Semcan Inc.
TSX VENTURE : STT

Semcan Inc.

May 26, 2011 18:12 ET

Semcan Inc. Reports Quarter Ended 31st March 2011 Financial Results

TORONTO, ONTARIO--(Marketwire - May 26, 2011) - Semcan Inc. (TSX VENTURE:STT) ("Semcan or the "Company") today reported financial results for its quarter ended March 31, 2011.

"The results for Q1 2011 reflect the turnaround in Semcan's business following the significant rebuilding of our order backlog in late 2010 and early 2011," said David Deacon, Semcan's CEO. "Our revenues grew to approximately $4.8 million, we generated positive EBITDA of approximately $175,000 and net income was breakeven. With the completion of the recent refinancing, we can now look to build on this quarter as the execution of the backlog continues throughout the balance of 2011 and into 2012."

The Company reports its results under International Financial Reporting Standards ("IFRS"). Revenues for the quarter were $4.8 million, compared with $2.5 million in Q1 2010. The net income from continuing operations was $nil, compared to a net loss of $0.65 million in Q1 2010. Non-IFRS Adjusted EBITDA for the quarter was $0.175 million, compared to ($0.576) million for Q1 2010. Gross margins were 22.28% compared to 15.63% in Q1 2010.

About Semcan Inc.

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

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 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-IFRS Measures

The term "Adjusted EBITDA" is a financial measure used in this document which is not a standard measure under International Financial Reporting Standards ("IFRS"). Semcan's method of calculating Adjusted EBITDA may differ from the methods used by other issuers. Therefore, Semcan's measure of Adjusted EBITDA, as presented in this press release, may not be comparable to similar measures presented by other issuers. Adjusted 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, special charges, stock compensation expense and income tax expense. Management believes that Adjusted EBITDA is a useful supplemental measure of cash available for debt service, working capital, capital expenditures, income taxes, and distribution. Investors are cautioned that Adjusted 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. 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-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 TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Semcan Inc.
    David Deacon
    CEO
    (905) 875-5577