Steeplejack Industrial Group Inc.
TSX : SID

Steeplejack Industrial Group Inc.

November 09, 2006 14:35 ET

Steeplejack Industrial Group Inc. Announces First Quarter Fiscal 2007 Results

EDMONTON, ALBERTA--(CCNMatthews - Nov. 9, 2006) - Steeplejack Industrial Group Inc. (TSX:SID):



Summary of financial results
(000's except EPS amounts)
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Three months ended
(Unaudited) September 30
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2006 2005
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Revenues $ 35,207 $ 13,905
Net earnings (loss) $ 2,704 $ (299)
Net earnings (loss) per share
Basic and diluted $ 0.26 $ (0.03)
Common shares outstanding 10,207 10,192
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Highlights

- Revenue from new construction projects and seasonal turnarounds resulted in increased revenues for the period

- Work at the Long Lake Oil Sands project was at peak capacity during the quarter

Revenues for the first quarter of fiscal 2007 were $35.2 million compared to $13.9 million in the first quarter of fiscal 2006 and $35.2 million in the fourth quarter of fiscal 2006. The increase in revenue was due to continued growth of new construction activity and higher levels of maintenance work.

Revenues from new construction activity in the first quarter of fiscal 2007 were $24.4 million, compared to $4.8 million for the first quarter of fiscal 2006 and up from $19.8 million for the fourth quarter of 2006. The Long Lake Oil Sands Project is at peak construction levels resulting in higher scaffolding requirements compared to the previous periods.

Revenues from maintenance activity in the first quarter of fiscal 2007 were $10.8 million compared to $9.1 million for the first quarter of fiscal 2006 and down from $15.4 million in the fourth quarter of 2006. The increase over last year was mainly due to the growth of recurring contracts, including the renewal of several long term maintenance contracts.

The Company's gross profit percentage for the first quarter of fiscal 2006 was 20.7% compared to 14.2% for the same period last year, mainly due to growth in scaffold rentals and improved efficiencies in some of the maintenance contracts.

Net earnings for the quarter were $2.7 million ($0.26 per share, basic and diluted) compared to a loss of $0.3 million (a loss of $0.03 per share) in the same quarter last year.

Outlook

We are expecting activity at the Long Lake Oil Sands project to be at lower levels of manpower throughout the balance of calendar 2006. We expect the project requirements to decrease in calendar 2007 as phase I of this project nears completion.

At the Horizon Oil Sands project, we established our yard and facilities in fiscal 2006 and are supplying equipment to contractors on the site. Equipment rentals are expected to increase throughout fiscal 2007. Growth in manpower will depend on our ability to source labour.

The Company continues to pursue new construction and maintenance opportunities with existing and new customers.

Steeplejack Industrial Group Inc. is a multi-service company providing comprehensive project management, manpower and equipment supply for its industrial scaffolding and insulation customers. The Company operates through nine branches and serves a diverse group of large industrial and commercial organizations in Alberta and Saskatchewan.

Complete interim unaudited consolidated financial statements are available on SEDAR at www.sedar.com or on the Company's web-site at www.steeplejack.ca.

Contact Information

  • Steeplejack Industrial Group Inc.
    Pat Ross
    President and CEO
    (780) 465-9016
    or
    Steeplejack Industrial Group Inc.
    Nick Cristiano, CA
    Chief Financial Officer
    (780) 465-9016
    Email: request@steeplejack.ca
    Website: www.steeplejack.ca