After hours today, Macro Enterprises Inc. (v.MCR) reported Q1 earnings which were quite significant, given its share price close today of $2.56, and when compared year over year as well. MCR reported Q1 earnings per share of 0.40, a 90% increase over the same period one year ago. Revenue also increase 44% year over year to 60,122,000 from $41,827,000. The company stated that they expect Q2 numbers to be above those reported last year as well. With a number of pipeline projects occurring in B.C. and Alberta, Macro should show continued strength over the coming months.
Based on its metrics, MCR is clearly undervalued at these levels.
Macro Enterprises specializes in construction and maintenance of small- to mid-inch pipelines, facilities and gathering systems. Operations are centered in Fort St. John, B.C., with a satellite office located in Hinton, Alberta. Macro Industries maintains one of the most modern fleets of heavy equipment in the industry.
Today's earnings release can be seen below.
Macro Enterprises earns $9.68-million in Q1 2013
2013-05-22 16:09 ET - News Release
Mr. Frank Miles reports
MACRO ENTERPRISES INC. ANNOUNCES 2013 FIRST QUARTER RESULTS AND APPOINTMENT OF INDEPENDENT DIRECTOR
Macro Enterprises Inc. has released its first-quarter 2013 financial results.
SUMMARY OF FINANCIAL RESULTS (thousands of dollars except per-share amounts) Three months ended March 31, 2013 2012 Revenues $60,122 $41,827EBITDA (1) 15,021 8,360Net earnings 9,685 5,221Net earnings per share .40 .21(1) References to earnings before interest, taxes, depreciation and amortization are to net income from continuing operations before interest, taxes, amortization and impairment charge. EBITDA is not an earnings measure recognized by international financial reporting standards (IFRS) and does not have a standardized meaning prescribed by IFRS. Management believes that EBITDA is an appropriate measure in evaluating the company's performance. Readers are cautioned that EBITDA should not be construed as an alternative to net income (as determined under IFRS) as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) as a measure of liquidity and cash flow. The company's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, the company's EBITDA may not be comparable with similar measures used by other issuers.
- Revenue increased from the first quarter last year due to revenues from the new business acquired in November, 2012.
- EBITDA and net income were above the first quarter of last year due to increased levels of business and improved performance on jobs.
Consolidated revenue was $60.1-million compared with $41.8-million in the first quarter last year. Most of the revenue in the quarter was derived from four larger facility and pipeline projects, as well as maintenance and pipeline integrity work for three other customers. In addition, the company had three other smaller contracts. In the first quarter last year, the company worked on one larger facility project, and pipeline and related facility jobs for two other customers.
Operating expenses were 71.8 per cent of revenue in the quarter compared with 76.5 per cent in the same quarter last year. Performance improved this year due to improved bid margins and a greater percentage of cost-plus work.
General and administrative expenses were $2.2-million, up from $1.5-million last year, but consistent with levels of the fourth quarter of 2012. Costs were higher this year due mainly to additional professional fees and staff costs.
Total amortization expense of $1.8-million increased by $700,000 due mainly to the amortization on the additional assets obtained in the November, 2012, acquisition.
Interest expense of $300,000 was higher than last year due to higher levels of debt.
Income tax expense in the quarter of $3.3-million was at an effective tax rate of 25.4 per cent, which approximates the statutory rate.
Net income was $9.7-million (40 cents per share) compared with $5.2-million (21 cents per share).
The company is expecting revenues in the second quarter to be above that recorded in the second quarter last year, after taking into account the expected additional revenues resulting from the November, 2012, acquisition. The company continues to actively bid new jobs and look for new opportunities. The company is encouraged by the prospect of significant pipeline infrastructure projects in British Columbia and Alberta in the short and medium term.