TORONTO, ONTARIO--(Marketwire - March 22, 2011) - Semcan Inc. ("Semcan" or the "Company") (TSX VENTURE:STT) is pleased to announce that it has been awarded a $4.2 million project for completion by March 2012. The current backlog of confirmed purchase orders is now approximately $23.4 million, an increase of $5.9 million from the backlog announced on November 30, 2010 of $17.5 million.
David Deacon, CEO of Semcan, commented, "This award, along with other recent wins, continues the steady increase in the Company's backlog from its low point of approximately $5.3 million at December 31, 2009 to approximately $23.4 million today. We expect the majority of the backlog to be executed over the next twelve month period. With the upcoming close in early April of the previously-announced private placement financing of a minimum of $2 million, Semcan will be in a strong position to begin to execute this business as well as to continue to solidify its competitive position as industry demand grows."
The Company is active in multiple industry sectors. Of the $23.4 million in backlog, approximately $10 million is from the Mining industry, approximately $10 million is from the Oil and Gas industry, and the remaining $3.4 million is from other industrial and municipal sectors.
About Semcan Inc.
Semcan is a supplier of industrial processes and environmental solutions with specific emphasis on water remediation and emission control systems to the North American markets.
Forward-Looking Statement Disclaimer
Caution Regarding Forward-Looking Information and Non-GAAP Measures
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 Semcan. 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 Semcan 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 Semcan nor its directors assumes any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking statements.
Non-GAAP Measures
The term "backlog" is a financial measure used in this document which is not a standard measure under Canadian generally accepted accounting principles. Semcan's method of calculating backlog may differ from the methods used by other issuers. Therefore, Semcan'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-GAAP measure, is not an alternative to measures under GAAP 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.
Contact Information: Semcan Inc.
David Deacon
CEO
(905) 875-5577