TSX: PSD
CALGARY, April 30 /CNW/ - Pulse Data Inc. ("Pulse" or the "Company") provides the following financial and corporate update for the three-month period ended March 31, 2008.
Pulse recorded estimated seismic data library sales of $7.8 million in Q1 2008, compared to a record quarter set in Q1 2007 of $10.6 million. Pulse had anticipated a first quarter decrease based on lower natural gas prices and reduced industry activity. Pulse expects a return to normal sales activity for the remainder of the 2008 fiscal year as demand has steadily increased since the beginning of the second quarter of 2008.
Cash EBITDA from continuing operations for the three month period ended March 31, 2008 amounted to approximately $5.9 million, compared to $8.7 million for the same period in 2007. Pulse's working capital at March 31, 2008 was approximately $11.8 million (including cash of $9.0 million).
The net loss for the three month period ended March 31, 2008 is approximately $1.4 million and consists of a loss from discontinued operations of $432,000 and a loss from continuing operations of $1.0 million. The loss from continuing operations is a direct result of the high fixed seismic data library amortization expense of $6.6 million (a non-cash expense) in a quarter where data library sales were $7.8 million. The comparable first quarter of 2007 had a net loss of $470,000 which included a loss from discontinued operations of $1.3 million which offset the earnings from continuing operations of $837,000.
The financial information contained in this news release is based on management's estimates and has not yet been approved by the Company's Audit Committee or Board of Directors.
On Wednesday, May 7, 2008, after close of trading on the Toronto Stock Exchange (TSX), Pulse intends to release its unaudited financial results for the first quarter of 2008, along with details regarding the next regular quarterly dividend. A conference call and webcast to review the results are scheduled for Thursday, May 8, 2008 at 1:00 pm EDT (11:00 am MDT). Further details of the conference call, including dial-up numbers, will be provided at a later date.
Terrapoint Update
On April 1, 2008 Pulse announced that it had signed a definitive agreement to sell its Terrapoint business unit to Ambercore Software Inc. The anticipated closing date of April 30, 2008 has been delayed pending receipt of required governmental approvals. The closing of the transaction will occur immediately after these approvals have been granted, and a further press release will be issued at that time.
CORPORATE PROFILE
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data for 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 11,600 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. The replacement value of Pulse's library is currently estimated at over $1 billion based on current field replacement costs.
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.
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, unless required by law.