Welcome!

News Feed Item

Entrec Corporation Approves 2014 Capital Expenditure Program and Appoints John M. Stevens President & CEO

SPRUCE GROVE, ALBERTA -- (Marketwired) -- 01/15/14 -- ENTREC Corporation ("ENTREC" or the "Company") (TSX VENTURE:ENT), a leading provider of heavy lift and heavy haul services, today approved a $46 million capital expenditure program for 2014. The program consists of growth capital expenditures of $34 million and $12 million in maintenance capital expenditures. ENTREC is also pleased to announce the appointment of Mr. John M. Stevens as its President and CEO. Mr. Stevens previously served as President and COO and will now replace Rod Marlin as CEO who has transitioned to the role of Executive Chairman.

"This is a very natural transition for ENTREC," said Rod Marlin, ENTREC's Executive Chairman. "In John's previous role, he led our Company through a transformational period of growth and is well deserving of his new responsibilities as Chief Executive to take our Company to the next level."

2014 Capital Expenditure Program

"Our 2014 growth capital expenditures will be specifically focused on growing our mobile crane capabilities," said Mr. Stevens. "We believe continued investment in this area will increase our access to the recurring onsite maintenance, repair and operation ("MRO") support work in the Alberta oil sands region, as well as to the significant industrial construction work occurring in both the oil sands and in Northwest BC.

ENTREC's 2014 capital expenditure program consists of the following components:


Growth capital expenditures - cranes                         $    27 million
Growth capital expenditures - heavy haul transportation            5 million
Other growth capital expenditures                                  2 million
Maintenance capital expenditures                                  12 million
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Total                                                             46 million

Included in ENTREC's 2014 growth capital expenditures are the purchase of $6.5 million of crane rental units. These units carry favourable purchase options, which allow the Company to apply much of its previous rental payments against the purchase price. ENTREC's maintenance capital expenditures reflect its capital maintenance program. The program is designed to keep the Company's fleet efficient and profitable by replacing an equipment item when it becomes cost-prohibitive to operate due to high maintenance and operating costs.

ENTREC intends to fund its 2014 capital expenditure program from its credit facilities, finance leases and cash from operating activities. The Company also expects to have the flexibility to increase its capital expenditure program throughout 2014 should customer demand warrant. The Company does not believe it will need to raise any additional equity to fund its 2014 capital expenditure program.

2013 Capital Expenditures

During the year ended December 31, 2013, ENTREC expects to report capital expenditures of approximately $59 million (subject to final year-end adjustments), consisting of $53 million in growth capital expenditures and $6 million in maintenance capital expenditures. Crane equipment purchases accounted for approximately $36 million of the capital expenditures, with the remainder directed to tractors and heavy haul trailers, as well as to other support equipment. At December 31, 2013, ENTREC's total net debt was approximately $131 million (subject to final year-end adjustments).

2014 Revenue Guidance

Based on current expectations for future business activity, and assuming no business acquisitions are completed, ENTREC estimates revenue for the year ending December 31, 2014 could range between $250 and $270 million. This compares to estimated revenue of approximately $213 million for the year ended December 31, 2013. ENTREC expects revenue levels to trend upward throughout 2014 as project work begins to ramp up and utilization levels increase. Any business acquisitions completed in fiscal 2014 could increase this revenue estimate. ENTREC's 2013 revenue results remain subject to final year-end billing and accounting adjustments, and as a result, may be different from current expectations.

"Our outlook for 2014 and 2015 remains very positive," said Mr. Stevens. "Despite the lower demand levels we have seen in recent months, quoting activity in our key markets continues to be strong for work commencing in 2014."

ENTREC estimates its overall adjusted EBITDA margin for fiscal 2014 could approximate 25%. Consistent with the upward trend in revenue, ENTREC believes its adjusted EBITDA margin will also increase as the year progresses.

Oil sands demand is expected to ramp up beginning in the first quarter of 2014 and continue to gain momentum as the year progresses. Large heavy haul transportation contracts awarded to ENTREC in the first half of 2013 should commence in the first and second quarters of 2014 and continue through 2017. In addition, ENTREC is working with oil sands customers on several large crane and heavy haul transportation projects that will commence at different times throughout the 2014 year. Certain of these projects will extend through to 2017.

Consistent with its strategy, ENTREC is also successfully expanding the amount of long-term maintenance, repair and operation (MRO) contract work it performs in the Alberta oil sands region. ENTREC was recently awarded a 5-year MRO contract with an oil sands customer, which commenced in December 2013 and could generate up to $15 million in annual revenue.

Northwest B.C. continues to be a busy area for ENTREC. The Company is currently working on various mining, hydro-electric, pipeline, and oil and natural gas projects in the region and is providing crane and transportation services to support a multi-billion-dollar revitalization of an aluminum smelter in Kitimat, B.C. ENTREC will continue to expand its service capabilities in this important region throughout 2014 in preparation for the planned development of LNG facilities and is currently in the process of expanding its operations into Prince Rupert, B.C. These projects, along with ancillary infrastructure developments, are expected to require extensive crane and heavy haul transportation services.

With the acquisition of GT's Crane and Transportation Services Inc. in 2013, ENTREC now has a leading market position in northeast B.C. and northwest Alberta. ENTREC believes this will be a busy area for the Company in 2014 as it supports oil and natural gas projects in the region. The Company has also recently expanded its operations into Fort St. John, B.C. to better serve customers in this region.

About ENTREC

ENTREC is a leading provider of heavy lift and heavy haul services with offerings encompassing crane services, heavy haul transportation, engineering, logistics and support. ENTREC provides these services to the oil and natural gas, construction, petrochemical, mining and power generation industries. ENTREC's common shares trade on the TSX Venture Exchange under the trading symbol "ENT".

Non-IFRS Financial Measures

Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation, amortization, loss (gain) on disposal of property, plant and equipment, change in fair value of embedded derivative, share-based compensation, and non-recurring business acquisition and integration costs. In addition to net income, adjusted EBITDA is a useful measure as it provides an indication of the financial results generated by ENTREC's principal business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions and before certain non-cash expenses. Adjusted EBITDA also illustrates what ENTREC's EBITDA is, excluding the effect of non-recurring business acquisition and integration costs. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue.

Forward-looking Statements

This press release contains forward-looking statements which reflect ENTREC's current beliefs and are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond ENTREC's control.

Examples of such forward-looking statements in this press release relate to, but are not limited to: ENTREC's plan to execute a 2014 capital expenditure program of $46 million; expectation that ENTREC's 2014 capital expenditure program will be funded from its credit facilities, finance leases and cash from operating activities and that it will have the flexibility to increase its 2014 capital expenditure program throughout 2014 should customer demand warrant; belief the Company will not need to raise any additional equity to fund its 2014 capital expenditure program; expectation the Company will incur capital expenditures of approximately $59 million in 2013 and exit 2013 with total net debt of approximately $131 million; estimate revenue could range between $250 million and $270 million for the year ending December 31, 2014; estimate 2013 revenue will approximate $213 million, subject to final year-end billing and accounting adjustments; expectation revenue levels will trend upward throughout 2014 as project work begins to ramp up and utilization levels increase; expectation that oil sands demand will begin ramping up in the first and second quarters of 2014 and continue to gain momentum as the year progresses; estimate a recently awarded MRO contract, which commenced in December 2013, could generate up to $15 million in incremental annual revenue; belief ENTREC will continue to expand its service capabilities in northwest B.C. in 2014 as it anticipates the planned development of LNG facilities; belief northwest Alberta and northeast B.C. will be a busy area for ENTREC in 2014 as it supports oil and natural gas projects in the region; and estimate ENTREC's overall adjusted EBITDA margin for fiscal 2014 could approximate 25% and increase as the year progresses.

ENTREC's forward-looking statements involve a number of significant assumptions. Key assumptions utilized in developing forward-looking statements related to ENTREC's growth, revenue, and adjusted EBITDA margin expectations include achieving its internal revenue, net income and cash flow forecasts for 2014. Key assumptions involved in preparing ENTREC's internal forecasts include, but are not limited to, its expectations and estimates that: demand for crane and heavy haul transportation services in western Canada increases from current levels in 2014; ENTREC will be able to retain key personnel and attract additional high-quality personnel to support its planned revenue growth; construction projects and production activity in the Alberta oil sands region and in northern British Columbia continue at or above current levels; ENTREC is able to achieve anticipated revenues on current and future MRO contracts; the planned development of LNG facilities proceeds and certain customers choose to utilize ENTREC's services; there are no significant unplanned increases in ENTREC's cost structure, including those costs related to fuel and wages; market interest rates remain similar to current rates and that additional debt financing remains available to ENTREC on similar terms to its existing debt financing; there is no prolonged period of inclement weather that impedes or delays the need for crane and heavy haul transportation services; the competitive landscape in western Canada for crane and heavy haul transportation services does not materially change in 2014; and there is no material adverse change in overall economic conditions.

Achieving these forecasts largely depends on a number of factors beyond ENTREC's control including several of the risks discussed further under "Business Risks" in ENTREC Management's Discussion & Analysis for the three and nine months ended September 30, 2013. The business risks that are most likely to affect ENTREC's ability to achieve its internal revenue, net income and cash flow forecasts for 2014 are the volatility of the oil and gas industry, its exposure to the Alberta oil sands, workforce availability, weather and seasonality, availability of debt and equity financing, competition, and business integration risks. These risk factors are interdependent and the impact of any one risk or uncertainty on a particular forward-looking statement is not determinable.

ENTREC's ability to finance its capital expenditure program through its debt facilities depends on its ability to achieve debt financing terms acceptable to the lenders and ENTREC as well as meeting its internal cash flow forecasts.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, ENTREC. These forward-looking statements are made as of the date of this press release. Except as required by applicable securities legislation, ENTREC assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.

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 or accuracy of this release.

Contacts:
ENTREC Corporation
Rod Marlin
Executive Chairman
(780) 960-5647

ENTREC Corporation
John M. Stevens
President & CEO
(780) 960-5625

ENTREC Corporation
Jason Vandenberg
CFO
(780) 960-5630
www.entrec.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.