TSX Symbol - PSD
CALGARY, Nov. 6 /CNW/ - Mr. Ken MacDonald, President and Chief Executive
Officer of Pulse Data Inc. ("Pulse" or "the Company") reports the financial
and operating results of Pulse for the nine months ended September 30, 2006.
The Company also declared its fourteenth consecutive quarterly dividend.
The dividend of $0.0375 per common share will be paid on December 20, 2006 to
shareholders of record at the close of business on December 6, 2006. The
Company's Dividend Reinvestment Plan for eligible shareholders will be
available for this dividend.
<<
HIGHLIGHTS
- Seismic data library sales increased by 5.5 percent to $23.7 million
for the nine months ended September 30, 2006 from $22.4 million for
the first nine months of 2005.
- Pulse repaid a total of $6.9 million in long-term debt during the
first nine months of 2006, reducing long-term debt to $14.2 million at
September 30, 2006 and a debt to equity ratio of 0.2:1.
- Pulse closed the sale of Trango Technologies Inc. to Fugro Canada Inc.
on July 31, 2006 for total proceeds of $1.8 million in cash and a
working capital adjustment of approximately $400,000.
- On August 29, 2006 Pulse Seismic purchased 3,445 net kilometres of 2D
data and approximately 224 net square kilometres of 3D data in the
Deep Basin of west central Alberta for cash consideration of
$3.9 million.
- On October 6, 2006 Pulse Seismic announced the signing of a letter
agreement for the purchase of a significant seismic dataset. The data
includes 14,000 net kilometres of 2D seismic data covering the
exploration and development drilling areas of the Foothills region of
Alberta and northeastern British Columbia. This acquisition is
scheduled to close on November 15, 2006.
- Free cash flow for the nine months ended September 30, 2006 was
$9.9 million, compared to $15.7 million in the first nine months of
2005.
- Pulse had a working capital position of $13.4 million (including cash
of $15.5 million) at September 30, 2006 compared to $17.5 million at
December 31, 2005 and $11.2 million at September 30, 2005.
Financial Highlights
Continuing Operations (excludes the results of Trango)
('000's except per share data) Unaudited
3 months ended 9 months ended Year ended
September 30 September 30 Dec. 31
------------ ------------ -------
2006 2005 2006 2005 2005
---- ---- ---- ---- ----
Revenue from
continuing
operations:
Data library
sales $ 6,976 $ 8,614 $ 23,708 $ 22,466 $ 34,905
Participation
surveys $ - $ 607 $ 3,058 $ 5,638 $ 10,006
LiDAR $ 2,355 $ 2,453 $ 5,621 $ 6,489 $ 8,452
Corporate &
other $ (75) $ (45) $ (158) $ (172) $ (226)
-----------------------------------------------------------------------
Total revenue
from
continuing
operations $ 9,256 $ 11,629 $ 32,229 $ 34,421 $ 53,137
Amortization
of data
libraries $ 5,068 $ 4,627 $ 17,119 $ 14,757 $ 21,536
Net earnings
(loss) from
continuing
operations $ (760) $ 1,189 $ (5,838) $ 2,723 $ 6,700
Net earnings
(loss) from
continuing
operations
per share:
basic and
diluted $ (0.02)(a) $ 0.02 $ (0.13)(a) $ 0.05 $ 0.14
Net earnings
(loss) $ 446 $ 1,061 $ (4,629) $ 2,468 $ 6,488
Net earnings
(loss) per
share:
basic and
diluted $ 0.01(a) $ 0.02 $ (0.10)(a) $ 0.05 $ 0.14
Funds from
operations
(b) $ 5,026 $ 9,640 $ 17,014 $ 21,157 $ 35,265
Funds from
operations
per share(b):
basic $ 0.11 $ 0.21 $ 0.37 $ 0.46 $ 0.76
diluted $ 0.11 $ 0.20 $ 0.36 $ 0.45 $ 0.75
Free cash
flow(b) $ 5,023 $ 9,019 $ 9,943 $ 15,676 $ 23,706
Working
capital $ 13,437 $ 11,165 $ 13,437 $ 11,165 $ 17,503
Total assets $ 108,954 $ 122,106 $ 108,954 $ 122,106 $ 129,882
Capital
expenditures:
Seismic data
purchases $ 3,850 $ - $ 3,850 $ 15,225 $ 15,225
Participation
surveys $ 3 $ (621) $ 7,071 $ 5,481 $ 11,559
Changes to
work in
progress $ (11) $ 6 $ (192) $ 8 $ 190
Property &
equipment
additions $ 238 $ 246 $ 1,955 $ 1,371 $ 1,504
-----------------------------------------------------------------------
Total capital
expenditures $ 4,080 $ (369) $ 12,684 $ 22,085 $ 28,478
Long-term
debt $ 14,151 $ 22,303 $ 14,151 $ 22,303 $ 20,772
Shareholders'
equity $ 75,479 $ 79,167 $ 75,479 $ 79,167 $ 82,432
Weighted
average
shares
outstanding:
Basic 46,834,854 46,282,828 46,351,164 46,047,366 46,161,608
Diluted 47,638,555 47,246,570 47,351,039 46,726,355 46,842,744
Shares
outstanding
at period
end 47,634,337 46,460,354 47,634,337 46,460,354 46,559,778
(a) Basic weighted average shares outstanding are used to calculate loss
per share
(b) These non-GAAP financial measures are defined in the Financial
Summary below
Operational Highlights:
2D in net kilometres 243,267 239,820 243,267 239,820 239,822
3D in net square
kilometres 9,903 9,256 9,903 9,256 9,442
>>
FINANCIAL SUMMARY
The Company's continuous disclosure documents provide discussion and
analysis of "free cash flow", "funds from operations" and "funds from
operations per share". These financial measures do not have standard
definitions prescribed by generally accepted accounting principles (GAAP) in
Canada and therefore they 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 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. 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.
Overview
The loss from continuing operations for the nine months ended
September 30, 2006 was $5.8 million ($0.13 per share basic and diluted),
compared to earnings of $2.7 million ($0.05 per share basic and diluted) for
the first nine months of 2005. When calculating loss per share, the basic
weighted average number of shares outstanding for this period have been
utilized, as diluted shares would have had the effect of inappropriately
decreasing the net loss per share. This loss was due almost entirely to the
one-time writedown of Terrapoint's capital assets taken in the first half of
2006. Without this writedown, the net loss from continuing operations for the
nine months ended September 30, 2006 would have been $300,000 compared to
earnings of $2.7 million for the 2005 period.
The net loss for the nine months ended September 30, 2006 was
$4.6 million ($0.10 per share basic and diluted) compared to net earnings of
$2.5 million ($0.05 per share basic and diluted) for the same period in 2005.
Funds from operations for the first nine months of 2006 totaled
$17.0 million ($0.36 per share diluted) compared to $21.2 million ($0.45 per
share diluted) for the first nine months of 2005. The earnings per share for
2005 and funds from operations figures for 2006 and 2005 are based on the
weighted average diluted shares outstanding of 47,351,039 for the first nine
months of 2006, compared to 46,726,355 for the first nine months of 2005. In
2006, the nine-month loss per share figure is based on the basic weighted
average number of shares outstanding of 46,351,164.
The loss from continuing operations for the three months ended
September 30, 2006 was $760,000 ($0.02 per share basic and diluted), compared
to net earnings of $1.2 million ($0.02 per share basic and diluted) for the
comparable three-month period in 2005. Funds from operations for the third
quarter of 2006 totaled $5.0 million ($0.11 per share diluted) compared to
$9.6 million ($0.20 per share diluted) for the comparable period in 2005. The
earnings per share in 2005 and funds from operations figures for 2006 and 2005
are based on the weighted average diluted shares outstanding of 47,638,555 for
the three months ended September 30, 2006, compared to 47,246,570 for the
three months ended September 30, 2005. In 2006, the three-month loss per share
figure is based on the basic weighted average number of shares outstanding of
46,834,854.
The disposition of Pulse's wholly-owned subsidiary Trango Technologies
Inc. ("Trango") was completed on July 31, 2006 and was effective June 30,
2006. This disposition provided a net gain on sale of $1.2 million in Q3 2006.
The depreciation expense in the LiDAR segment for the nine months ended
September 30, 2006 was $10.1 million compared to $1.7 million for the same
period in 2005. Included in the 2006 figure is an $8.8 million writedown
primarily related to older high-altitude LiDAR data collection systems and
their related proprietary processes and software. These were written down to
their residual value in the first half of 2006. The residual value reflects
the fair market value of the components that Terrapoint is currently using or
will be able to use in its other systems. No further writedowns are expected.
<<
Revenue
For the nine months ended September 30 (stated in thousands of dollars)
-------------------------------------------------------------------------
2006 2005
---------------------------------------
Revenue % of Revenue % of %
Business Segment Total Total Change
Revenue Revenue
-------------------------------------------------------------------------
Seismic Data:
-------------------------------------------------------------------------
Data library sales $ 23,708 73.6 $ 22,466 65.3 6
-------------------------------------------------------------------------
Participation surveys 3,058 9.5 5,638 16.4 (46)
-------------------------------------------------------------------------
LiDAR 5,621 17.4 6,489 18.9 (13)
-------------------------------------------------------------------------
Corporate and Other (158) (0.5) (172) (0.6) 8
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total $ 32,229 100 $ 34,421 100 (6)
-------------------------------------------------------------------------
For the three months ended September 30 (stated in thousands of dollars)
-------------------------------------------------------------------------
2006 2005
---------------------------------------
Revenue % of Revenue % of %
Business Segment Total Total Change
Revenue Revenue
-------------------------------------------------------------------------
Seismic Data:
-------------------------------------------------------------------------
Data library sales $ 6,976 75.4 $ 8,614 74.1 (19)
-------------------------------------------------------------------------
Participation surveys - - 607 5.2 (100)
-------------------------------------------------------------------------
LiDAR 2,355 25.4 2,453 21.0 (4)
-------------------------------------------------------------------------
Corporate and Other (75) (0.8) (45) (0.3) (67)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total $ 9,256 100 $ 11,629 100 (20)
-------------------------------------------------------------------------
>>
Seismic Data Segment
The seismic data segment, which includes data library sales and
participation survey revenues, contributed 83.0 percent of total revenue from
continuing operations for the Company in the first three quarters of 2006, and
75.4 percent of total revenue from continuing operations in the third quarter
of 2006. In 2005, the seismic data segment contributed 81.6 percent of total
revenue for the nine-month period ended September 30 and 79.3 percent of total
revenue for the third quarter. For the nine months ended September 30, 2006,
total seismic data segment revenue decreased by $1.3 million to $26.8 million
from $28.1 million for the same period in 2005.
Within the seismic data segment the Company generates two types of
revenue: data library sales and participation survey revenue. While
participation survey revenue increases revenue and earnings significantly in
periods of high survey activity, participation surveys represent investments
in the seismic data library that initially draw down the Company's capital
resources. Data library sales generate immediate free cash flow through
licenses of seismic data from the existing library of seismic data, which can
occur many times without incurring further costs.
The data library sales revenue portion of this segment for the nine
months ended September 30, 2006 increased by 5.5 percent from the same period
in 2005. The increase year-over-year is due in part to a higher demand for
seismic data from exploration from junior oil and natural gas companies in the
first part of 2006. Overall, seismic data segment revenue for the nine months
ended September 30, 2006 decreased by 4.8 percent from the same period in 2005
due to the decrease in participation survey revenue. Participation survey
revenue decreased by 45.8 percent for the nine months ended September 30, 2006
from the comparable period in 2005. This was due to the Company's decision to
pursue the purchase of quality existing seismic datasets rather than
conducting further participation surveys during this period, other than the
one completed in the second quarter of 2006, and to lower-than-normal client
funding received for this participation survey. In the second quarter of 2006,
Pulse completed and delivered a 237 square kilometre, 3D participation survey
in west-central Alberta. For the three months ended September 30, 2006,
seismic data segment revenue decreased by 24.3 percent from the comparable
period in 2005. This was primarily due to a difference in the timing of data
library sales which were more heavily weighted to the first half of 2006
compared to 2005.
LiDAR Segment
LiDAR segment revenue for the first three quarters of 2006 decreased by
13.4 percent from the same period in 2005. For the third quarter of 2006
revenue decreased by 4.0 percent from the third quarter of 2005. September,
2006 has seen a significant improvement in LiDAR sales, and Terrapoint ended
the quarter with a significant sold backlog of contracts that are expected to
be fulfilled in the fourth quarter of 2006. Terrapoint has strengthened its
marketing efforts with the appointment of Jake Jenkins as Vice President Sales
and Marketing of Terrapoint Canada Inc. Mr. Jenkins has 22 years of extensive
worldwide experience in the fields of remote sensing, LiDAR technology and
related sales and marketing. Terrapoint has also added several experienced
sales people.
Terrapoint also purchased a new high-altitude data collection system in
the second quarter of 2006, which allows projects to be completed more
quickly, at lower cost to customers and at higher margins.
Data Library
Pulse acquires seismic data to grow its data library through two methods.
The Company conducts participation surveys each year, and also purchases
proprietary rights to complementary seismic data when the opportunity arises.
During the first nine months of 2006, Pulse invested a total of $10.9 million
to acquire seismic data. Of this amount, $7.1 million was invested to conduct
a 237 square kilometre, 3D participation survey in west-central Alberta in Q2
2006, and an additional $3.9 million was invested in Q3 2006 to purchase a
seismic dataset consisting of approximately 224 net square kilometres of 3D
data and 3,445 net kilometres of 2D data located in the Deep Basin of west
central Alberta. In comparison, in the first nine months of 2005 the Company
invested $20.7 million to acquire new seismic data. In the second quarter of
2005 the Company purchased the proprietary rights to approximately 2,500 net
square kilometres of 3D seismic data and 500 net kilometres of 2D seismic data
located in the south-central area of Alberta for $15.2 million. Additionally,
in the first nine months of 2005 the Company invested $5.5 million to acquire
240 net square kilometres of 3D data through participation surveys.
The LiDAR data library acquired with Terrapoint in 2004 includes
approximately $805,000 of data acquired by Terrapoint in 2003, of which
$395,000 remained unamortized at September 30, 2006. The costs associated with
acquiring LiDAR data since the acquisition of Terrapoint have not been
significant, and have been expensed.
Liquidity, Capital Resources and Capital Requirements
At September 30, 2006 the working capital position of Pulse, including
the current portion of long-term debt of $5.8 million, was $13.4 million,
compared to $17.5 million at December 31, 2005. During the third quarter of
2006, Pulse utilized cash resources for a seismic data purchase
($3.9 million), long-term debt repayment ($3.8 million) and dividends
($1.7 million).
With the continued trend of strong seismic data sales levels, Pulse
management expects that its funds from operations will be sufficient to
finance operations, service debt, and pay dividends through the remainder of
2006. The ongoing growth in the Company's seismic data library continues to
position Pulse as 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. Combined with the recent
technological advancements in reprocessing, the Company's clients are able to
enhance the quality of older data in the library.
Although quarterly results can show significant swings in working capital
because of the impact of participation surveys, Pulse remains liquid with a
substantial working capital position. Because Pulse's largest expense in any
given period is a non-cash amortization expense, funds from operations are
usually much higher than net earnings.
<<
PULSE DATA INC.
Interim Consolidated Balance Sheets
(In thousands of dollars) (unaudited)
-------------------------------------------------------------------------
September 30, December 31,
2006 2005
-------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 15,454 $ 11,012
Accounts receivable 11,746 20,249
Prepaid expenses 321 315
Work in progress 1,135 993
Assets of discontinued operations - 1,750
-------------------------------------------------------------------------
28,656 34,319
Long-term receivable - 800
Data libraries 74,558 80,256
Participation surveys in progress - 192
Property and equipment 5,222 13,665
Investments 351 432
Deferred charges 167 218
-------------------------------------------------------------------------
$ 108,954 $ 129,882
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 4,750 $ 6,700
Deferred revenue 4,637 3,848
Current portion of long-term debt 5,832 6,068
Liabilities of discontinued operations - 200
-------------------------------------------------------------------------
15,219 16,816
Long-term debt 14,151 20,772
Future income taxes 4,105 9,862
Shareholders' equity:
Share capital 54,233 51,808
Contributed surplus 1,624 1,079
Retained earnings 19,622 29,545
-------------------------------------------------------------------------
75,479 82,432
-------------------------------------------------------------------------
$ 108,954 $ 129,882
-------------------------------------------------------------------------
-------------------------------------------------------------------------
PULSE DATA INC.
Interim Consolidated Statements of Earnings (loss) and Retained Earnings
(In thousands of dollars, except per share data) (unaudited)
-------------------------------------------------------------------------
Three months Nine months
ended September 30 ended September 30
---------------------- ----------------------
2006 2005 2006 2005
-------------------------------------------------------------------------
Revenue $ 9,256 $ 11,629 $ 32,229 $ 34,421
Operating expenses:
Amortization of data
libraries 5,068 4,627 17,119 14,757
Operating 2,535 2,274 7,314 7,074
Depreciation and
amortization 302 745 10,398 1,945
-------------------------------------------------------------------------
7,905 7,646 34,831 23,776
-------------------------------------------------------------------------
Gross margin 1,351 3,983 (2,602) 10,645
General and administrative
expenses 1,811 1,401 5,349 4,590
Research and development
expenses 214 323 716 836
Interest:
Long-term debt 417 408 1,276 878
Other (194) (18) (425) (81)
-------------------------------------------------------------------------
223 390 851 797
-------------------------------------------------------------------------
Earnings (loss) from
continuing operations
before income taxes (897) 1,869 (9,518) 4,422
Income taxes:
Current (2) (2,510) 2,182 120
Future (reduction) (135) 3,190 (5,862) 1,579
-------------------------------------------------------------------------
(137) 680 (3,680) 1,699
Net earnings (loss) from
continuing operations $ (760) $ 1,189 $ (5,838) $ 2,723
-------------------------------------------------------------------------
Earnings (loss) from
discontinued operations,
net of income taxes 1,206 (128) 1,209 (255)
-------------------------------------------------------------------------
Net earnings (loss) $ 446 $ 1,061 $ (4,629) $ 2,468
Retained earnings,
beginning of period 20,952 26,784 29,545 26,527
Dividends paid (1,776) (1,158) (5,294) (2,308)
-------------------------------------------------------------------------
Retained earnings,
end of period $ 19,622 $ 26,687 $ 19,622 $ 26,687
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) per share
from continuing
operations, basic and
diluted $ (0.02) $ 0.02 $ (0.13) $ 0.05
Earnings (loss) per share,
basic and diluted $ 0.01 $ 0.02 $ (0.10) $ 0.05
-------------------------------------------------------------------------
-------------------------------------------------------------------------
PULSE DATA INC.
Interim Consolidated Statements of Cash Flows
(In thousands of dollars) (unaudited)
-------------------------------------------------------------------------
Three months Nine months
ended September 30 ended September 30
---------------------- ----------------------
2006 2005 2006 2005
-------------------------------------------------------------------------
Cash provided by (used in):
Operations:
Net earnings (loss) $ 446 $ 1,061 $ (4,629) $ 2,468
Items not involving cash:
Amortization of data
libraries 5,068 4,627 17,119 14,757
Depreciation and
amortization 302 765 10,426 2,003
Unrealized (gain) on
foreign exchange 3 (151) (71) (87)
Future income taxes
(reduction) (30) 3,124 (5,754) 1,455
Stock-based compensation 545 204 1,195 561
Gain on sale of
subsidiary (1,323) - (1,323) -
Other 15 10 51 -
-------------------------------------------------------------------------
Funds from operations 5,026 9,640 17,014 21,157
Net change in non-cash
working capital items
related to operations (16) (4,983) 8,831 (4,982)
Increase (decrease) in
non-current deferred revenue - (250) - -
-------------------------------------------------------------------------
5,010 4,407 25,845 16,175
Financing:
Long-term debt - - - 15,439
Repayment of long-term
debt (3,757) (1,081) (6,857) (3,910)
Issue of share capital 621 381 1,571 939
Dividends paid (1,706) (1,158) (5,090) (2,308)
Proceeds from sale of
subsidiary 1,714 - 1,714 -
-------------------------------------------------------------------------
(3,128) (1,858) (8,662) 10,160
Investing:
Additions to data
libraries through
participation surveys (3) 621 (7,071) (5,481)
Seismic data purchases (3,850) - (3,850) (15,225)
(Increase) decrease in
participation surveys in
progress 11 (6) 192 (8)
Decrease in investments 81 - 81 235
Additions to property and
equipment (238) (246) (1,955) (1,371)
Net change in non-cash
working capital items
related to investing (179) 572 (1,035) (839)
-------------------------------------------------------------------------
(4,178) 941 (13,638) (22,689)
-------------------------------------------------------------------------
Increase (decrease) in cash
position (2,296) 3,490 3,545 3,646
Cash and cash equivalents,
beginning of period 17,750 3,983 11,909 3,827
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 15,454 $ 7,473 $ 15,454 $ 7,473
-------------------------------------------------------------------------
-------------------------------------------------------------------------
During the three and nine month periods ended September 30, 2006 the
Corporation paid interest of $223,000 (2005 - $384,000) and $849,000
(2005 - $774,000), respectively. During the three and nine month periods
ended September 30, 2006 the Corporation paid income taxes of $26,000
(2005 - $44,700) and $762,000 (2005 - $140,400) respectively.
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
OUTLOOK
It is expected that the recent announcement by the Canadian federal
government concerning the taxation of energy income trusts will create some
uncertainty in the energy sector in the short term. However we believe that
this uncertainty will not significantly affect our business in the long term
and may create seismic data acquisition opportunities at attractive prices.
As a result of some softening in the commodity prices, there have been
reports from certain industry associations that drilling activity levels in
Canada may decline in 2007. This reduced level of activity is expected to be
primarily related to conventional shallow gas drilling and drilling for
Coalbed Methane, and not exploration drilling. Because the key driver for the
demand for seismic data is exploration drilling activity, the Company expects
that any reduced levels in shallow gas development drilling activity would
have minimal impact on the Company in 2007.
For the past two years Pulse has significantly improved its balance sheet
and the Company is now in an excellent position to take advantages of growth
opportunities. We increased the size of our 3D data library by 40% in 2005 and
the recent signing of a Letter of Intent to purchase over 14,000 kilometres of
high-value foothills 2D data which is scheduled to close November 15, 2006
will add significantly to the value of our 2D data library. This foothills
data is high quality, in highly prospective exploration areas and there is
little competing data. For the previous owners, over the last five years, this
data set has averaged $10 million in cash data licensing revenue per year.
This 2D data will be incorporated in the Pulse seismic data library with
minimal incremental sales or marketing costs going forward. Therefore we
expect this dataset to significantly contribute to the future free cash flow
of this segment.
As a result of this significant 2D data acquisition, the Company has
chosen not to conduct any participation surveys in Q4 2006. Our goal is to
increase the worth of our seismic data library by adding high value data and
we are ideally positioned to aggressively pursue this goal.
The comprehensive restructuring of Terrapoint outlined in our Q2 2006
interim report is having the desired effect and enhances our confidence in the
future of this division. Our revamped sales and marketing team has steadily
increased our sales, resulting in a sold backlog of approximately $2.2 million
at the end of the third quarter that is expected to be performed during the
fourth quarter. LiDAR revenue in September was over $1.1 million, October
revenue was down slightly due to weather and we expect to complete the
majority of the backlog by year end. Over the last year implementation of
standard operating procedures, new field systems and processing hardware and
software has improved our data processing throughput significantly and field
system down time, due to system failure, has been reduced by over 90 percent.
The restructuring of the R&D department has resulted in internal cost savings,
improved data throughput, field system efficiency and innovative solutions for
our clients. Our terrestrial-based mobile corridor mapping system "Titan",
which was recently featured on The Discovery Channel, will begin field tests
in mid November. The Titan system has already generated significant industry
interest which is expected to open an entirely new market for Terrapoint. The
Company's improved efficiency, market intelligence and entry into new markets
have brought us to the point where Terrapoint now has the opportunity to
invest in the acquisition of large long-life high value databases that will
provide the Company with continued recurring revenue similar to our seismic
division. We believe that the rebuilding of Terrapoint has resulted in a
dynamic innovative business capable of profitable growth.
CORPORATE PROFILE
Pulse is a Calgary-based company with two operating units: Pulse Seismic
specializing in acquiring, marketing and licensing seismic data to the western
Canadian energy sector, and Terrapoint focusing on acquisitions and processing
of digital elevation and image data (also referred to as LiDAR) to diverse
markets. Through these two operating units, Pulse Seismic and Terrapoint, the
Company has evolved into an industry leader providing Better Information
Faster(TM).
Pulse trades on the Toronto Stock Exchange under the symbol PSD.
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 2005 Annual Report
and 2006 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.
