EPiC Energy Resources Announces First Quarter 2009 Results
May 15, 2009 11:25:00 AM
Email Story Discuss on ZenoBank
View Additional ProfilesHOUSTON, May 15 /PRNewswire-FirstCall/ -- EPiC Energy Resources, Inc. (OTC Bulletin Board: EPCC) ("EPiC") a provider of engineering management consulting, training and data management services to the energy industry, today announced its financial and operating results for first quarter of 2009.
First Quarter Results:
-- Revenues were $9.0 million for the first quarter of 2009, a 48% decrease
compared to the $17.5 million for the first quarter of 2008.
-- Consulting fee revenue was $7.8 million for the first quarter of
2009, a 4% decrease as compared to $8.1 million for the first
quarter of 2008.
-- Reimbursed materials revenue was $1.2 million for the first quarter
of 2009 as compared to $9.4 million in revenue for the first quarter
of 2008.
-- Loss from Operations was $0.8 million for the first quarter of 2009, as
compared to $0.1 million income for the first quarter of 2008.
-- EBITDA was $0.3 million for the first quarter of 2009, as compared to
$0.6 million for the first quarter of 2008. EBITDA is a non-GAAP
measure and is defined and reconciled to net income later in this press
release. The first quarter 2009 results included non-recurring expenses
of $0.9 million, non-cash expenses of $3.2 million, and a one-time gain
of $2.1 million. Excluding these items, 2009 first quarter EBITDA would
have been $2.3 million.
-- During the first quarter of 2009, EPiC had a net loss of $1.0 million,
or $0.02 per weighted average common shares outstanding, a 19% increase
compared to a net loss of $1.3 million, or $0.03 per share in the first
quarter of 2008. The first quarter 2009 results included non-recurring
expenses of $0.9 million, non-cash expenses of $3.2 million, and a
one-time gain of $2.1 million. Excluding these items, 2009 first quarter
net income would have been $1.0 million.
-- Net cash flows used in operating activities for the three months ended
March 31, 2009 was $0.4 million. Net cash flows used in financing
activities for the three months ended March 31, 2009 was $3.2 million,
all of which was related to debt payments.
-- First Quarter Non-Cash and One-Time Items (in thousands)
Q1 2009
Net Loss $(1,020)
Non-cash expenses included in net loss:
Depreciation and amortization 1,122
Amortization of debt discount and debt issuance
costs 1,499
Stock based compensation expense 292
Change in fair value of derivative 205
Loss on disposal of property and equipment 83
Total non-cash expenses $3,201
One-time gain included in net loss:
Gain on sale of oil and gas properties $2,110
Non-recurring expenses included in net loss:
Compensation/Benefits $620
Professional Fees 220
General & Administrative 90
Total non-recurring expenses $930
About EPiC
EPiC Energy Resources is a Houston based integrated energy services company. EPiC provides consulting, engineering, construction management, operations, maintenance, specialized training and data management services focused primarily on the upstream and midstream energy infrastructure. Services are provided through Pearl, a diversified engineering and energy services company; Carnrite, a management consulting company focused on providing strategic and operational consulting services to the broad energy industry; and EIS, a global training and data management services company. EPiC is headquartered at 1450 Lake Robbins Drive, Suite 160, The Woodlands, Texas 77380. Office - 281-419-3742, www.1epic.com.
Forward-Looking Statements
Certain statements included in this release constitute forward-looking statements. These forward-looking statements are based on management's belief and assumptions derived from currently available information. Although EPiC Energy Resources ("EPiC") believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Actual results could differ materially from forward-looking statements expressed or implied herein as a result of a variety of factors including, but not limited to: a decline in the price of, or demand for, oil and gas, demand for EPiC's services, loss or unavailability of key personnel, inability to recruit or retain personnel, competition for customers and contracts, various potential losses associated with fixed-price contracts, general economic conditions; and other financial, operational and legal risks and uncertainties detailed from time to time in EPiC's SEC filings. EPiC does not undertake any obligation to publicly update forward-looking statements contained herein to reflect subsequent events or circumstances.
EBITDA has limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA excludes some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include:
-- EBITDA does not reflect its current or future requirements for capital
expenditures or capital commitments;
-- EBITDA does not reflect changes in, or cash requirements necessary to
service interest or principal payments on, its debt;
-- EBITDA does not reflect income taxes;
-- Although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized will often have to be replaced in the
future, and EBITDA does not reflect any cash requirements for such
replacements; and
-- Other companies in its industry may calculate EBITDA differently than
Epic does, limiting its usefulness as a comparative measure.
The following table presents a reconciliation of net income to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
Three months ended March 31,
2009 2008
(unaudited) (unaudited)
Reconciliation of Net loss to EBITDA:
Net loss $(1,020) $(1,262)
Income (loss) from discontinued
operations (1,948) 2
Depreciation and amortization 1,122 457
Interest Expense 2,083 1,400
Derivative Loss 205
Other (income) expenses (95) (28)
EBITDA $347 $569
-Financials to Follow-
EPIC ENERGY RESOURCES INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, December 31,
2009 2008
ASSETS
Current Assets
Cash and cash equivalents $1,184 $4,785
Accounts receivable:
Billed, net of allowance of $6,549 and
$6,570, respectively 12,961 10,690
Unbilled 1,283 388
Prepaid expenses and other current assets 2,063 2,027
Total current assets 17,491 17,890
Property and equipment, net 4,690 5,136
Assets held for sale:
Proved oil and gas properties, (full cost
method), net of accumulate depletion and
impairments of $0 and $9,257,
respectively - 1,332
Other mineral reserves - 783
Other asset held for sale 3,875 3,875
Other assets 53 45
Debt issuance costs, net 1,438 1,548
Goodwill 18,837 18,837
Other Intangible assets, net 11,948 12,666
Total assets $58,332 $62,112
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $3,927 $5,404
Accrued liabilities 2,427 3,762
Deferred revenue 8,308 2,684
Customer deposits 4,388 4,505
Current liabilities associated with
assets held for sale 341 4,383
Current portion of long term debt 6,028 7,504
Total current liabilities 25,419 28,242
Long-term liabilities associated with
assets held for sale 3,867 3,949
Long-term debt 5,981 6,372
Derivative liability 992
Deferred tax liability 1,775 1,775
Total liabilities 38,034 40,338
STOCKHOLDERS' EQUITY
Common stock, no par value: 100,000,000
authorized; 44,105,481 and 43,495,160
shares issued and outstanding,
respectively 33,639 41,783
Additional paid-in capital 1,911 15,014
Accumulated deficit (15,252) (35,023)
Total stockholders' equity 20,298 21,774
Total liabilities and stockholders'
equity $58,332 $62,112
EPIC ENERGY RESOURCES INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Three months ended March 31,
2009 2008
REVENUES
Consulting fees $7,774 $8,082
Reimbursed expenses 1,240 9,392
Total revenues 9,014 17,474
OPERATING EXPENSES
Reimbursed expenses 1,044 5,974
Compensation and benefits 5,248 6,090
General and administrative 842 2,220
Professional and subcontracted services 1,221 2,223
Occupancy, communication and other 312 398
Depreciation, amortization and depletion 1,122 457
Total operating expenses 9,789 17,362
Income (loss) from operations (775) 112
OTHER INCOME (EXPENSE)
Derivative loss (205) -
Interest and other income (expense) 95 28
Interest expense (2,083) (1,400)
Total other expense, net (2,193) (1,372)
Loss from continuing operations (2,968) (1,260)
DISCOUNTINUED OPERATIONS
Loss from operations of oil and gas segment (162) (2)
Gain on sale of oil and gas properties 2,110 -
Income (loss) from discontinued operations 1,948 (2)
Net Loss $(1,020) $(1,262)
LOSS PER COMMON SHARE - Basic and Diluted $(.02) $(.03)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -
Basic and Diluted 43,969,854 42,948,921
SOURCE EPiC Energy Resources, Inc.
----------------------------------------------
Michael E. Kinney
Chief Financial Officer of EPiC Energy Resources
Inc.
+1-281-419-3742
mkinney@1epic.com; or Michael Sclafani
President of Wall Street Communications Group
+1-303-541-0970
msclafani@1epic.com
for EPiC Energy Resources
Inc.
