MATRRIX Announces Second Quarter 2012 Results

Aug 28, 2012, 07:00 ET from MATRRIX Energy Technologies Inc.

CALGARY, Aug. 28, 2012 /CNW/ - MATRRIX Energy Technologies Inc. ("MATRRIX" or the "Corporation") (TSXV: MXX) announces financial results for the second quarter of 2012.


  • MATRRIX recorded revenue of $1,169,954 and EBITDA of ($558,111) in Q2 2012 and achieved revenue of $6,598,724 and EBITDA of $292,309 for first half of 2012.
  • The Corporation's concurrent job capacity was 13 directional or horizontal drilling systems during Q2.  The construction of 7 additional systems is in process, with deployment targeted for Q4 2012.
  • MATRRIX introduced EM Telemetry to its MWD fleet, successfully utilized in Canada during Q2.  MATRRIX is constructing additional EM Telemetry units to meet anticipated EM demand.
  • Continued Balance Sheet strength with $14,148,191 of cash on hand, and working capital of $16,202,203 at June 30, 2012.
  • Areas of operation include Alberta, Saskatchewan, British Columbia and Texas (USA).


    Three Months Ended     Six Months Ended
  June 30, 2012      June 30, 2012
Revenue   $1,169,954     $6,598,724
EBITDA  (i) ($558,111)     $292,309
EBITDA per share        
  Basic   ($0.02)     $0.01
  Diluted   ($0.02)     $0.01
Net income ($968,237)     ($369,475)
Income per share        
  Basic   ($0.03)     ($0.01)
  Diluted   ($0.03)     ($0.01)
Weighted Average diluted shares 31,860,046     31,316,297
    At June 30, 2012     At December 31, 2011
Working capital $16,202,203     $19,023,869
Total assets $26,952,795     $26,848,999
Long-term debt $ Nil     $ Nil
Shareholders' equity $25,741,898     $24,727,378
Common shares outstanding   32,001,638     30,771,021


At the date of this press release MATRRIX had a total of 13 directional or horizontal systems available for deployment in Alberta, Saskatchewan and British Columbia. In addition, the Corporation continued its drilling motor operations in west Texas.

President Richard Ryan states, "Q2 2012 financial results are reflective of a seasonally wet spring in Canada. We are pleased with our progress in the last quarter of only our first full year of operation. From a standing start on July 31, 2011, we are firmly established with over $10.4 million of revenue in our first full 12 months of operation, while building loyal Client relationships with the MATRRIX brand, we're very encouraged at the level of acceptance from customers with strong capex plans and forecasted activity. We are executing at a high level, meeting both internal and client expectations. Within the past twelve months, we've assembled and molded our core team and culture, and proven to the market that MATRRIX is a solid choice to provide high quality directional and horizontal drilling services and technology. Our strong balance sheet, with over $14 million in cash as at June 30th, 2012, along with our established job capacity, will allow MATRRIX to exploit opportunities as we create or find them".

The Corporation's financial statements and management's discussion and analysis for the three and six month periods ended June 30, 2012 will be available on SEDAR at


This press release contains references to EBITDA. This financial measure is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-GAAP measure. The non-GAAP measures used by the Corporation may not be comparable to similar measures used by other companies.

(i) EBITDA is defined as "income (loss) before interest, taxes, business acquisition transaction costs, reverse takeover adjustments, depreciation, stock based compensation expense, gains on disposal of property and equipment and foreign exchange." Management believes that in addition to net and total comprehensive income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Corporation's principal business activities prior to consideration of how these activities are financed, how the results are taxed in various jurisdictions, or how the results are effected by the accounting standards associated with the Corporation's stock based compensation plan.

    Three Months Ended   Six Months Ended
    June 30, 2012      June 30, 2012
Income (loss) before income taxes and interest  $ (1,010,561)    $ (504,048)
Depreciation     284,350     485,583
Share based payments     121,673     261,980
Foreign exchange (gain)/loss     46,427     48,794
EBITDA    $ (558,111)    $ 292,309


MATRRIX is engaged in the acquisition and supply of horizontal and directional drilling technologies for the oil and gas industry in North America.


This press release contains certain statements or disclosures relating to MATRRIX that are based on the expectations of MATRRIX as well as assumptions made by and information currently available to MATRRIX which may constitute forward-looking information under applicable securities laws. In particular, this press release contains forward-looking information related to: the consistency of activity in both Canada and the USA. Such forward-looking information involves material assumptions and known and unknown risks and uncertainties, certain of which are beyond MATRRIX's control.  Many factors could cause the performance or achievement by MATRRIX to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking information. MATRRIX's documents filed with securities regulatory authorities (accessible through the SEDAR website describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. MATRRIX disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Neither the 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.

SOURCE MATRRIX Energy Technologies Inc.