Lonestar West Announces Q3 2015 Financial Results - Seite 2

"The Company is pleased with the revenue growth and the maintenance of its gross margin percentage during the third quarter of fiscal 2015," commented James Horvath, President and CEO of Lonestar. "Our growth strategy in the US continues to positively impact revenue, and we will continue to focus on expanding these underserviced areas. Unfortunately, EBITDAC in fiscal 2015 continues to be adversely impacted by the depressed energy market along with bad debt expense recorded during the period. Management continues to focus on improving its credit and collections process, and believes it is continuing to make progress in this regard. "

The Company has been successful in executing its planned growth strategy with three transformational acquisitions and organic expansion throughout the Southern United States, which has positioned Lonestar as a major Hydrovac and Vacuum services provider in North America. In August 2015 the Company completed the previously announced acquisition of Hewitt Specialty Services, LLC ("Hewitt"), providing a base to service the Cushing, Oklahoma region to complement its existing base in Elk City, Oklahoma and provide an expanded presence in the South Central United States.

The Company's fleet increased by 6 units during the quarter on account of units added as part of the Hewitt acquisition, and now stands at 158 units.

About Lonestar West

Based in Sylvan Lake, Alberta, Lonestar West Inc. operates a fleet of 158 Hydrovac, Vacuum and Auxiliary units throughout Western Canada, Ontario, California, and the Southern United States. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.

For more information please visit the Lonestar West website at www.lonestarwest.com.

Notes:

1. Gross margin is calculated as gross profit as a percentage of revenues.
2. This News Release contains the term EBITDAC as presented and does not have any standardized meaning prescribed by international financial reporting standards ("IFRS") and therefore it may not be comparable with the calculation of similar measures for other entities. Management uses EBITDAC to analyze the operating performance of the business. EBITDAC as presented is not intended to represent cash provided by operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. It is defined as Earnings before interest, taxes, depreciation, amortization, and stock based compensation excluding foreign exchange gains or losses which are primarily related to the US dollar activities of the Company and can vary significantly depending on exchange rate fluctuations, which are beyond the control of the Company.
3. EBITDAC per share is calculated as EBITDAC divided by the weighted average shares outstanding for the period.

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