Monday, December 1, 2014

Intercept Energy Services, Inc. (IESCF) Reports Significant Q3, YTD Revenue Growth

Intercept Energy Services, an oilfield services firm specializing in frac water heating and various other services, grew its third-quarter gross revenues by 121% – an achievement marked by the company’s entry into the U.S. and by increasing its number of operating Heating Units from three to five.

Revenues for the three months ended September 30, 2014, were $0.8 million compared to $0.3 million reported in the comparable quarter of last year. On a year-to-date basis, 2014 revenues increased 86% to $2.6 million compared to $1.4 million for the first nine months of the year prior.

The company trimmed its third-quarter net loss by 17% to $0.5 million, excluding other items, compared to a net loss of $0.6 million, excluding other items, in the same quarter last year. On a year-to-date basis, Intercept reported a 2014 net loss of $1.6 million, excluding other items, compared to a net loss of $1.4 million, excluding other items, compared to the same nine months of last year. The company attributes the deeper net loss for the year-to-date period primarily to an increase in overall operation costs.

Net income for the third quarter of 2014 was $2.2 million compared to a net loss of $0.7 million for the same quarter last year. On a year-to-date basis, 2014 net income was $0.9 million compared to a net loss of $1.5 million compared to the same period last year, mainly due to the one-time gain in the current quarter of $2.9 million on extinguishment of royalty obligation.

Intercept successfully refinanced its capital lease facility during the third quarter of 2014, which resulted in repaying its existing capital lease obligation due to a major Canadian bank in full of $1.5 million and establishing a $2.5 million new capital lease facility repayable over five years. Intercept successfully paid down part of its $1 million notes payable revolving credit facility included in loans and borrowings; the balance at the end of September 30, 2014, was $0.5 million. An additional $0.2 million was drawn from this credit facility subsequent to the third quarter for general working capital purposes.

Commenting on quarterly financial results, Intercept CFO Swapan Kakumanu stated, “Our third quarter financial results show a greater quarter-over-quarter improvement on revenue growth compared to the same quarters of previous years. By successfully resolving the royalty liability obligation and refinancing the capital leases during the third quarter, the corporation has a more flexible and stronger balance sheet to work with.”

Company CEO Keith Morlock added that moving forward Intercept is pursuing additional expansion opportunities.

“We are currently evaluating and identifying new opportunities for the Corporation that will enable us to expand our operations throughout North America,” Morlock stated. “I am currently working with the board and our management team to develop a strategy of growth, profitability and diversification which is expected to provide a foundation for increased revenues and a positive bottom line.”

As part of its third-quarter financial results, Intercept announced that it has retained QualityStocks to manage the company’s investor relations services.

“Company growth and market penetration are obviously leading objectives in the IES plan. In addition to these commitments we want to make sure our shareholders are in the loop on our operations, objectives and progress,” stated Morlock. “By partnering with QualityStocks, we plan to leverage new communication and marketing strategies that will support each facet of our business plan and fully support corporate value and expansion.”

For more information, visit www.InterceptEnergy.ca

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