NOBLE IRON INC.
November 25, 2014
FOR IMMEDIATE RELEASE
NIR: TSX Venture Exchange
Noble Iron Announces Q3 Results
Houston, Texas – Noble Iron Inc. (NIR:TSX Venture Exchange) announced its unaudited interim financial results for the period ended September 30, 2014.
- Total consolidated revenues for the three months ended September 30, 2014 were $5.8 million, compared to $5.0 million during the same period in 2013. Total revenue for the nine month period ended September 30, 2014 was $16.1 million, compared to $15.1 for the same nine month period in 2013.
- The Company’s Construction and Industrial Equipment Rental and Distribution segment revenues were $4.6 million for the three month period ended September 30, 2014, compared to $4.1 million for the three month period ended September 30, 2013. Segment revenues totaled $12.8 million for the nine months ended September 30, 2014, compared to $11.6 million for the same period in 2013.
- Software segment revenues were $1.2 million for the three month period ended September 30, 2014, compared to $0.9 million for the three month period ended September 30, 2013. Segment revenues were $3.4 million for the nine months ended September 30, 2014, compared to $3.5 million over the same period in 2013.
The Company’s total revenue for the three month period ended September 30, 2014 increased by $0.8 million, or 15%, over that of the same period in 2013. Company revenues increased $1.1 million, or 7%, for the nine month period ended September 30, 2014, compared to the same nine month period in 2013. The overall increase in total Company revenue was driven by higher rental revenues within the Construction and Industrial Equipment Rental and Distribution segment. The increase in rental revenue was driven by increased fleet as well as sales and marketing initiatives.
Net loss for the three and nine months period ended September 30, 2014 was $1.7 million and $4.4 million, respectively, as compared to $1.3 and $3.8 for the same three and nine month periods in 2013. The Company’s net loss for the nine months ended September 30, 2014 was largely a result of increased depreciation and expenditures for fleet repair and maintenance incurred at the company’s California operation. Support, Maintenance and Delivery expense for the Company increased by $0.4 million, or 26%, in Q3 2014 versus Q3 2013, and by $1.4 million, or 30%, year over year from the nine month period ended September 30, 2013.
Adjusted EBITDA declined $0.4 million year over year, and quarter over quarter, for the three and nine month periods ending September 30, 2014 as compared to the same period in 2013. The decrease in Adjusted EBITDA is related to increased expenditures on fleet repair and maintenance, outside trucking and marketing initiatives incurred at the company’s California operation. Sequentially, Adjusted EBITDA increased by $0.4 million for the Company comparing the three months ended September 30, 2014 to the prior three month period ended June 30, 2014.
The Company chose to increase spending on fleet repair and maintenance rather than pursuing the disposal and replenishment of rental equipment fleet over the first nine months of the year at its Southern California operations. These expenses are expected to remain at higher than normal levels through the balance of the year, albeit at a declining rate. Capital expenditures for fleet additions at the Company’s Houston, Texas location continued as planned.
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 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:
Chief Financial Officer
Noble Iron Inc.
t: (832) 767-4424 Ext. 207
Founder, Chairman & CEO
Noble Iron Inc.
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
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