DENVER, CO--(Marketwire - Feb 27, 2013) - ENSERVCO Corporation (OTCQB: ENSV), a provider of well-site services to the domestic onshore conventional and unconventional oil and gas industries, today said it expects to report record earnings for the fourth quarter ended December 31, 2012. The results, which are expected to lead to ENSERVCO's first full year of profitability since the Company became public in 2010, come on the strength of previously announced preliminary and unaudited record revenue for both the fourth quarter and full fiscal year.
Record fourth quarter revenue of $11.3 million is expected to lead to fourth quarter operating income of $2.2 million, a positive swing of more than $3.0 million when compared with a loss from operations of $805,000 in the 2011 fourth quarter. Fourth quarter income after tax is expected to be $742,000, versus a loss of $745,000 in the comparable prior-year period. Fourth quarter adjusted EBITDA is expected to increase to $2.8 million from $494,000 in the same quarter a year ago.
For the full fiscal year, record revenue of $31.5 million is expected to lead to operating income of $1.7 million, a positive swing of $3.3 million versus an operating loss of $1.6 million in 2011. After tax income is expected to be $401,000 versus a loss of $1.6 million in the prior year. Full-year adjusted EBITDA is expected to be $4.9 million versus $3.2 million in 2011.
Rick Kasch, president and CFO, said, "Our profit performance during the fourth quarter illustrates the positive impact of our increased heating capacity, recent geographic expansion, and the strong demand we are experiencing in all of our service territories."
Kasch added, "We are off to a very strong start to 2013, as revenue in January was an all-time monthly high of $7.1 million. By comparison, our prior single-month revenue record was $3.8 million, which was achieved in both November and December of 2012. Several of our customers have announced large CapEx budgets for 2013, and they also have indicated a significant amount will be spent on drilling programs in our service territories. We are optimistic that 2013 will be a very strong year for the Company."
These preliminary earnings results are being provided in advance of two investor conferences at which ENSERVCO management will present in the coming days. Tomorrow, ENSERVCO will participate in the Accredited Members Small Cap/Microcap Investment Conference in Las Vegas. On March 12, the Company will participate in the SeeThruEquity Spring Microcap Investor Forum in New York City.
ENSERVCO expects to report audited full-year financial results during the second or third week of March.
*All revenue and earnings results discussed herein exclude discontinued operations (which were immaterial). For the 2012 fourth quarter, full fiscal year 2012 and first month 2013, results are preliminary and unaudited.
|RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST|
|DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS|
|12 Months||12 Months||3 Months||3 Months|
|$ in millions||Ended||Ended||Ended||Ended|
|Adjusted EBITDA (Continuing Operations)|
|Income (Loss) After Tax||$||0.4||$||(1.6||)||$||0.7||$||(0.7||)|
|Add Back (Deduct):|
|Provision for income taxes||0.4||(0.9||)||0.9||(0.3||)|
|Depreciation and amortization||3.0||4.2||0.5||1.1|
|Add Back (Deduct):|
|Loss on disposal of equipment||0.0||0.1||0.3||0.1|
|Adjusted EBITDA (Continuing Operations)||$||4.9||$||3.2||$||2.8||$||0.5|
Note on non-GAAP Financial Measures This press release and the accompanying tables include a discussion of EBITDA and Adjusted EBITDA, which are non-GAAP financial measures provided as a complement to the results provided in accordance with generally accepted accounting principles ("GAAP"). The term "EBITDA" refers to a financial measure that we define as earnings plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management does not utilize in assessing ENSERVCO's operating performance (as further described in the attached financial schedules). None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure. We have reconciled Adjusted EBITDA to GAAP net income in the Consolidated Statements of Operations table at the end of this release.
We intend to continue to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting.
Forward-Looking Statements This news release contains information that is "forward-looking" in that it describes events and conditions ENSERVCO reasonably expects to occur in the future. This forward-looking information includes statements relating to our preliminary, unaudited results for the fourth quarter and full fiscal year ended December 31, 2012. Expectations for the future performance of ENSERVCO are dependent upon a number of factors, and there can be no assurance that ENSERVCO will achieve the results as contemplated herein. Certain statements contained in this release using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond ENSERVCO's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in ENSERVCO's Form 10-K filed on March 30, 2012, in its reports subsequently filed with the Securities and Exchange Commission, all of which are available at www.enservco.com, and in addition to the other risks and caveats included in this press release. It is important that each person reviewing this release understand the significant risks attendant to the operations of ENSERVCO. ENSERVCO disclaims any obligation to update any forward-looking statement made herein.