Pulse Seismic Inc. press release
Pulse Data Inc. provides corporate update, announces 50% increase in annual dividend rate and timing for release of 2005 audited financial results
TSX - Toronto Stock Exchange ยท Canada
TSX Symbol - (TSX:PSD)
CALGARY, Feb. 14 /CNW/ - Mr. Ken MacDonald, President and Chief Executive Officer of Pulse Data Inc. ("Pulse" or the "Company") is pleased to provide the following corporate update.
FINANCIAL
For the year ended December 31, 2005, Pulse generated total revenues of approximately $54 million. Seismic data licensing revenue amounted to a record level of approximately $35 million, a 36% increase over 2004. Pulse added approximately 2,900 net square kilometres of quality 3D seismic data to its library in 2005. This additional data significantly contributed to the increased data licensing revenue in 2005. Free cash flow(1) (funds from operations less total participation survey capital expenditures) reached a record level of approximately $23 million in 2005, compared to $12 million for the year ended December 31, 2004. The increase in cash seismic data licensing revenue and the resulting increased level of free cash flow has significantly improved the Company's balance sheet. Pulse's working capital position increased four-fold to approximately $17 million at December 31, 2005 (including a cash position of approximately $12 million), compared to working capital of $4 million at December 31, 2004. In addition, the Company's leverage position remains healthy with a total long-term debt to annualized free cash flow(1) ratio of approximately 1:1. 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 audited by the Company's auditors.
INCREASE IN ANNUAL DIVIDEND RATE
Based on the Company's record level of free cash flow(1) in 2005, its strong balance sheet and confidence that strong free cash flow(1) levels will continue to be generated by the Company's quality asset base, the Board of Directors of Pulse has approved a 50% increase in the annual dividend rate to $0.15 per share. Based on Pulse's closing share price on February 13, 2006, this annual dividend provides an effective yield of 6%. Pulse expects to declare the next regular quarterly dividend in conjunction with the release of its audited 2005 financial results.
2005 AUDITED FINANCIAL RESULTS RELEASE
Pulse intends to release its complete financial results for the year ended December 31, 2005, along with details regarding the regular quarterly dividend after close of trading on the Toronto Stock Exchange, Tuesday March 14, 2006. The year-end news release will be available on the Pulse web site at the same time. In addition, a conference call and webcast to review the 2005 results is scheduled for March 15, 2006 at 1:00 pm EST (11:00 am MST). Further details of the conference call, including dial-up numbers, will be provided at a later date.
Pulse is a Calgary-based 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. 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". This financial measure does not have a standard definition prescribed by generally accepted accounting principles in Canada (GAAP) and therefore it may not be comparable to similar measures disclosed by other companies. The Company has included this non-GAAP financial measure because it is used by management, investors, analysts and others as a measure 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.
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 or expectations change.