normal Course Issuer Bid. All of these items resulted in an increase in cash from December 31, 2007 of $2.3 million to $8.9 million at September 30, 2008.
Although there is uncertainty surrounding seismic data library sales for the remainder of 2008, Pulse's management expects that the Company's funds from operations will be sufficient to finance future operations, service debt, pay dividends and carry out the budgeted capital expenditures through 2008. Since the Company's ability to pay dividends depends upon data library sales and cash EBITDA, the Company will continue to closely monitor data library sales and cash EBITDA in the current economic climate. The ongoing growth in the Company's seismic data library continues to position Pulse to be a leading provider of valuable seismic data to industry participants well into the future. Historical data sales analysis shows that most seismic data retains its value for many years. Utilizing the ongoing technological advancements in data reprocessing, the Company's clients are able to enhance the quality of older data in the library.
Data Library
Pulse acquires seismic data to grow its data library through two main methods. The Company purchases proprietary rights to complementary seismic data sets when the opportunity arises, and also conducts participation surveys. During the first nine months of 2008, Pulse completed one 3D participation survey and began a second 3D participation survey program. Pulse also purchased 172 net square kilometres of 3D seismic data through three transactions, the largest of which was a 117 net square kilometre survey in southeast Saskatchewan.
The two current 3D participation surveys are located in the west-central area of Alberta. In June 2008 Pulse commenced the first participation survey, consisting of 193 net square kilometres of 3D data, which was completed and delivered in September 2008 at a cost of $5.1 million. In July 2008 Pulse commenced the second participation survey, consisting of 355 net square kilometres of 3D data which was approximately 73% completed at September 30, 2008, with an expected delivery date in Q4 2008. In September 2008 Pulse commenced initial work on a third participation survey, with expected delivery to the customer in the first quarter of 2009.
OUTLOOK
Pulse entered the second half of 2008 positioned as a pure-play seismic data library company providing 2D and 3D seismic to the oil and natural gas industry in western Canada. The benefits of divesting its non-core assets include enabling Pulse's management team and directors to focus their time and effort, as well as the Company's capital, on optimizing and growing the Company's core business. The Company's success in continuing to generate a respectable level of seismic data library sales indicates that Pulse's business model is working.
The worsening of the global credit crisis, severely declining valuations on equity markets worldwide, weakening economic growth and sharp falls in commodity prices, all occurring late in the third quarter and early in the fourth quarter of 2008, have generated significant uncertainty for the energy sector in Western Canada. Several major producers recently announced cutbacks to capital spending. Given depressed trading multiples, energy producers can be expected to encounter poor terms in accessing new equity capital, while their credit conditions may tighten despite low interest rates. Mitigating the recent weakness in crude oil and natural gas prices is the decline in the Canadian dollar relative to the U.S. dollar, which improves U.S. dollar based revenue to oil and natural gas producers in western Canada. Pulse's sales force has observed that in some cases energy producers are delaying making spending commitments for the coming winter and 2009 drilling season.
These numerous and in some cases contradictory uncertainties necessitate Pulse taking a cautious position regarding its outlook for revenues over the next several quarters. The Company's revenue levels over the past eight quarters have shown less volatility than that of the overall energy services sector, supporting the Company's view that Pulse occupies a somewhat counter-cyclical niche within the energy services sector's capital spending dynamic. By providing high-quality 2D and 3D seismic data in a readily accessible and cost-competitive form, Pulse has attracted a share of the industry's capital spending even during times of tightened expenditures. In addition, Pulse is not significantly dependent on seismic sales to the oil sands sector, the main focus of some recent capital spending reductions.
Pulse's decision to seize the opportunity provided by moderating field costs and re-emphasize 3D seismic participation surveys has met with a positive response from industry customers. The total projected capital cost of the two surveys recently completed or underway is approximately $16 million. Pulse's participation survey program is being driven by a reorganized and expanded surveys department headed by an experienced manager hired in early 2008. The positive results to date create optimism that more new participation surveys will follow. Concurrently, Pulse continues to seek opportunities to acquire existing high-quality seismic datasets to expand the Company's data library and drive future seismic data library sales. Current economic weakness may provide opportunity to make new acquisitions at more favourable valuations.
The Company believes that the strengths in its business model will continue to yield benefits. Following its strong third quarter, Pulse is on-track to end the year with a satisfactory level of seismic revenue. Financially, Pulse is well-positioned for the remainder of 2008 and into 2009, whether to continue investing in growth initiatives or to weather a potential industry downturn. The Company has strong working capital and cash positions and moderate debt, and remains committed to maintaining a strong balance sheet. Although the Company's rate of growth will vary as energy producers adjust their capital budgets and apportion spending priorities within budgets, Pulse remains committed to being a growth company.
CORPORATE PROFILE
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 257,300 net kilometres of 2D seismic and approximately 12,000 net square kilometres of 3D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occurs.
Pulse has publicly traded on the TSX since 2001. The Company has paid its shareholders a quarterly dividend since 2003 and at Pulse's current share price provides one of the highest dividend yields on the TSX.
PULSE DATA INC.
Interim Consolidated Balance Sheets
(In thousands of dollars) (unaudited)
-------------------------------------------------------------------------
September 30, December 31,
2008 2007
-------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 8,860 $ 6,528
Accounts receivable and accrued revenue 12,906 14,686
Other receivable 2,554 -
Prepaid expenses 380 425
Assets held for sale - 5,426
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24,700 27,065
Seismic data library 76,619 91,060
Participation surveys in progress 8,261 -
Assets held for sale - 5,629
Property and equipment 998 663
Other 56 56
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$ 110,634 $ 124,473
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 6,214 $ 2,178
Deferred revenue 3,158 2,897
Current portion of long-term debt 8,004 8,004
Liabilities held for sale - 1,727
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17,376 14,806
Long-term debt 17,333 23,543
Future income taxes 4,427 6,950
Shareholders' equity:
Share capital 72,610 72,463
Contributed surplus 1,599 1,508
Retained earnings (deficit) (2,711) 5,203
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71,498 79,174
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$ 110,634 $ 124,473
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PULSE DATA INC.
Interim Consolidated Statements of Earnings (Loss), Comprehensive Income
(Loss) and Retained Earnings (Deficit)
(In thousands of dollars, except per share data) (unaudited)
-------------------------------------------------------------------------
Three months Nine months
ended September 30, ended September 30,
---------------------- ---------------------
2008 2007 2008 2007
(restated) (restated)
-------------------------------------------------------------------------
Revenue:
Data library sales $ 8,103 $ 9,070 $ 26,827 $ 30,220
Participation survey 5,870 2,549 6,307 2,549
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Total revenue 13,973 11,619 33,134 32,769
Expenses:
Amortization of
seismic data library 8,321 7,291 21,549 19,867
Operating 815 841 2,522 2,550
Depreciation and
amortization 72 5 208 154
General and
administrative expenses 1,352 1,466 3,986 4,455
Corporate transaction
costs - 995 - 1,695
Interest:
Long-term debt 415 687 1,423 2,111
Other (81) (147) (250) (312)
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334 540 1,173 1,799
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Earnings from
continuing operations
before income taxes 3,079 481 3,696 2,249
Income taxes:
Current (recovery) 1 (279) 29 398
Future 889 440 1,147 358
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890 161 1,176 756
Net earnings from
continuing operations $ 2,189 $ 320 $ 2,520 $ 1,493
Earnings (loss) from
discontinued operations,
net of income taxes - (4,488) (294) (6,181)
-------------------------------------------------------------------------
Net earnings (loss) and
comprehensive income
(loss) $ 2,189 $ (4,168) $ 2,226 $ (4,688)
Retained earnings
(deficit), beginning
of period (2,207) 15,368 5,203 19,165
Change in accounting
policy related to
Financial instruments - - - 322
Normal course issuer bid - (384) (2,048) (384)
Dividends declared (2,693) (2,042) (8,092) (5,641)
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Retained earnings
(deficit), end of period $ (2,711) $ 8,774 $ (2,711) $ 8,774
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Earnings per share from
continuing operations,
basic and diluted $ 0.04 $ 0.00 $ 0.05 $ 0.03
Earnings (loss) per
share, basic and diluted $ 0.04 $ (0.08) $ 0.04 $ (0.09)
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PULSE DATA INC.
Interim Consolidated Statements of Cash Flows
(In thousands of dollars) (unaudited)
-------------------------------------------------------------------------
Three months Nine months
ended September 30, ended September 30,
---------------------- -----------------------
2008 2007 2008 2007
(restated) (restated)
-------------------------------------------------------------------------
Cash provided by (used in):
Continuing operations:
Net earnings $ 2,189 $ 320 $ 2,520 $ 1,493
Items not involving cash:
Amortization of
seismic data library 8,321 7,291 21,549 19,867
Depreciation and
amortization 72 5 208 154
Future income taxes 889 440 1,147 358
Stock-based
compensation 140 325 431 759
Other 29 37 95 118
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11,640 8,418 25,950 22,749
Net change in non-cash
working capital items
related to continuing
operations 700 7,256 3,863 10,564
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Cash provided by
continuing operations 12,340 15,674 29,813 33,313
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Discontinued operations:
Funds used in
discontinued
operations - - (830) -
Additions to
property and equipment - (1,571) - (4,097)
Proceeds from
sale of Terrapoint - - 6,903 -
Net change in non-cash
working capital 946 (405) (2,325) (2,264)
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Cash provided by
(used in) discontinued
operations 946 (1,976) 3,748 (6,361)
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Financing:
Repayment of
long-term debt (2,001) (2,001) (6,003) (6,003)
Financing charges - (22) (302) (19)
Issue of share capital 81 16,131 1,386 16,171
Dividends paid (2,598) (1,970) (7,708) (5,258)
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(4,518) 12,138 (12,627) 4,891
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Investing:
Normal course
issuer bid - - (4,011) (89)
Additions to seismic
data library through
participation
surveys (5,075) (2,279) (5,075) (2,279)
Seismic data purchases - (11,738) (2,033) (11,738)
Participation surveys
in progress (7,438) (3,991) (8,261) (3,991)
Additions to property
and equipment (45) 242 (544) 53
Cash sales of
investments - - - 729
Net change in
non-cash working
capital items related
to investing 1,363 (4,882) 1,322 (4,882)
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(11,195) (22,648) (18,602) (22,197)
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Increase (decrease)
in cash position (2,427) 3,188 2,332 9,646
Cash and cash
equivalents, beginning
of period 11,287 8,639 6,528 2,181
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Cash and cash equivalents,
end of period $ 8,860 $ 11,827 $ 8,860 $ 11,827
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Forward Looking Statements
This document contains information that constitutes "forward looking
information" or "forward looking statements" (collectively, "forward looking
information") within the meaning of applicable securities legislation. This
forward looking information includes, among other things, statements
regarding:
- estimated future demand for seismic data;
- estimated future seismic data sales;
- estimated future demand for participation surveys;
- estimated costs, funding, size, commencement dates and delivery dates
of participation surveys;
- planned future participation surveys;
- planned growth of the seismic data library;
- estimated future revenues, cash flow, cash EBITDA and earnings;
- estimated future oil and gas drilling activities;
- planned future dividend payments;
- planned future normal course issuer bid purchases;
- Pulse's business strategy;
- other expectations, beliefs, plans, goals, objectives, assumptions,
information and statements about possible future events, conditions,
results and performance.
Often, but not always, forward looking information uses words or phrases such as: "expects", "does not expect" or "is expected", "anticipates" or "does not anticipate", "plans" or "does not plan", "estimates" or "estimated", "projects" or "projected", "forecasts" or "forecasted", "believes" or "does not believe", "intends" or "does not intend", "likely" or "unlikely", "possible", "probable", "scheduled", "positioned", "goal", "objective", "hopes", "optimistic" or states that certain actions, events or results "should", "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Undue reliance should not be placed on forward-looking information. Forward looking information is based upon current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward looking information.
The material risk factors include, but are not limited to:
- the demand for seismic data and participation surveys;
- the pricing of data library license sales;
- the level of pre-funding of participation surveys, and the ability of
the Company to make subsequent data library sales from such
participation surveys;
- the ability of the Company to complete participation surveys on time
and within budget;
- the price and demand for oil and natural gas;
- the level of oil and gas exploration and development activities;
- the ability of the Company's customers to raise capital;
- environmental, health and safety risks;
- the effect of seasonality and weather conditions on participation
surveys;
- federal and provincial government laws and regulation, including
taxation, royalty rates, environment and safety;
- competition from other seismic data library companies;
- dependence upon qualified seismic field contractors;
- dependence upon key management, operations and marketing personnel.
The foregoing list of risks is not exhaustive. Additional information on these risks and other factors which could affect the Company's operations or financial results are included in the Risk Factors section of the Company's MD&A for the most recent calendar year and interim periods.
Forward looking information is based upon the assumptions, expectations, estimates and opinions of the Company's management at the time the information is presented. The Company does not update forward looking information should circumstances change or management's assumptions, expectations, estimates or opinions change, except as required by securities laws.