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LEA - Leader Energy Services Ltd

post #1 of 14
Thread Starter 
In the first quarter of 2010 revenues were well above that of the prior year's first quarter and exceeded forecast. In conjunction with the first quarter of the year typically being the most active quarter for the Company, the results from the 2010 first quarter were further improved as a result of the Company focusing its service activities on deeper and horizontal wells requiring larger diameter pipe and continued close management of costs and overhead expenses.

Operating costs totalled $3.9 million during the first quarter of 2010 versus $3.4 million during the comparable period in 2009. Operating costs as a percentage of revenues decreased from 55% in the 2009 first quarter to 47% in the 2010 first quarter. With higher revenues and operating efficiencies resulting in decreased operating expenses as a percentage of revenues, field profit for the first quarter of 2010 showed a significant 57% improvement over the comparable period in 2009.

The Company's net income from continuing operations of $2.2 million for the first quarter of 2010 was a significant improvement over the prior year's first quarter net income from continuing operations of $673,000. This improvement was due to a $1.5 million increase in EBITDAS in the current year first quarter in comparison to the prior year's first quarter. The improvement in EBITDAS was due to higher revenues in the current year first quarter coupled with operating costs as a percentage of revenues decreasing from 55% in the 2009 first quarter to 47% in the 2010 first quarter. The increased revenues and improved operating costs were partially offset by an increase in general and administrative costs.

Net income for the quarter ended March 31, 2010 was $2.2 million with basic and diluted earnings per share being $0.17 and $0.15 respectively. This is a marked improvement over net income of $630,000 for the quarter ended March 31, 2009 where both basic and diluted earnings per share were $0.05.

The Company has yet to secure a credit facility to replace the facility which was paid out in mid 2008. Based on the Company's internal operating cash forecast, if the assumptions in the forecast hold true, access to additional financing does not appear to be necessary. However, given the uncertainty present in the current economic climate the Company will continue to pursue possible credit facility opportunities and hopes to secure a credit facility in the near future.
post #2 of 14
Thread Starter 
Great News!!!

Leader Energy Services Announces Repurchase of Convertible Debentures and Financing
CALGARY, ALBERTA, Jan. 25, 2011 (Marketwire) --

Leader Energy Services Ltd. ("Leader" or the "Company") today announced it has reached an agreement with holders of its 10% convertible subordinated debentures to repurchase 95.4% of the total amount outstanding. Leader issued $15,000,000 of debentures on February 28, 2007, of which $13,160,000 is outstanding. The debentures are convertible at $0.40 per share and mature on March 31, 2012.

In addition, the Company has entered into a term sheet with a new lender for a three-year secured debt facility agreement in the principal amount of $15,000,000. The facility bears interest at an annual rate of 12% compounded and payable quarterly, and is repayable at any time without penalty. At closing the lender shall be issued 4 million share purchase warrants exercisable at a 15% premium to the five-day volume weighted average share price on the term sheet signature date for three years. Closing is expected to occur on or before February 15, 2011 and is subject to certain customary conditions including the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. In addition to the proceeds of the new facility, Leader will use existing working capital to refinance its existing convertible debt.

Upon closing of the financing, Leader will pay $12,560,000 of debenture principal plus $1,400,000 of deferred interest at 110% of face value, for a total of $15,356,000. Additionally the Company will pay accrued interest owing per the debenture agreement up until the closing date of the transaction totalling approximately $630,000. As of January 24, 2011, a total of $1,840,000 of debentures has been converted to common shares of the Company.

Rod Hauser, President of Leader Energy Services said, "These are two significant developments for our Company. In addition to extending the term of our debt facility by two years we will be able to eliminate the likelihood of significant dilution in the number of shares outstanding had our debentures remained in place. More than 31 million shares could have been issued at a conversion price of $0.40 had these remaining debentures been converted."
post #3 of 14
Thread Starter 
Market likes the news, .65 got taken out.

With the low float and the threat of debenture holders converting to shares gone, it should clear the way for a decent move.
post #4 of 14
Thread Starter 
Closed up .11 cents to .67 or almost 19.5%.

Not bad for a nasty day in the markets.
post #5 of 14
Yes Gee rub it in,,,,, going to look at it tonight and see if I can fine an entry here.By the Gee good job
post #6 of 14
Thread Starter 
another decent volume day for LEA and the price holding around .70 cents.
post #7 of 14
Thread Starter 
New 52k high at .73 ... stong volume of over 800K
post #8 of 14
Thread Starter 
Here is some DD I did on Leader that was posted on my blog:

Leader Energy Services – Oil Field Services

They provide two services for vertical and horizontal wells with increasing more work for the horizontal wells, which are Coiled Tubing Service and Nitrogen Services.

Trades on the venture under the symbol LEA and was listed in late 2003.

Currently has 17 million shares OS and a market cap of $12.5 million.

Insiders own 25% of the float and have recently being buying in the low .50 cent range.

In Q3 the company did $6.2 million in revenue and generated a profit of $1 million compared to Q3/09 where the company did $1.8 million in revenue and a loss of $2.2 million … a 250% year over year increase.

EPS for Q3 were .08 cents and are .12 cents for the first 9 months with revenues of $18 million for the first 9 months.

Q2 was a loss, but that is normal for many oil services stocks that work in the field as the equipment cannot get in during spring break up.

In Q3 the company was cash flow positive by $1.8 million dollars and had outstanding long term debt of $23 million which consisted of $8 million capital leases and $15 million in debentures.

The company recently negotiated to buy out the existing debenture holders with new debenture financing and avoided diulation of the stock.

Closed at .73 cents today on stronger than normal volume.

52wk low was .10 cents and the high was reached today at .73.

I am expecting Q4/Q1 to be just as strong as Q3 and if that is the case, I am estimating eps for the year to come in around .20 cents with a 6 month target price of $1.25 to $1.50.

Do your own DD and seek advice from your own financial advisor before purchasing any stock.
post #9 of 14

Horrible day after a great couple of weeks.

post #10 of 14

Up 20% today with very high volume.

post #11 of 14

Should be interesting to see what happens this season considering Q3 revenue was 50% greater than last year... This company seems well structured for the future IMO.

post #12 of 14

Up 30% since my last post... Double gap-up tells me a pretty strong run is developing...

post #13 of 14
Leader Energy Services Reports Third Quarter 2011 Results
 

CALGARY, ALBERTA--(Marketwire - Nov. 15, 2011) - Leader Energy Services Ltd. ("Leader" or the "Company")(TSX VENTURE:LEA) today announced financial results for the three and nine-month periods ended September 30, 2011.

 

In the third quarter of 2011 revenues increased 60% to $10.0 million, as compared to $6.3 million reported in the third quarter of 2010. This increase represents the highest third quarter revenue reported from the Western Canadian Sedimentary Basin ("WCSB") in the Company's ten-year history. On a year-to-date basis, revenues improved 30% to $23.1 million as compared to $17.7 million reported for the nine month period in 2010. Activity in the third quarter recovered from a poor second quarter as a result of continued demand for deeper, larger diameter coil applications and to a certain extent, customers catching up on their drilling programs delayed in the second quarter due to prolonged spring break-up and wet weather conditions. For the nine month period, the 30% increase in revenue reflects the increase in horizontal drilling activity requiring deeper and larger diameter coil applications which translates to higher day rates. The Company has been focusing its service activities to meet the demands of the growing horizontal drilling market and has increased its operational focus to cover a larger area within the WCSB.

 

In the third quarter of 2011, the Company reported a profit from continuing operations of $2.2 million ($0.11 per diluted share) as compared to a profit from continuing operations of $0.7 million ($0.02 per diluted share) in the third quarter of 2010. The Company's loss from continuing operations of $0.15 million for the first nine months of 2011 includes a one-time loss on the settlement of its convertible debenture in the amount of $1.4 million. Excluding this loss, the Company reported a profit from continuing operations of $1.25 million, compared to a profit from continuing operations of $0.9 million reported for the first nine months of 2010. The Company reported EBITDA of $3.8 million during the third quarter of 2011, an increase of 85% over the comparable period of 2010.

 

The Company exited the quarter with five coil units plus one reel trailer capable of 2 3/8" coil applications, seven nitrogen pumpers and one fluid pumper. The Company anticipates placing its new 2 3/8" deep coiled tubing unit and its second fluid pumper into service during the fourth quarter of 2011. This equipment is in very high demand and forms an integral component of longer-reach coiled tubing applications.

 

Performance Summary

(000's)                
Quarter ended Sept. 30, 2011   Sept. 30, 2010   $ Change   % Change
                 
Revenue – continuing operations $ 10,020   $ 6,252   $ 3,768   60 %
Operating Expenses – continuing operations   5,056     3,300     1,756   53 %
    4,964     2,952     2,012   68 %
General and Administrative – continuing operations   1,196     922     274   30 %
Amortization – continuing operations   643     563     80   14 %
Finance cost   871     813     58   7 %
Loss on settlement of convertible debenture   -     -     -   n/a  
Other (gains) losses   32     (59 )   91   n/a  
Profit – continuing operations   2,222     713     1,509   212 %
Profit – discontinued operations   -     11     (11 ) n/a  
Net Profit $ 2,222   $ 724   $ 1,498   207 %
Earnings per share - Basic $ 0.11   $ 0.05   $ 0.06   120 %
Earnings per share - Diluted $ 0.11   $ 0.02   $ 0.09   450 %

EBITDA*
$ 3,803   $ 2,057   $ 1,746   85 %
                       
9 months ended Sept. 30, 2011   Sept. 30, 2010   $ Change   % Change
                       
Revenue – continuing operations $ 23,078   $ 17,703   $ 5,375   30 %
Operating Expenses – continuing operations   14,043     10,327     3,716   36 %
    9,035     7,376     1,659   22 %
General and Administrative – continuing operations   3,437     2,705     732   27 %
Amortization – continuing operations   1,867     1,640     227   14 %
Finance cost   2,505     2,409     96   4 %
Loss on settlement of convertible debenture   1,401     -     1,401   n/a  
Other (gains) losses   (22 )   (244 )   222   n/a  
Profit (loss) – continuing operations   (153 )   866     (1,019 ) n/a  
Profit – discontinued operations   31     210     (179 ) n/a  
Net Profit (Loss) $ (122 ) $ 1,076   $ (1,198 ) n/a  
Earnings (loss) per share - Basic $ (0.01 ) $ 0.08   $ (0.09 ) n/a  
Earnings (loss) per share - Diluted $ (0.01 ) $ 0.05   $ (0.06 ) n/a  

EBITDA*
$ 5,744   $ 4,726   $ 1,018   22 %

* EBITDA means profit from continuing operations before finance costs, loss on settlement of convertible debenture, taxes, amortization, other (gains) losses, and share based compensation. Readers are cautioned that EBITDA is generally regarded as an indirect measure of operating cash flow, and, as such, the Company believes it is a significant indicator of success of public companies, and is particularly relevant to readers within the investment community. EBITDA is not a measure that has a standardized meaning prescribed by International Financial Reporting Standards ("IFRS"), and accordingly may not be comparable to similar measures used by other companies.

 

Outlook

The Western Canadian petroleum industry remains focused on horizontal wells, multistage completions and extended-reach drilling in oil and liquids-rich gas plays. Coiled tubing and affiliated services are in high demand, and this is expected to continue through 2012. By the end of this year, Leader will have significantly increased its deep coiled tubing and fluid pumping capacity, which should further enhance future financial performance.

In the fourth quarter of 2011, Leader anticipates taking delivery of its first dedicated 2 3/8" deep coiled tubing unit. This will be the Company's sixth trailer-mounted coiled tubing unit, a configuration that is required for larger-diameter, extended reach applications. A second dedicated 2 3/8" unit is scheduled for delivery during the first half of 2012. As additional equipment is added to its fleet over the coming quarters, Leader is strongly positioned to provide its services to an increasing client base through the very active corridor from northeastern British Columbia through north-central Alberta.

Leader is encouraged that demand for its services has remained very strong in the face of recent global economic uncertainty. Although commodity prices were especially volatile during the third quarter, Leader's activity levels are expected to remain strong through to spring breakup. The Company is focused on maximizing field margins through the coming year. Additional expansion plans will be determined in the fourth quarter of 2011. Each of the Company's three service lines will benefit from this expansion.

 

Other

Additional information can be found on SEDAR at http://www.sedar.com or the Company web site at http://www.leaderenergy.com. The number of common shares issued and outstanding at the date hereof is 19,468,021 which does not include 1,709,500 unexercised stock options and 4,250,000 share purchase warrants.

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "estimate", "believe", "likely", "will", or estimates of business activity, and similar expressions and statements relating to matters that are not historical facts, are forward-looking statements. Such statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Leader to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors include commodity prices, demand for oil and gas related products and service, competition, political and economic conditions, demand and acceptance of new products and ways of doing business, changes in laws and regulations to which Leader is subject, and the ability to attract and retain key personnel.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

 

post #14 of 14

Huge dilution... 20m shares outstanding prior to this news.

 

March 2, 2012, Calgary, Alberta – (TSX Venture: LEA) – Leader Energy Services Ltd. ("Leader" or the
“Company”) is pleased to announce that it has increased the size of its previously announced bought deal
short form prospectus offering entered into with AltaCorp Capital Inc. (the "Underwriter"). Leader will now
issue 8,572,000 Common Shares from the Company at a purchase price of $0.70 per Common Share, for
gross proceeds of $6,000,400. The Underwriter will also have an option, exercisable for a period of 30
days following the closing date, to purchase from the Company up to an additional 1,285,000 Common
Shares on the same terms and conditions to cover over-allotments and for market stabilization purposes.


The Company intends to use the net proceeds of the offering to reduce indebtedness and for general
corporate purposes. The Common Shares will be offered in British Columbia, Alberta, Ontario and
Quebec by way of a short form prospectus, and in the United States, the United Kingdom and certain other
jurisdictions as may be agreed to by the Company on a private placement basis.
Closing of the offering is expected to occur on or about March 27, 2012 and is subject to certain customary
conditions including, but not limited to, the receipt of all necessary approvals including the approval of the
TSX Venture Exchange.


Leader Energy Services Ltd. provides well stimulation services in western Canada. Further information on
Leader can be found under the Company's listing at www.sedar.com and on the Company’s website at
www.leaderenergy.com.

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