STT Enviro Corp. Reports Financial Results for Quarter Ended March 31, 2013
02 Maggio 2013 - 11:30PM
Marketwired Canada
STT Enviro Corp. ("STT" or the "Company") (TSX VENTURE:STT) today reported
financial results for its first quarter ended March 31, 2013 of approximately
$8.9 million of revenue, $0.9 million of EBITDA and net income after tax of $0.5
million.
Financial Highlights for the Quarter and Year-to-Date:
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Quarter and Quarter and
YTD Ended YTD Ended %
March 31, 2013 March 31, 2012 Change
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Revenue $ 8,858,601 $ 6,190,704 +43%
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EBITDA 929,208 (126,930)
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Net income after tax 534,945 (325,986)
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Earnings per share (i) 0.020 (0.012)
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EBITDA per issued common share 0.035 (0.005)
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Closing backlog $ 17,299,961 $ 23,150,007 -25%
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Closing working capital 537,166 1,978,835 -73%
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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.
The Company will hold a conference call to discuss the financial results on
Wednesday, May 8, 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 first quarter represent a solid start to 2013," said David
Deacon, STT's CEO. "Our revenue was strong, although gross margins were somewhat
depressed due to execution cost and margin pressure on new orders. Our closing
backlog was $17.3 million. Subsequent to quarter-end, the Company received
letters of intent and purchase orders from customers valued at approximately $10
million."
"Our closing working capital was approximately $537,000, reflecting the
repayment of $1 million to one of our lenders, and a reclassification of some
debt maturing in the first quarter of 2014 from long-term to current
obligations. The Company continues discussions with potential lenders to assist
with the refinancing of this debt."
Finally, he said, "We continue to have a relatively cautious outlook on the
overall economy and particularly its impact on commodity pricing, which has
softened and will no doubt cause delays on approval for new projects. We are
focusing on the things we have control over, namely extending our sales reach
geographically, improved support of aftermarket activities and reduction of our
cost in supporting the difficult US municipal market."
Potentially Dilutive Securities:
As at March 31, 2013 and 2012, the following potentially dilutive securities
were excluded from the calculation of EPS since their exercise prices exceeded
the average market value of the Company's common shares for the period:
Number of Potential New Common
Shares Upon Exercise
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Exercise At March 31, At March 31,
Security Price 2013 2012
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Warrants $ 0.135 - 1,000,000
Warrants 0.140 1,045,000 1,045,000
Warrants 0.160 - 1,000,000
Options 0.100 50,000 -
Options 0.130 1,050,000 525,000
Options 0.160 1,205,000 1,425,000
Options 2.220 - 257,500
Convertible debentures 0.140 17,841,729 17,841,729
Warrants which would be issued on
conversion of
convertible debentures 0.140 8,920,865 8,920,865
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Total potential dilution 30,112,594 32,015,094
Common shares issued and outstanding 26,528,944 26,528,944
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Total potential common shares 56,641,538 58,544,038
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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
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