STT Enviro Corp Reports Fourth Quarter and Year-End 2013 Financial Results
26 Februar 2014 - 1:30PM
Marketwired Canada
STT Enviro Corp ("STT" or the "Company") (TSX VENTURE:STT) today announces 2013
revenue of $28.4 million, EBITDA of $2.7 million and pretax income of $1.8
million. Fourth quarter revenue totaled $5.2 million and EBITDA of $0.2 million.
Financial Highlights for the Year:
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Year Ended Year Ended
December 31, December 31,
2013 2012 % Change
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Revenue $ 28,421,577 $ 29,188,243 -3%
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EBITDA 2,685,944 2,493,404 +8%
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Net income before tax 1,844,229 1,310,863 +41%
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Net income after tax 1,021,642 952,848 +7%
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Earnings per share ((i)) 0.039 0.036
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EBITDA per issued common share 0.101 0.094
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Closing backlog $ 13,899,576 $ 21,664,926 -36%
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Closing working capital 1,008,237 3,759,511
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Financial Highlights for the Quarter:
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Quarter Ended Quarter Ended
December 31, December 31,
2013 2012 % Change
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Revenue $ 5,188,024 $ 8,183,051 -37%
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EBITDA 178,490 1,224,600 -85%
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Net (loss) income before tax (1,964) 868,052 -100%
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Net income after tax 67,483 603,776 -89%
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Earnings per share ((i)) $ 0.003 0.023
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EBITDA per issued common share 0.007 0.046
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(i) Earnings per share as calculated under IFRS does not include the effect of
the exercise of potentially dilutive securities issued by the Company. See chart
below for a summary of these securities.
David Deacon, CEO commented, "Although annual revenue was down compared to 2012,
the Company has shown strong financial performance in the year in spite of a
difficult operating environment. In the second half of 2013 the Company began to
feel the impact of the slowdown in commodities-based development projects.
However, we have made significant improvements in our operating efficiency and
developed new revenue streams to offset its impact. The results thus far have
been very satisfying. We believe these new revenue streams have strong organic
growth potential and will be our focus this year."
Mr. Deacon continued, "With the retirement of the Convertible Debentures in
April the Company can establish its effect on shareholder dilution and will then
be in a position to decide how best to both strategically and structurally
position itself for long-term growth."
The Company will hold a conference call to discuss the financial results on
February 28, 2014 at 11:00 am Eastern time. The call-in numbers are (416)
204-9641 or 1(877) 314-1234; participant code 9530930.
Potentially Dilutive Securities:
As at December 31st, 2013 and 2012, the following potentially dilutive
securities were excluded from the calculation of earnings per share since their
exercise prices exceeded the average market value of the Company's common shares
for the period:
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Number of Potential New
Common Shares Upon
Exercise
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Exercise
Security Price 2013 2012
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Warrants 0.12 1,045,000 -
Warrants 0.14 1,045,000 1,045,000
Options 0.13 1,150,000 1,175,000
Options 0.16 1,205,000 1,310,000
Convertible debentures ((i)) 0.14 17,841,729 17,841,729
Warrants which would be issued on
conversion of convertible debentures
((ii)) 0.14 8,920,865 8,920,865
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Total 31,207,594 30,292,594
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(i) including potential dilution of 6,696,571 shares relating to $937,520 of
convertible debentures held by subsidiary.(ii) including potential dilution
of 3,348,286 shares relating to $937,520 of convertible debentures held by
subsidiary.
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The financial statements and MD&A are available on SEDAR and have also been
posted on the company's website at
http://www.sttenvirocorp.com/investor-relations/financial-reporting/.
About STT Enviro Corp
STT Enviro Corp (TSX VENTURE:STT) is an international supplier of industrial
processes and environmental solutions specializing in water remediation and
emission control systems. The Company assists its clients in subscribing to the
highest environmental standards by offering quality products, reliability and
cost effective solutions.
The Company's three primary areas of business are in providing engineering
support, project management and installation of bulk material handling systems;
supplying steel tanks and providing related engineering support and services for
liquid storage projects; and the sales of parts and aftermarket services to our
customers to assist them in maintaining and improving their systems.
The Company is focused on becoming a leading supplier of environmental solutions
by continuing to grow its business organically and, longer term, to make
strategic acquisitions at prices that are financially accretive.
For more information, please visit our website at www.STTEnviroCorp.com.
Caution Regarding Forward-Looking Information and Non-IFRS Measures
Forward-Looking Information
This news release contains certain forward-looking statements. These statements
relate to future events or future performance and reflect management's current
expectations and assumptions regarding the growth, results of operations,
performance, and business prospects and opportunities. Such forward-looking
statements reflect management's current beliefs and expectations and are based
on information currently available to management of the Company. In particular,
statements regarding the future operating results and economic performance are
forward-looking statements. Forward-looking statements involve significant risks
and uncertainties. A number of factors could cause actual events or results to
differ materially from the events and results discussed in the forward-looking
statements, including risks outlined under "Risk Factors" in our Annual
Information Form, which is posted at www.sedar.com. In evaluating these
statements, investors should specifically consider various factors, including
such risks as Investment Risk; Business Valuations; Condition of Capital
Markets; Dependence on Key Personnel; General Economic Factors; Interest Rate
Risk; Competition; and Reliance on Key Suppliers. One or more of these "Risk
Factors" could cause actual events or results to differ materially from any
forward-looking statement. These factors should not be considered exhaustive.
Although the forward-looking statements contained in this press release are
based on what management of the Company considers to be reasonable assumptions
based on information currently available to them, there can be no assurance that
actual events or results will be consistent with these forward-looking
statements, and management's assumptions may prove to be incorrect. These
forward-looking statements are made as of the date of this press release, and
none of STT nor its directors assume any obligation to update or revise them to
reflect new events or circumstances. Undue reliance should not be placed on
forward-looking statements.
Non-IFRS Measures
The term "EBITDA" is a financial measure used in this document which is not a
standard measure under International Financial Reporting Standards ("IFRS"). The
Company's method of calculating EBITDA may differ from the methods used by other
issuers. Therefore, STT's measure of EBITDA, as presented in this press release,
may not be comparable to similar measures presented by other issuers. EBITDA
refers to net earnings determined in accordance with IFRS before depreciation,
amortization of intangible assets, gain or loss on disposal of property and
equipment, interest expense, accretion expense, special charges and recoveries,
stock compensation expense and income tax expense. Management believes that
EBITDA is a useful supplemental measure of cash available for debt service,
working capital, capital expenditures, income taxes, and distribution. Investors
are cautioned that EBITDA, as a non-IFRS measure, is not an alternative to
measures under IFRS and should not, on its own, be construed as an indicator of
performance or cash flows, a measure of liquidity or as a measure of actual
return.
The term "backlog" is a financial measure used in this document which is not a
standard measure under IFRS. The Company's method of calculating backlog may
differ from the methods used by other issuers. Therefore, STT's measure of
backlog, as presented in this press release, may not be comparable to similar
measures presented by other issuers. Backlog is the value of revenue remaining
to be earned from purchase orders received from customers. The projects
represented in backlog are executed according to a schedule agreed with each
customer, which could range in duration from one month to eighteen months.
Revenues are earned on a percentage of completion basis. Management uses this
measure to i) monitor the Company's success in securing new orders, and ii)
gauge the likelihood of meeting revenue objectives in future periods.
Investors are cautioned that backlog, as a non-IFRS measure, is not an
alternative to measures under IFRS and should not, on its own, be construed as
an indicator of performance or cash flows, a measure of liquidity or as a
measure of actual return.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Investor Relations: STT Enviro Corp
Holly Hendershot
Director of Corporate Affairs
+1 905-875-5584
hhendershot@sttenvirocorp.com
www.STTEnviroCorp.com
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