- Record results with Adjusted EBITDA1 of $105 million in the third quarter, up 184% compared to Q3 2020, and up 47% on a per share basis, demonstrating the strength and scale of the combined business.
- Successfully closed the Tervita merger transaction on July 2, 2021, creating a large-scale midstream infrastructure and environmental solutions business.
- Realized $31 million of annualized synergies from Tervita merger in Q3 2021.
- On track to achieve at least $75 million in annualized synergies by the end of 2022.
- Generated discretionary free cash flow1 of $76 million in Q3 2021 and $149 million on a trailing twelve-month basis, available to be directed towards SECURE's key near-term priority of debt repayment.
- Set 2022 Scope 1 greenhouse gas emission reduction target of 5%.
- Improved financial structure with issuances of C$340 million of 7.25% 2026 unsecured notes used in part to redeem US$200 million of 11% Tervita notes, resulting in interest cost savings of approximately $9 million per year.
- Capital expenditures of $13 million in Q3, comprised of $10 million in sustaining capital and $3 million in growth capital. SECURE expects capital expenditures of $7-10 million for the remainder of 2021.
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| 1 Refer to the "Non-GAAP Measures" section herein. |
CALGARY, AB, Oct. 28, 2021 /CNW/ - SECURE ENERGY Services Inc. ("SECURE" or the "Corporation") (TSX: SES) reported the Corporation's operational and financial results for the three and nine months ended September 30, 2021.
"We are extremely pleased with the strong results for the third quarter of 2021, as higher commodity prices and increased activity levels translated to increased volumes at our facilities and landfills as well as stronger demand for our drilling and completions services," said Rene Amirault, President and Chief Executive Officer of SECURE. "Our first quarter as a combined company with Tervita demonstrates that, as expected, our increased size and scope is generating significant free cash flow, improving our overall leverage and enhancing our ability to deliver greater returns to our shareholders.
"The integration is progressing well and synergies are on track with the combination of the two companies delivering exactly the kind of incremental benefits we had envisioned. We expect annualized run rate synergies of $35-38 million by the end of 2021, and to deliver at least $75 million of annualized synergies by the end of next year.
"We're encouraged by the strong momentum across all our business lines. With increased free cash flow generation capabilities and a strengthened balance sheet, we're as well positioned as we've ever been to capitalize on upside growth potential and the positive trends of our industry as our markets continue to improve."