CALGARY, Canada, November 6 /PRNewswire/ -- Flint Energy Services Ltd (Flint, the Company) reported revenue for the three months ended September 30, 2008 of CDN$585.8 million, an increase of CDN$161.5 million (38.1%), as compared to CDN$424.3 million for the same period of 2007. Revenue for the nine months ended September 30, 2008 was CDN$1,633.1 million, an increase of CDN$284.3 million (21.1%), as compared to CDN$1,348.8 million for the same period of 2007. Increased revenues of CDN$131.6 million from the Facility Infrastructure and Plant Maintenance and Other operating segments for the three months ended September 30, 2008, and CDN$283.5 million for nine months ended September 30, 2008 accounted for the majority of the revenue increase. Canadian operations which generated CDN$452.8 million in revenues were up CDN$141.2 million as a result of increased activity levels during the quarter, while U.S. operations generated CDN$133.0 million, up CDN$20.3 million as a result of stronger drilling activity in the United States. U.S. operations accounted for 22.7% of revenues for the quarter.

As of September 30, 2008, the Company recognized an impairment charge of CDN$190.4 million, including CDN$155.9 million goodwill impairment and a CDN$34.5 million impairment of intangible assets recorded during the period in the Oilfield Transportation and Tubular Management and Manufacturing business segments. This was partially offset by a future income tax reduction of CDN$10.5 million, relating to the difference between the tax and book amortization of the intangible assets.

As a result of the impairment charge, the Company reported a loss of CDN$163.2 million during the three months ended September 30, 2008 compared to earnings of CDN$12.2 million in the comparative period last year for a net decrease of CDN$175.4 million. The loss per fully diluted share for the third quarter of 2008 was (CDN$3.41) compared to diluted earnings per share CDN$0.25 for the third quarter in 2007. For the nine months ending September 30, 2008, the loss was (CDN$2.78) per share on a fully diluted basis, compared to CDN$0.85 per share for the comparative period in 2007.

Excluding the impairment charge, net earnings were CDN$16.7 million for the three months ended September 30, 2008 representing an increase of CDN$4.5 million (36.9%) as compared to the same period in 2007, and CDN$47.0 million for the nine months ended, representing an increase of CDN$6.3 million (15.5%) as compared to the prior year. Excluding the impairment charge, earnings in the third quarter were CDN$0.35 per share on a fully diluted basis compared to CDN$0.25 per fully diluted share for the comparative period in 2007. For the nine months ending September 30, 2008 earnings from operations were CDN$0.98 per share on a fully diluted basis.

W.J. (Bill) Lingard, President and CEO of the Company stated, All of our operating segments posted increased revenues and increased EBITDA in the quarter. Lingard further stated, The write down in goodwill and intangible assets in our Oilfield Transportation and Tubular Management divisions was the result of lower drilling activity for the first three quarters of 2008 and a weaker industry outlook for 2009.

EBITDA for the three months ended September 30, 2008 was $54.4 million compared to $45.6 million in the third quarter of 2007, an increase of $8.8 million (19.3%). EBITDA decreased by $1.6 million to $139.2 million for the nine months ended September 30, 2008 in comparison to the prior year. Increased EBITDA in the third quarter was the result of increased revenues in Facility Infrastructure, Oilfield Transportation and the Plant Maintenance and Other operating segments. Decreases in EBITDA for the nine months ended were due to lower drilling activity levels in Canada, accompanied by higher fuel and labour costs which negatively impacting EBITDA in the Production Services, Oilfield Transportation, and Tubular Management and Manufacturing operating segments in the first nine months of the year.

Funds provided by operations before changes in non-cash working capital for the three and nine months ended September 30, 2008 were CDN$38.3 million and CDN$100.5 million as compared to CDN$33.5 million and CDN$88.0 million for the comparative periods respectively.

Copies of the Third Quarter Interim Financial Statements and Management Discussion and Analysis are available on SEDAR http://www.sedar.com, or the Company's website, http://www.flintenergy.com

FORWARD LOOKING STATEMENTS

Certain statements in this news release are forward-looking statements, which reflect current expectations of the management of Flint regarding future events or Flint's future performance. All statements other than statements of historical fact contained in this news release may be forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. Flint believes that the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and Flint assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to Flint and its securities can be found in the disclosure documents filed by Flint with the securities regulatory authorities, available at http://www.sedar.com.

For further information: W.J. (Bill) Lingard, President Chief Executive Officer; Paul Boechler, Chief Financial Officer; or Guy Cocquyt, Director of Investor Relations. Telephone: +1-403-218-7100, Fax: +1-403-215-5481, Website: http://www.flintenergy.com

For further information: W.J. (Bill) Lingard, President Chief Executive Officer; Paul Boechler, Chief Financial Officer; or Guy Cocquyt, Director of Investor Relations. Telephone: +1-403-218-7100, Fax: +1-403-215-5481