CRH Medical Corporation Announces Acquisition in Florida and First Monitored Anesthesia Care Development Program in Washington State

VANCOUVER, March 15, 2017 /PRNewswire/ – CRH Medical Corporation (TSX: CRH) (NYSE MKT: CRHM) (the “Company”), announces that it has completed an accretive transaction whereby CRH has acquired a 60% interest in a gastroenterology (“GI”) anesthesia practice in Kissimmee Florida (“Kissimmee”).

CRH also announces that it has entered into an exclusive agreement to develop and manage a monitored anesthesia care (“MAC”, or “Deep Sedation”) program with Puget Sound Gastroenterology (“PSG”), located in Washington State. Under the terms of the agreement, CRH has the option to acquire 51% of the newly created MAC business at a future date.

Kissimmee Transaction Highlights    

  • Total annual estimated revenue of US$2.2 million
  • EBITDA and cash flow accretive
  • Services one ambulatory surgical center (“ASC”) and is CRH’s third acquisition in Florida
  • Structured as joint venture with CRH retaining a 60% interest

PSG Transaction Highlights

  • PSG is a premier group of gastroenterologists with four ASCs in the greater Seattle area
  • CRH to develop and manage an MAC program for PSG
  • CRH retains an option to purchase 51% of the new anesthesia business at a future date, no sooner than 12 months

CRH estimates that approximately half of the endoscopic procedures administered in ASCs are performed without MAC, the standard of care for anesthesia for endoscopic procedures. CRH’s MAC Development Program represents a significant new opportunity to expand the Company’s anesthesia services business by employing its expertise to assist gastroenterology practices to transition to monitored anesthesia for better patient care.

Edward Wright, CEO of CRH, stated, “The Kissimmee transaction with an existing O’Regan customer expands our anesthesia presence to 27 ASCs. More importantly, the MAC program will contribute greatly to CRH’s long-term shareholder value and is a significant new opportunity to engage gastroenterologists currently not utilizing Deep Sedation, which may be as much as 50% of the GI market. Under the MAC program, CRH has the option to purchase 51% of PSG’s anesthesia business after 12 months. Until such time, we will not recognize any material revenue or expense from PSG.”

About CRH Medical Corporation

CRH Medical Corporation is a North American company focused on providing gastroenterologists throughout the United States with innovative services and products for the treatment of gastrointestinal diseases. The CRH O’Regan System is a single-use, disposable, hemorrhoid banding technology that is safe and highly effective in treating all grades of hemorrhoids. CRH distributes the O’Regan System, treatment protocols, operational and marketing expertise as a complete, turnkey package directly to gastroenterology practices, creating meaningful relationships with the gastroenterologists it serves. CRH’s O’Regan System is currently used in all 48 lower US states.

In 2014, CRH acquired Gastroenterology Anesthesia Associates, LLC (“GAA”), a full-service gastroenterology anesthesia company that provides anesthesia services for patients undergoing endoscopic procedures. Since then, CRH has incorporated ten additional acquisitions to its anesthesia business. CRH Anesthesia now services 27 ambulatory surgical centers in seven states and performs approximately 170,000 procedures annually.

Forward-Looking Statements

Information included or incorporated by reference in this document may contain forward-looking statements. This information may involve known and unknown risks, uncertainties, and other factors which may cause our actual results, performance, or achievements to be materially different from the future results, performance, or achievements expressed or implied by any forward-looking statements.  Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “plan,” “intend” or “project” or the negative of these words or other variations on these words or comparable terminology. Certain risks underlying our assumptions are highlighted below; if risks materialize, or if assumptions prove otherwise to be untrue, our results will differ from those suggested by our forward looking statements and our results and operations may be negatively affected. Forward looking statements in this report include statements regarding profitability, additional acquisitions, increasing revenue and Operating EBITDA, continued growth of our business in line with historical growth rates, trends in our industry, financing plans, our anticipated needs for working capital and leveraging our capabilities. Actual events or results may differ materially from those discussed in forward-looking statements. There can be no assurance that the forward-looking statements currently contained in this report will in fact occur. The Company bases its forward-looking statements on information currently available to it. The Company disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this document. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in forward-looking information, including, without limitation: our need for additional financing and our estimates regarding our capital requirements, future revenues and profitability; our ability to successfully implement and maintain managed anesthesia care (“MAC”) programs with anesthesia practices not currently utilizing MAC;  if our GI Anesthesia partner volume does not grow as expected, or decreases, this could impact revenue and profitability; if we are unable to identify GI Anesthesia businesses to acquire, or are unable to complete transactions, this could impact our future revenue growth and profitability; unfavourable economic conditions could have an adverse effect on our business; risks related to covenants and events of default under the Company’s Credit Facilities; risks related to increased leverage resulting from incurring additional debt; the policies of health insurance carriers may affect the amount of revenue the Company receives; our ability to successfully market and sell our products and services; we may be subject to competition and technological risk which may impact the price and amount of product we can sell and nature of services we can provide; regulatory changes that are unfavorable in the states where our operations are concentrated; our ability to and the cost of compliance with extensive existing regulation and any changes or amendments thereto; changes within the medical industry and third-party reimbursement policies and our estimates of associated timing and costs with the same; risks related to the Affordable Care Act (the “ACA”) in terms of patient volume and reimbursement and the corresponding effect on our business; changes in key United States federal or state laws, rules, and regulations; our ability to establish, maintain and defend intellectual property rights; risks related to United States antitrust regulations; risks related to record keeping and confidentiality by our affiliated physicians; our ability to recruit and retain qualified physicians to provide our services; risks related to our affiliated physicians leaving our affiliated ASCs; our ability to enforce non-competition and other restrictive covenants in our agreements; Contracts with ASCs, such as those acquired with Gastroenterology Anesthesia Associates, LLC,  or other customers may be terminated, or may not be renewed, by the counterparty; risks related to corporate practice of medicine and our ability to renew and maintain agreements with anesthesiologists and other contractors; our ability and forecasts of expansion and the Company’s management of anticipated growth; risks related to our dependence on complex information systems; our senior management has been key to our growth and we may be adversely affected if we are unable to retain them, conflicts of interest develop or we lose any key member of our senior management; risks associated with manufacture of our products and our economic dependence on suppliers; changes in the industry and the economy may affect the Company’s business; risks related to the competitive nature of the medical industry; evolving regulation of corporate governance and public disclosure may result in additional corporate expenses; adverse events relating to our product or services could result in risks relating to product liability, medical malpractice, other legal claims, insurance, product recalls and other liabilities; various risks associated with legal, regulatory or investigative proceedings; risks associated with governmental investigations into marketing and other business practices; we are subject to health and safety risks within our industry; our ability to successfully identify and complete future transactions and integrate our acquisitions; anti-takeover provisions create risks related to lost opportunities; we may not continue to attract gastroenterologists (“GIs”) and other licensed providers to purchase and use the CRH O’Regan System or to provide our services resulting in slower than expected growth; risks associated with the trading of our common shares on a public marketplace which could result in changes to stock prices unrelated to our performance; risks related to adverse movements in foreign currency exchange rates; risks related to maintaining our foreign private issuer status enabling us to maintain lower costs of compliance; risks related to writing-off intangible assets and the associated charges to net income; risks related to the reduction in the reimbursement of anesthesia procedure codes; changes in our effective income tax rates; risks related to our ability to manage third-party service providers; risks related to the failure of our employees and third-party contractors to appropriately record or document services that they provide; and risks related to criminal or civil sanctions in connection with failure to comply with privacy regulations regarding the use and disclosure of patient information. For a complete discussion of the Company’s business including the assumptions and risks set out above, see the Company’s annual information form which is available on SEDAR at www.sedar.com.

SOURCE CRH Medical Corporation

Eris Swap Futures Now Supported On Bloomberg TOMS

Sell-Side Clients Equipped to Add Capital-Efficient Eris Swap Futures to Their Fixed Income Portfolios

BOCA RATON, Fla., March 15, 2017 /PRNewswire/ — Eris Exchange (Eris), the U.S.-based futures exchange offering cash-settled swap futures as the leading alternative to traditional OTC swaps, announced that Bloomberg Trade Order Management Solutions (TOMS) now supports Eris Standard Swap Futures. Bloomberg TOMS provides capabilities to efficiently manage inventory, risk and P&L for fixed income instruments including swaps and futures.

Sell-side users, specifically regional banks interested in low margin OTC swap alternatives such as Eris, can manage their diverse positions from pre-trade through post-trade natively with Bloomberg TOMS. Sell-side users of Bloomberg TOMS can take advantage of the optimized workflow including Bloomberg compliance tools, market data, execution and third-party downstream systems that incorporate Eris Swap Futures with a wide array of fixed income products already offered. Broad distribution of Bloomberg TOMS opens up Eris trading and hedging opportunities to hundreds of new counterparties.

Duncan Williams has hedged positions using interest rate swaps, futures and swap futures over the years and simply put, Eris is a marked improvement and the wave of the future,” said Adam Tooley, SVP, Taxable Trading of Duncan Williams. “Eris represents a diverse pool of easily accessible LIBOR swap liquidity, and with Bloomberg TOMS supporting Eris, we now have another tool to seamlessly hedge with precision in a capital-efficient manner.”

“The addition of Eris Standard Swap Futures is a natural evolution for Bloomberg TOMS. This initiative is part of our continuous efforts to add value to our clients by supporting new products on our system,” said Robert Friend, Global Head of Sell-side solutions and Research at Bloomberg.

“We cover numerous regional banks and dealers who rely on Bloomberg TOMS to manage their fixed income and hedging inventory,” said John Coleman, Senior Vice President and Director of the R.J. O’Brien & Associates Fixed Income Group. “This new Bloomberg TOMS functionality opens up Eris markets to hundreds of new users including dozens of RJO clients interested in using Eris who can now unlock real savings over traditional cleared OTC swap margins.”

About Eris Exchange, LLC:

Eris Exchange is a U.S. futures exchange registered as a Designated Contract Market with the CFTC. The Exchange lists USD cash-settled interest rate swap futures that trade electronically on the Eris SwapBook and clear through CME Clearing. Current open interest in Eris USD Interest Rate Swap Futures is over 180,000 contracts, and they receive seamless margin offsets against the CME rates complex, including Eurodollar and U.S. Treasury Futures. Trademarks of Eris Exchange and/or its affiliates include Eris, Eris Exchange, Eris SwapBook, Eris BlockBox, Eris PAI, Eris Methodology, Eris Pricing Engine and the Eris Logo. For more information, visit Eris Exchange online at http://www.erisfutures.com or follow Eris on Twitter @erisfutures

About Bloomberg:

Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service. Bloomberg’s enterprise solutions build on the company’s core strength: leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit https://www.bloomberg.com.

Eris Media Contact:                 
Christopher Rodriguez               
Chief Marketing and Relationship Management Officer
(212) 561-5472
christopher.rodriguez@erisfutures.com

 

SOURCE Eris Exchange

Research Reports Coverage on Industrial Goods Stocks — Textron, Northrop Grumman, Hexcel, and Aerojet Rocketdyne

NEW YORK, March 15, 2017 /PRNewswire/ —

On Tuesday, the NASDAQ Composite ended the day at 5,856.82, down 0.32%; the Dow Jones Industrial Average edged 0.21% lower, to finish at 20,837.37; and the S&P 500 closed at 2,365.45, slipping 0.34%. Losses were broad based as all nine sectors finished the trading session in negative. Stock-Callers.com has initiated research reports on the following Industrial Goods stocks: Textron Inc. (NYSE: TXT), Northrop Grumman Corporation (NYSE: NOC), Hexcel Corporation (NYSE: HXL), and Aerojet Rocketdyne Holdings Inc. (NYSE: AJRD). Learn more about these stocks by downloading their comprehensive and free reports at:

http://stock-callers.com/registration

Textron  

On Tuesday, shares in Providence, Rhode Island headquartered Textron Inc. ended the session 0.38% lower at $47.20 with a total volume of 1.11 million shares traded. Textron’s shares have gained 39.69% in the past one year. Shares of the Company, which operates in the aircraft, defense, industrial, and finance businesses worldwide, are trading at a PE ratio of 15.25. The stock is trading 10.56% above its 200-day moving average. Moreover, the Company’s shares have a Relative Strength Index (RSI) of 41.62. TXT complete research report is just a click away and free at:

http://stock-callers.com/registration/?symbol=TXT

Northrop Grumman  

On Tuesday, shares in Falls Church, Virginia-based Northrop Grumman Corp. recorded a trading volume of 460,708 shares. The stock ended the day 0.27% lower at $243.77. Shares of the Company, which provides systems, products, and solutions to government and commercial customers in the areas of aerospace, mission systems, and technology services worldwide, are trading at a PE ratio of 20.00. Northrop Grumman’s stock has advanced 3.56% in the last one month and 2.62% in the previous three months. Furthermore, the stock has gained 31.32% in the past one year. The Company’s shares are trading above its 50-day and 200-day moving averages by 3.31% and 8.47%, respectively. Furthermore, Northrop Grumman’s shares have an RSI of 61.61.

On March 01st, 2017, research firm Citigroup downgraded the Company’s stock rating from ‘Buy’ to ‘Neutral’. The complimentary report on NOC can be downloaded at:

http://stock-callers.com/registration/?symbol=NOC

Hexcel  

Stamford, Connecticut headquartered Hexcel Corp.’s stock finished Tuesday’s session 0.83% lower at $53.62 with a total volume of 581,140 shares traded. Over the last one month and the previous three months, Hexcel’s shares have advanced 2.54% and 0.53%, respectively. Furthermore, the stock has gained 22.93% in the past one year. The Company’s shares are trading above its 50-day and 200-day moving averages by 2.65% and 14.41%, respectively. Shares of Hexcel, which together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets, are trading at a PE ratio of 20.20. Additionally, the stock has an RSI of 51.92. Sign up for your complimentary research report on HXL at:

http://stock-callers.com/registration/?symbol=HXL

Aerojet Rocketdyne  

El Segundo, California headquartered Aerojet Rocketdyne Holdings Inc.’s stock edged 0.82% lower, to close the day at $21.88. The stock recorded a trading volume of 378,152 shares. Aerojet Rocketdyne’s shares have gained 13.90% in the last one month, 18.27% in the previous three months, and 34.23% in the past one year. The Company’s shares are trading 14.42% and 18.88% above its 50-day and 200-day moving averages, respectively. Shares of the Company, which designs, develops, manufactures, and sells aerospace and defense products and systems in the US, are trading at a PE ratio of 82.57. In addition, the stock has an RSI of 73.22. Get free access to your research report on AJRD at:

http://stock-callers.com/registration/?symbol=AJRD

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Perpetual Energy Inc. Releases Fourth Quarter and Year-End 2016 Financial and Operating Results

CALGARY, March 15, 2017 /PRNewswire/ – (TSX:PMT) – Perpetual Energy Inc. (“Perpetual“, the “Corporation” or the “Company“) is pleased to release its fourth quarter and year end 2016 financial and operating results. A complete copy of Perpetual’s audited consolidated financial statements, Management’s Discussion and Analysis (“MD&A“) and Annual Information Form for the year ended December 31, 2016 will be available through the Corporation’s website at www.perpetualenergyinc.com and SEDAR at www.sedar.com.

FOURTH QUARTER 2016 HIGHLIGHTS AND SUBSEQUENT EVENTS

  • On October 1, 2016, Perpetual completed the strategic disposition of a large percentage of its mature shallow gas properties in east central and northeast Alberta, along with their associated decommissioning obligations (the “Shallow Gas Properties”). This disposition involved nominal proceeds at closing, however, through gas marketing arrangements related to the transaction, Perpetual retains essentially full natural gas price upside exposure on the forecast base production from the Shallow Gas Properties to the extent average monthly AECO natural gas prices exceed $2.81/GJ through August 2018, with no operating exposure or future capital spending commitments. The Shallow Gas Properties included approximately 35.5 MMcfe/d of production and 82.1 Bcfe of proved plus probable working interest reserves, $128.0 million in discounted decommissioning obligations and 353,777 net acres of undeveloped lands. The positive impacts to future adjusted funds flow are far reaching as these mature legacy assets had been adjusted funds flow negative for many years, largely due to high fixed operating costs which included extremely high municipal taxes and high general and administrative costs related to the large number of low productivity wells and related leases.
  • Beginning in early December, drilling operations commenced at both Mannville and East Edson, with a single rig drilling program in each area. Prior to year-end 2016, the Company rig released one well (1.0 net) and spud a second on a two well pad at East Edson, both targeting the Wilrich formation. At Mannville, two (2.0 net) exploratory wells were drilled in the fourth quarter. The Mannville wells were targeting the Company’s regional shallow shale gas play and have resulted in one net gas well and one well which encountered drilling problems prior to reaching its targeted depth and was successfully re-drilled in the first quarter of 2017. Both of the exploratory shallow shale gas wells are currently undergoing completion operations. The fourth quarter 2016 capital program also included expenditures for high return conventional shallow gas workovers and recompletions as well as waterflood operations in the Mannville area. Fourth quarter 2016 exploration and development spending totaled $7.0 million.
  • Operating costs of $2.15/boe ($1.6 million) were 69 percent lower compared to $6.92/boe in the fourth quarter of 2015, driven by the disposition of the high cost Shallow Gas Properties which focused Perpetual’s natural gas production base to the low cost East Edson property. Operating costs in 2017 are anticipated to be $4.75 to $5.25/boe.
  • Cash interest costs of $1.5 million were down 81 percent compared to $8.0 million in the fourth quarter of 2015, largely as a result of the $214.4 million reduction in the outstanding balance of senior notes in the second quarter of 2016.
  • Driven by the 87 percent decrease in costs, Perpetual recorded adjusted funds flow of $3.3 million ($4.45/boe) for the fourth quarter of 2016 compared to $0.4 million ($0.20/boe) in 2015, reflecting the improved cost structure resulting from strategic operational and financing decisions throughout 2016.
  • Fourth quarter production of 8,118 boe/d (79 percent East Edson) was 59 percent lower than 2015 (19,661 boe/d; 53 percent East Edson), reflecting the full impact of lost volumes associated with the disposition of the Shallow Gas Properties and natural declines resulting from the Company’s decision to restrict capital spending during 2016 in response to low commodity prices.
  • Perpetual’s average natural gas price, including derivatives, for the fourth quarter of 2016 of $2.41/Mcf was 17 percent lower than $2.92/Mcf in the fourth quarter of 2015 despite an increase in the average conversion ratio for Perpetual’s natural gas production to 1.16 GJ/Mcf from 1.13 GJ/Mcf in the 2015 period. Perpetual’s oil price, including derivatives, of $38.95/bbl in the fourth quarter was comparable to the 2015 period ($39.81/bbl). Average realized natural gas liquids (“NGL”) prices of $46.99/bbl were 40 percent higher than the prior year ($33.68/bbl), reflecting the slightly higher percentage of condensate in the Company’s NGL blend as well as slightly higher benchmark prices for all NGL components.
  • Net income of $20.4 million ($0.39/share) was recorded for the fourth quarter of 2016, including a non-cash gain of $0.7 million related to the change in the fair value of the Company’s investment in Tourmaline Oil Corp. (“TOU”), a gain on disposition of the Shallow Gas Properties of $19.2 million and $6.9 million related to a net impairment reversal driven by improved performance at Mannville.
  • Perpetual completed a number of financing transactions during the fourth quarter of 2016 and first quarter of 2017. Collectively, these financing transactions significantly strengthen Perpetual’s liquidity and debt repayment profile and secure funding for the Company’s attractive 2017 and 2018 business plan. As a result of these transactions, Perpetual’s liquidity increased by $68 million and the term of the Company’s credit facility was extended to October 31, 2017, while outright total debt, net of TOU shares held, has been reduced by $11 million. The significant financing transactions are as follows:
    • Amendment and extension to November 2017 of its TOU share margin loan from $10.6 million to approximately $17.6 million, while reducing the number of TOU shares pledged as security from 0.84 million to 0.65 million TOU shares with a secured floor price of $27.38 per TOU share;
    • Partial repayment and refinancing of its existing TOU share margin loan previously maturing in March 2017, reducing the loan amount outstanding to $18.9 million, extending the maturity to August 1, 2017 and increasing the number of shares pledged as collateral to 0.89 million TOU shares, with a new floor price on these shares of $21.14 per TOU share;
    • Exchange of $17.4 million aggregate principal amount of its existing senior notes maturing in 2018 and 2019 for new 8.75% senior notes having an extended maturity date of January 23, 2022 (the “2022 Senior Notes”);
    • Establishment of a $45 million second lien senior secured term loan facility (the “Second Lien Facility”) bearing annual interest at 8.1 percent and maturing March 14, 2021. The initial draw on the Second Lien facility was $35 million with the remaining $10 million to be drawn prior to November 30, 2017. In addition, for no additional consideration, 5.4 million warrants were issued which entitle the holder to acquire common shares on a one for one basis for a period of up to three years, at an exercise price of $2.34 per share (the “Warrants”), equal to a 45 percent premium to the volume weighted average trading price of the common shares for the ten trading days prior to the date of issue of the Warrants on March 14, 2017;
    • Issuance of 5.1 million common shares and 1.1 million Warrants to purchase common shares on the same terms and conditions as the Warrants (collectively, the “Equity Units”) at $1.75 per Equity Unit for aggregate gross proceeds of $9 million (the “Equity Private Placement”);
    • Extension of the Company’s current bank lending arrangements to October 31, 2017, while providing for a $14 million increase in total borrowing capacity under the credit facility to $20 million: and
    • Issuance of a notice for the early redemption of all of the $27.6 million aggregate outstanding principal amount of its 8.75% senior notes maturing March 15, 2018 (the “2018 Senior Notes”) effective April 15, 2017. The redemption amount payable will be either: CDN $1,000 for each $1,000 principal amount of 2018 Senior Notes; or at the election of an eligible holder and subject to the limitations described in the notice, $1,000 principal amount of 2022 Senior Notes for each $1,000 principal amount of 2018 Senior Notes.

2016 ANNUAL FINANCIAL AND OPERATING HIGHLIGHTS

Capital Spending and Property Dispositions

  • Perpetual’s exploration and development spending in 2016 totaled $14.0 million, 75 percent of which was concentrated on the West Central Alberta deep basin assets. Capital expenditures included drilling four wells (4.0 net), with two (2.0 net) liquids-rich wells at East Edson and two (2.0 net) horizontal well at Mannville targeting shallow gas, one of which encountered uphole drilling problems and was subsequently re-drilled in January 2017. Capital activity in 2016 also included continuation of waterflood activities and a shallow gas recompletion program at Mannville. In addition, Perpetual advanced phase one of its strategic low pressure electro-thermally assisted drive (“LEAD”) pilot project with cyclic heat stimulation (“CHS”) testing in the Bluesky formation at Panny. Currently in the fourth cycle, results to date have exceeded expectations and the CHS test is providing valuable insights to inform a potential commercial development plan and the future pilot project.
  • Net property dispositions of $26.2 million in 2016 included the sale of certain oil sands leases with a retained gross over-riding royalty, non-core undeveloped land, a 25 percent interest in certain seismic, and idle production equipment for proceeds of $7.7 million. The Company also disposed of its 30 percent partnership interest in its gas storage business at Warwick and surrounding buffer lands as well as the Shallow Gas Properties.
  • Perpetual spent $3.8 million on abandonment and reclamation projects during 2016 mainly in eastern Alberta. The Company scaled up the redeployment of operational personal and internal resources to accelerate progress and drive efficiencies on abandonment and reclamation projects, resulting in the realization of substantial cost savings on 2016 projects. These efficiencies, combined with the disposition of Shallow Gas Properties, reduced the the Company’s decommissioning obligations by $125.5 million year over year to $33.6 million at year-end 2016.

2016 Year-End Reserve Highlights

  • Total proved and probable reserves were 61.3 MMboe at December 31, 2016, down 16.5 MMboe from year-end 2015. Dispositions of 14.1 MMboe accounted for 85 percent of the reduction, while production of 5.1 MMboe was partially offset by positive additions of 2.7 MMboe. Adjusting for production and reserves related to the dispositions, total proved and probable reserves were effectively flat year over year.
  • While proved and probable reserves were down 21 percent, the net present value discounted at ten percent of the proved and probable reserves increased by 12 percent at year-end 2016 to $380.7 million, highlighting the limited reserve value associated with the disposed Shallow Gas Properties, as well as, increased value in the Company’s core assets at East Edson and Mannville, despite lower forecast commodity prices. The increase in value of the proved and probable reserves was driven by strong well performance in Perpetual’s core retained assets as well as a 20 percent reduction to future development capital (“FDC”).
  • East Edson represented 93 percent of total proved and probable reserves at year-end 2016 (2015 – 73 percent). Despite bringing only one new well online in 2016 and production of close to 2.7 MMboe, proved and probable reserves at East Edson were virtually flat at 56.8 MMboe. Positive technical revisions were related to stronger performance from producing wells as well as upward adjustments to both initial productivity and the production decline profile in the type curve to match historical well performance. This increase in type curve resulted in fewer wells required to fill the Company’s existing infrastructure and meet firm transportation commitments in the Edson area, largely driving the reduction in FDC within McDaniel’s prescribed nine-year development plan. As a result, 8.5 net undeveloped wells at East Edson were shifted from the reserve report to the Company’s prospect inventory.
  • Heavy oil production at Mannville of 424 Mboe was offset by upward technical revisions to the proved reserves related to the positive impact of waterflood implementation during 2016. While Mannville heavy oil reserves account for just five percent of Perpetual’s total proved and probable reserves, this core area accounts for 17 percent of Perpetual’s total proved developed producing reserves and 14 percent of total proved and probable developed producing reserves.
  • Perpetual’s net asset value discounted at ten percent at year-end 2016 is estimated at $394.8 million. ($7.39 per share).

Production and Operations Highlights

  • Total natural gas, oil and NGL production for the year ended December 31, 2016 of 14,128 boe/d was 28 percent lower than 2015 (19,706 boe/d), reflecting the Shallow Gas Property disposition and natural declines related to the decision to restrict capital spending in response to low commodity prices in 2016. Perpetual’s natural gas production averaged 74.7 MMcf/d. Consistent with restricted capital spending and declining East Edson gas production, NGL production of 614 bbl/d (67 percent condensate) in 2016 decreased 14 percent from 711 bbl/d (68 percent condensate) in 2015. Oil production of 1,058 bbl/d for 2016 was 35 percent lower than 2015 (1,626 bbl/d).
  • Total operating expenses decreased 46 percent to $35.0 million ($6.77/boe) for 2016 compared to $65.1 million ($9.06/boe) in 2015, reflecting company-wide cost saving initiatives, the re-deployment of operations personnel to abandonment and reclamation projects, and concentration of operations to the low cost East Edson area with the impact of the sale of the Shallow Gas Properties for the full duration of the fourth quarter. Operating costs at East Edson averaged $2.55/boe for 2016 compared to $3.97/boe in 2015.
  • Municipal property taxes of $7.3 million continued to represent a significant portion of fixed operating costs at $1.42 per boe (21 percent of total operating costs) for the year ended December 31, 2016. The calculation of property taxes for machinery and equipment, pipelines and wells is based on a prescribed formula methodology which results in a tax assessment base that is dramatically misrepresentative of the property value for the Company’s mature shallow gas assets. As a result, property taxes for Shallow Gas Properties in Eastern Alberta for the first three quarters of 2016 was $5.2 million ($3.00/boe), which represented 26 percent of operating costs for the shallow gas production and 320 percent of pre-municipal tax operating netbacks for these properties, completely eliminating positive operating cash flow on most shallow gas properties.

Financial Highlights

  • Realized revenue of $86.1 million in 2016 was 41 percent lower than 2015 due to lower commodity prices combined with the 28 percent decrease in average daily production.
  • AECO Monthly Index prices which were 24 percent lower in 2016 as compared to 2015 was reflected in Perpetual’s natural gas price before derivatives of $2.19/Mcf, down from $2.87/Mcf in 2015. Perpetual’s average realized gas price, including derivatives, decreased 20 percent to $2.42/Mcf for the year ended December 31, 2016 from $3.01/Mcf in 2015. The Corporation’s realized 2016 natural gas price, with derivatives, includes $2.7 million of realized losses on natural gas derivatives offset by $8.9 million of gains realized on crystallizations of contracts before maturity.
  • Perpetual’s oil price, before derivatives, of $34.93/bbl in 2016 decreased 15 percent compared to 2015 due primarily to the 11 percent decline in WTI pricing. Perpetual’s realized oil price of $37.60/bbl, including derivatives, was higher than the price before derivatives due to gains of $1.3 million recorded on financial crude oil derivative contracts reduced by $0.3 million of losses realized on crystallizations of contracts before maturity.
  • Perpetual’s realized average NGL price increased five percent from the prior year to $35.45/bbl, reflecting the improvement in all NGL component prices as NGL inventory levels began to stabilize.
  • Royalty expense of $9.4 million in 2016 represented a combined royalty rate of 11.6 percent compared to 11.5 percent in 2015. Average crown royalty rates decreased to 2.1 percent in 2016 compared to 3.1 percent in 2015 as a result of lower commodity prices. Freehold and overriding royalty rates for the year ended December 31, 2016 increased from 8.4 percent in 2015 to 9.5 percent in 2016 as the East Edson joint venture royalty of 5.6 MMcf/d plus associated oil and NGLs represented a larger percentage of reduced production given the impact of reduced capital spending.
  • Operating netbacks of $6.53/boe in 2016 were 12 percent lower than in 2015 ($7.44/boe), driven by the 18 percent ($3.80/boe) decline in realized revenue due to lower commodity prices which more than offset the positive impact of lower operating and transportation costs per boe.
  • Cash interest expense in 2016 decreased 52 percent to $14.7 million (2015 – $30.6 million) as a result of the 81 percent reduction in total net debt from $203.6 million at year-end 2015 to $38.1 million at year-end 2016, net of working capital and including the mark to market value of the TOU shares held. The reduction was accomplished through asset sales and the exchange of $214.4 million aggregate principal amount of senior notes for 4.4 million of the Company’s TOU shares (the “Security Swap”) in April and May 2016.
  • Despite significant corporate cost savings, low commodity prices continued to have a dramatic impact on financial results with adjusted funds flow of $0.9 million for 2016 as compared to 2.0 million in 2015. Operating, transportation, administrative and financing expenses were 40 percent ($50.2 million) lower than in 2015 (17 percent lower ($2.92/boe) on a unit-of-production basis).
  • The Corporation recorded net income of $107.1 million ($2.11/share) in 2016 which included: an $81.6 million gain on the Security Swap; a $58.9 million change in the market value of the TOU share investment based on the increase in trading price from $22.35/share on December 31, 2015 to $35.91/share at year end 2016; a net $6.9 million impairment reversal primarily recorded on the Company’s Mannville heavy oil property; as well as a $21.6 million gain primarily related to the disposition of the Shallow Gas Properties; offset by related restructuring costs of $5.6 million.

2017 OUTLOOK 

Success in advancing the Company’s strategic priorities has established a foundation for strong growth in production and adjusted funds flow in 2017. Perpetual’s top four strategic priorities for 2017 include:

  • Grow the value of Greater Edson liquids-rich gas;
  • Optimize the value potential of Eastern Alberta assets;
  • Advance high impact opportunities; and
  • Optimize the balance sheet for growth.

Closing of the suite of financing transactions during the first quarter of 2017 has established sufficient liquidity to execute the planned growth-oriented capital program and manage debt maturities into 2018 at current commodity prices. The Company will continue its diligent focus on increasing netbacks through reductions in all areas of spending, including operating, financing and administrative costs, to confirm the sustainable cost structure established through strategic decisions over the past two years.

In 2017, Perpetual will focus its capital spending on its core operating areas, with spending at East Edson, representing close to 85 percent of total forecast exploration and development expenditures. In the first quarter of 2017, the Company will spend close to $26 million. Activity will include frac and tie-in operations on the East Edson well drilled in the fourth quarter of 2016 and drilling of five additional Wilrich horizontal wells. A minimum of four of the six new drills are forecast to be completed, tied in and on production prior to spring break up, with the timing of the complete and frac operations on the additional two drills dependent on surface access conditions. The Company plans to recommence its one rig drilling program after break up to continue to grow production at East Edson, with the drilling of up to an additional eight wells. The one rig drilling program in East Edson is expected to re-establish throughput using Company-owned infrastructure approaching the capacity of 60 to 65 MMcf/d plus associated liquids by year-end 2017.

The Company is also finishing the execution of it first quarter drilling program at Mannville. Four horizontal heavy oil wells, three of which are exploratory, have been successfully drilled, completed, equipped and tied in with results pending as all four wells are currently cleaning up on initial flow back. Pending successful drilling results and commodity prices, up to four additional heavy oil wells are planned for the second half of 2017 in Mannville. Two horizontal wells to evaluate shallow shale gas plays in the Viking and Colorado formations have been drilled, taking advantage of synergies with the heavy oil drilling program. Completion and testing operations are currently ongoing. The first quarter 2017 capital program also includes expenditures for high return conventional shallow gas workovers and recompletions as well as waterflood operations in the Mannville area.

The table below summarizes expected capital spending and drilling activities for the first and second half of 2017.

Exploration and development
capital expenditures

H1 2017

$ millions

# of wells

(gross/net)

H2 2017

$ millions

# of wells

(gross/net)

Total

$ millions

# of wells

(gross/net)

East Edson liquids-rich gas

25

5/5.0

30

8/8.0

55

13/13.0

Mannville heavy oil

4

4/3.3

4

4/4.0

8

8/7.3

Eastern shallow gas and other

3

1/1.0

1

4

1/1.0

Total capital spending(1)

32

9/8.3

35

12/12.0

67

22/21.3

(1)

Excludes budgeted abandonment and reclamation spending of up to $4 million in 2017.

Capital spending during 2017 will be funded through a combination of adjusted funds flow and proceeds from the financing transactions closed on March 14, 2017.

Based on the total capital spending plan in 2017 of $67 million, Perpetual expects to exit 2017 at a production rate of 13,000 to 13,500 boe/d in December 2017, with full year 2017 production averaging between 10,750 to 11,000 boe/d (85 percent natural gas). This represents growth in average daily production from fourth quarter 2016 to full year 2017 of close to 30 percent and an increase in exit rate based on average December production of approximately 60 percent year over year.

In order to protect a base level of adjusted funds flow, Perpetual has commodity price contracts in place in 2017 on an estimated 45 percent of forecast production for the remainder of the year. These include natural gas contracts at AECO hub from April to December 2017 on close to 27,500 GJ/d at an estimated price of $3.15/GJ; and oil sales arrangements on 750 bbl/d protecting a WTI floor price of $USD50.00/bbl.

Based on these assumptions and the current forward market for oil and natural gas prices, Perpetual forecasts 2017 adjusted funds flow of approximately $40 million ($0.68 per share). Incorporating the current market value of 1.67 million TOU shares of $28.95 per share, the Company estimates year-end 2017 total net debt of approximately $80 million, with a corresponding debt to trailing twelve months adjusted funds flow ratio of approximately 2.0.

Incorporating the assumptions outlined above, the following table shows Perpetual’s estimated 2017 forecast adjusted funds flow using various commodity price sensitivities for the full year of 2017:

Projected 2017 adjusted funds flow(2) ($ millions) 2017 AECO gas price ($/GJ)(1)

2017

WTI price
(US$/bbl)(1)

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$40.00

30.6

34.4

38.3

42.1

46.0

49.8

$45.00

31.9

35.7

39.6

43.4

47.3

51.1

$50.00

33.2

37.0

40.9

44.7

48.6

52.4

$55.00

36.2

40.0

43.9

47.7

51.6

55.5

$60.00

39.1

42.9

46.8

50.6

54.5

58.3

$65.00

40.5

44.4

48.2

52.1

55.9

59.8

(1)

The current settled and forward average AECO and WTI prices for calendar 2017 as of March 14, 2017 were $2.58 per GJ and US$49.98 per bbl, respectively.

(2)

Adjusted funds flow is a non-GAAP measures. Please refer to “Non-GAAP Measures” in Perpetual’s Management Discussion and Analysis dated March 14, 2017.

Financial and Operating Highlights

THREE MONTHS

Ended December 31

YEAR ENDED

 December 31,

($Cdn thousands except volume and per share amounts)

2016

2015

 Change

2016

2015

 Change

Financial

Oil and natural gas revenue

17,940

33,044

(46%)

81,403

142,437

(43%)

Cash flow from (used in) operating activities

4,470

11,980

(63%)

(7,136)

12,406

(158%)

Adjusted funds flow (1)

3,326

362

819%

920

2,004

(54%)

Per share (1) (2)

0.06

0.05

20%

0.02

0.27

93%

Net earnings (loss)

20,379

(93,539)

122%

107,149

(89,274)

220%

Per share (2)

0.39

(12.34)

103%

2.11

(11.89)

118%

Total assets

361,405

603,450

(40%)

361,405

603,450

(40%)

Net bank debt outstanding (1)

43,870

73,891

(38%)

43,870

73,891

(38%)

Senior notes, at principal amount

60,573

275,000

(78%)

60,573

275,000

(78%)

Carrying value of marketable securities

(66,343)

(145,275)

(54%)

(66,343)

(145,275)

(54%)

Total net debt (1)

38,100

203,616

(80%)

38,100

203,616

(80%)

Net capital expenditures

Exploration and development

7,044

806

774%

14,039

75,431

(81%)

Other

25

25

541

910

(41%)

Capital expenditures

7,069

831

751%

14,580

76,341

(81%)

Geological and geophysical expenditures

(3)

(93)

97%

23

1,526

(98%)

Dispositions, net of acquisitions

1,248

3

415%

(26,212)

(23,710)

(11%)

Net capital expenditures

8,314

741

1002%

11,609

54,157

(79%)

Common shares outstanding (thousands) (5)

End of period

53,421

19,067

180%

53,421

19,067

180%

Weighted average

52,924

7,582

598%

50,733

7,507

576%

Operating

Average production

Natural gas (MMcf/d) (3)

40.3

105.1

(62%)

74.7

104.2

(28%)

Oil and NGL (bbl/d) (3)

1,403

2,144

(35%)

1,672

2,337

(28%)

Total (boe/d)

8,118

19,661

(59%)

14,128

19,706

(28%)

Average prices

Natural gas, before derivatives ($/Mcf)

3.31

2.74

21%

2.19

2.87

(24%)

Natural gas, including derivatives ($/Mcf)

2.41

2.92

(17%)

2.42

3.01

(20%)

Oil, before derivatives ($/bbl)

42.35

33.04

28%

34.93

41.27

(15%)

Oil, including derivatives ($/bbl)

38.95

39.81

(2%)

37.60

52.48

(28%)

NGL ($/boe)

46.99

33.68

40%

35.45

33.72

5%

Drilling (wells drilled gross/net)

Gas

3/3.0  

4/4.0  

6/4.5  

Oil

Observation/Service

2/2.0  

Total

3/3.0  

4/4.0  

8/6.5  

Success rate (%)

66.7/66.7  

75/75  

100/100  

(1)

These are non-GAAP measures. Please refer to “Non-GAAP Measures” below.

(2)

Based on weighted average basic common shares outstanding for the period.

(3)

Exploration and development costs include geological and geophysical expenditures.

(4)

Production amounts are based on the Corporation’s interest before royalty expense.

(5)

Common shares and per share amounts have been retroactively adjusted to reflect the consolidation of outstanding common shares on the basis of 20 common shares to one common share at March 24, 2016. All ommon shares are net of shares held in trust.

Forward-Looking Information 

Certain information regarding Perpetual in this news release including management’s assessment of future plans and operations may constitute forward-looking information or statements under applicable securities laws. The forward looking information includes, without limitation, statements made under the heading “2017 Outlook”; anticipated amounts and allocation of capital spending; statements pertaining to adjusted funds flow levels, self-funding, future development and capital efficiencies; statements regarding estimated production and timing thereof; forecast average production; completions and development activities; infrastructure expansion and construction; anticipated effect of commodity prices on reserves; estimates of gross recoverable gas sales; estimated net asset value as at December 31, 2016 and on a pro forma basis; prospective oil and natural gas liquids production capability; projected realized natural gas prices and adjusted funds flow; estimated asset retirement obligations; anticipated effect of commodity prices on future development capital and reserves; commodity prices and foreign exchange rates; and gas price management. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release, which assumptions are based on management’s analysis of historical trends, experience, current conditions and expected future developments pertaining to Perpetual and the industry in which it operates as well as certain assumptions regarding the matters outlined above. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Perpetual and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties, including without limitation those described under “Risk Factors” in Perpetual’s MD&A for the year-ended December 31, 2016 and those included in other reports on file with Canadian securities regulatory authorities which may be accessed through the SEDAR website (www.sedar.com) and at Perpetual’s website (www.perpetualenergyinc.com). Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of Perpetual’s management at the time the information is released and Perpetual disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly required by applicable securities law. 

Uncertainties in Estimating Reserves

There are numerous uncertainties inherent in estimating quantities of crude oil, natural gas and NGL reserves and the future adjusted funds flows attributed to such reserves. The reserve and associated adjusted funds flow information set forth above are estimates only. In general, estimates of economically recoverable crude oil, natural gas and NGL reserves and the future net adjusted funds flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, production rates, ultimate reserve recovery, timing and amount of capital expenditures, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially. For those reasons, estimates of the economically recoverable crude oil, NGL and natural gas reserves attributable to any particular group of properties, classification of such reserves based on risk of recovery and estimates of future net revenues associated with reserves prepared by different engineers, or by the same engineers at different times, may vary. The Company’s actual production, revenues, taxes and development and operating expenditures with respect to its reserves will vary from estimates thereof and such variations could be material.

BOE Equivalents

Perpetual’s aggregate proved and probable reserves are reported in barrels of oil equivalent (boe). Boe may be misleading, particularly if used in isolation. In accordance with NI 51-101 a boe conversion ratio for natural gas of 6 Mcf: 1 boe has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. The following abbreviations used in this news release have the meanings set forth below:

Bcfe

billion cubic feet equivalent

MMboe

million barrels of oil equivalent

Mboe

thousand barrels of oil equivalent

Non-GAAP Financial Measures

This press release includes references to financial measures commonly used in the oil and gas industry of adjusted funds flow, operating netback and net debt, which do not have a standardized meaning prescribed by International Financial Reporting Standards (“GAAP”). Accordingly, the Company’s use of these terms may not be comparable to similarly defined measures presented by other companies. Management uses the term “adjusted funds flow” for its own performance measures and to provide shareholders and potential investors with a measurement of the Company’s efficiency and its ability to generate the cash necessary to fund a portion of its future growth expenditures or to repay debt. Perpetual considers operating netback an important performance measure as it demonstrates its profitability relative to current commodity prices. Operating netbacks are calculated by deducting royalties, operating costs, and transportation from realized revenue. Operating netbacks are also calculated on a per boe basis using average boe production for the period. Operating netbacks on a per boe basis can vary significantly for each of the Company’s operating areas. Net bank debt is measured as current and long term bank indebtedness including adjusted working capital deficiency (surplus). Net debt includes the carrying value of net bank debt and the TOU share margin loans and the principal amount of senior notes reduced for the mark-to-market value of TOU shares held. Net bank debt and net debt are used by management to analyze leverage. Investors are cautioned that non-GAAP measures should not be construed as alternatives to measures of financial performance determined in accordance with GAAP as an indication of the Company’s performance. See Non-GAAP Financial Measures” in the Management’s Discussion and Analysis for the definition and description of these terms.

Industry Metrics

The terms FDC, operating netbacks and net asset value, while commonly used in the oil and gas industry, do not have standardized meanings and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons.

SOURCE Perpetual Energy Inc.

Mitsubishi Fuso Announces Exclusive Partnership with Telogis to Make Telogis Telematics Standard Equipment on Future FUSO Medium-Duty Commercial Trucks

INDIANAPOLIS, March 15, 2017 /PRNewswire/ — Mitsubishi Fuso Truck of America, Inc. (FUSO) and Telogis, a Verizon Company, have announced an exclusive partnership that will lead to installation of Telogis telematics systems as standard equipment on all FUSO medium-duty, diesel cabover trucks.

According to Jecka Glasman, FUSO’s president and CEO, “The Telogis software will help provide FUSO owners and fleet operators with improved safety, better logistics control and more efficient operations. The selection of Telogis as our telematics partner followed extensive study of the systems available to satisfy our customers’ needs, and we felt Telogis provided a superior level of technology, customer service and a record of continual innovation. We look forward to a long and fruitful partnership.”

The two firms will work together to integrate Telogis telematics capabilities seamlessly into all of FUSO’s future class 3 through 5, turbocharged diesel commercial trucks.

“By adopting Telogis telematics solutions,” said Susan Heystee, senior vice president, OEM business at Telogis, “FUSO will be bringing the highest quality vehicle connectivity and advanced technologies to its future customers. The Telogis software platform is designed to improve fleet operational efficiency, help keep drivers safer and reduce costs, and we continue to carry on an aggressive program of software innovation.”

For more information about this new partnership, visit the FUSO booth, #5159, or Telogis booth, #2525, at the Work Truck Show at the Indianapolis Convention Center, March 15–17, 2017.

About FUSO

Headquartered in Logan Township, NJ, Mitsubishi Fuso Trucks America, Inc. (FUSO) is a subsidiary of Daimler Trucks Asia, Kawasaki, Japan, an integral part of the Daimler Trucks Division of Daimler AG. With a heritage of more than 30 years in North America, FUSO is focused on delivering trucks with the lowest cost-of-ownership in their class. Its Class 3-5 medium-duty cabover trucks are available through more than 200 dealer locations throughout the United States, Canada, Puerto Rico and Guam. More than 100,000 FUSO standard, 4-wheel-drive and crew cab trucks have been sold in North America to fulfill the transportation needs of a wide variety of businesses and industries, including beverage, catering, refrigerated and dry cargo delivery fleets, vehicle recovery, towing, pest control, plumbing, light construction and landscaping. For more information, visit www.mitfuso.com, follow FusoTruck on Twitter, or like FusoTruck on Facebook.

About Telogis

Telogis, A Verizon Company, is a leading global, cloud-based Mobile Resource Management (MRM) software company based in Aliso Viejo, Calif. Many of the world’s largest and most well-known commercial fleets connect their vehicles, assets, people, customers and the work that’s being done outside the four walls of their business through the Telogis MRM platform. Once connected, Telogis software will optimize and automate work and processes to drive safety, productivity, efficiency and sustainability in businesses of all sizes. Leveraging Verizon’s expansive scale and assets, Telogis is able to deliver opportunities to improve every aspect of technology deployment and implementation. To learn more about Telogis, visit www.telogis.com, follow us on LinkedIn and Twitter @Telogis, like us on Facebook or call toll free at 866-TELOGIS (866-835-6447).

For more information:   

Bryan C. Allen
Marketing Manager
Mitsubishi Fuso Trucks America, Inc.      
856-467-3965         
ballen@mitfuso.com             

Ted R. Arnold
Senior Account Supervisor
Aloysius Butler & Clark
215-351-4212
tarnold@a-b-c.com

Susan Arnold
Weber Shandwick for Telogis
617-520-7090
sarnold@webershandwick.com

 

SOURCE Telogis

CCGN Acquired Guidance Finance and Obtained the SP Special License

NEW YORK, March 15, 2017 /PRNewswire/ —

Consumer Capital Group Inc. (OTCQB: CCGN) recently announced that Guidance Finance, one of its subsidiaries, obtained the Value-added Telecommunication Business License (SP) issued by the Ministry of Industry and Information Technology of the People’s Republic of China.

CCGN’s acquisition of a special license of Guidance Finance had the cooperative effect on the issuance of SP License. This meant that the Company took a big step forward in the development of Internet of Things (IoT). Currently amid the era of mobile Internet, the convenience of mobile systems drives business development of all industries. At present, the number of mobile users hits 600 million in China alone. Along with the fast-growing size of mobile users, the act of small & micro loans was shifted from the original advertising flyers to PC systems and then to mobile systems gradually. The mobile infrastructure has become the largest entrance opportunity.

At present, CCGN’s Guidance Finance has established WeChat and WAP systems. By following and binding the official WeChat account of Guidance Finance, users can read the digest stream of Guidance Finance and also consult matters of borrowings via the WAP interface. In the future, Guidance Finance will also perfect and refine all functions by proceeding from the experience of mobile subscribers, in order to create better experience for users as far as possible and optimize the borrowing channels for the small & micro entrepreneurs with borrowing demands.

Guidance Finance is a member unit of China Association of Microfinance. Since its inception, it has provided the dignified financial services for trustworthy small & micro enterprises by adhering to the essence of information intermediary. In the future, Guidance Finance will also make its contribution to the sound development of the industry on the spirit of more integrity, openness, transparence and fairness.

On December 19, 2016, Hong Kong Zhongzhengda Independent Audit Firm conducted 8K audit on the CCGN’s acquisition of Guidance Finance, and confirmed the financial statements of two fiscal years as at December 31, 2015 and December 31, 2016, respectively. The onsite audit of Zhongzhengda’s professional services has been scheduled in 2017.

Jack Gao, CEO of CCGN expressed, “On the premise of maintaining the entirety of CCGN, the acquisition of Guidance Finance created the operating income of RMB39.56 million in October 2016, contributing to the net profit of RMB22.42 million. The consolidated financial statements showed that the operating income of CCGN in 2016 rises at least by RMB39.56 million, creating a growth of at least RMB22.42 million in net profit. It is expected that Guidance Finance will create the operating income of RMB76.83 million and achieve the net profit of RMB43.56 million for CCGN in 2017.”

Jack Gao, CEO of CCGN further indicated, “CCGN will continue to expand its market share by merger and acquisition of good enterprises, and do utmost to maximize the interest of both the Company and its shareholders, and make preparation for the future uplisting to the NASDAQ Exchange as one of our top priorities in 2017.”

About Consumer Capital Group Inc.

Consumer Capital Group Inc. plans to implement three primary strategies to expand our market presence within the industry: (i) increase Arki E-Commerce’s lending capacity through the cash generated from operations and capital raised from this offering; (ii) increase the Company’s offering of financial services by expanding the business into financial consulting services throughout China; and (iii) expand the Company’s geographic coverage for both microfinancing, financial advisory service and wealth management business to major metropolitan areas such as Beijing, Shanghai, Guangzhou through the establishment of sales force. We believe that we can experience significant growth in these areas because there is a large number of established SMEs and sole proprietors in need of capital resources but lack the ability to finance either due to their limited size of business or local banks’ preferences to finance bigger and more established companies. In addition, we believe that our wealth management business will be able to provide potential investors a more attractive return comparing to traditional investment products.

http://www.ccgusa.com/

http://tou.bangnitou.net/

http://www.ccmus.com/

http://www.zybaoli.net/

Corporate/Investor Relations
Jack Gao
CEO & Chairman of the Board
Consumer Capital Group Inc.
136-82 39th Ave, 4th Floor, Unit B
Flushing, New York, 11354
Tel: 646-346-3735
Email: Jack@ccmus.com

SCAN, Long Beach State University and City of Long Beach to Host Colloquium on Health and Aging on April 12, 2017

“Aging Reimagined: A Community Approach to Health and Independence” Will Include Topical Sessions Presented by Educators, City Officials, Industry Leaders and Senior Healthcare Experts

LONG BEACH, Calif., March 15, 2017 /PRNewswire/ — SCAN, a leading senior-focused organization with the mission of keeping seniors healthy and independent, today announced it will cohost a colloquium on aging and independence in partnership with Long Beach State University and the City of Long Beach on Wednesday, April 12, 2017. The event, titled “Aging Reimagined: A Community Approach to Health and Independence,” will be held from 8:30 a.m. to 4 p.m. PT at the Walter Pyramid on Long Beach State University’s campus, and will feature panel discussions and presentations by educators, city officials, industry leaders and senior healthcare experts. The colloquium is the first of several community and employee engagement initiatives SCAN has planned in 2017 to celebrate the organization’s 40th anniversary.

“We are so pleased to be marking 40 years of supporting seniors—not only in Long Beach but across California—with a collaborative event designed to focus attention and efforts on the needs of seniors in our local communities,” said Chris Wing, CEO of SCAN. “We hope event attendees—who represent academia, private and nonprofit organizations, and government—will gain insights to better understand how we can provide a cohesive network of support for seniors.”   

Tim Carpenter, founder and executive director of EngAGE and host and producer of radio show Experience Talks, will serve as event emcee, lending his significant expertise to further amplify program discussions. EngAGE is a nonprofit that transforms aging and the way people think about aging by turning affordable senior living communities in Southern California into centers of learning, wellness and creativity. Carpenter, who serves on the board of the National Center for Creative Aging, is widely recognized as a notable advocate for senior wellness.

John Keisler, director of Economic and Property Development with the City of Long Beach, will deliver the keynote presentation on emerging technologies and local incubators that help older adults maintain their independence. Additional sessions and panel discussions will focus on topics essential to supporting senior health and wellness. Participants will address research on seniors’ attitudes toward aging, best practices in care and funding, employment and volunteer opportunities, strategies that enable seniors to stay active and continue learning, and ways to build productive government, academic, provider and community partnerships in support of local seniors.

Additional speakers and panelists include:

  • Anne Tumlinson, CEO of Anne Tumlinson Innovations, LLC and founder of Daughterhood
  • Romilla Batra, chief medical executive, SCAN Group
  • Kelly Colopy, director, City of Long Beach Department of Health and Human Services
  • Marie Knight, director, City of Long Beach Department of Parks, Recreation and Marine
  • Brian Budzinski, cofounder, College of Business Administration Incubator at Long Beach State University

“Long Beach State University is committed to being an innovator and leader in community health. We are honored to host this monumental event and it is timely that it occurs during the school’s Wellness Week,” said Dr. Monica Lounsbery, dean of the College of Health & Human Services at Long Beach State University. “Wellness is a broad-based term and it encompasses the social, behavioral, mental and physical aspects of health across the lifespan. Wellness Week promotes awareness of and engagement in healthful behaviors and lifestyle. Hence, celebrating SCAN’s 40th anniversary during this time could not be more fitting.”

SCAN, Long Beach State University and the City of Long Beach are dedicated to ensuring seniors have access to quality care and community services. The colloquium exemplifies the collaborative work of these entities to advance healthy and independent living, and positively influence quality of life for seniors.

“Healthcare is the largest employment sector in Long Beach, and we are fortunate to have a home-grown organization like SCAN in our community that is at the forefront of senior care,” said Keisler of the City of Long Beach. “Through dedicated resources and research, Long Beach has become a best practices leader in supporting the elderly, and we are pleased to participate in this colloquium to share the City of Long Beach’s role in this important endeavor.”

Attendance at the colloquium is by invitation only. Additional information and key takeaways will be made available to the public following the event. To learn more, please visit rebrand.ly/AgingReimagined.  

About SCAN
SCAN is a not-for-profit organization committed to keeping seniors healthy and independent. That’s been our mission since our founding in 1977. Today we deliver on that mission through SCAN Health Plan, one of the largest not-for-profit Medicare Advantage plans in the nation. Independence at Home, a SCAN community service, provides vitally needed services and support to seniors, disabled adults and their caregivers. SCAN also offers education programs, community funding, volunteer opportunities and other community services throughout our California service area. To learn more, visit scanhealthplan.com or facebook.com/scanhealthplan or follow us on twitter @scanhealthplan.

About City of Long Beach
Home to approximately 460,000 people, the multiple award-winning and innovative City of Long Beach is an ethnically diverse community, offering all the world-class amenities of a large metropolitan city while maintaining a strong sense of individual neighborhoods. Long Beach is home to the Queen Mary, Aquarium of the Pacific, several museums and theaters, Long Beach Airport, an award-winning school district, the Port of Long Beach, as well as many award-winning departments such as Health, Parks, Recreation and Marine, Development Services and more. The City also has two historic ranchos, five hospitals, five golf courses, 169 parks, miles of beaches, bike paths, and a Bike Share program.

About the College of Health & Human Services, Long Beach State University
The College of Health & Human Services at Long Beach State University will be nationally and internationally recognized as an innovator and leader in community connections, the discovery of knowledge and educating diverse students in the health and human services professions. Our national and international reputation will attract and retain a richly diverse, high-quality faculty whose students-centered teaching, research and collaborations in the campus and global communities will be well recognized and rewarded. Through our richly diverse and highly qualified faculty, we strive to be leader in connections to the community, collaboration with other universities, research, community service, number of active centers and number of students seeking professional careers. 

Y0057_SCAN_10162_2017 IA 03132017

 

SOURCE SCAN

Pingtan Marine Enterprise Announces to Enter Consumer Food Market

New Processing Factory to Be Developed as Pingtan’s Central Storage, Processing, and Distribution Base

FUZHOU, China, March 15, 2017 /PRNewswire/ — Pingtan Marine Enterprise Ltd. (Nasdaq: PME) (“Pingtan” or the “Company”), a global fishing company based in the People’s Republic of China (PRC), today announced that Global Deep Ocean Fishing (Pingtan) Industrial Limited Company (“GDOF”), in which Pingtan has an equity investment, has begun development of a new processing factory in Pingtan Comprehensive Experimental Area, Fujian, PRC.

The processing factory will be located on a site of 40,000 square meters, and the annual storage capacity is expected to be 500,000 tons. Key facilities to be constructed will include one 50,000 tonnage cold storage, a complete set of intensive processing workshop and associated primary processing and packaging workshops as well as one warehouse, covering an overall floorage of 81,654 square meters. The finished facilities will be ultimately used for cold storage, processing and distribution of the deep ocean fish landings of Pingtan’s vessels. The processing factory is expected to begin service upon completion of construction in 2018. In light of a greater emphasis on food safety in recent years, the Company believes that there is a significant demand among the Chinese population for natural ocean products harvested and processed directly by pelagic fishing company.

Mr. Xinrong Zhuo, Chairman and CEO of the Company, commented, “We are very pleased to announce that after two years of preparation, GDOF is moving forward with the construction of the fish processing factory, which marks our first step into the consumer food processing market. We intend to address the growing demand for deep-ocean fish products in the China domestic market  while also enhancing the deployment of new fishing fields and new vessels. Pingtan has begun to focus on participating in the supply chain by integrating both the harvesting and processing of ocean products and the expansion of not only our presence and market share in mainland China but also the business reputation of Pingtan as a brand. Through GDOF, we aim to complete construction and begin operations of the processing factory as scheduled. We believe the facilities will contribute to the further development of Pingtan’s business operations.”

 

About Pingtan

Pingtan is a global fishing company engaging in ocean fishing through its subsidiary, Fujian Provincial Pingtan County Ocean Fishing Group Co., Ltd., or Pingtan Fishing.

Business Risks and Forward-Looking Statements

This press release may contain forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology, and includes statements about the new processing factoryAlthough forward-looking statements reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements.  Risks include potential construction delays and cost overruns and quality issues that negatively affect our operating results, inability to obtain proper permits for construction and the processing factory, business arrangements with GDOF, inability to sell products to the end-customer at the levels anticipated, ability to operate processing factory profitably, applicable regulatory, environmental, political, legal and economic risks, and other risk factors contained in Pingtan’s SEC filings available at www.sec.gov, including Pingtan’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Pingtan undertakes no obligation to update or revise any forward-looking statements for any reason.

CONTACT:

Roy Yu
Chief Financial Officer
Pingtan Marine Enterprise Ltd.
Tel: +86 591 87271753
ryu@ptmarine.net

INVESTOR RELATIONS

The Equity Group Inc.
Adam Prior, Senior Vice President
Tel: (212) 836-9606
aprior@equityny.com

In China
Katherine Yao, Senior Associate
Tel: +86 10 6587 6435
kyao@equityny.com

SOURCE Pingtan Marine Enterprise Ltd.

The Morning Call Names Synergis Technologies a Winner of the Lehigh Valley 2017 Top Workplaces Award

QUAKERTOWN, Pa., March 15, 2017 /PRNewswire/ — Synergis Technologies, LLC, the Lehigh Valley’s premiere provider of CAD and Data Management software and services to engineering and design companies throughout North America, announced it has been awarded a 2017 Top Workplaces honor by The Morning Call. The Top Workplaces lists are based solely on the results of an employee feedback survey administered by WorkplaceDynamics, LLC, a leading research firm that specializes in organizational health and workplace improvement. Several aspects of workplace culture were measured, including Alignment, Execution, and Connection, just to name a few.

Synergis Technologies, LLC was founded in 1985 by David B. Sharp III, Janet Kiehart and Bill Stamp, all longtime residents of Quakertown.  The company has over 90 employees, with many having worked at the company an average of 10 years.  Synergis is deeply committed to a core set of values that foster family spirit and unity, innovation, service beyond expectation, an extraordinary workplace environment, personal growth, and giving back to its community.

“We founded Synergis over 30 years ago with the common bond of openness, trust, creativity, and passion,” states David Sharp, president and CEO. “This, along with our values, has enabled Synergis to become the organization we are today, with amazing employees and deep, long term relationships with our clients and our communities.”

With an 80% employee response rate, employees ranked Synergis highest in the survey that they “feel genuinely appreciated at Synergis Technologies” and the company “operates by strong values and ethics,” earning Synergis special recognition and the 2017 Top Workplace Appreciation Award.  Synergis has previously received The Top Workplaces award in 2014. 

The Morning Call published the complete list of Top Workplaces on March 8. For more information about the Top Workplaces lists, please visit www.topworkplaces.com.

About Synergis Technologies LLC

Synergis Technologies, LLC is a software technology company that provides engineering design and data and document management solutions throughout North America. The company has two independent divisions: Synergis Software, developers of Adept engineering document management solutions, and Synergis Engineering Design Solutions, an Autodesk Platinum tier partner and solutions provider. Our common purpose is to provide the highest quality software and services for customer success. For more information about Synergis Technologies, visit, www.Synergis.com.

Copyright 2017, Synergis Technologies LLC. All rights reserved. All products are trademarks or registered trademarks of their respective companies.

 

SOURCE Synergis Technologies, LLC

Citadel Securities Joins Tradeweb’s Institutional U.S. Treasuries Marketplace

Expands Market-making Franchise on Tradeweb beyond IRS, CDS and U.S. ETFs

NEW YORK, March 15, 2017 /PRNewswire/ — Citadel Securities, a leading global market-maker across the equities, futures, options, treasuries, FX and swaps markets, and Tradeweb Markets, a leading global provider of fixed income, derivatives and ETF marketplaces, announced that Citadel Securities has become a liquidity provider on the Tradeweb institutional U.S. Treasury marketplace. Citadel Securities’ expansion into U.S. Treasuries complements their existing market making efforts on Tradeweb in interest rate swaps, credit default swap indices, and U.S. ETFs.

“Citadel Securities is an exciting addition to the Tradeweb U.S. Treasury marketplace, helping enhance and increase access to liquidity for institutional investors,” said Billy Hult, President of Tradeweb Markets. “As market participants like Citadel Securities continue to leverage electronic markets in new and different ways, we look forward to driving innovation that supports more efficient and effective fixed income and derivatives trading.”

“Joining the Tradeweb Treasury platform is a natural strategic development for our business”, said Paul Hamill, Global Head of Fixed Income, Currencies and Commodities at Citadel Securities. “We continue to expand our fixed income client franchise, most recently adding off-the-run Treasuries, and remain committed to providing our clients with excellent service and fully firm liquidity across the curve.”

Tradeweb has been the benchmark institutional marketplace for U.S. Treasury trading since 1998. With more than 1,000 institutional clients and over 25 leading liquidity providers, average daily trading volumes exceed $35 billion. The Tradeweb Treasury platform delivers increased efficiencies and the most flexible trading protocols for superior price discovery and enhanced trade execution. In the past year, Tradeweb has continued to innovate for Treasuries with the launch of a new user interface, click-to-trade pricing, axes, and reference order book data from Dealerweb.

About Tradeweb Markets 
Tradeweb Markets builds and operates many of the world’s most efficient financial marketplaces, providing market participants with greater transparency and efficiency in fixed income and derivatives. Focused on applying technology to enhance efficiency throughout the trade lifecycle, Tradeweb pioneered straight-through-processing in fixed income and now supports marketplaces for more than 20 asset classes with electronic execution, processing, post-trade analysis and market data in an integrated workflow. Tradeweb Markets serves the dealer-to-customer markets through the Tradeweb institutional platform, inter-dealer trading through Dealerweb, and the US-based retail fixed income community on Tradeweb Direct. Customers rely on Tradeweb to drive the evolution of fixed income and derivatives through flexible trading architecture and more efficient, transparent markets. For more information, visit www.tradeweb.com.

Clayton McGratty, Tradeweb +1 (646) 430-6054 
Clayton.McGratty@Tradeweb.com

Gauri Andriks, Tradeweb +1 (646) 430-6116 
Gauri.Andriks@Tradeweb.com

 

SOURCE Tradeweb Markets