GASFRAC Energy Services, Inc. reported unaudited consolidated financial results for the first quarter ended March 31, 2014. Revenue for the first quarter decreased 61.3% to CAD 12.2 million from CAD 31.5 million in the first quarter of 2013. This decrease is primarily due to two major customers delaying projects from first quarter of 2014 to second quarter 2014.

These two customers contributed approximately CAD 18 million in revenue during first quarter 2013. For the first quarter of 2014, Adjusted EBITDA decreased to a loss of CAD 6.5 million from CAD 0.5 million in the first quarter of 2013. The Adjusted EBITDA includes the gain on disposal of assets of CAD 1.6 million.

The decrease in Adjusted EBITDA was the result of a 61.3% decrease in revenue as well as an increase in the cost of sales. For the first quarter of 2014, the net loss increased to CAD 14.1 million or CAD 0.22 per basic and diluted share compared to a net loss of CAD 7.9 million or CAD 0.12 per basic and diluted share during the first quarter of 2013. The decrease in revenue is the large contributor to the increase in net loss.

Loss before income taxes was CAD 14.2 million against CAD 7.9 million a year ago. Net cash used by operating activities was CAD 3.4 million against net cash provided by operating activities of CAD 3.8 million a year ago. Purchases of plant and equipment were CAD 2.4 million against CAD 0.5 million a year ago.

Acquisition of intangible assets was CAD 0.02 million against CAD 0.04 million a year ago.