Macro Enterprises Inc. Announces 2021 Third Quarter Results

Fort St. John, British Columbia--(Newsfile Corp. - November 25, 2021) - Macro Enterprises Inc. (TSXV: MCR) (the "Company" or "Macro") is pleased to announce the following third quarter results:

Summary of financial results
(thousands of dollars except per share amounts)
Three months ended 
September 30
Nine months ended 
September 30

Revenue$110,533 $93,619 $265,314 $183,739 

EBITDA113,714 16,836 37,573 26,617 

Net earnings 6,388 7,484 16,426 7,261 

Net earnings per share $0.20 $0.24 $0.52 $0.24 

Weighted average common shares outstanding (thousands) 31,508 31,119 


Note 1: Readers are advised to note that references to EBITDA in the table above are to net income from continuing operations before interest, taxes, amortization and impairment charges. EBITDA is not an earnings measure recognized by International Financial Reporting Standards ("IFRS") and does not have a standardized meaning prescribed by IFRS. Management believes that EBITDA is an appropriate measure in evaluating the Company's performance. Readers are cautioned that EBITDA should not be construed as an alternative to net income (as determined under IFRS) as an indicator of financial performance, or to cash flow from operating activities (as determined under IFRS) as a measure of liquidity and cash flow. The Company's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, the Company's EBITDA may not be comparable to similar measures used by other issuers. For a reconciliation of the Company's EBITDA to net income, please see the Company's management discussion and analysis for the three and nine months ended September 30, 2021, which are available on SEDAR at

All dollar amounts in this news release are expressed in Canadian dollars.


  • The Company recorded $6.4 million in net earnings or $0.20 per common share and EBITDA of $13.7 million.
  • Total working capital as at September 30, 2021 was $73.2 million after considering $23.0 million in current portions of long-term debt and right of use lease obligations.
  • The Company is reporting shareholders' equity of $120.2 million or $3.82 per share based on weighted average common shares outstanding as at September 30, 2020.
  • The Company expects revenue to exceed $385.0 million in fiscal 2021. The guidance considers the Company's current core business underway including the execution of the subcontract construction on Trans Mountain Expansion Project ("TMEP") and work commencing on NOVA Gas Transmission Ltd. ("NGTL") North Montney Mainline Project.


Macro posted consolidated revenue of $110.5 million compared to $93.6 million reported third quarter last year. Approximately 88% or $97.3 million of the revenue earned related to pipeline and facilities construction with the balance or $13.2 million relating to maintenance and integrity services being performed under existing master service agreements. Prior year revenue relating to pipeline and facilities construction was approximately 80% or $75.0 million while the balance related to maintenance and integrity.

Operating expenses were $95.3 million or 86% of revenue, compared to $74.8 million or 80% of revenue in the third quarter last year. During the quarter the Company applied for the Canadian Emergency Wage Subsidy ('CEWS') and was able to claim $0.6 million in government assistance which was applied as a reduction in salaries and wage expenses recorded in its operating expenses. All aspects of operations will be actively monitored and streamlined to ensure savings are realized while maintaining the highest degree of health, safety and environmental standards possible.

General and administrative expenses were $1.6 million, down $0.8 million from the $2.4 million recorded prior year. The decrease was expected as the Company has now reduced expenditures relating to joint operations. As well, during the quarter the Company was eligible for the CEWS in connection with administrative salaries and was able to claim $0.1 million in government assistance which was applied as a reduction in salaries expense recorded in its general and administrative expenses.

Depreciation of property, plant and equipment was $6.1 million compared to $5.1 million reported in the previous year. The increase in depreciation directly correlated to the added property, plant and equipment acquired in prior years along with the recognition of right to use assets under lease during the period. Depreciation is calculated at various declining balance methods across the Company's multiple categories of property, plant and equipment and is used in guiding the annual capital expenditure estimates. Residual values, methods of amortization and useful lives of the assets are reviewed annually and adjusted if appropriate. Based on the substantial value associated with its Right to Use Assets the Company anticipates higher depreciation costs going forward.

During the third quarter the Company recognized a non-cash loss of $138,000 on the mark-to-market re-measurement of its preferred shares at period end. The loss adjustment is indicative of a 3.0% increase to the Company's share value over the prior reported period.

Finance costs of $0.8 million were lower than prior year due to the adjustments the Company recognized under IFRS 16 right of use asset lease obligations and the associated implicit interest charges, the amortization of deferred finance costs recorded on its credit facilities and the issuance of its letters of credit relating to contract financial assurances. In addition to the non-cash deferred transaction costs, interest charges, standby and admin fees associated with the Company's credit facility, other finance costs included $41,000 of effective interest rate payments made on its preferred shares.

Income tax expense in the quarter of $0.4 million was at an effective rate of 6.0% which approaches the enacted tax rates of 27% after reversing non-cash charges and affecting for timing differences, namely the collections of prior year holdbacks and mark-to-market adjustments.

Net income was $6.4 million ($0.20 per share) compared to a net income of $7.5 million ($0.24 per share) recognized during the three months ended September 30, 2021. EBITDA was $13.7 million compared to $16.8 million recognized during the three months ended September 30, 2020. As a result of consistent activity levels period over period and improved margins, the CEWS program, minimal non-cash adjustments including mark-to-market gains and stock-based compensation, the Company's net income and EBITDA were comparable to prior years.


As the effects of the COVID-19 pandemic begin to subside, we believe Macro is well positioned to chart new independent growth for years to come. In this regard, we note the Company's strong balance sheet, access to liquidity, exceptional health and safety records, and meaningful client relations. With a newly added $20 million in borrowing capacity to the existing $80 million senior secured letter of credit facility, supported by Export Development Canada, Macro will continue to pursue large scale economically strategic opportunities while executing and servicing safely its secured backlog of business and long standing Master service agreements with its clients.

As to fiscal 2021, with the announced contracts on TMEP and NGTL, along with the estimated core business back log on the existing service agreements, Macro expects revenues to exceed $385 million for the year. This factors in the recent severe weather-related events and flooding in close proximity to the Company's on-going projects. The Company maintains its $20 million capital expenditure budget for the year.

Forward-Looking Statements

This press release contains forward-looking information and forward-looking statements (together, "forward-looking statements") within the meaning of applicable securities legislation, which reflect Macro's current expectations regarding future events as at the date hereof and are based on a number of assumptions, many of which are outside of Macro's control. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of words or phrases such as "plans", "targets", "expects", "estimates", "intends", "anticipates", "believes", "to acquire", "rising", "subject to" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" occur. Forward-looking statements involve both known and unknown risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements, including statements regarding future performance, anticipated revenues, expenses and operations requirements, profit margins, cash reserves, the availability of CEWS, the ongoing effects of COVID, capital expenditure requirements, the ability of Macro to service its backlog of clients. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, remaining uncertainty relating to adverse weather conditions, failure by project partners to perform their obligations, the continued effects of COVID, unanticipated costs due to supply chain disruption, volatility in the price of oil and gas, government regulation, potential acts of terrorism, NGTL System Expansion Project and TMEP generally, including delays, funding, timing and the ability of the Company to meet the applicable milestones for payment. Any delay in the completion of the Company's construction projects may require the Company to incur non-compensable costs such as standby time and for overtime work necessary to meet contracted project timelines. Readers are referred to the Company's public disclosure record, which is available on SEDAR (, including those risks set forth under the heading "Risk Factors" in the Company's annual information form for the year ended December 31, 2019 and dated April 27, 2020. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which are given as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except as required by securities laws and the policies of the TSX Venture Exchange, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

For further information please contact:

Frank Miles
President & C.E.O.
Phone: (250) 785-0033

Jeff Redmond
C.F.O. & Corporate Secretary
Phone: (250) 785-0033

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