Over the last three years, I have written often about GasFrac Energy Services (GFS in Canada and GSFVF on the pink sheets). This afternoon, GasFrac issued its earnings for the quarter ended June 30, 2013 and they were not bad. On the other hand, the results were far from wonderful. Nevertheless, for GasFrac which has been through so much negative drama, it was a welcome report.
The key to the earnings is two numbers: revenue was just over $30 million and EBITDA was $3.24 million. Some of the EBITDA was the result of selling some surplus equipment, but even aside from that one time item, EBITDA was about $1.5 million. Almost a year ago, the board dumped the management and adopted a plan to bring the company back to profitability. The goal was to run GasFrac so that it would be cash flow positive at revenue of $30 million per quarter. The report today confirms that those targets have been met, an important milestone for GasFrac and its investors.
Tomorrow will bring the conference call which should allow us to learn more about the outlook for the rest of the year. The earnings report has a lengthy section detailing the company's view, but we need to hear more on this subject.
Right now, the message about GasFrac is to offer congratulations to the management for achieving the cost and cash flow goals and avoiding those nasty surprises that seemed to hit with regularity under the old management. GasFrac may actually be turning the corner towards a prosperous future.
DISCLOSURE: I am long GasFrac stock.
The key to the earnings is two numbers: revenue was just over $30 million and EBITDA was $3.24 million. Some of the EBITDA was the result of selling some surplus equipment, but even aside from that one time item, EBITDA was about $1.5 million. Almost a year ago, the board dumped the management and adopted a plan to bring the company back to profitability. The goal was to run GasFrac so that it would be cash flow positive at revenue of $30 million per quarter. The report today confirms that those targets have been met, an important milestone for GasFrac and its investors.
Tomorrow will bring the conference call which should allow us to learn more about the outlook for the rest of the year. The earnings report has a lengthy section detailing the company's view, but we need to hear more on this subject.
Right now, the message about GasFrac is to offer congratulations to the management for achieving the cost and cash flow goals and avoiding those nasty surprises that seemed to hit with regularity under the old management. GasFrac may actually be turning the corner towards a prosperous future.
DISCLOSURE: I am long GasFrac stock.
No comments:
Post a Comment