Semcan Inc.
TSX VENTURE : STT

Semcan Inc.

September 01, 2010 09:45 ET

Semcan Inc. Reports Quarter ended 30th June 2010 Financial Results

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2010) -

Semcan Inc. (TSX VENTURE:STT) has reported financial results for its quarter ended 30th June 2010.

"The results for Q2 2010 were a marked improvement over the results for Q1 2010, both from a bottom line point of view and with respect to building our backlog," said Phil Jamieson, Chairman & CEO. "During Q2 we secured $6.4 million of new work and the closing backlog of active and delayed orders is $9.9 million at 30th June 2010. We also sold Naston Limited, the UK subsidiary, on 15th July 2010, which improved our working capital on that date by approximately $3.8 million."

Continuing Operations

Revenues for the quarter were $3.9 million, compared with $9.5 million in Q2 2009. The net loss from continuing operations was $0.37 million, compared to a net loss of $0.39 million in Q2 2009. Non-GAAP adjusted EBITDA for the quarter was ($0.13) million, compared to $0.56 million for Q2 2009. Adjusted gross margins were 25.6% compared to 23.2% in Q2 2009.

Discontinued Operations

Revenues for the quarter were $nil. Net loss from discontinued operations was $0.16 million. Non- GAAP adjusted EBITDA was $(0.1) million. Comparatives to 2009 are not meaningful as the only discontinued operation in 2010 is Naston Limited, whereas in 2009 two other companies were classified this way and were subsequently sold.

About Semcan Inc.

Semcan is a worldwide supplier of industrial processes and environmental solutions with specific emphasis on water remediation and emission control systems

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.

Neither 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 or accuracy of this release.

Contact Information

  • Semcan Inc.
    Phil Jamieson
    Chairman
    (905) 875-5577