Lonestar West Announces Q3 Results - Seite 2

Highlights for the nine month period ended September 30, 2014 include:

• Revenues increased 46.4% to $34,094,472 from $23,289,461 in the previous year equivalent period.
• Gross margin increased to 23.6% from 19.2% in the previous year equivalent period.
• Normalized EBITDAC increased 100.8% to $5,376,304 from $2,677,237 in the previous year equivalent period.
• Normalized EBITDAC per basic share increased 50.3% to $0.215 from $0.143 in the previous year equivalent period.
• Income before taxes was $1,963,948, a $1,354,974 increase in comparison to the $608,974 income before taxes in the previous year equivalent period.
• Net earnings for the period were $1,472,960 a $1,067,457 increase in comparison to the $405,503 net earnings in the previous year equivalent period.
• The Company realized $242,114 in revenues in relation to a legal settlement in the Company's favour.

Normalized EBITDAC rose to $5,376,301 from the previous year equivalent period of $2,677,237. The significant growth can be credited to improved results from both the Canadian and United States Divisions year-over-year.

Normalized EBITDAC for the Canadian Division increased to 14.9% from 10.2% in the prior year equivalent period. The improvement is a result of increased revenues of 28.1% to $26,071,817. The Canadian Division added a total 38 units to its fleet, and 2 operational bases year-over-year.

Normalized EBITDAC for the United States Division increased to 21.6% from 20.5% in the prior year equivalent period. The improvement in Normalized EBITDAC margins was a result of increased revenues of 173.1% to $8,019,655 for the nine month period ended September 30, 2014. The United Stated Division added 28 units to its fleet, and 4 operational bases year-over-year.

Lonestar is continuing to expand its fleet as part of its planned growth strategy. As of September 30, 2014, the Company had 127 units. Subsequent to the quarter end, the Company has added 7 units and anticipates adding a further 11 units by the end of the fourth quarter. The estimated total units of 145 for year end compares to 68 units at the beginning of the year.

Subsequent to September 30, 2014, the Company continued its geographical expansion and opened field bases in Tulsa, Oklahoma, Nashville Tennessee, and Toronto, Ontario, bringing the total number of bases to 18 as of the date of this MD&A. The Company is continuing to evaluate viable locations to expand into and anticipates that it will add additional bases in the coming quarters.

"Lonestar is exceptionally pleased with both our organic growth and the contributions made by the Vamp Oilfield Inc. acquisition," commented James Horvath, President and CEO of Lonestar. "The United States Division has shown meaningful improvements and Vamp is having a significant impact on the Canadian Division results."

About Lonestar West

Based in Sylvan Lake, Alberta, Lonestar West Inc. operates a fleet of 134 HVAC, 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.

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.

James Horvath
President & CEO
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[e-mail]

Investor Relations, The Howard Group Inc.
Jeff Walker [phone]
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