|Summary of financial results|
|(thousands of dollars except per share amounts)|
|Net earnings per share||$0.21||$0.11||$0.61||$0.32|
|Weighted average common shares outstanding (thousands)||
Note 1 - References to EBITDA are to net income from continuing operations before interest, taxes, amortization and impairment charge. EBITDA is not an earnings measure recognized by International Financial Reporting Standards ("IFRS") and does not have a standardized meaning prescribed by IFRS. Management believes that EBITDA is an appropriate measure in evaluating the Company's performance. Readers are cautioned that EBITDA should not be construed as an alternative to net income (as determined under IFRS) as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) as a measure of liquidity and cash flow. The Company's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, the Company's EBITDA may not be comparable to similar measures used by other issuers.
- Revenues increased from the second quarter last year due in part to revenues from the new business acquired in November 2012
- EBITDA and net income were above the second quarter of last year due to increased activity and improved performance on jobs
Second quarter results
Consolidated revenue was $37.3 million compared to $27.8 million in the second quarter last year. Most of the revenue in the quarter was derived from three larger facility and pipeline projects as well as maintenance and pipeline integrity work for two other customers. In the second quarter last year, the Company worked on two larger facility project and pipeline and related facility jobs for two other customers.
Operating expenses, as a percent of revenue, fell in the quarter compared to the same quarter last year. This reduction was due to improved bid margins and a greater percentage of non fixed-price work.
General and administrative expenses were $2.2 million, up from $1.5 million last year, but consistent with levels of the most recent two quarters. Costs were higher this year due mainly to additional staff costs and professional fees.
Total depreciation expense of $1.8 million increased by $0.7 million due to mainly to the depreciation on the additional assets obtained in the November 2012 acquisition.
Interest expense of $0.3 million was higher than last year due to higher levels of debt.
Income tax expense in the quarter of $2.0 million was at an effective tax rate of 25.6% which approximates the statutory rate.
Net income was $5.7 million ($0.21 per share) compared to $2.6 million ($0.11 per share).
The Company is expecting revenues in the third quarter to be above that recorded in the third quarter last year, after taking into account the expected additional revenues resulting from the November 2012 acquisition. The Company continues to actively bid new jobs and look for new opportunities. The Company is encouraged by the prospect of significant pipeline infrastructure projects in B.C. and Alberta in the short and medium term.
Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry. The Company's corporate office is in Calgary, Alberta. Its shares are listed on the TSX Venture Exchange under the symbol MCR. Information on the Company's principal operating unit, Macro Industries Inc., can be found at www.macroindustries.ca.