Pulse Seismic Inc. Reports 2015 Results

CALGARY, March 3, 2016

CALGARY, March 3, 2016 /CNW/ - Pulse Seismic Inc. ("Pulse" or "the Company") is pleased to report its financial and operating results for the year ended December 31, 2015. The audited financial results were in line with the preliminary unaudited financial results announced in the Company's news release on January 18, 2016. The audited consolidated financial statements, accompanying notes and MD&A are being filed on SEDAR (www.sedar.com) and will be available on Pulse's website at www.pulseseismic.com.

"With weak commodity prices, a poor industry outlook and no sales visibility, it would be easy to dwell on the negative. We are not doing so," stated Neal Coleman, Pulse's President and CEO. "Pulse is firmly positioned to survive an extended downturn: costs are at a record low, we have no capital commitments or debt, and we are able to act on opportunities for counter-cyclical acquisitions to enlarge our main asset and expand future revenue-generating capacity."

HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2015

• Seismic data library sales decreased by 41 percent year-over-year to $21.2 million in 2015 from $35.7 million in 2014;
• Total seismic revenue of $24.4 million in 2015, with $3.2 million in participation survey revenue, compared to $35.7 million and no participation survey revenue in 2014;
• Net loss of $5.3 million or ($0.09) per share basic and diluted for 2015 compared to net earnings of $3.5 million or $0.06 per share basic and diluted for 2014;
• An impairment loss of $937,000 was recognized on two specific datasets in the seismic data library in the fourth quarter of 2015;
• Cash EBITDA^(a) of $15.1 million, a 47 percent decrease from $28.6 million in 2014, and a 45 percent decrease on a per-share basis to $0.27 per share basic and diluted from $0.49 in 2014;
• Shareholder free cash flow^(a) of $14.7 million, a 47 percent decrease from $27.9 million in 2014, and a 45 percent decrease on a per-share basis to $0.26 per share basic and diluted from $0.47 in 2014;
• Pulse purchased and cancelled, through its normal course issuer bid, a total of 1,625,400 common shares (2.8 percent of the total outstanding at December 31, 2014) at a total cost of approximately $4.1 million (average cost of $2.50 per common share including commissions);
• Pulse paid three quarterly dividends of $0.02 per share totalling $3.4 million, suspending its quarterly dividend as of November 2015;
• At December 31, 2015 Pulse had drawn $222,000 on its operating line of credit and the long term-debt was nil, compared with $5.4 million of long-term debt at December 31, 2014. The operating line of credit was fully repaid in the first quarter of 2016;
• The Company added 136 square kilometres of new high-quality 3D seismic data to the library through the completion of a survey in west central Alberta which commenced in January and was completed in March 2015; and
• On October 16, 2015 the Company acquired, from an oil and gas company, 146 square kilometres of high-quality 3D data located in west central Alberta.

HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2015

• Seismic data library sales of $8.8 million, an increase of 4 percent compared to $8.4 million in the same period of 2014;
• Net earnings of  $658,000 or $0.01 per share basic and diluted compared to $824,000 and $0.01 per share basic and diluted in the fourth quarter of 2014;
• Cash EBITDA of $7.0 million or $0.13 per share basic and diluted compared to $6.7 million or $0.12 per share basic and diluted in the fourth quarter of 2014; and
• Shareholder free cash flow of $7.0 million or $0.12 per share basic and diluted compared to $6.5 million or $0.11 per share basic and diluted in the fourth quarter of 2014.

On January 26, 2016 the Company closed an acquisition and added approximately 107,000 net kilometres of 2D seismic data and 58 net square kilometres of 3D seismic data, increasing Pulse's 2D seismic data library by 31.5 percent from approximately 340,000 net kilometres to approximately 447,000 net kilometres.