STT Enviro Corp. Reports Financial Results for Quarter Ended December 31, 2012
March 15 2013 - 4:15PM
Marketwired Canada
STT Enviro Corp. ("STT" or the "Company") (TSX VENTURE:STT) today reported
financial results for its quarter ended December 31, 2012 of approximately $8.2
million of revenue, $1.2 million of EBITDA and net income after tax of $0.6
million. For the year ended December 31, 2012, the Company reported revenues of
approximately $29 million, EBITDA of $2.5 million and net income after tax of
$1.0 million.
Financial Highlights for the Quarter:
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Quarter Ended Quarter Ended
December 31, December 31, %
2012 2011 Change
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Revenue $ 8,183,051 $ 7,964,428 +3%
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EBITDA 1,224,600 722,226 +70%
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Net income after tax 603,776 488,906 +23%
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Earnings per share(i) 0.023 0.018
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EBITDA per issued common share 0.046 0.027
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Financial Highlights for the Year:
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Year Ended Year Ended
December 31, December 31, %
2012 2011 Change
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Revenue $ 29,188,243 $ 26,457,860 +10%
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EBITDA 2,493,404 2,154,706 +16%
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Net income (loss) after tax,
excluding 2011 special recovery
(ii) 952,848 852,995 +12%
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Net income after tax 952,848 3,376,587
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Earnings per share (i) 0.036 0.143
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EBITDA per issued common share 0.094 0.081
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Closing backlog 21,664,926 24,921,180 -13%
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Closing working capital 3,759,511 1,015,601
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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.
(ii) The 2011 special recovery of $2,523,592 was principally a gain on
settlement of debt.
The Company will hold a conference call to discuss the financial results on
Tuesday, March 19, 2013 at 11:00 am Eastern time. The call-in numbers are (416)
204-9641 or 1(877) 314-1234; participant code 9530930.
"Our results for the fourth quarter are very satisfying," said David Deacon,
STT's CEO. "Our gross margins have improved as a result of effective project
execution, the expansion of parts and service revenues and improved buying
practices, which we have been pursuing aggressively."
He continued, "As mentioned in our last quarterly report, we continue to have a
relatively cautious outlook on the overall economy and particularly its impact
on commodity pricing (which has softened) and therefore may cause some delays or
short term postponement of some development projects. As well, the lack of
clarity on the pipeline issues for the oil sands is creating some easing of
activity there. As a result we have taken steps to continue to improve margins
and to expand our geographic reach in order to counter any softness in our
markets due to these broader economic issues."
Potentially Dilutive Securities:
As at December 31, 2012 and 2011, 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:
Number of Potential New Common
Exercise Shares Upon Exercise
Security Price 2012 2011
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Warrants $ 0.135 - 1,000,000
Warrants 0.140 1,045,000 -
Warrants 0.160 - 1,000,000
Options 0.130 1,175,000 -
Options 0.160 1,310,000 1,425,000
Options 1.300 - 100,000
Options 2.220 - 257,500
Convertible debentures 0.140 17,841,729 17,841,729
Warrants which would be issued on
conversion of convertible 0.140 8,920,865 8,920,865
debentures
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Total 30,292,594 30,545,094
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About STT Enviro Corp.
STT Enviro Corp. is an international supplier of environmental solutions and
industrial processes, with specific emphasis on water remediation and emission
control systems.
The Company is of the view that environmental considerations and preventative
technologies are becoming a prerequisite of most modern industrial expansion,
particularly in the mining, oil & gas and power sectors.
The Company's principal focus is the conceptual design, engineering, project
management, and assembly and installation of complete bulk material handling
systems used to clean up water and control air emissions- from the storage
silos, to the conveying systems, to the computerized electronic controls. The
systems are utilized internationally in a broad range of industries.
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
STT Enviro Corp.
David Deacon
CEO
(905) 875-5577
STT Enviro Corp. (TSXV:STT)
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