STT Enviro Corp. Reports Record Profits for Fourth Quarter and Year Ended December 31st, 2014

TORONTO, ON--(Marketwired - March 06, 2015) - STT Enviro Corp. ("STT" or the "Company") (TSX VENTURE: STT) today reported financial results for its year ended December 31st, 2014 of approximately $22.3 million of revenue, $2,238,285 of EBITDA and net income after tax of $1,182,666. For the quarter ended December 31st, 2014, the Company reported approximately $6.4 million of revenue, $661,691 of EBITDA and net income after tax of $301,974.

Financial Highlights for the Year:

Financial Highlights for the Quarter:

David Deacon, Chief Executive Officer, commented, "We are pleased that after the tough entry into 2014, the Company was still able to post higher profit than in 2013, despite lower revenue. As well, we have rebuilt our backlog to historically high levels in what has been a year with pretty serious headwinds. This sets up the Company for a very strong revenue expectation for 2015 relative to any previous year, although our gross margins will see some pressure due to the competitive nature of our current bids."

He continued, "Our bolted tanks become a "must consider" alternative in the oil sands given current low oil prices because of our 25% to 30% cost advantage over field-welded alternatives. While there is unlikely to be a lot of activity in 2015, we believe we are now a strong contender for any tank farms being contemplated, and also for incremental growth in current tank farms as the producers look for greater storage capacity to be able to manage their markets better in a volatile pricing environment. In addition, we have begun offering trans-load solutions to producers using hydraulic fracturing techniques, and our first project in this market, valued at approximately US$6.5 million, was awarded to us in February 2015."

Finally, he said, "Management has continued to focus on diversifying the Company's revenue base and on new areas of activity. Our now proven ability to modify our activities and penetrate new markets when some of our traditional ones have been weak has continued to contribute to a strong cash position due to cash generated from operations. The Company's primary focus continues to be organic growth of its existing business. However, with a significantly strengthened balance sheet, the Company is in a position to consider strategic acquisitions."

The Company will hold a conference call to discuss the financial results on March 11, 2015 at 11:00 am Eastern time. The call-in numbers are (416) 204-9641 or 1(877) 314-1234; participant code 9530930.

About STT Enviro Corp.

STT Enviro Corp. (TSX VENTURE: STT) supplies 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. 

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.