During the first quarter of 2009, Impax Energy Services recorded revenue of about CAD9.8 million, EBITDA of CAD2.1 million.
EBITDA for the same comparative period decreased by CAD4.3 million due to lower revenues, lower gross margins and a one-time charge of CAD1 million related to severance and relocation costs. The trust expects that the previously announced relocation of its corporate offices to Calgary will be completed by the end of May 2009.
The significant drop in total assets, year over year, is primarily attributable to the fourth quarter 2008 non-cash impairment charge of CAD28.4 million relating to the trust’s goodwill and intangible assets.
On April 28, 2009 the trust, signed a new credit facility that, effective as of March 1, 2009 replaced the demand nature of its previous facility with a two year term facility, reduced the interest rates on the facility and significantly reduced mandatory principal re-payments over the two year period.
Overall, the new credit facilities are less costly and have been structured on a more conventional operating basis.
The long-term fundamentals of the oil and gas business are still intact although management expects 2009 to exhibit significantly reduced levels of activity from the prior year. To compete in this constrained environment the trust will continue to eliminate costs not essential to sustained operations and to reduce the erosion of operating margins through improved synergies between operating units.
