Lonestar West Inc. (TSXV: LSI) has reported a strong first quarter, with revenues and income both up from the same period last year.
The Sylvan Lake-based company, which operates 89 hydrovac and vacuum trucks in Western Canada, California, Oklahoma, Texas and Kansas, generated $11.5 million in revenues during the three months ended March 31. That was up 31 per cent from the same period in 2013, when revenues were $8.8 million.
Net income for the quarter was $835,000, a 9.5 per cent improvement over the $762,000 earned a year earlier.
“We had a strong first quarter and are pleased with our growth in revenues and EBITDAC (earnings before interest, taxes, depreciation, amortization and stock-based compensation expense),” said James Horvath, CEO and president of Lonestar West. “We are beginning to see the benefits of our fleet and base expansion and believe that we will see improved economics as critical mass is achieved in our United States operations.”
The company said that subsequent to March 31 it entered into a letter of intent to purchase an oilfield services company in Western Canada. The purchase price is $9.2 million, to be paid through a combination of common shares in Lonestar West, cash and a promissory note. The deal is conditional upon board and regulatory approvals, among other things.
Lonestar recently changed its financial year-end from June 30 to Dec. 31. The March 31 results are the first quarter reported since the change.