Noble Iron Inc. announced its unaudited interim financial results for the quarter ending March 31, 2013 and additional debt financing. Total revenue in Q1 2013 was $4.5 million, compared to $4.0 million in Q1 2012. Total adjusted EBITDA in Q1 2013 was $0.3 million, compared to $0.5 million in Q1 2012. The company closed a $15.0-million revolving credit facility for its Texas operations.
Rental revenue from the equipment rental and distribution segment increased by 44% compared to Q1 2012. Adjusted EBITDA in the equipment rental and distribution segment increased 78% compared to Q1 2012. Total net loss for the period of Q1 2013 was $1.3 million, compared to a net loss of $0.4 million in Q1 2012.
The terms of the $15.0-million financing facility for Noble Iron’s Texas operations include a revolving line of credit and a variable interest rate equivalent to one-month LIBOR plus 275 basis points; approximately 3.00% at closing. Previous financing arrangements for the company’s Texas operations included a number of debt facilities charging interest rates ranging from 5.8% to 7.0%. The new facility includes a cash sweep against outstanding debt, and no scheduled principal payments are due during the four year term of the loan. The facility allows the company to draw up to $15.0 million, based upon a borrowing base determined by the value of equipment fleet, accounts receivable and inventory. A total of $5.4 million was funded at closing, and $9.6 million remains available to draw by the Company subject to borrowing base availability.
“We are excited with the progress of the Noble Iron model and its development. Our year-over-year revenue growth of 44% within the company’s equipment rental and distribution segment demonstrates our team’s commitment to providing our customers quality equipment and hassle-free service at the lowest price.” said Willie Swisher, CEO of the company.
Nabil Kassam, executive chairman of Noble Iron commented, “the new debt financing will provide Noble Iron with significant growth capacity at our Texas CELL. We are pleased to continue working with our lending partner, Regions Bank, and look forward to pursuing additional expansion opportunities.”
Financial information indicated, as set out in this news release, is presented on a basis consistent with the accounting principles used to prepare Noble Iron’s most recently filed financial statements. The consolidated financial statements are prepared by management in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board. Readers are advised that the Company faces various risk factors with respect to its business and operations: for further information please see the Management Discussion and Analysis of Noble Iron Inc. at www.SEDAR.com.