Operating expenses were 95.2% of revenue or $8.7 million in the quarter compared to 78.0% or $23.6 million in the same quarter last year. The Company's operating margins were higher than historical averages due to the mix of variable and necessary fixed costs incurred compounded by a significant decline to revenues during the quarter. The Company will continue to tightly monitor and adjust all operating costs under its control in an effort to remain competitive during this period of depressed market conditions.

General and administrative expenses were $1.6 million, down $729,000 and representing a 31.8% reduction from the $2.3 million incurred prior year. The significant decline is a result of reduced operations and the Company actively reducing its overhead costs. Included in the Company's general and administrative expenditures are costs incurred in connection with the bid processes, professional fees, corporate wages, burdens and various other overheads, including rents, insurance, travel and administrative supplies that are not charged directly to projects. The Company will balance reducing its overheads while maintaining its business development plans.

Depreciation of property, plant and equipment was $1.7 million and down slightly million from prior year's first quarter. Depreciation is calculated at various declining balance methods across the Company's multiple categories of property, plant and equipment and is used in guiding the annual capital expenditure estimates. Residual values, methods of amortization and useful lives of the assets are reviewed annually and adjusted if appropriate.

During the first quarter the Company recorded a $487,000 impairment on receivables charge relating to a non-core client working in the alternative energy industry who had entered into receivership subsequent to period end.

During the first quarter the Company recognized non-cash stock-based compensation charges of $203,000 relating to options granted prior year. The company anticipates recognizing an additional $0.4 million in stock-based compensation over the next 6 quarters. The non-cash stock-based compensation charge relate to options granted in fiscal 2014 and 2015.

Finance costs of were up $10,000 from prior year's first quarter to $151,000. However, included in the finance costs were $72,000 of amortized deferred transaction cost relating to the establishment of the Company's $115 million senior secured credit facility.

Income tax recovery in the quarter of $0.7 million was at an effective rate of 19.8% which is lower than the enacted tax rates of 26% after appropriate deductions. The decrease over the enacted tax rates relates to both permanent and timing differences being recognized during the quarter.

Net loss in the quarter was $2.9 million (($0.10) per share)) compared to a net income of $1.4 million ($0.05 per share) recognized during the three months ended March 31, 2015. The decrease was a result of significantly reduced levels of work activity compounded by a material decline to operating margins over prior year's first quarter. Results for the first quarter of 2016 were further impacted by an impairment to receivables charge recognized during the period.

Outlook

Activity levels in the oil and gas industry have been materially impacted across Western Canada as a result of the volatility in commodity prices. Although the pricing uncertainty is affecting activity and many projects have been delayed, large oil and gas companies are continuing to request bids on significant projects, both LNG-related and not. With a solid balance sheet, enhanced liquidity and its industry leading health, safety and environmental practices, the Company is in excellent financial shape to address these uncertain times.

The Company will maintain its focus on working with blue chip pipeline owners and operators to carry out their construction and maintenance programs across Canada.

As part of its overall strategy to develop a significant backlog of work and revenue certainty, including seeking larger credit facilities, the Company is seeking out pipeline and facilities construction contracts in connection with the Liquefied Natural Gas (LNG) projects being planned on the west coast of British Columbia, an industry that is anticipated to bring substantial economic activity to British Columbia over the next 30 years. Macro continues to have active discussions with the LNG project owners regarding future pipeline and facilities construction.

The Company's revolving operating facility will provide enhanced flexibility and essential funding support as the Company works to realize on those large-scale potential growth opportunities. The secured letter of credit facility is intended to facilitate the issuance of letters of credit to support qualifying projects.

Macro has also been assisting clients with budget and constructability estimates on fee based recovery arrangements.

If investment decisions continue to be deferred and as a result of market conditions, the Company is anticipating a protracted slower period of business activity over the next 12 to 18 months. The Company expects second quarter revenues to be materially less than its first quarter revenues. However, despite its current operating margin deficiencies the Company expects to return to bottom line positive cash flow activity in the second half of fiscal 2016. Recurring revenues from its existing master service agreements will represent the bulk of activity.

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry. The Company is based in Fort St. John, B.C. 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

Conference call

The Company will host a conference call at 8 am PDT on Wednesday, May 18, 2016 to discuss the 2016 first quarter results. The conference call can be accessed by dialing 1-888-390-0605 and referencing conference ID 39236125.

Forward Looking Statements

Certain statements in this news release regarding the expected terms, closing and intended use of the new credit facilities may include forward-looking information that involves various risks and uncertainties. These risks and uncertainties include the risk that by reason of oil prices, global economic conditions, government regulation of energy and resource companies, weather patterns, terrorist activity, the price and availability of alternative fuels, the availability of pipeline capacity, potential instability or armed conflict in oil-producing regions, material changes in the Company's affairs, the results of due diligence investigations or other circumstances leading to a lack of appetite for the provision of the credit facilities on the part of the prospective lenders, the announced credit facilities are reduced in scope or are not advanced. They also include the risk that the Company is not the successful bidder or is otherwise not able to realize on potential growth opportunities identified by it. These risks and uncertainties may cause actual results to differ from information contained herein, and there can be no assurance that such forward-looking statements will prove to be accurate. These statements are based on the commitment letter in place and the expectations of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's expectations change.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.