Mr. Rick Quigley reports

PETROWEST CORPORATION ANNOUNCES FIRST QUARTER 2013 FINANCIAL RESULTS

Petrowest Corp. has released its consolidated financial results for the three-month period ended March 31, 2013.

Rick Quigley, chief executive officer, stated: "The financial results for the first quarter of 2013 were impacted by unfavourable weather conditions, which specifically affected the ramp-up of the rock-crushing operation. The work that was delayed has moved into the second quarter, as was the case in 2012, and activity levels in the second quarter have ramped up considerably." Mr. Quigley further stated that he "is encouraged by the amount of backlog currently in place, the improvement in the transportation segment margins and the continued strong activity levels in construction and civil."

Financial highlights

In the three months ended March 31, 2013, the company:

• Reported revenue of $45.9-million, a decrease of $4.8-million compared with the same quarter in 2012;
• Reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin of 13.1 per cent;
• Closed a $50-million syndicated loan facility;
• Repaid the outstanding balance of the $31.7-million (U.S.) long-term debt facility;
• Repaid the outstanding balance of $1.8-million of convertible debentures;
• Recorded $3.6-million of non-recurring finance expenses relating to the unamortized debt issue costs of the $31.7-million (U.S.) long-term debt facility and the convertible debenture, prepayment costs relating to the $31.7-million (U.S.) long-term debt facility, and $2.1-million of accelerated amortization for the expected refinancing of the term facility;
• Commenced operations of the landfill site in northeastern British Columbia.

                                                  FINANCIAL RESULTS
                                              (in thousands of dollars)
                                                                                       Three months ended March 31,
                                                                           2013                               2012

Revenue                                                              $   45,926                         $   50,774
Operating expense                                                       (38,248)                           (41,357)
Gross margin                                                              7,678                              9,417
General and administrative                                               (1,663)                            (1,701)
Adjusted EBITDA                                                           6,015                              7,716
Amortization of property and equipment                                   (4,289)                            (3,558)
Amortization of intangible assets                                          (176)                              (341)
Gain (loss) on disposal of property and equipment                          (542)                              (330)
Foreign exchange gain (loss)                                               (642)                               821
Operating profit                                                            366                              4,308
Net finance expense(1)                                                   (5,805)                            (2,619)
Gain (loss) of fair value of financial instruments                           (4)                              (257)
Net income (loss) and comprehensive income (loss) before income tax      (5,443)                             1,432
Deferred income tax recovery                                              1,139                                  -
Net and comprehensive income (loss)                                      (4,304)                             1,432

(1) Includes approximately $3.6-million of non-recurring costs.                                                    

Selected financial information and non-ifrs measures

Selected financial information for the three-month periods ended March 31, 2013, and 2012 is set out herein and includes the following non-IFRS (international financial reporting standards) financial measures: gross margin, gross margin percentage, adjusted EBITDA and adjusted EBITDA margin percentage. This information should be read in conjunction with the consolidated financial statements for the three-month period ended March 31, 2013, and the accompanying management's discussion and analysis (MD&A), available under the company's profile on SEDAR.

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