Noble Iron Inc. is pleased to announce its interim unaudited consolidated financial results for the three month period ended March 31, 2015 (the “first quarter”).
First Quarter Highlights
- Total first quarter revenues of $5.7 million, an increase of $0.4 million when compared to the same period in 2014.
- Construction and Industrial Equipment Rental and Distribution segment revenue for the first quarter of $4.5 million, an increase of $0.4 million when compared to the same period in 2014.
- First quarter net loss of $2.7 million, compared to a net loss of $0.8 million during the same period in 2014.
“Over the second half of 2014, our business underwent several major transitions,” stated Nabil Kassam, the Company’s Chairman and Chief Executive Officer. “We restructured our existing team, recruited new talent, and made significant investments in technology development. Most notably, we began the process of consolidating our four Southern California operations into a single facility.
The benefits of these strategic shifts became visible during the first quarter in our equipment rental and distribution revenues and operating efficiency, which are beginning to demonstrate the advantages of a consolidated base of operations. As 2015 progresses and our transitions achieve greater efficiency, we are confident that these strategic and operating improvements will yield commensurate benefits to all stakeholders of Noble Iron.”
Noble Iron recorded total revenues of $5.7 million in the first quarter, an increase of $0.4 million (8%) when compared to the first quarter of 2014. This improvement was primarily due to the performance of the Company’s Construction and Industrial Equipment Rental and Distribution segment, which benefited from a strong equipment demand within the Southern California market. This resulted in the segment recording first quarter revenue of $4.5 million, an increase of $0.4 million (9%) when compared to the first quarter of 2014. The Company’s Enterprise Asset Management Software also improved its revenues during the first quarter.
The Company’s cost of revenue in the first quarter was $2.6 million, a $0.4 million (18%) increase when compared to the first quarter of 2014. This increase was primarily due to a $0.4 million increase in depreciation expense.
The Company’s expenses in the first quarter were $5.7 million, a $1.9 million (50%) increase when compared to the first quarter of 2014. This increase was primarily due to a $0.6 million increase in support, maintenance, and delivery expense within the Construction and Industrial Equipment Rental and Distribution segment, which resulted from both the Company’s recent strategic decision to focus on the repair and refurbishment of its existing equipment and the ongoing consolidation of the Company’s Southern California operations. The Company’s expenses were also impacted by a $0.6 million increase in general and administration expense, due largely to the Company’s expansion of its operating and technology development teams.
The Company’s net loss for the first quarter was $2.7 million, an increase of $1.9 million (229%) when compared to the first quarter of 2014. The losses were primarily due to the aforementioned increases in the Company’s expenses, and were also due to a one-time Income Tax Recovery of $0.5 million which occurred during the first quarter of 2014, and not during the first quarter of 2015. The Company’s adjusted EBITDA loss for the first quarter was $0.1 million, a decline of $0.9 million (112%) when compared to the first quarter of 2014. Both the net loss and the adjusted EBITDA loss were primarily due to the increase in the Company’s expenses.
