NOBLE IRON INC.
FOR IMMEDIATE RELEASE
NIR: TSX Venture Exchange
Noble Iron Announces First Quarter 2015 Results
June 1, 2015 – San Francisco, CA – Noble Iron Inc. (“Noble Iron,” or “the Company”) [TSX.V:NIR] is pleased to announce its interim unaudited consolidated financial results for the three month period ended March 31, 2015 (the “first quarter”).
First Quarter Highlights
- Total first quarter revenues of $5.7 million, an increase of $0.4 million when compared to the same period in 2014.
- Construction and Industrial Equipment Rental and Distribution segment revenue for the first quarter of $4.5 million, an increase of $0.4 million when compared to the same period in 2014.
- First quarter net loss of $2.7 million, compared to a net loss of $0.8 million during the same period in 2014.
¹ Cost of Revenue, Net earnings (loss) Loss per share –basic and diluted amounts have been restated. See Note 3 to the Interim Consolidated Financial Statements.
² Adjusted EBITDA is a non-IFRS measure and is defined within the “Introduction – Non-IFRS Measures” section of the MD&A.
“Over the second half of 2014, our business underwent several major transitions,” stated Nabil Kassam, the Company’s Chairman and Chief Executive Officer. “We restructured our existing team, recruited new talent, and made significant investments in technology development. Most notably, we began the process of consolidating our four Southern California operations into a single facility.
The benefits of these strategic shifts became visible during the first quarter in our equipment rental and distribution revenues and operating efficiency, which are beginning to demonstrate the advantages of a consolidated base of operations. As 2015 progresses and our transitions achieve greater efficiency, we are confident that these strategic and operating improvements will yield commensurate benefits to all stakeholders of Noble Iron.”
Noble Iron recorded total revenues of $5.7 million in the first quarter, an increase of $0.4 million (8%) when compared to the first quarter of 2014. This improvement was primarily due to the performance of the Company’s Construction and Industrial Equipment Rental and Distribution segment, which benefited from a strong equipment demand within the Southern California market. This resulted in the segment recording first quarter revenue of $4.5 million, an increase of $0.4 million (9%) when compared to the first quarter of 2014. The Company’s Enterprise Asset Management Software also improved its revenues during the first quarter.
The Company’s cost of revenue in the first quarter was $2.6 million, a $0.4 million (18%) increase when compared to the first quarter of 2014. This increase was primarily due to a $0.4 million increase in depreciation expense.
The Company’s expenses in the first quarter were $5.7 million, a $1.9 million (50%) increase when compared to the first quarter of 2014. This increase was primarily due to a $0.6 million increase in support, maintenance, and delivery expense within the Construction and Industrial Equipment Rental and Distribution segment, which resulted from both the Company’s recent strategic decision to focus on the repair and refurbishment of its existing equipment and the ongoing consolidation of the Company’s Southern California operations. The Company’s expenses were also impacted by a $0.6 million increase in general and administration expense, due largely to the Company’s expansion of its operating and technology development teams.
The Company’s net loss for the first quarter was $2.7 million, an increase of $1.9 million (229%) when compared to the first quarter of 2014. The losses were primarily due to the aforementioned increases in the Company’s expenses, and were also due to a one-time Income Tax Recovery of $0.5 million which occurred during the first quarter of 2014, and not during the first quarter of 2015. The Company’s adjusted EBITDA loss for the first quarter was $0.1 million, a decline of $0.9 million (112%) when compared to the first quarter of 2014. Both the net loss and the adjusted EBITDA loss were primarily due to the increase in the Company’s expenses.
Financial information indicated, as set out in this news release, is presented on a basis consistent with the accounting principles used to prepare Noble Iron’s most recently filed financial statements. The consolidated financial statements are prepared by management in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board. Readers are advised that the Company faces various risk factors with respect to its business and operations: for further information please see the Management Discussion and Analysis of Noble Iron Inc. at www.SEDAR.com.
About Noble Iron Inc. (NIR: TSX Venture Exchange)
Noble Iron Inc. operates in equipment rental, equipment sales, and enterprise asset management software for the construction and industrial equipment industry.
Noble Iron Inc.’s equipment rental and dealership business operates under the name “Noble Iron”, and currently serves customers in California and Texas. Noble Iron offers construction and industrial equipment and accessories for rent and for sale, and is the exclusive distributor of LiuGong Construction Machinery equipment and Allied Construction Products in Southeast Texas.
Noble Iron Inc.’s software division operates under the name “Texada Software”. Texada Software develops software applications to manage the complete equipment ownership lifecycle: from equipment purchasing; rental & sales transactions; inventory management; maintenance & depreciation tracking; through to used equipment sales, disposal & inventory replenishment. Texada Software offers in-the-cloud or client-based software, and is scalable to meet the needs of any equipment rental company, dealership, construction company, contractor, and any customer who owns or uses construction or industrial equipment.
The company can be reached at 1-832-767-4424, or at www.nobleiron.com.
Corporate communications contacts:
t: (832) 767-4424
t: (650) 766-9177
References in this press release to Adjusted EBITDA are to earnings before interest expense, deferred income taxes, depreciation, amortization, share based compensation, gain on fair value increment on acquisition (net of deferred income taxes), acquisition expenses, accretion on convertible debt, interest on convertible debentures, severances and foreign exchange. Adjusted EBITDA is a measure used by investors to compare issuers on the basis of ability to generate cash flow from operations. Adjusted EBITDA is not an earnings measure recognized by International Financial Reporting Standards (IFRS), does not have standardized meanings as prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. Noble Iron’s management believes that Adjusted EBITDA is an important supplemental measure in evaluating Noble Iron’s performance and in determining whether to invest in its common shares. Readers of this information are cautioned that Adjusted EBITDA should not be construed as an alternative to net income or loss determined in accordance with IFRS as an indicator of Noble Iron’s performance, or cash flows from operating, investing and financing activities as measures of Noble Iron’s liquidity and cash flows. Noble Iron’s method of calculating Adjusted EBITDA may differ from the methods used by other issuers and, accordingly, Noble Iron’s Adjusted EBITDA may not be comparable to similar measures presented by other issuers.
This news release may contain forward-looking statements which reflect the Company’s current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “estimate”, “expect”, “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industries in which the Company participates; others are more specific to the Company. The Company’s ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.