Pulse Seismic Inc. press release
Pulse Data Inc. provides update in conjunction with upcoming investment presentations
TSX - Toronto Stock Exchange ยท Canada
TSX Symbol - (TSX:PSD)
CALGARY, Oct. 28 /CNW/ - In conjunction with upcoming investment presentations, Ken MacDonald, President and Chief Executive Officer of Pulse Data Inc. ("Pulse" or the "Company") is pleased to provide an update of operational and financial results for the Company through the third quarter of 2005. The financial information contained in this news release is management's estimate only and it has not yet been approved by the Company's Audit Committee or Board of Directors or reviewed by the Company's auditors. Pulse expects to release its full unaudited financial results for the three and nine months ended September 30, 2005 on November 9, 2005. For the nine months ended September 30, 2005, Pulse generated total revenues of $35.5 million. Seismic data library sales amounted to $22.4 million, a 31% increase over the same period in 2004. Free cash flow(1) (funds from operations less participation survey capital expenditures) reached $15.7 million for the nine months ended September 30, 2005 compared to $4.9 million for the same period in 2004. Pulse had a working capital position of $11.8 million at September 30, 2005, an increase of $7.9 million from December 31, 2004. Capital expenditures for the first three quarters of 2005 were $20.7 million, and included a major seismic data purchase in June 2005 of $15.2 million and participation survey expenditures of $5.5 million. "With continued strong commodity prices and energy services sector activity, free cash flow levels for Pulse continue to grow, and it is very encouraging that 63% of Pulse's revenue to September 30, 2005 was generated by cash sales from the Company's seismic data library", said Ken MacDonald. In addition, he stated, "With the strategy of growing the seismic data library in 2005 significantly through seismic data purchases, and to a lesser degree through participation surveys, we expect to add approximately 2,900 net square kilometres of 3D and 530 net kilometres of 2D data to the seismic library in 2005; which represents a 240% increase over the 3D additions in 2004." At the end of the third quarter, the Company commenced two 3D participation surveys in the Deep Basin area of Alberta. The total capital costs of these two surveys are budgeted at approximately $6 million, and they are expected to be delivered during the fourth quarter of 2005. We are also pleased to announce that Terrapoint has made significant advances in market share, operational efficiency and financial performance in the third quarter of 2005. Revenue to September 30, 2005 has increased to $6.5 million, and funds from operations for the third quarter of 2005 were $103,000 compared to a loss from operations of $490,000 for the third quarter in 2004. In addition, Terrapoint ended the third quarter with a significant sold backlog position of approximately $1.5 million. Trango has recently released the new version of Well Manager to complement the existing Seismic Manager and will be releasing two new products by year-end; Geo Manager and EXPO. Geo Manager completes the Trango desktop applications by providing customers with an efficient management tool for geological reports, projects, regional studies, prospects and plays. EXPO is a web-based asset data management search engine that allows clients the capability to access virtually any relational database, both internal and external to the client organization. The asset management search engine is universal and has the capability to transcend Trango's specific domain of oil and gas to other industry verticals, including utility asset management, pipeline assets, healthcare assets or any other large databases. Pulse also reports that it has scheduled investor presentations in Toronto and Montreal during the week of October 31, 2005. Pulse is a Calgary-based international company specializing in data ownership through acquisition, marketing and information management, with a current focus on the energy sector. Through its three operating segments, Pulse Seismic, Terrapoint and Trango, the Company has evolved into an industry leader in providing better information faster. Pulse Seismic is at the forefront with regard to acquiring, marketing and licensing seismic data in Western Canada. Pulse Seismic's library currently consists of approximately 240,000 net kilometres of 2D data and more than 9,200 net square kilometres of 3D data. Cash is generated through licensing of our seismic data library to the oil and gas industry in Western Canada. With offices in Calgary, Ottawa and Houston, Terrapoint is the largest and most experienced LiDAR (Light Detection And Ranging) data provider in the world. LiDAR data is used to produce survey-quality 3D digital elevation models. The use of digital elevation data significantly reduces the cost of project planning and design in a broad array of industries including urban planning, transportation and industrial and resource planning and development. Since its inception in 1998, Terrapoint has worked in many countries around the world providing cost-effective solutions to its clients' needs. Trango has developed an exceptional reputation for providing GIS data management products and services to the North American oil and gas industry. Trango provides the technology that allows clients to better exploit their seismic, well, geologic and related data. Pulse operates prudently using a disciplined approach that capitalizes on its strong financial base, which in turn has provided a solid foundation for growth. By incorporating synergistic products and services into the company mix, Pulse has positioned itself for continued expansion and diversification in market areas that require better information faster. Pulse trades on the Toronto Stock Exchange under the symbol PSD.
(1) The Company's continuous disclosure documents provide discussion and analysis of "free cash flow" and "funds from operations". These financial measures do not have standard definitions prescribed by generally accepted accounting principles in Canada (GAAP) and therefore they may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because they are used by management, investors, analysts and others as measures of the Company's financial performance. The Company's definition of free cash flow is cash available for debt servicing, discretionary capital expenditures and the payment of dividends, and is calculated as funds from operations less participation survey additions to the data library and any monetary data exchanges. The Company's definition of funds from operations is cash flow from operations as prescribed by Canadian generally accepted accounting principles, but excluding the impact of changes in non-cash working capital.
Certain information contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Investors are encouraged to review the "Risk Factors" section of the Management's Discussion and Analysis in the Company's Annual Report for 2004 and 2005 Interim Reports for a discussion of risks that could affect the Company's operations and financial results. Forward-looking statements are based upon management's assumptions, expectations and estimates at the time that such statements are made. Pulse does not update forward-looking statements should circumstances change or management's assumptions, expectations or expectations change.