Pulse Seismic Inc. (“Pulse” or “the Company”) is pleased to report preliminary, strong fourth quarter data library sales of $8.6 million compared to $8.4 million for the fourth quarter of 2014. Year-over-year, total data library sales decreased from $35.7 million in 2014 to $21.1 million in 2015. As of January 15 , the Company was debt-free and had a cash balance $1.4 million .
The year’s data library sales consisted of $10.0 million or 47 percent in “traditional” sales, or new licensing of data for exploration and development activities, and $11.1 million or 53 percent of “transaction-based” sales, which result from corporate mergers and acquisitions, asset sales and partnership and joint venture activity.
The preliminary selected financial information has not yet been approved by the Company’s Audit Committee or Board of Directors or reviewed by the Company’s auditors.
Additionally, the Company is pleased to announce that it has extended its revolving credit facility for an additional year. The new maturity date of the facility is February 13, 2019 . At its own discretion, the Company elected to reduce the facility’s available borrowing amount to $30.0 million from $50.0 million . Up to $5.0 million of the revolving facility continues to be available as an operating line of credit. The credit facility is with a syndicate led by TD Bank and includes ATB Financial and continues to include an accordion feature which allows Pulse to increase the facility’s size up to $70.0 million , subject to the consent of the lenders. The accordion incurs no renewal or standby fees.
The voluntary reduction in borrowing capacity reflects Pulse’s strong balance sheet as the facility is entirely undrawn. The “right-sizing” of the facility is in line with ongoing cost-reduction initiatives as it will save standby and commitment fees. The Company believes the revised amounts provide sufficient credit capacity to execute its business strategy.
“The implementation of cash conservation measures like this facility reduction is prudent during this unprecedented period of economic uncertainty, and we value the strong support of our lenders to this change,” commented Neal Coleman , Pulse’s President and CEO. “After a strong fourth quarter, we are well-positioned as a debt-free organization not only to continue navigating through the downturn but to pursue seismic data acquisition opportunities.”
On Thursday, March 3, 2016 Pulse intends to release its complete audited financial results for the year ended December 31, 2015 . A conference call and webcast to review the 2015 results is scheduled for Friday, March 4, 2016 at 1:00 EST (11:00 am MST). Further details of the conference call, including dial-in numbers, will be provided at a later date.
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada , currently consisting of approximately 28,600 square kilometres of 3D seismic and 340,000 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada’s oil and natural gas exploration and development occur.