Aveda Transportation and Energy Services Announces 2017 Results

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CALGARY, Alberta, April 16, 2018 (GLOBE NEWSWIRE) -- Aveda Transportation and Energy Services Inc. (“Aveda” or the “Company”) (TSX-V:AVE), one of North America’s largest dedicated rig moving companies, is pleased to announce solid results for the three months and year ended December 31, 2017.

“We’ve had a remarkable turnaround and continued our solid performance into the fourth quarter of 2017,” said Ronnie Witherspoon, President and Chief Executive Officer for Aveda. “We’re continuing to see rig count improvements in 2018. I’m excited about our prospects going forward. I once again want to thank our team for their tremendous contributions.”

The Company’s consolidated financial statements and Management’s Discussion and Analysis are available on the Company’s website at and the SEDAR website at .

Aveda earns revenue primarily by providing specialized transportation services to companies engaged in the exploration, development and production of petroleum resources. As a result, demand for Aveda’s transportation services is generally linked to the economic conditions of the energy industry and the level of drilling activity in the US and the WCSB.

Relative to 2017, both oil and natural gas prices have rebounded and rig counts in both Canada and the United States have risen in the first quarter of 2018. Based both on general market enthusiasm with respect to commodity prices and discussions with Aveda’s customers, management expects 2018 to be an even stronger year in terms of drilling activity. Preliminary results for the first quarter of 2018 indicate that the Company expects to report revenue of $59.0 million to $60.5 million, Adjusted EBITDA of $4.4 million to $4.6 million and a net loss of $0.5 million to $1.0 million. During the first quarter of 2017, the Company generated revenue of $40.1 million, Adjusted EBITDA of $2.6 million and a net loss of $3.4 million. Using the first quarter of 2018 versus 2017 as a proxy, the Company expects activity levels to be robust. Accordingly, the Company is planning to invest $12.0 million in its capital program in 2018, with approximately $4.0 to $5.0 million allocated towards maintenance capital and the remainder towards purchasing and reengineering hoisting and revenue producing equipment.

Based on the information above, Aveda expects to see continued improvements in revenue, Adjusted EBITDA and net income results in 2018.

Aveda provides specialized transportation services and equipment required for the exploration, development and production of petroleum resources in the Western Canadian Sedimentary Basin and in the United States of America principally in and around the states of Texas, Pennsylvania, Oklahoma, Ohio and North Dakota. Aveda balances Performance, Safety and Value for our Customers through Leadership, Financial Discipline and Proper Planning, while providing a culture of Family for our employees. Aveda strives for a world where its operations improve the daily experience of our customers, our employees, and every person we meet on the road to success.

Aveda was incorporated in 1994 as a private company to serve the oil and gas industry. In the spring of 2006 the Company went public on the TSX Venture Exchange. Aveda has major operations in Leduc, AB, Edson, AB, Grande Prairie, AB, Pleasanton, TX, Midland, TX, Pecos, TX, Marshall, TX, Williston, ND, Williamsport, PA, Martins Ferry, OH and Oklahoma City, OK. Aveda is publicly traded on the TSX Venture Exchange under the symbol AVE. Aveda has 12 locations which cover North America’s most prolific oil and gas plays. The Company has almost 1,500 pieces of modern, well maintained equipment and employs approximately 610 team members. Aveda’s unique differentiator is our advanced operational and safety culture. For more information on Aveda please visit .

For more information, please contact:Bharat Mahajan, CPA, CAVice President, Finance and Chief Financial Officer(403) 264-5769

This News Release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes. In particular, this News Release contains forward-looking statements relating to: demand for the Company’s services and general industry activity level; the Company’s growth opportunities; and expectations regarding the Company’s revenue, EBITDA, Adjusted EBITDA and equipment utilization. Aveda believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to Aveda, including information obtained from third party industry analysts and other third party sources. In some instances, material assumptions and material factors are presented elsewhere in this News Release in connection with the forward-looking statements. Readers are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to:

The forward-looking statements regarding Aveda's potential revenue, EBITDA and Adjusted EBITDA are included herein to provide readers with an understanding of Aveda's anticipated cash flow and Aveda's ability to fund its expenditures based on the assumptions described herein.  Readers are cautioned that this information may not be appropriate for other purposes. 

Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Aveda’s actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in Aveda’s annual information form and management discussion and analysis for the year ended December 31, 2017 (the "MD&A"), which are available for viewing on SEDAR at . Any forward-looking statements are made as of the date hereof and, except as required by law, Aveda assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

This News Release contains the terms “EBITDA”, “Adjusted EBITDA”, “gross profit” “gross profit margin”, “gross profit excluding depreciation and amortization” and “gross margin excluding depreciation and amortization” which are defined in the MD&A. The above terms as presented do not have any standardized meanings prescribed by international financial reporting standards (“IFRS”) and therefore may not be comparable with the calculation of similar measures for other entities. Management uses EBITDA, Adjusted EBITDA, gross profit, gross profit margin, gross profit excluding depreciation and amortization, and gross margin excluding depreciation and amortization to analyze the operating performance of the business. These non-IFRS measures presented are not intended to represent cash provided by operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS.

This News Release contains the terms "cash flow", "working capital" and "working capital ratio", which do not have any standardized meanings prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other entities.  As an indicator of the Company's performance, cash flow should not be considered as an alternative to, or more meaningful than, net cash from operating activities as determined in accordance with IFRS. The Company considers cash flow to be a key measure as it demonstrates the Company's underlying ability to generate the cash necessary to fund operations and support activities related to its major assets.  Cash flow is determined by adding back changes in non-cash operating working capital to cash from operating activities. Management calculates working capital as current assets less current liabilities and uses this measure to analyze operating performance and leverage.


(1) See MD&A Section 8.(2) Current ratio calculated as current assets divided by current liabilities.(3) Debt includes loans and borrowings and note payable as per their carrying amounts on the balance sheet.(4) Gross margin is calculated as gross profit divided by revenue.(5) Gross margin excluding depreciation and amortization is calculated by dividing gross profit excluding depreciation and amortization by revenue.(6) Net asset value per share calculated by dividing total equity ($34.4 million) by common shares outstanding (57.4 million).

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Globe Newswire: 14:45 GMT Monday 16th April 2018

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