All financial figures are in Canadian dollars unless noted otherwise
CALGARY, Aug. 11, 2011 /CNW/ - Gibson Energy Inc. ("Gibson or the
"Company"), TSX: GEI, announced today its financial and operating
results for the second quarter of 2011.
Segment profit1 increased by 124% to $48.2 million in the three months ended June 30,
2011 from $21.5 million in the three months ended June 30, 2010, and by
78% to $114.7 million in the six months ended June 30, 2011 from $64.4
million in the six months ended June 30, 2010, with increases across
all of the Company's operating segments. The key segment highlights
were:
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Significant increase in Terminals and Pipelines segment profit largely
due to increased activity through the Hardisty Terminal and increased
profits from Custom Terminals;
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Sizeable increase in Truck Transportation segment profit primarily
driven by the impact of the Taylor acquisition in 2010;
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Increase in Propane and NGL Marketing and Distribution segment profit
from both retail and wholesale components;
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Increased margins for tops and distillate resulting in an increase in
Processing and Wellsite Fluids segment profit; and
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Widening differentials and rising prices resulting in a substantial
increase in Marketing segment results.
Adjusted EBITDA2 increased by 183% to $42.1 million in the second quarter of 2011
compared to $14.9 million in the second quarter of 2010. Adjusted
EBITDA in the six months ended June 30, 2011 increased by 87% to $99.1
million compared to $53.1 million in the six months ended June 30,
2010. Pro Forma Adjusted EBITDA3 for the twelve months ended June 30, 2011 was $199.0 million.
Cash provided by operations in the three and six months ended June 30,
2011 was $23.5 million and $87.1 million, respectively, compared to
$20.3 million and $43.7 million in the three and six months ended
June 30, 2010, respectively.
"Our suite of integrated assets continues to benefit from favorable
crude oil and liquids industry fundamentals" said Stew Hanlon,
President and Chief Executive Officer. "Gibson business segments all
produced solid results in the second quarter even though areas such as
trucking, processing and wellsite fluids and propane tend to be
negatively impacted by seasonality issues in the spring."
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(1)
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Segment profit is defined as revenue minus (i) cost of sales; and (ii)
operating costs. It excludes depreciation, amortization, impairment
charges, stock based compensation and corporate expenses.
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(2)
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Adjusted EBITDA is defined as consolidated net income (loss) before
interest expense, income taxes, depreciation, amortization, accretion,
other non-cash expenses and charges deducted in determining
consolidated net income (loss), including movement in the unrealized
gains and losses on the Company's financial instruments, stock based
compensation expense, impairment of goodwill and intangible assets, and
non-cash inventory write-downs. It also takes into account the impact
of foreign exchange movements in the Company's U.S. dollar denominated
long-term debt, management fees, debt extinguishment costs and other
adjustments that are considered non-recurring in nature.
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(3)
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Pro Forma Adjusted EBITDA differs from Adjusted EBITDA in that it also
includes the pro forma effect of acquisitions that took place in each
fiscal year as if the acquisitions took place at the beginning of the
fiscal year in which such acquisitions occurred.
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Corporate Highlights for the Three and Six Months Ended June 30, 2011:
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On January 7, 2011, the Company completed the disposition of its
Edmonton North Terminal to Pembina Midstream Limited Partnership for
consideration of approximately $54.3 million, realizing a gain on the
sale of $20.4 million. Contribution to 2010 segment profit by the
Edmonton North Terminal was not material. The terminal was a remotely
operated facility that no longer strategically fit our needs. As part
of the consideration received, the Company secured important pipeline
assets and connections that will provide access to crude oil streams
within the Edmonton area, thereby allowing the Company to expand and
grow its Edmonton South Terminal;
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On June 15, 2011, the Company completed an initial public offering of
its common shares for gross proceeds of $500.0 million and entered into
a series of transactions to refinance its existing indebtedness,
whereby the Company entered into a new senior secured first lien term
loan facility in an aggregate principal amount of U.S.$650.0 million
with a term of seven years, and a revolving credit facility of up to
U.S.$275.0 million with a term of five years; and
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In the six months ended June 30, 2011, the Company's internal growth
projects included: the expansion of its truck transportation fleet; the
continued expansion of its Canwest Propane truck fleet and tankage; and
the construction of new tankage and pipeline connections at both its
Hardisty Terminal and its Edmonton South Terminal. No acquisitions
were completed in the six months ended June 30, 2011.
"In the first half of 2011, we made significant progress in growing our
asset base and strengthening the Company's balance sheet." said Mr.
Hanlon. "Going forward, we expect to continue with our long-range
strategic plan to evaluate organic growth opportunities and potential
acquisitions of complementary midstream businesses."
2011 Second Quarter Conference Call
A conference call to discuss Gibson's second quarter results will be
held at 7:00 a.m. MT (9:00 a.m. ET) on Thursday, August 11, 2011 for
interested investors, analysts and media representatives.
The conference call dial-in numbers are:
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1-877-353-9586 from Canada and the US;
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403-532-8075 from Calgary and International;
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Participant Pass Code: 45954 #.
A live webcast of the conference call can be accessed by entering http://events.digitalmedia.telus.com/gibsons/081111/index.php in your web browser. Shortly after the call, an audio archive will be
posted on the Investor Relations and Media section of the Company's
website at www.gibsons.com.
MD&A, Financial Statements & Notes
The Management's Discussion and Analysis and the condensed Consolidated
Financial Statements provide a detailed explanation of Gibson's
operating results for the three and six months ended June 30, 2011 as
compared to the three and six months ended June 30, 2010. These
documents are available at www.gibsons.com and at www.sedar.com.
Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking statements. These statements relate to future events or
the Company's future performance. All statements other than statements
of historical fact are forward-looking statements. The use of any of
the words ''anticipate'', ''plan'', ''contemplate'', ''continue'',
''estimate'', ''expect'', ''intend'', ''propose'', ''might'', ''may'',
''will'', ''shall'', ''project'', ''should'', ''could'', ''would'',
''believe'', ''predict'', ''forecast'', ''pursue'', ''potential'' and
''capable'' and similar expressions are intended to identify
forward-looking statements. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. No assurance can be given that these
expectations will prove to be correct and such forward-looking
statements included in this news release should not be unduly relied
upon. These statements speak only as of the date of this news release.
In addition, this news release may contain forward-looking statements
and forward-looking information attributed to third party industry
sources. Actual results could differ materially from those anticipated
in these forward-looking statements as a result of numerous risks and
uncertainties including, but not limited to, the risks and
uncertainties described in "Forward-Looking Statements" and "Risk
Factors" included in the Company's Supplemented Prep Prospectus dated
June 7, 2011 as filed on SEDAR and available on the Gibson website at www.gibsons.com.
This news release refers to certain financial measures that are not
determined in accordance with Canadian generally accepted accounting
principles ("Canadian GAAP"). Adjusted EBITDA and Pro Forma Adjusted
EBITDA are not measures recognized under International Financial
Reporting Standards ("IFRS") or Canadian GAAP and do not have
standardized meanings prescribed by IFRS or Canadian GAAP. Management
considers these to be important supplemental measures of the Company's
performance and believes these measures are frequently used by
securities analysts, investors and other interested parties in the
evaluation of companies in its industries with similar capital
structures. See ''Summary of Quarterly Results" in the Company's MD&A
for a reconciliation of EBITDA to net income (loss), the IFRS and
Canadian GAAP measure most directly comparable to EBITDA, and for a
reconciliation of Adjusted EBITDA and Pro Forma Adjusted EBITDA to
EBITDA. Investors are encouraged to evaluate each adjustment and the
reasons the Company considers it appropriate for supplemental analysis.
Investors are cautioned, however, that these measures should not be
construed as an alternative to net income (loss) determined in
accordance with IFRS or Canadian GAAP as an indication of the Company's
performance.
Second Quarter - Selected Financial Highlights
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Three months ended June 30,
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Six months ended June 30,
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2011
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2010
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2011
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2010
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(in thousands)
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Segment Profit:
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Terminals and Pipelines
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$17,075
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$7,461
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$33,811
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$15,843
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Truck Transportation
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13,177
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11,382
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29,413
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21,004
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Propane and NGL Marketing and Distribution
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4,660
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4,092
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22,208
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17,267
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Processing and Wellsite Fluids
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3,777
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573
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14,905
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9,716
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Marketing
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9,501
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(2,046)
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14,327
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588
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Total Segment Profit
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48,190
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21,462
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114,664
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64,418
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Statement of Cash Flows Data:
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Cash flows provided by (used in):
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Operating Activities
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$23,532
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$20,271
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$87,103
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$43,652
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Investing Activities
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(34,331)
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(164,966)
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1,775
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(195,347)
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Financing Activities
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35,557
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(6,165)
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(18,769)
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161,423
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Other Financial Data:
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Capital Expenditures:
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Internal Growth Projects
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$22,459
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$7,305
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$37,418
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$14,106
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Upgrade and Replacement Capital
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13,149
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6,662
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21,617
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8,398
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Acquisitions
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-
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153,851
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178,546
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Adjusted EBITDA
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$42,147
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$14,895
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$99,086
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$53,116
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Adjusted EBITDA per share (1)
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0.43
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0.15
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1.01
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0.54
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Twelve
months ended
June 30, 2011
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Pro Forma Adjusted EBITDA
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$198,957
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Pro Forma Adjusted EBITDA per share (1)
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2.03
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(1)
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Based on a fully diluted basis of 98,781,717 shares
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