TORONTO, ONTARIO — (Marketwire) — 05/11/12 — Semcan Inc. (TSX VENTURE: STT) today reported financial results for its quarter ended March 31, 2012 of approximately $6.2 million of revenue, ($0.1) million of EBITDA and net loss after tax of ($0.3) million.
“Our results for the first quarter were below expectations for two reasons,” said David Deacon, Semcan–s CEO. “First, some of the project execution we expected to complete by the end of March was delayed, a timing issue which will sort itself out over the balance of the year. Second, some of our projects experienced non-recoverable cost over-runs during the quarter. The Company–s execution of backlog and continued strong order intake should allow us to recover from the first quarter setback as we resolve some execution issues and complete major projects.”
About Semcan Inc.
Semcan is a North American supplier of environmental solutions and industrial processes, with specific emphasis on water remediation and emission control systems.
The Company is of the view that environmental considerations and preventative technologies are becoming a prerequisite of most modern industrial expansion, particularly in the mining, oil & gas and power sectors.
The Company–s principal focus is the conceptual design, engineering, project management, and assembly and installation of complete bulk material handling systems used to clean up water and control air emissions- from the storage silos, to the conveying systems, to the computerized electronic controls. The systems are utilized internationally in a broad range of industries.
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 Semcan. 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 . 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 Semcan 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 Semcan 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”). Semcan–s method of calculating EBITDA may differ from the methods used by other issuers. Therefore, Semcan–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. Semcan–s method of calculating backlog may differ from the methods used by other issuers. Therefore, Semcan–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.
Contacts:
Semcan Inc.
David Deacon
CEO
(905) 875-5577