State Street Corp V.STT

Financial Results for Quarter Ended March 31, 2013

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STT Enviro Corp. Reports Financial Results for Quarter Ended March 31, 2013

Good results. Market will yawn.

 

TORONTO, ONTARIO--(Marketwired - May 2, 2013) - STT Enviro Corp. ("STT" or the "Company") (TSX VENTURE:STT) today reported financial results for its first quarter ended March 31, 2013 of approximately $8.9 million of revenue, $0.9 million of EBITDA and net income after tax of $0.5 million.

Financial Highlights for the Quarter and Year-to-Date:

	Quarter and		Quarter and
	YTD Ended		YTD Ended			%
	March 31, 2013		March 31, 2012			Change
Revenue	$	8,858,601	$	6,190,704		+43	%
EBITDA		929,208		(126,930	)
Net income after tax		534,945		(325,986	)
Earnings per share (*)		0.020		(0.012	)
EBITDA per issued common share		0.035		(0.005	)
Closing backlog	$	17,299,961	$	23,150,007		-25	%
Closing working capital		537,166		1,978,835		-73	%

* Earnings per share as calculated under IFRS does not include the effect of the exercise of potentially dilutive securities issued by the Company. See chart below for a summary of these securities.

The Company will hold a conference call to discuss the financial results on Wednesday, May 8, 2013 at 11:00 am Eastern time. The call-in numbers are [phone] or 1(877) 314-1234; participant code 9530930.

"Our results for the first quarter represent a solid start to 2013," said David Deacon, STT's CEO. "Our revenue was strong, although gross margins were somewhat depressed due to execution cost and margin pressure on new orders. Our closing backlog was $17.3 million. Subsequent to quarter-end, the Company received letters of intent and purchase orders from customers valued at approximately $10 million."

"Our closing working capital was approximately $537,000, reflecting the repayment of $1 million to one of our lenders, and a reclassification of some debt maturing in the first quarter of 2014 from long-term to current obligations. The Company continues discussions with potential lenders to assist with the refinancing of this debt."

Finally, he said, "We continue to have a relatively cautious outlook on the overall economy and particularly its impact on commodity pricing, which has softened and will no doubt cause delays on approval for new projects. We are focusing on the things we have control over, namely extending our sales reach geographically, improved support of aftermarket activities and reduction of our cost in supporting the difficult US municipal market."

Potentially Dilutive Securities:

As at March 31, 2013 and 2012, the following potentially dilutive securities were excluded from the calculation of EPS since their exercise prices exceeded the average market value of the Company's common shares for the period:

			Number of Potential New Common
			Shares Upon Exercise
	Exercise		At March 31,	At March 31,
Security	Price		2013	2012
Warrants	$	0.135	-	1,000,000
Warrants		0.140	1,045,000	1,045,000
Warrants		0.160	-	1,000,000
Options		0.100	50,000	-
Options		0.130	1,050,000	525,000
Options		0.160	1,205,000	1,425,000
Options		2.220	-	257,500
Convertible debentures		0.140	17,841,729	17,841,729
Warrants which would be issued on conversion of
convertible debentures		0.140	8,920,865	8,920,865
Total potential dilution			30,112,594	32,015,094
Common shares issued and outstanding			26,528,944	26,528,944
Total potential common shares			56,641,538	58,544,038

About STT Enviro Corp.

STT Enviro Corp. is an international 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.