Marketwired

Formation Fluid Announces Profitable Quarterly Results

Marketwired

CALGARY, ALBERTA--(Marketwired - Nov 27, 2014) - Formation Fluid Management Inc. (TSX VENTURE:FFM) ("Formation Fluid" or the "Company") announces its consolidated financial results for the three months ended September 30, 2014 and 2013 and is pleased to report profitable operations for the three months ended September 30, 2014.

FIRST QUARTER 2014 KEY TAKEAWAYS

  • Gross margin of 65%;

  • Cash position of over $2.4 million;

  • Working capital of over $2.5 million;

  • Shareholders' equity of over $6.3 million.

FINANCIAL SUMMARY

Three months ended September 30,

2014

2013

Revenues

$

1,154,480

$

2,545,537

EBITDA (1)

$

478,924

$

1,435,256

Diluted per share

$

0.01

$

0.03

EBITDA as % of revenues (1)

41

%

56

%

Funds from operations (1)

$

478,924

$

1,420,773

Diluted per share

$

0.01

$

0.03

Net earnings

$

145,931

$

1,374,375

Basic per share

$

0.00

$

0.04

Diluted per share

$

0.00

$

0.03

Property & equipment additions (disposals); net cash

$

683,671

$

(18,150

)

As at September 30,

2014

2013

Weighted average shares outstanding:

Basic

51,126,421

38,904,243

Diluted

61,838,597

38,904,243

Working capital

$

2,567,384

$

513,159

Total assets

$

7,040,940

$

5,286,257

Loans excluding current portion

$

470,455

$

NIL

Total shareholders' equity

$

6,381,131

$

3,955,694

(1)

Refer to Non-GAAP discussion below.

Business Outlook

The Company expects to see continued strong growth as a result of the following factors:

  • Fabrication of an additional RO unit is complete pending commissioning, which now provides the company with two sets of equipment. Manufacturing is in progress of additional equipment including an "emergency response" unit;

  • The successful completion of two major remediation projects has demonstrated the efficiency and robustness of the Company's equipment, allowing FFT to offer clients the ability to clean saline spills as well as produced and frac water returns to potable water standards;

  • The industry's continued focus on contaminated water issues such as tailing ponds is providing the company with expanding market opportunities;

  • An aggressive marketing program in Western Canada and the southern United States has resulted in strong and favorable inquiries from several major producers: and

  • The Company's expanded shop facilities now includes testing facilities allowing the company to provide clients with complete engineering solutions for their water needs.

Financial Results

During the quarter ended September 30, 2014, the Company generated $1,154,480 (2013: $2,545,537) in revenue from water filtration services and incurred field expenses of $400,739 (2013: $960,932) resulting in gross margin of $753,741 (2013: $1,584,605) or 65% (2013: 62 %), and net income of $145,931, $0.00 basic and diluted income per share (2013: $1,374,375; $0.04 basic and $0.03 diluted income per share). EBITDA for 2014 was $208,870 (2013: $1,435,256). Field expenses consist of the direct costs associated with providing the water filtration services generating the Company's revenues.

and

Recommended Stories