Mr. David Deacon reports
STT ENVIRO CORP REPORTS FINANCIAL RESULTS FOR QUARTER ENDED MARCH 31ST, 2015
STT Enviro Corp. is releasing its financial results for its quarter ended March 31, 2015, including approximately $8.7-million of revenue, $700,000 of EBITDA (earnings before interest, taxes, depreciation and amortization) and net income after tax of $280,000.
FINANCIAL HIGHLIGHTS FOR THE QUARTER AND YEAR TO DATE
Quarter ended Quarter ended
March 31, March 31,
2015 2014
Revenue $ 8,739,136 $ 5,018,817
EBITDA 757,480 625,050
Net income before tax 422,069 464,678
Net income after tax 281,835 351,738
Earnings per share $ 0.007 $ 0.013
EBITDA per issued common share $ 0.020 $ 0.024
Closing backlog 31,770,334 16,302,466
Closing working capital 5,938,519 1,458,955
David Deacon, chief executive officer, commented: "Given our high level of backlog going into the year, we expected to achieve very strong revenue for the quarter, which we did. The first quarter had several highlights, the main one being over $12-million of new order intake from the systems and solutions group, which puts our backlog at its highest level ever. In addition, the company raised $2.5-million in new equity at 25 cents per share in a non-brokered private placement with private U.S. investors. Part of the proceeds were used to pay down $1.5-million in term debt. Due to continued strong generation of cash from operations, as well as this capital raise, the company is now sitting with $5.9-million in unencumbered working capital."
He continued: "The strong new order intake for the quarter followed on management's decision late last year, in the face of continued soft commodities markets and lower oil prices, to take an aggressive posture on any opportunity to bid on new business in the systems and solutions group, and squeeze our margins slightly. The result was that when a small series of projects were suddenly released, we were successful on virtually every bid. Although EBITDA for the quarter was 21 per cent higher than that for the corresponding period in 2014, net income was lower as a result of a one-time write-off of the pipe investment and non-cash amortization relating to the issue of stock options. Given these factors, we are pleased with the quarter's results."
The company will hold a conference call to discuss the financial results on May 12, 2015, at 11 a.m. Eastern Time. The call-in numbers are 416-204-9641 and 1-877-314-1234, participant code 9530930.
The financial statements, and management's discussion and analysis, are available on SEDAR and have also been posted on the company's website.
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