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Message: Positive Third Quarter
| December 2, 2008 |
| FirstGrowth Announces Positive Third Quarter EBITDA of $894,375 |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 2, 2008) - FirstGrowth Exploration & Development Services Corp. (TSX VENTURE:FGC)(OTCBB:FGCDF)(FRANKFURT:... (the "Company" or "FirstGrowth") is pleased to announce Operating and Financial Results for the quarter ended September 30, 2008. Readers are encouraged to view the Company's Interim Financial Statements and accompanying Management Discussion and Analysis on the Company's website and SEDAR at www.sedar.com. Selected Third Quarter highlights include: - Third quarter revenues of $4,209,973, an increase of $1,592,982 (60.9%) over the same quarter of 2007 and $631,682 (17.7%) over the second quarter 2008. - Positive Cash Flow ("EBITDA")(i) of $894,375 for the quarter. - Net loss for the third quarter of $185,416, compared to a loss of $531,172 for the same quarter of 2007. - For the nine months ended September 30, 2008 the Company had available cash of $340,335. The Company's working capital position as at September 30, 2008 was $2,250,445. - Year to-date loss of $1,381,333 compared to a loss of $1,327,866 for the nine months ended September 30, 2007, largely due to the increased amortization expense ($2,481,967 year to date) resulting from the purchase of over $12,000,000 in additional digital seismic equipment. - In line with previously stated plans, the Company has been successful in negotiating an equity participation agreement of approximately 2% in one of its private clients. ((i) Readers are cautioned that "EBITDA" is a financial measure that does not have any standardized meaning prescribed by Canadian generally accepted accounting principles ("GAAP") and may not be comparable to similar measures presented by other companies. EBITDA is a measure of the Company's operating profitability and provides an indication of the results generated by the Company's principal business activities prior to how these activities are financed, assets are amortized or how the results are taxed in various jurisdictions. The Company considers EBITDA to be a key measure as it demonstrates the Company's ability to generate the cash necessary to service debt and fund future capital investment. EBITDA is calculated from the Consolidated Statements of Earnings and is calculated as net earnings or loss plus interest expense, income taxes, depreciation and amortization, accretion, stock based compensation and losses on disposal of equipment.) The company has a current backlog of over $15,000,000 and over $60,000,000 in active tender solicitations. This activity is very positive and provides management with a degree of confidence despite the current market turmoil and uncertainties. Forward-Looking Statements Certain statements contained in this news release constitute forward-looking statements. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. Based on current available information, the Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that those expectations will prove to be correct. The forward-looking statements in this news release are expressly qualified by this statement, and readers are advised not to place undue reliance on the forward-looking statements. About FirstGrowth FirstGrowth is an oil, gas and mineral exploration services company focused on providing data-rich high resolution subsurface images - essentially a brand-new exploration tool - to the resource exploration and development industry. Driven by a proven and experienced management team and using cutting edge technology, FirstGrowth has aggressively grown its revenues for three consecutive years. FirstGrowth's subsidiary, Kinetex Inc., has been a developer of advanced exploration techniques with 2008 marking its 10th year as an integrator of applied sciences to the resource industry. Kinetex's services are being utilized in both oil & gas exploration and development, and precious and base mineral exploration and evaluation. One of Kinetex's primary services is targeted implementation and optimization of seismic imaging using the proprietary VectorSeis Recording System and Digital 3 Component Full Wave Imaging. |
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