Logan International Reports Fourth Quarter and FY 2012 Results

CALGARY, ALBERTA--(Marketwire - March 27, 2013) -

(All reported amounts are in US dollars unless otherwise noted)

Logan International Inc. (TSX:LII) ("Logan" or the "Company") today announced the financial results for its fourth quarter and 2012 fiscal year. Revenues in the fourth quarter were $45.4 million as compared to revenues of $37.3 in the fourth quarter of 2011. Net earnings from continuing operations were $4.8 million or $0.14 per diluted share, as compared to $1.6 million, or $0.05 per diluted share in last year's fourth quarter. This year's fourth quarter Modified EBITDA, as defined in the financial table below, increased to $10.1 million from $7.2 million in last year's fourth quarter.

In 2012, the Company's revenues increased to $171.1 million from $135.5 million, or by 26%, and earnings from continuing operations increased to $25.5 million, $0.75 per diluted share, from $8.9 million, $0.26 per diluted share. During the quarter ended September 30, 2012, the Company recognized a gain of $11 million, $0.33 per diluted share, from the change in the fair value of the contingent consideration relating to the acquisition of Xtend Energy Services Inc. ("Xtend"). In 2012, Modified EBITDA increased to $37.7 million from $29.7 million in 2011.

The Company completed the acquisition of Kline Oilfield Equipment, Inc. ("Kline") and Scope Production Development ("Scope") in the fourth quarter of 2011 and the acquisition of Xtend in March 2012. Therefore, the fourth quarter and year end results for 2011 include the Kline and Scope acquisitions from the respective acquisition dates. The fourth quarter and year end results for 2012 include the Xtend transaction from the date of its acquisition.

Gerald Hage, Chief Executive Officer, stated, "We are pleased with the Company's fourth quarter operating results. We saw continued strength in Logan Oil Tools fishing and stroking tools, Logan Completion Systems recorded our first sales into China and we benefitted from the contributions from both Scope and Xtend. We are especially pleased with the increase in Modified EBITDA because each one of our operating entities contributed to the increase. We are also pleased with the full year operating results as Modified EBITDA increased to $37.7 million from $29.7 million, or by 27%. The improvement in our 2012 operations was due to organic growth and to recently-completed acquisitions."

Fiscal year 2012 highlights include:


-- Completion of the acquisition of Xtend.

-- Expansion of the Logan Oil Tools footprint to Latin America with the

opening of a sales location in Bogota, Colombia.

-- Geographic expansion by Logan Completion Systems Inc. to China in late


-- Increased international sales of Dennis Tool Company cutters to Russian

and Canadian customers.

-- Repurchase of 146,300 Logan common shares in open market transactions

under our normal course issuer bid.

Selected Consolidated Financial Information

(in thousands of US dollars, except per share data)

Three month Twelve months

periods ended ended

December 31, December 31,

-------------------- ------------------

2012 2011 2012 2011

---------- -------- -------- --------

Revenue $ 45,397 $ 37,261 $ 171,114 $ 135,491

Net earnings from continuing

operations 4,815 1,594 25,524 8,901

Earnings per share from continuing


Basic $ 0.14 $ 0.05 $ 0.76 $ 0.27

Diluted $ 0.14 $ 0.05 $ 0.75 $ 0.26

EBITDA (1) $10,132 $5,283 $45,414 $23,889

Modified EBITDA (1) $10,139 $7,234 $37,701 $29,657

December 31,


2012 2011

-------- --------

Working Capital $ 74,295 $ 40,188

Total Assets $ 275,976 $ 213,557

Loans and Borrowings (2) $ 60,192 $ 25,335

Shareholders' Equity $ 175,393 $ 143,625


Note: The purchase of Xtend was completed on March 1, 2012, and, accordingly, the Company's twelve month period ended December 31, 2012 operating results included ten months of Xtend.


(1) The Management's Discussion and Analysis ("MD&A") presents: (a) EBITDA

as earnings before net finance cost, income taxes, and depreciation and

amortization ("EBITDA"), and (b) Modified EBITDA as EBITDA before

acquisition accounting adjustments, transaction fees, share-based

compensation payments, certain non-cash purchase accounting adjustments

and severance costs. Neither of these measurements should be considered

an alternative to, or more meaningful than, "net earnings from

continuing operations" or "cash flow from continuing operating

activities" as determined in accordance with International Financial

Reporting Standards ("IFRS") as an indicator of the Company's financial

performance. EBITDA and Modified EBITDA do not have standardized

definitions as prescribed by IFRS; therefore, the Company's presentation

of these measurements may not conform to similar presentations by other

companies. Management calculates EBITDA and Modified EBITDA each period

and evaluates the Company's operating performance based on these

measurements. Management believes that Modified EBITDA, which eliminates

significant non-cash or non- recurring items of revenue or cost, more

accurately presents the results of the Company's ongoing operations and

its ability to generate the cash required to fund or finance future

growth, acquisitions and capital investments.

Three month Twelve months

periods ended ended

December 31, December 31,


2012 2011 2012 2011


Net earnings from continuing

operations $ 4,815 $ 1,594 $ 25,524 $ 8,901


Depreciation and amortization 2,617 2,389 10,263 8,438

Finance cost, net 911 200 3,118 1,235

Income tax expense 1,789 1,100 6,509 5,315


EBITDA 10,132 5,283 45,414 23,889


Contingent consideration expense -

Source Energy Tool Services

acquisition - - - 1,994

Contingent consideration gain -

Xtend Energy Services acquisition - - (11,064) -

Acquisition accounting adjustments - 249 354 249

Severance Costs 528 286 528 286

Transaction fees 16 676 1,288 751

Share-based compensation payments (537) 740 1,181 2,488


Modified EBITDA $ 10,139 $ 7,234 $ 37,701 $ 29,657




EBITDA and Modified EBITDA are provided as measures of the Company's operating performance without regard to financing decisions, share-based compensation payments, age and cost of equipment used and income tax impacts, all of which are factors that are not controlled at the operating management level. The contingent consideration expense consists of earnout payments made to former shareholders of Source Energy Tool Services, which were contingent on the former shareholders' continued employment with Logan International and the achievement of certain post -closing operating results. The contingent consideration gain is the change in fair value of expected earnout payments to the former owners of Xtend based on post -closing operating results. The acquisition accounting adjustments reverse the effect of the increase or step-up in cost basis of inventories acquired in a business combination. The transaction fees include the professional and other fees incurred in connection with the acquisitions in 2011 and 2012. The share-based compensation payments relate to non-cash share-based compensation expense related to the Company's stock option and restricted share unit plans, as well as stock appreciation rights.

(2) Includes bank and other borrowed debt and capital leases.

Forward-Looking Statements

This press release contains forward-looking statements. These statements relate to future events or future performance of Logan International. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "propose", "expect", "potential", "continue", 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. Such statements reflect Logan International's current views with respect to certain events and are subject to certain risks, uncertainties and assumptions. Although Logan International believes that the expectations and assumptions on which the forward- looking statements are based are reasonable, undue reliance should not be placed on the forward- looking statements because we can give no assurance that they will prove to be correct. Many factors could cause Logan International's actual results, performance, or achievements to materially differ from those described in this press release. Readers are referred to Logan International's Annual Information Form filed on www.sedar.com which identifies significant risk factors which could cause actual results to differ from those contained in the forward-looking statements. Should one or more risks or uncertainties materialize or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Logan International does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein in any jurisdiction.

For more information about Logan International Inc. please visit our website at www.loganinternationalinc.com


Logan International Inc.

Gerald Hage

Chief Executive Officer

403-930-6810 Calgary

832-386-2575 Houston

Logan International Inc.

Larry Keister

Chief Financial Officer

403-930-6810 Calgary

832-386-2534 Houston


Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here