FINANCIAL HIGHLIGHTS | ||||||||
(000’s Cdn Dollars, except per share data) | Q2'20 | Q2'19 | YTD '20 | YTD'19 | ||||
Revenues | 3,007 | 4,675 | 6,633 | 8,604 | ||||
Gross Profit | 923 | 1,356 | 2,866 | 1,981 | ||||
Gross Margin (%) | 31 | % | 29 | % | 31 | % | 23 | % |
EBITDAS (loss) | 351 | 629 | 910 | 629 | ||||
Net earnings (loss) | (1,160 | ) | (319 | ) | (1,956 | ) | (1,425 | ) |
Earnings (loss) per share - basic | (0.04 | ) | (0.01 | ) | (0.07 | ) | (0.01 | ) |
Earnings (loss) per share - diluted | (0.04 | ) | (0.01 | ) | (0.07 | ) | (0.01 | ) |
Highlights for Q2’20
- An unseasonably wet summer continued into Q2 and further delayed the start of many projects. Activity in certain regions of
Alberta came to a complete halt due to wet and muddy conditions, which is uncommon for Q2. Customer activity has been, and will continue to be, a significant impact on company performance. - Even with the new production contracts with additional customers which was announced in Q1 wasn’t enough to offset the impact of the weather.
- Revenues are down about
$1.6M from the same period last year. Sustained efforts on lowering operating costs and the capitalization of the right of use assets contributed to a YTD gross profit margin of 31% vs 23% at the same period last year.
- EBITDA was impacted by the decreasing revenue drop in Q2 however the YTD EBITDA was up 64% compared to the same period last year.
- Amortization has increased by 268 from Q2’20 and Q2’19 of which
$225k of the increase is related to right-of-use asset amortization
- Loss on disposal increased by
$217k in Q2’20 from Q2’19. The Corporation continues to assess potential equipment for sale to reduce debt exposure.
Outlook
The oil and natural gas industry in western
The downward pricing momentum experienced at the end of 2018, along with activity being restricted by limited takeaway capacity and production curtailments, has resulted in oil and gas companies reducing their budgeted capital expenditures and drilling programs for 2019.
Looking ahead to 2020, we remain optimistic on western
Dalmac will continue to drive cost reductions through the Company to assist in offsetting any pricing pressures and reduced activity. With the diversification of the Company’s services, streamlining of our operations and cash management measures, management is confident in the Company’s ability to navigate in a difficult and price sensitive environment. Dalmac continues to focus on cost reductions and spending controls while striving towards maximizing profitability and optimizing efficiencies over the course of the ongoing year.
For more information contact:
Tel: 780-988-8510
Email: jbabic@dalmac.ca
Statements throughout this report that are not historical facts may be considered ‘forward looking statements. Such statements are based on current expectations that involve risks and uncertainties, which could cause actual results to differ from those anticipated. Important factors that can cause anticipated outcomes to differ materially from actual outcomes include the impact of general economic conditions, industry conditions, competition from other industry participants, volatility of petroleum prices, the ability to attract and retain qualified personnel, changes in laws or regulation, currency fluctuations, continued ability to access capital from available facilities and environmental risks. References to “Dalmac’, the “Corporation”, “Company”, “us”, “we”, and “our” mean
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