STT Enviro Corp
TSX VENTURE : STT

STT Enviro Corp

February 26, 2014 08:30 ET

STT Enviro Corp Reports Fourth Quarter and Year-End 2013 Financial Results

TORONTO, ONTARIO--(Marketwired - Feb. 26, 2014) - STT Enviro Corp ("STT" or the "Company") (TSX VENTURE:STT) today announces 2013 revenue of $28.4 million, EBITDA of $2.7 million and pretax income of $1.8 million. Fourth quarter revenue totaled $5.2 million and EBITDA of $0.2 million.

Financial Highlights for the Year:

Year Ended
December 31,
2013
Year Ended
December 31,
2012
% Change
Revenue $ 28,421,577 $ 29,188,243 -3 %
EBITDA 2,685,944 2,493,404 +8 %
Net income before tax 1,844,229 1,310,863 +41 %
Net income after tax 1,021,642 952,848 +7 %
Earnings per share (*) 0.039 0.036
EBITDA per issued common share 0.101 0.094
Closing backlog $ 13,899,576 $ 21,664,926 -36 %
Closing working capital 1,008,237 3,759,511

Financial Highlights for the Quarter:

Quarter Ended
December 31,
2013
Quarter Ended
December 31,
2012
% Change
Revenue $ 5,188,024 $ 8,183,051 -37 %
EBITDA 178,490 1,224,600 -85 %
Net (loss) income before tax (1,964 ) 868,052 -100 %
Net income after tax 67,483 603,776 -89 %
Earnings per share (*) $ 0.003 0.023
EBITDA per issued common share 0.007 0.046

* Earnings per share as calculated under IFRS does not include the effect of the exercise of potentially dilutive securities issued by the Company. See chart below for a summary of these securities.

David Deacon, CEO commented, "Although annual revenue was down compared to 2012, the Company has shown strong financial performance in the year in spite of a difficult operating environment. In the second half of 2013 the Company began to feel the impact of the slowdown in commodities-based development projects. However, we have made significant improvements in our operating efficiency and developed new revenue streams to offset its impact. The results thus far have been very satisfying. We believe these new revenue streams have strong organic growth potential and will be our focus this year."

Mr. Deacon continued, "With the retirement of the Convertible Debentures in April the Company can establish its effect on shareholder dilution and will then be in a position to decide how best to both strategically and structurally position itself for long-term growth."

The Company will hold a conference call to discuss the financial results on February 28, 2014 at 11:00 am Eastern time. The call-in numbers are (416) 204-9641 or 1(877) 314-1234; participant code 9530930.

Potentially Dilutive Securities:

As at December 31st, 2013 and 2012, the following potentially dilutive securities were excluded from the calculation of earnings per share since their exercise prices exceeded the average market value of the Company's common shares for the period:

Number of Potential New Common Shares Upon Exercise
Security Exercise
Price
2013 2012
Warrants 0.12 1,045,000 -
Warrants 0.14 1,045,000 1,045,000
Options 0.13 1,150,000 1,175,000
Options 0.16 1,205,000 1,310,000
Convertible debentures (*) 0.14 17,841,729 17,841,729
Warrants which would be issued on conversion of convertible debentures (**) 0.14 8,920,865 8,920,865
Total 31,207,594 30,292,594
* including potential dilution of 6,696,571 shares relating to $937,520 of convertible debentures held by subsidiary.** including potential dilution of 3,348,286 shares relating to $937,520 of convertible debentures held by subsidiary.

The financial statements and MD&A are available on SEDAR and have also been posted on the company's website at http://www.sttenvirocorp.com/investor-relations/financial-reporting/.

About STT Enviro Corp

STT Enviro Corp (TSX VENTURE:STT) is an international supplier of industrial processes and environmental solutions specializing in water remediation and emission control systems. The Company assists its clients in subscribing to the highest environmental standards by offering quality products, reliability and cost effective solutions.

The Company's three primary areas of business are in providing engineering support, project management and installation of bulk material handling systems; supplying steel tanks and providing related engineering support and services for liquid storage projects; and the sales of parts and aftermarket services to our customers to assist them in maintaining and improving their systems.

The Company is focused on becoming a leading supplier of environmental solutions by continuing to grow its business organically and, longer term, to make strategic acquisitions at prices that are financially accretive.

For more information, please visit our website at www.STTEnviroCorp.com.

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.

Contact Information