SEMCAN INC. IS AWARDED $4.2 MILLION PROJECT INCREASemcan Inc. ("Semcan" or the "Company") (TSX VENTURE: STT) is pleased to announce that it has been awarded a $4.2 million project for completion by March 2012. The current backlog of confirmed purchase orders is now approximately $23.4 million, an increase of $5.9 million from the backlog announced on November 30, 2010 of $17.5 million.
David Deacon, CEO of Semcan, commented, "This award, along with other recent wins, continues the steady increase in the Company's backlog from its low point of approximately $5.3 million at December 31, 2009 to approximately $23.4 million today. We expect the majority of the backlog to be executed over the next twelve month period. With the upcoming close in early April of the previously-announced private placement financing of a minimum of $2 million, Semcan will be in a strong position to begin to execute this business as well as to continue to solidify its competitive position as industry demand grows."
The Company is active in multiple industry sectors. Of the $23.4 million in backlog, approximately $10 million is from the Mining industry, approximately $10 million is from the Oil and Gas industry, and the remaining $3.4 million is from other industrial and municipal sectors.
The term "backlog" is a financial measure used in this document which is not a standard measure under Canadian generally accepted accounting principles. 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-GAAP measure, is not an alternative to measures under GAAP 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.