STT Enviro Corp Reports Fourth Quarter and Year-End 2013 Financial
Results
TORONTO, ONTARIO--(Marketwired - Feb 26, 2014) - 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:
|
Year Ended December 31, 2013 |
Year Ended December 31, 2012 |
% Change |
|
Revenue |
$ |
28,421,577 |
$ |
29,188,243 |
-3 |
% |
EBITDA |
|
2,685,944 |
|
2,493,404 |
+8 |
% |
Net income before tax |
|
1,844,229 |
|
1,310,863 |
+41 |
% |
Net income after tax |
|
1,021,642 |
|
952,848 |
+7 |
% |
|
|
|
|
|
|
|
Earnings per share (*) |
|
0.039 |
|
0.036 |
|
|
EBITDA per issued common share |
|
0.101 |
|
0.094 |
|
|
|
|
|
|
|
|
|
Closing backlog |
$ |
13,899,576 |
$ |
21,664,926 |
-36 |
% |
Closing working capital |
|
1,008,237 |
|
3,759,511 |
|
|
Financial Highlights
for the Quarter:
|
Quarter Ended December 31, 2013 |
|
Quarter Ended December 31, 2012 |
% Change |
|
Revenue |
$ |
5,188,024 |
|
$ |
8,183,051 |
-37 |
% |
EBITDA |
|
178,490 |
|
|
1,224,600 |
-85 |
% |
Net (loss) income before tax |
|
(1,964 |
) |
|
868,052 |
-100 |
% |
Net income after tax |
|
67,483 |
|
|
603,776 |
-89 |
% |
|
|
|
|
|
|
|
|
Earnings per share (*) |
$ |
0.003 |
|
|
0.023 |
|
|
EBITDA per issued common share |
|
0.007 |
|
|
0.046 |
|
|
* 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:
|
|
Number of Potential New Common Shares Upon
Exercise |
Security |
Exercise Price |
2013 |
2012 |
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 (*) |
0.14 |
17,841,729 |
17,841,729 |
Warrants which would be issued on conversion of convertible
debentures (**) |
0.14 |
8,920,865 |
8,920,865 |
Total |
|
31,207,594 |
30,292,594 |
* including potential dilution of 6,696,571 shares
relating to $937,520 of convertible debentures held by
subsidiary.** including potential dilution of 3,348,286 shares
relating to $937,520 of convertible debentures held by
subsidiary. |
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.
Investor Relations: STT Enviro CorpHolly HendershotDirector of
Corporate Affairs+1
905-875-5584hhendershot@sttenvirocorp.comwww.STTEnviroCorp.com
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