Leader Energy Services Ltd. (fka LDRXF)

[10 bagger]

LDRXF.pk.. $0.3592 +$0.1907,, +113%..

Have no news.. But I'm a happy camper.. hank

10 bagger Share Thursday, May 27, 2010 11:08:12 AM
Re: kozuh post# 6344 Post # of 7035

LEA.v

Yes they did a reverse and as I type I am in the process of trying to double up.. Obam's speech will drive more drilling funds to Cda. IMO.. hank

So far:
05/27/10 11:09 AM EDT Buy 6000 LDRXF Executed @ $0.2237 Details | Edit
05/27/10 11:04 AM EDT Buy 5000 LDRXF Executed @ $0.2238 Details | Edit
05/27/10 11:04 AM EDT Buy 14000 LDRXF Executed @ $0.2237 Details | Edit
05/27/10 11:04 AM EDT Buy 500 LDRXF Executed @ $0.2237 Details | Edit

10 bagger Share Wednesday, May 26, 2010 12:35:04 PM
Re: None Post # of 3080

LDRXF.pk.. LEA.to $0.1789 Added to I-box..

Just bought:

05/26/10 12:31 PM EDT Buy 8000 LDRXF Executed @ $0.1789 Details | Edit
05/26/10 12:31 PM EDT Buy 388 LDRXF Executed @ $0.1789 Details | Edit
05/26/10 12:22 PM EDT Buy 2500 LDRXF Executed @ $0.1789 Details | Edit
05/26/10 12:22 PM EDT Buy 2000 LDRXF Executed @ $0.1789 Details | Edit
05/26/10 12:16 PM EDT Buy 2500 LDRXF Executed @ $0.174 Details | Edit
05/26/10 12:15 PM EDT Buy 10000 LDRXF Executed @ $0.174 Details | Edit

.. I spoke to the company.. This is operating results for the three-month period ended March 31, 2010., and earnings from here till next winter should be flat.. 1X PE.. I like the odds.. hank

This Guy is worth the call.. hank

Leader Energy Services Ltd.
Jason Krueger, CFA
Director, Investor Relations
[phone]
[e-mail]

Company Symbols: OtherOTC:LDRXF, TorontoVE:LEA


CALGARY, ALBERTA--(Marketwire - May 26, 2010) - Leader Energy Services Ltd. (" Leader" or the "Company") (TSX VENTURE:LEA) today announced financial and operating results for the three-month period ended March 31, 2010.

Performance Summary (000's except per share amounts)

---------- -----------------------------
Quarter ended Year
over
Year over Year
March 31, March 31, Year %
2010 2009 $ Change Change
---------- -----------------------------

Revenue - continuing operations $ 8,219 $ 6,120 $ 2,099 34%
Operating Expenses - continuing
operations 3,859 3,351 508 15%
General and Administrative -
continuing operations 833 692 141 20%
Provision for Bad Debts - continuing
operations - 28 (28) (100)%
---------- -----------------------------
EBITDAS - continuing operations(i) 3,527 2,049 1,478 72%
Amortization - continuing
operations 544 553 (19) (2)%
Stock Compensation - continuing
operations 10 - 10 -
Interest - continuing operations 802 816 (14) (2)%
Other - continuing operations 13 7 6 86%
---------- -----------------------------
Net Income - continuing operations 2,158 673 1,485 221%
---------- -----------------------------
Net Income/(Loss) - discontinued
operations 51 (43) 94 318%
---------- -----------------------------
Net Income 2,209 630 1,579 251%
---------- -----------------------------
- per share (basic) $ 0.17 $ 0.05 $ 0.12 240%
---------- -----------------------------
- per share (diluted) $ 0.15 $ 0.05 $ 0.10 200%
---------- -----------------------------
---------- -----------------------------

(i) EBITDAS means earnings from continuing operations before interest,
taxes, amortization, and stock based compensation. Readers are cautioned
that EBITDAS is generally regarded as an indirect measure of operating
cash flow, and, as such, the Company believes it is a significant
indicator of success of public companies, and is particularly relevant
to readers within the investment community. EBITDAS is not a measure
that has a standardized meaning prescribed by Canadian GAAP, and
accordingly may not be comparable to similar measures used by other
companies.



Overview

Headquartered out of Calgary, Alberta, Leader Energy Services Ltd.'s ("Leader" or the "Company") operations are managed from its operations base in Grande Prairie, Alberta. From this base the Company offers well stimulation services across the Western Canadian Sedimentary Basin ("WCSB").

In the first quarter of 2010 revenues were well above that of the prior year's first quarter and exceeded forecast. In conjunction with the first quarter of the year typically being the most active quarter for the Company, the results from the 2010 first quarter were further improved as a result of the Company focusing its service activities on deeper and horizontal wells requiring larger diameter pipe and continued close management of costs and overhead expenses.

Operating costs totalled $3.9 million during the first quarter of 2010 versus $3.4 million during the comparable period in 2009. Operating costs as a percentage of revenues decreased from 55% in the 2009 first quarter to 47% in the 2010 first quarter. With higher revenues and operating efficiencies resulting in decreased operating expenses as a percentage of revenues, field profit for the first quarter of 2010 showed a significant 57% improvement over the comparable period in 2009.

The Company's net income from continuing operations of $2.2 million for the first quarter of 2010 was a significant improvement over the prior year's first quarter net income from continuing operations of $673,000. This improvement was due to a $1.5 million increase in EBITDAS in the current year first quarter in comparison to the prior year's first quarter. The improvement in EBITDAS was due to higher revenues in the current year first quarter coupled with operating costs as a percentage of revenues decreasing from 55% in the 2009 first quarter to 47% in the 2010 first quarter. The increased revenues and improved operating costs were partially offset by an increase in general and administrative costs.

Net income for the quarter ended March 31, 2010 was $2.2 million with basic and diluted earnings per share being $0.17 and $0.15 respectively. This is a marked improvement over net income of $630,000 for the quarter ended March 31, 2009 where both basic and diluted earnings per share were $0.05.

The Company has yet to secure a credit facility to replace the facility which was paid out in mid 2008. Based on the Company's internal operating cash forecast, if the assumptions in the forecast hold true, access to additional financing does not appear to be necessary. However, given the uncertainty present in the current economic climate the Company will continue to pursue possible credit facility opportunities and hopes to secure a credit facility in the near future.

Liquidity and Capital Resources

At March 31, 2010 the Company held cash and cash equivalents of $1.0 million and positive working capital of $4.2 million as compared to $1.0 million and $ 1.8 million respectively for the December 31, 2009 year ended. For the period ended March 31, 2010 cash flow from continuing operations before changes from non-cash working capital was positive $3.2 million, an improvement of $1.8 million over the previous year's period ended March 31, 2009. The improvement in working capital and cash flow from continuing operations before changes from non-cash working capital can both be attributed to the positive results from operations.

Outlook

Management is pleased with the results of operations and will continue to take action wherever possible to increase the Company's revenues and reduce administrative and operational costs. Although Leader has surpassed internal operational and financial projections year to date, a number of challenges continue to confront the oilfield service industry in western Canada. Recognizing that these challenges exist, the Company remains cautiously optimistic with respect to operating results for the balance of the year. Demand for Leader's services has shown an increase relative to last year at this time. The Company believes that demand for its services will continue to strengthen during 2010.

Other

Additional information can be found on SEDAR at www.sedar.com or the Company web site at www.leaderenergy.com. The number of common shares issued and outstanding at the date hereof was 13,265,000 which does not include 1,244,000 unexercised stock options.

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "estimate", "believe", " likely", "will", or estimates of business activity, and similar expressions and statements relating to matters that are not historical facts, are forward looking statements. Such statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Leader to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Factors include commodity prices, demand for oil and gas related products and service, competition, political and economic conditions, demand and acceptance of new products and ways of doing business, changes in laws and regulations to which Leader is subject, and the ability to attract and retain key personnel.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

FOR FURTHER INFORMATION PLEASE CONTACT:

Leader Energy Services Ltd.
Rod Hauser
President & CEO
[phone]
[e-mail]
or
Leader Energy Services Ltd.
Jason Krueger, CFA
Director, Investor Relations
[phone]
[e-mail]
or
Leader Energy Services Ltd.
Don Baird, CA
Chief Financial Officer
[phone]
[e-mail]