SOURCE: STT Enviro Corp

STT Enviro Corp

November 27, 2014 07:00 ET

STT Enviro Corp. Announces the Creation of Two Operating Groups

TORONTO, ON--(Marketwired - November 27, 2014) - STT Enviro Corp. ("STT" or the "Company") (TSX VENTURE: STT) is pleased to announce that the Company will now operate under two groups, "STT Enviro Corp, Tanks & Industrial" and "STT Enviro Corp, Systems & Solutions." This change is to assist the Company in reinforcing and delivering its customer promise to the market, "Environmental improvement at reduced cost equals customer value." 

STT Tanks & Industrial

The Company's bolted tank product is environmentally less intrusive, less expensive, faster to build and less sensitive to weather delays than current field welded tank options.

The Company has benefited from the fact that the Canadian Association of Petroleum Producers chose to highlight this product in a recent series of television and print commercials. Over the last two years, the Company has been working to deliver its bolted tank solution to oil sands producers requiring storage solutions for various types of liquid products. In addition to several tanks that were sold last year, the Company recently announced that a major project was awarded.

David Deacon, Chief Executive Officer commented, "The Company has identified a new opportunity to expand its product offerings by utilizing its engineering and construction expertise and applying it to transload systems for the Natural Gas industry. The advantage of our system versus some of the alternatives is that our system can be dismantled and recycled once the transload facility is no longer required. Other alternatives (such as those using large cement silos, for example) could remain as a blight on the landscape virtually indefinitely, notwithstanding the fact that their useful operational life may be only a dozen years or less."

STT Tanks & Industrial engineers and supplies bolted tanks with a smaller environmental footprint for both dry and liquid storage applications.

STT Systems & Solutions

The Systems Group is focused on delivering a cost competitive product which can deliver significant operational savings through our Solutions Groups optimization work.

Mr. Deacon said, "Merging the Systems and Solutions businesses will align the Company's operating structure with its customer-focused strategy. The Solutions Group has developed System optimization data which can now be incorporated into our new systems and ensure that we are not only delivering a robust, cost effective product, but that our product developments (some of which are being patented) deliver our clients ongoing savings through efficient chemical usage."

"STT Enviro Corp. expects to be in a very strong strategic position as the Systems business re-emerges and is already benefiting with solid year over year growth in its Solutions business."

STT Systems & Solutions engineers and supplies chemical makedown systems to neutralize pollutants (usually acid water) created in the ore or oil recovery process; and aftermarket services including optimization of chemical use for our customers to lower costs and reduce their carbon footprint.

Management Restructuring

As a result, the following management promotions have taken place:

  1. STT Enviro Corp, Tanks & Industrial will be led by Calin Sarban, M. Eng, P.Eng as Group President, reporting to CEO David Deacon. Mr. Sarban previously led the STT Enviro Corp Tanks Group and the System Group's operations team. 
  2. STT Enviro Corp, Systems & Solutions will be led by Ali Abbas, M. Eng, P.Eng as Group Executive Vice President, reporting to CEO David Deacon. Mr. Abbas previously led the STT Enviro Corp Solutions Group. 

The changes are effective immediately.

About STT Enviro Corp.

STT Enviro Corp. (TSX VENTURE: STT) has been delivering customer value for over 35 years by supplying cost effective, incremental environmental improvements to traditional industrial products. The Company's two operating groups, STT Enviro Corp, Systems & Solutions and STT Enviro Corp, Tanks & Industrial, work to reduce their customers' environmental footprint, cost efficiently.

STT Systems & Solutions engineers and supplies chemical makedown systems to neutralize pollutants (usually acid water) created in the ore or oil recovery process; and aftermarket services including optimization of chemical use for our customers to lower costs and reduce their carbon footprint.

STT Tanks & Industrial engineers and supplies bolted tanks with a smaller environmental footprint for both dry and liquid storage applications.

Environmental considerations are prerequisites in modern industrial expansion and STT Enviro Corp. is focused on being a leader and innovator on incremental environmental improvements. The Company's strategy is to grow organically and, longer term, to acquire companies at prices which are strategically and financially accretive. 

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 the Company. 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 the Company 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 STT 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 "EBITDA" is a financial measure used in this document which is not a standard measure under International Financial Reporting Standards ("IFRS"). The Company's method of calculating EBITDA may differ from the methods used by other issuers. Therefore, STT'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 IFRS before depreciation, amortization of intangible assets, gain or loss on disposal of property and equipment, interest expense, accretion expense, special charges and recoveries, stock compensation 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-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. The Company's method of calculating backlog may differ from the methods used by other issuers. Therefore, STT'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.

Neither the 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 of this release.

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