SYLVAN LAKE, ALBERTA — (Marketwired) — 09/30/13 — Lonestar West Inc. (TSX VENTURE: LSI) today announced record revenues, earnings and EBITDAC with the release of financial results for Fiscal 2013 ended June 30th.
Lonestar achieved strong performance throughout the 2013 fiscal year driven by rapid expansion of its fleet size that exceeded projected growth targets. Aggressive geographical expansion continued with the establishment of the U.S. operations in California and Oklahoma.
Highlights for the fiscal year include:
The Company also reported results for the fourth quarter of Fiscal 2013, ended June 30th.
The Company experienced strong revenues in the fourth quarter as a result of management implementing its strategy of growing its fleet and market presence in Western Canada and in the U.S. In order to achieve this strategy, the Company increased its infrastructure to support current and future growth by adding bases in California, Oklahoma, Alberta, and Manitoba, as well as hiring additional personnel to accommodate the growth. Although these increased costs have had a direct impact on fourth quarter earnings and EBITDAC, management believes they are an essential part of executing the growth strategy of the Company.
The fourth quarter is historically the Company–s slowest quarter due to the negative impact of spring break up on utilization rates. In addition to normal spring breakup there were extraordinary weather conditions experienced during this fourth quarter such as the flooding in Alberta and tornados in Oklahoma that had a direct impact on the Company–s utilization rates for the fourth quarter, and thereby had a direct impact on the earnings and EBITDAC.
The Company is focused on continuing its expansion program by increasing its fleet of HVAC and Vacuum trucks. Subsequent to June 30, 2013, Lonestar added 9 units to its fleet to bring the total to 62 units available to work. Dependent upon the delivery schedule of HVAC and Vacuum units, management estimates that it will add an additional 13 units by December 31, 2013 which would bring the total of units available to approximately 75.
“Lonestar management is extremely pleased with our achievements in Fiscal 2013” said James Horvath, CEO and President of Lonestar. “We are positioned for further strong growth throughout Canada and the U.S. and are well financed to achieve this as a result of our recent $10 million bought deal financing”.
About Lonestar West
Based in Sylvan Lake, Alberta, Lonestar West Inc. operates a fleet of 62 HVAC and Vacuum trucks throughout Western Canada and has recently expanded into California and Oklahoma. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.
For more information please visit the Lonestar West website at .
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Contacts:
Lonestar West Inc.
James Horvath
President & CEO
403-887-2074
The Howard Group Inc.
Investor Relations
Jeff Walker
(888) 221-0915 or (403) 221-0915