January 16, 2007 08:00 ET

Eveready Income Fund Listed as Second Fastest Growing Company in Alberta and Announces 2007 Capital Expenditure Program

EDMONTON, ALBERTA--(CCNMatthews - Jan. 16, 2007) - Eveready Income Fund (TSX:EIS.UN) ("Eveready") announces that it has been listed in the current issue of Alberta Venture magazine as one of the 25 fastest growing companies in Alberta with revenue over $20 million. Eveready ranked second on the list achieving a 179% increase in revenue since 2004. This is the fourth consecutive year that Eveready has received this award.

"We are very pleased to be recognized for our outstanding level of growth," comments Rod Marlin, Eveready's President and Chief Executive Officer. "Our track record for achieving year-over-year growth is a reflection of the tremendous effort and dedication of our employees and management team over the past number of years. Their contributions have made Eveready the successful organization it is today."

Eveready has also grown its total assets significantly over the past three years. Total assets increased to $422 million at September 30, 2006, compared to total assets of $227 million at December 31, 2005 and $98 million at December 31, 2004. In addition, Eveready has expanded geographically to now include 65 locations and over 1,600 employees.

Eveready's significant rate of growth is expected to continue. The demand continues to be strong for Eveready's services, which are principally provided in industrial maintenance, production services, and deep gas exploration. In addition, Eveready has significant exposure to the growing infrastructure development in the Alberta oil sands and expects a large portion of its growth in 2007 and 2008 to come from this region.

Eveready estimates that consolidated revenue for the year ended December 31, 2006, subject to finalization of December's financial results, will exceed $375 million. In addition, significant investment in property and equipment and the completion of several business acquisitions in 2006 will contribute to revenue of approximately $500 million for the year ending December 31, 2007. Eveready will also continue to pursue accretive business acquisition opportunities in 2007. The $500 million revenue estimate does not include revenue that could be generated from these acquisitions.

2007 Capital Expenditure Program

Eveready also announces that it is forecasting a consolidated capital expenditure program of $55 million for 2007. The program is comprised of expansion capital of $41 million and maintenance capital expenditures of $14 million. The program includes acquiring over 130 new service units, including vacuum trucks, pressure trucks, high pressure units, directional boring units, hydro-excavation trucks, tank trucks, and other support equipment. Delivery of the capital equipment is expected throughout the year with a large portion of the expenditures being incurred to support planned revenue growth in 2008.

Eveready is a growth oriented income fund that provides industrial and oilfield services; health, safety and environmental services; and oilfield equipment rental services to the energy, resource, and manufacturing sectors. The units of Eveready trade on the Toronto Stock Exchange under the trading symbol "EIS.UN".

This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Eveready to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services provided by Eveready, industry competition and Eveready's ability to attract and retain both customers and key personnel. These forward-looking statements are made as of the date of this press release and Eveready assumes no obligation to update or revise them to reflect subsequent information, events or circumstances unless otherwise required by applicable securities legislation.

Contact Information

  • Eveready Income Fund
    Rod Marlin
    President & CEO
    (780) 451-6075
    (780) 451-2142 (FAX)
    Eveready Income Fund
    John M. Stevens
    Senior Vice President & CFO
    (780) 451-6075
    (780) 451-2142 (FAX)
    Website: www.evereadyincomefund.com