Mr. James Horvath reports

LONESTAR REPORTS RECORD THIRD QUARTER & NINE MONTH RESULTS

Lonestar West Inc.'s revenues rose to new highs in the third quarter and nine-month reporting period for fiscal 2013. The record revenues were driven by growth in its HVAC (heating, ventilation and air conditioning) and vacuum fleet, as well as continued expansion into the United States.

Highlights for the third quarter and nine months of fiscal 2013 ended March 31, 2013, include:

• Quarterly:
  • Revenues increased 50.6 per cent to $8,776,667 from $5,828,653 in the previous-year-equivalent quarter.
  • EBITDA (earnings before interest, taxes, depreciation and amortization) increased 22.7 per cent to $1,556,431 compared with $1,268,324 in the previous-year-equivalent quarter.
  • EBITDA per share remained unchanged at nine cents for the corresponding quarters as a result of the issuance of 2.17 million shares in fiscal 2013 for gross proceeds of approximately $3-million. Net income before taxes increased 17.8 per cent to $1,019,320 in comparison with the $865,106 net income before taxes in the previous-year-equivalent quarter.
  • Net earnings for the quarter were $762,218 compared with $666,566 in the third quarter of fiscal 2012.
  • Earnings per fully diluted share remained unchanged at four cents for the corresponding third quarters.
  • Acquisition of PLJ Enterprises LLC, an oil field services company based in Oklahoma, United States.
• Nine months:
  • Revenues for the nine months of the current fiscal year rose 53 per cent to $21,683,347 compared with $14,176,245 for the first nine months of fiscal 2012.
  • EBITDA increased 50.7 per cent to $3,972,238 compared with $2,635,964 in the first nine months of fiscal 2012.
  • EBITDA per share increased 33.3 per cent to 24 cents compared with 18 cents in the first nine months of fiscal 2012.
  • Net income before taxes increased 45 per cent to $2,472,227 compared with $1,705,072 for the corresponding nine months of fiscal 2012.
  • Net earnings jumped 25 per cent to $1,895,125 for the first nine months of fiscal 2013 compared with $1,506,532 in the same period of the previous fiscal year.
  • Earnings per fully diluted share for the nine months of fiscal 2013 were 11 cents compared with 10 cents for the same period of the previous fiscal year.

The expansion program resulted in a 48.5-per-cent increase in fleet size as the company grew from 33 units available for work at the end of the third quarter of fiscal 2012 to 49 units available for work at the end of the third quarter of fiscal 2013. As of the date of this report, the total units available for work is 51.

Management estimates that approximately four HVAC units will be added in the fourth fiscal quarter and anticipates selling one HVAC unit, thereby resulting in approximately 54 units in the fleet by the end of the fiscal year.

During the quarter, the company continued its expansion into the United States through the purchase of all outstanding units in PLJ Enterprises, an Oklahoma-based HVAC and vacuum services company. The acquisition will help mitigate the seasonality that the company experiences in its Canadian operations and is in line with management's growth strategy.

President and chief executive officer James Horvath commented: "Lonestar West Inc. has continued the growth trend with increased revenues and EBITDA over the prior-year quarters. Management's focus on managing costs and strategically growing our fleet and operations both organically and through acquisition has had a positive impact on our earnings. We are continuing our strategy of reducing the seasonality of our operations through expansion to the United States and growing our fleet, and expect this growth rate will continue into the future."