|By Marketwired .||
|January 15, 2014 07:00 AM EST||
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.
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.
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.
John M. Stevens
President & CEO
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, will discuss how the ability to access and analyze the massive volume of streaming data from mil...
Feb. 11, 2016 09:25 AM EST
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 11, 2016 09:15 AM EST Reads: 191
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, 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. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Feb. 11, 2016 09:00 AM EST
CIOs and those charged with running IT Operations are challenged to deliver secure, audited, and reliable compute environments for the applications and data for the business. Behind the scenes these tasks are often accomplished by following onerous time-consuming processes and often the management of these environments and processes will be outsourced to multiple IT service providers. In addition, the division of work is often siloed into traditional "towers" that are not well integrated for cro...
Feb. 11, 2016 08:00 AM EST Reads: 482
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
Feb. 11, 2016 07:00 AM EST Reads: 303
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Feb. 11, 2016 06:45 AM EST Reads: 441
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Feb. 11, 2016 05:00 AM EST
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, will discuss using predictive analytics to ...
Feb. 11, 2016 02:45 AM EST Reads: 397
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
Feb. 11, 2016 02:30 AM EST Reads: 256
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 11, 2016 01:15 AM EST Reads: 211
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,...
Feb. 11, 2016 01:00 AM EST Reads: 225
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Feb. 11, 2016 01:00 AM EST Reads: 409
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
Feb. 11, 2016 12:45 AM EST Reads: 261
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
Feb. 11, 2016 12:30 AM EST Reads: 329
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Feb. 10, 2016 11:45 PM EST Reads: 113