Canada NewsWire
CALGARY, Aug. 1, 2019
CALGARY, Aug. 1, 2019 /CNW/ - Tervita Corporation ("Tervita" or the "Company") (TSX: TEV) announced today the results for the three and six months ended June 30, 2019. All financial figures are in millions of Canadian dollars unless otherwise noted.
"Our performance to date in 2019 demonstrates the stability and resiliency of our production-based energy business, the strength of our expanded network, and a continued focus on cost efficiencies," said John Cooper, President and CEO. "Our results in Q2 2019 were positively impacted by realized cost synergies from the Newalta transaction, which have progressed ahead of our expectations. With these synergies achieved, we are turning our attention to additional opportunities to leverage our expanded infrastructure, strengthen operating efficiencies and enhance our customer offerings.
"We remain on track to deliver double-digit growth in 2019, supported by expected normal seasonal improvements in our business, and a full-year contribution from synergies which will drive higher results in the second half of 2019. We are excited about the growth initiatives underway that are focused on providing solutions in the Montney and Duvernay regions. In addition, we continue to see customer demand that supports a further $200 - $300 million pipeline of organic growth capital projects that we expect will provide attractive returns and generate strong free cash flow."
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||
Increase | Increase | |||||||||||||||||
2019 | 2018 | (Decrease) | % Change | 2019 | 2018 | (Decrease) | % Change | |||||||||||
Energy Services revenue | ||||||||||||||||||
Facilities and onsite revenue | 116 | 67 | 49 | 73% | 236 | 143 | 93 | 65% | ||||||||||
Energy marketing revenue | 424 | 416 | 8 | 2% | 771 | 690 | 81 | 12% | ||||||||||
540 | 483 | 57 | 12% | 1,007 | 833 | 174 | 21% | |||||||||||
Industrial Services revenue | 50 | 58 | (8) | (14)% | 114 | 99 | 15 | 15% | ||||||||||
Intersegment eliminations | — | (1) | 1 | 100% | — | (2) | 2 | 100% | ||||||||||
Revenue | 590 | 540 | 50 | 9% | 1,121 | 930 | 191 | 21% | ||||||||||
Revenue excluding energy marketing | 166 | 124 | 42 | 34% | 350 | 240 | 110 | 46% | ||||||||||
Energy Services Divisional EBITDA(1) | 57 | 35 | 22 | 63% | 116 | 79 | 37 | 47% | ||||||||||
Industrial Services Divisional EBITDA(1) | 6 | 9 | (3) | (33)% | 17 | 11 | 6 | 55% | ||||||||||
Divisional EBITDA(1) | 63 | 44 | 19 | 43% | 133 | 90 | 43 | 48% | ||||||||||
General and administrative expenses | (12) | (11) | 1 | 9% | (26) | (21) | 5 | 24% | ||||||||||
Net profit (loss) | — | — | — | —% | (3) | 3 | (6) | (200)% | ||||||||||
- per share ($), basic and diluted | — | — | — | —% | (0.03) | 0.03 | (0.06) | (200)% | ||||||||||
Adjusted EBITDA(1) | 53 | 33 | 20 | 61% | 109 | 70 | 39 | 56% | ||||||||||
- per share ($), basic and diluted | 0.45 | 0.32 | 0.13 | 41% | 0.93 | 0.67 | 0.26 | 39% | ||||||||||
Adjusted EBITDA margin(1) | 32% | 27% | 5% | 31% | 29% | 2% | ||||||||||||
Maintenance capital | 5 | 6 | (1) | (17%) | 10 | 10 | — | —% | ||||||||||
Growth and Expansion capital | 12 | 9 | 3 | 33% | 25 | 19 | 6 | 32% | ||||||||||
Discretionary free cash flow(1) | 5 | 7 | (2) | (29)% | 42 | 33 | 9 | 27% | ||||||||||
- per share ($), basic and diluted | 0.04 | 0.07 | (0.03) | (43)% | 0.36 | 0.32 | 0.04 | 13% | ||||||||||
Net Debt to Adjusted EBITDA(1)(2) | 3.11 | 2.38 | 0.73 | 3.11 | 2.38 | 0.73 | ||||||||||||
Shares as at June 30 (000's of shares)(2) | ||||||||||||||||||
Shares outstanding | 116,157 | 104,626 | 11,531 | 11% | 116,157 | 104,626 | 11,531 | 11% | ||||||||||
Weighted average shares outstanding | 117,386 | 104,626 | 12,760 | 12% | 117,471 | 104,626 | 12,845 | 12% | ||||||||||
(1) | Refer to Tervita's Q2 2019 Management's Discussion and Analysis ("MD&A") and unaudited Interim Condensed Consolidated Financial Statements ("Interim Financial Statements") for further information. These financial measures are Non-GAAP measures and are, therefore, unlikely to be comparable to similar measures presented by other issuers. These Non-GAAP financial measures are defined and reconciled in Tervita's Q2 2019 MD&A. |
(2) | Net Debt to Adjusted EBITDA in Q2 2019 is Last Twelve Months Pro Forma the Newalta Transaction. See Tervita's Q2 2019 MD&A for further definition and reconciliation. |
(3) | As at August 1, 2019, the Company had 116,499,560 common shares, 2,702,649 common share purchase warrants, and 2,586,828 options, exercisable for a maximum of one common share for each warrant or option outstanding. |
Q2 and Year to Date ("YTD") 2019 Financial Highlights
Q2 2019 versus Q1 2019 Highlights
Other Highlights
Outlook
MD&A and Financial Statements
The Q2 2019 MD&A, Interim Financial Statements, and Annual Information Form, which contain additional notes and disclosures, are available on SEDAR under Tervita Corporation at www.SEDAR.com or on our website at www.tervita.com on the Investor Relations page.
Second Quarter 2019 Conference Call
Tervita will host a conference call on Friday August 2, 2019 at 7:00 a.m. MT to discuss details related to the second quarter. To participate in the conference call, dial 647-427-7450 or toll free 1-888-231-8191. To access the simultaneous webcast, please visit www.tervita.com. For those unable to listen to the live call, a taped broadcast will be available at www.tervita.com and, until midnight on Friday, August 9, 2019 by dialing 855-859-2056 and using the pass code 9791344.
About Tervita
Tervita is a leading waste management and environmental solutions provider offering waste processing, treating, recycling, and disposal services to customers in the oil and gas, mining, and industrial sectors. We serve our customers onsite and through a network of facilities in Canada and the United States.
For 40 years, Tervita has been focused on delivering safe and efficient solutions through all phases of a project while minimizing impact, maximizing returns™. Our dedicated and experienced employees are trusted sustainability partners to our clients. Safety is our top priority: it influences our actions and shapes our culture. Tervita trades on the TSX as TEV. For more information, visit tervita.com.
Advisories
Forward-Looking Information
This news release contains certain statements that may be "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Forward looking statements are statements that are not historical facts and are often, but not always, identified using words or phrases such as "expects", "plans", "anticipates", "believes", "intends", "estimates", "estimated", "projects", "potential" and similar expressions, or stating that certain actions, events or conditions "will", "would", "may", "might", "could" or "should" occur or be achieved or other similar terminology. In particular, but without limiting the foregoing, this news release contains forward-looking statements or information pertaining to, our outlook for 2019 including expectations regarding our Adjusted EBITDA growth, annual Adjusted EBITDA margin and capital spending, expected continued benefits from the Newalta transaction including realization of synergies and one-time costs associated therewith; ability to successfully execute our growth and expansion projects; market and industry outlook with respect to drilling and completion activity, relatively stable oil and gas prices and Western Canadian oil and gas production levels; continued business focus on the Western Canadian Sedimentary Basin; long-term oil and gas environmental services market outlook in Canada will generate sufficient demand for Tervita's services, our expectations that oil and gas producers will continue to outsource waste by-product treatment and disposal and that it is difficult for third parties to replicate the expensive footprint of our facilities, our growth strategy and our ability to take advantage of future growth opportunities, our cash flow, liquidity and financial position, our expectations regarding our maintenance capital spending, growth and expansion capital projects and sources of funding for our capital program. By their nature, forward-looking statements and information involve known and unknown opportunities, costs, risks and uncertainties that may cause actual results; to differ materially from those anticipated. Risks and uncertainties that may affect actual results include, without limitation, our ability to realize the expected benefits of the arrangement, decreases in exploration, drilling and production activity levels in the markets where we offer our services, customers may decide to no longer outsource their waste management and other environmental service activities, risks related to non-compliance with environmental laws or delays resulting from such non-compliance, legislative and regulatory initiatives that impact our business, competition, fluctuations in commodity prices and exchange rates and volatility in global financial conditions. For a more detailed discussion of risks relating to Tervita see our most recent Annual Information Form. With respect to the forward-looking statements and information contained in this news release, Tervita has made assumptions regarding, among other things: our ability to integrate our business with that of Newalta, the realization of the anticipated benefits and other synergies and cost savings of the arrangement, the stability of the industries in which we operate, the creditworthiness of our customers, commodity prices, no material changes in the legislative and operating framework our business, our ability to access capital, our ability to successfully market our business in the areas in which we operate, conditions of the oil and gas industry in our current and proposed market, general economic, business and market conditions, our future debt levels and the impact of increasing competition. Although Tervita believes the expectations expressed in such forward-looking statements and information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements and information are based on the beliefs, estimates and opinions of Tervita's management on the date the statements are made. Except as required by law, Tervita undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. The forward-looking statements and information included in this news release are expressly qualified in their entirety by this cautionary statement. Tervita cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking statements and information contained in this news release are made as of the date hereof, and Tervita does not undertake any obligation to update publicly or to revise any of the included forward-looking statements or information, whether as a result of new information, change in management's estimates or opinions, future circumstances or events or otherwise, except as expressly required by applicable securities law.
Any financial outlook in this document, as defined by applicable securities legislation, including estimates regarding Tervita's expected realization of synergies from the arrangement and one-time costs associated therewith, are based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available and has been approved by management of Tervita. Such financial outlook is provided with the purpose of providing information about management's current expectation and management's plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes and actual results may vary from the financial outlook information set forth in this press release and should not be relied on as necessarily indicative of future results.
Non-GAAP Financial Measures
Certain financial measures in this news release are not prescribed by Internal Financial Reporting Standards ("IFRS") and therefore are considered non-GAAP measures. All non-GAAP measures presented herein do not have any standardized meaning and therefore are unlikely to be comparable to similar measures presented by other companies. Therefore, these non-GAAP measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. All non-GAAP measures are included because management uses the information to analyze operating performance and results, and therefore may be considered useful information by investors. Any non-GAAP measure presented herein has been identified and the applicable definition and reconciliation of such non-GAAP measure can be found in Management's Discussion and Analysis for Q2 2019 available at www.sedar.com.
SOURCE Tervita Corporation
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