Semcan Inc.
TSX VENTURE : STT

Semcan Inc.

April 29, 2008 11:02 ET

Semcan Inc. Reports Fiscal Year 2007 Financial Results

TORONTO, ONTARIO--(Marketwire - April 29, 2008) - Semcan Inc. (TSX VENTURE:STT) today reported financial results for its financial year ended December 31, 2007. Revenues for the fiscal year 2007 were $25.5 million, an increase of 253.2 percent over revenues of $7.2 million in the fiscal year 2006. GAAP net profit for fiscal 2007 was $0.4 million, or $0.019 per share, compared to GAAP net loss of $(0.4) million, or $(0.034) per share, for the fiscal year 2006. GAAP net profit for the fiscal year 2007 includes non-cash, $0.5 million expense relating to Stock Compensation, an expense category not present in fiscal year 2006.

Non-GAAP adjusted EBITDA for fiscal year 2007 was $1.92 million, compared to $(0.2) million for fiscal year 2006. Semcan's gross margins have increased significantly in fiscal 2007 to 32.58% ($8.42 million gross profit from $25.5 million revenue) compared to 24.6% ($1.8 million gross profit from $7.21 million revenue) in fiscal 2006.

At 31st December 2007 Semcan's Total Assets were $29.4 million compared with $3.5 million at December 31st 2006 and Semcan's Enterprise value (total term debt and bank debt plus market capitalization at year end dates) were $37.4 million and $3.5 million respectively.

"Semcan has delivered a solid financial year, driven by our ability to successfully identify, acquire and integrate complementary companies and products," said Phil Jamieson, CEO of Semcan Inc. "We were especially pleased with the performance of our Engineering and Design Segment which, following the successful integration of Stanco Projects into Semco Systems Ltd., has enabled this business segment to win larger engineering contracts in both the Water Treatment and the Flue Gas Desulphurization Markets. Semco Systems Ltd.'s current confirmed order backlog is approximately $30 million. These results demonstrate the strong foundation that we have built in these market places, derived from a skilled engineering workforce providing engineered and integrated solutions across product categories and geographies."

About Semcan Inc.

SEMCAN is a rapidly growing company expanding through acquisitions within the Industrial and Distribution sectors. SEMCAN seeks out well managed profitable companies that meet certain financial parameters. SEMCAN works with existing management to grow the acquired companies both organically and through further complementary acquisitions. SEMCAN is fast becoming a worldwide supplier of industrial processes and environmental solutions with specific emphasis on water remediation and emission control systems. SEMCAN provides the central finance and administrative functions, allowing operational management to remain focused on bottom line profitability thereby increasing shareholder value.

Caution Regarding Forward-Looking Information and Non-GAAP 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 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 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-GAAP Measures

The term "EBITDA" 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 EBITDA may differ from the methods used by other issuers. Therefore, Semcan'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 generally accepted accounting principles, before depreciation and amortization, interest 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-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.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Semcan Inc.
    Phil Jamieson
    Chairman
    (416) 703-1692 x 221