Macro Enterprises Inc. Announces 2017 First Quarter Results - Seite 2

Highlights

• The Company continues to materially exceed industry standard safety averages. As at March 31, 2017 Macro Enterprises has now exceeded 15 quarters and 3.0 million man hours worked without a single lost time injury.
• The Company is reporting shareholders' equity of $79.5 million or $2.62 per share based on weighted average common shares outstanding as at March 31, 2017.
• The Company incurred business development costs in excess of $0.6 million for the period ending March 31, 2017, in addition to $3.0 million incurred in 2016, as accounted for in its operating expenditures, relating to large scale projects management remains optimistic will proceed and result in contracts.
• Total working capital as at March 31, 2017 was $41.8 million of which $33.2 million was held in cash. The Company continues to remain unleveraged and undrawn on its credit facilities.

First quarter results

Three months ended March 31, 2017 vs. three months ended March 31, 2016

Macro Enterprises Inc. posted consolidated revenue of $12.7 million, a slight increase over last year's first quarter revenue results of $9.1 million. The increase over prior year was due to a general pick up in work activity carrying over from prior year, however, activity declined substantially quarter over quarter. Work levels continue to remain below historical averages as a result market uncertainty, some scheduling and permitting issues compounded by commodity price volatility. Revenue during the quarter was split fairly evenly between MSA maintenance and integrity work and smaller projects being performed. Revenue during the period ended March 31, 2016 included recurring integrity and maintenance work from its existing clients under master service agreements.

Operating expenses were 96.3 % of revenue in the quarter compared to 95.2 % in the same quarter last year. The Company's operating margins remained higher than historical averages due to the mix of variable and necessary fixed costs being incurred. In addition, the Company incurred pre-job spending and business development costs on project work anticipated to commence in the second quarter. All aspects of the Company's operations are diligently being monitored and streamlined to continue to realize efficiencies and costs savings while ensuring the highest degree of health, safety and environmental standards are maintained.