McCoy Global Inc. Announces First Quarter 2019 Results
McCOY GLOBAL ANNOUNCES FIRST QUARTER 2019 RESULTS
May 10, 2019
Edmonton, Alberta – McCoy Global Inc. (“McCoy”, “McCoy Global” or “the Corporation”) (TSX:MCB) today announced its operational and financial results for the three months ended March 31, 2019.
“We remained disciplined in the management of our business and advanced the development of new technology to better serve our customers during the first quarter of 2019. We have gained solid footing in an ever-changing global
energy marketplace and are proving our ability to drive revenue growth and profitability despite uncertain market fundamentals,” said Jim Rakievich, President and CEO of McCoy Global.
“For the first quarter of the year, we recorded our third consecutive quarter of positive earnings and adjusted EBITDA. Although customer order activity was slow in Q1 with bookings below our expectations, we experienced an uptick and renewed acceleration in the month of April, having received several orders totalling $7.2 MM for the second quarter. We are encouraged by the improving outlook in the international and offshore markets. With the number of active drilling rigs on the rise, and our strong market position in these markets, we are well positioned to capitalize on this opportunity.
“We are very encouraged with the progress that our engineering team has made in development of our new data driven technologies that we believe will be ready for first field trials in the second half of 2019 and we expect to launch first phase of our new product solutions for customers in Q4 of this year.”
Operational Summary
Since January 1, 2019, McCoy Global reported:
- A third consecutive quarter of positive net earnings and positive adjusted EBITDA
- Revenue of $14.8 million, compared to $11.2 million in the first quarter of 2018
- Net earnings of $0.5 million, compared to net loss of $2.0 million in the first quarter of 2018
- Adjusted EBITDA1 of $0.7 million, compared to adjusted EBITDA loss of $0.5 million in the first quarter of 2018
- Backlog2 of $9.9 million and customer orders of $10.1 million, compared to $15.0 million and $12.1 million, respectively, for the three months ended December 31, 2018. Market uncertainty in early 2019 drove delays in project approvals for many customers, and as a result backlog decreased in comparison to the previous quarter
- Book-to-bill ratio3 of 0.68, compared to 0.90 for the three months ended December 31, 2018
- The decline in first order intake for the first quarter of 2019, was offset by $7.2 million of orders received in the month of April 2019
- The Corporation continued its focus on developing new technology including deploying $0.5 million towards its “Digital Technology Roadmap.” This strategic initiative is a priority as the industry trends toward data acquisition and automation
solutions for customers, with commercialization of two key products planned for 2019 - Purchased and cancelled 144,400 common shares under McCoy’s current normal course issuer bid (“NCIB”) which continues until June 4, 2019
Selected Quarterly Information
| ($000 except per share amounts and percentages) | Q1 2019 | Q1 2018 | % Change |
| Total revenue | 14,840 | 11,243 | 32 |
| Gross profit | 4,570 | 2,896 | 58 |
| as a percentage of revenue | 31 | 26 | 5 |
| Net earnings (loss) | 524 | (1,951) | (127) |
| per common share – basic | 0.02 | (0.07) | (129) |
| per common share – diluted | 0.02 | (0.07) | (129) |
| Adjusted EBITDA1 | 713 | (482) | (248) |
| per common share – basic | 0.03 | (0.02) | (250) |
| per common share – diluted | 0.03 | (0.02) | (250) |
| Total assets | 59,780 | 50,429 | 19 |
| Total liabilities | 19,668 | 9,879 | 99 |
| Total non-current liabilities |
6,348 | 632 | 904 |
(Full Document Attached)
For further information, please
contact:
Mr. Jim Rakievich Phone: 1.780.453.8451
McCoy Global Inc. E-mail: info@mccoyglobal.com
President and CEO Website: www.mccoyglobal.com