Canada NewsWire
CALGARY, May 2, 2019
CALGARY, May 2, 2019 /CNW/ - Tervita Corporation ("Tervita" or the "Company") (TSX: TEV) announced today the results for the three months ended March 31, 2019. All financial figures are in millions of Canadian dollars unless otherwise noted.
"We opened 2019 with solid performance reflecting the stability and resiliency of our production-based energy business and diversified business model, the strength of our expanded network, and a continued focus on efficiencies," said John Cooper, President and CEO. "We continue to be extremely pleased with the integration of Newalta and we are realizing synergies ahead of our plan. In Q1 2019, the impact from declines in drilling and completions activity was more than offset by positive contributions from our expanded network and synergies, together with strong results in Industrial Services.
"We are on track to deliver double digit growth in 2019, supported by expected improvements in market activity and a full year contribution from synergies which will drive higher results in the second half of 2019. We have several exciting growth initiatives underway that are focused on providing solutions to meet growing customer demand in the Montney and Duvernay regions. In addition, we have an identified backlog of $200 - $300 million of high potential organic growth projects over the next two to three years that are expected to support future growth and generate attractive returns and strong free cash flow.
"Given the positive outlook for our business, we believe our shares are undervalued and as such we plan to initiate a normal course issuer bid subject to TSX approval."
Financial Highlights (1)
Three Months Ended March 31 | ||||||
2019 | 2018 | Increase | % Change | |||
Energy Services revenue | ||||||
Facilities and onsite revenue | 120 | 76 | 44 | 58% | ||
Energy marketing revenue | 347 | 274 | 73 | 27% | ||
467 | 350 | 117 | 33% | |||
Industrial Services revenue | 64 | 41 | 23 | 56% | ||
Intersegment eliminations | - | (1) | 1 | 100% | ||
Revenue | 531 | 390 | 141 | 36% | ||
Revenue excluding energy marketing | 184 | 116 | 68 | 59% | ||
Energy Services Divisional EBITDA(1) | 59 | 44 | 15 | 34% | ||
Industrial Services Divisional EBITDA(1) | 11 | 2 | 9 | 450% | ||
Divisional EBITDA(1) | 70 | 46 | 24 | 52% | ||
General and administrative expenses | (14) | (10) | 4 | 40% | ||
Adjusted EBITDA(1) | 56 | 37 | 19 | 51% | ||
- per share ($), basic and diluted | 0.48 | 0.35 | 0.13 | 37% | ||
Adjusted EBITDA margin(1) | 30% | 32% | -2% | |||
Maintenance capital | 5 | 4 | 1 | 25% | ||
Growth and Expansion capital | 13 | 10 | 3 | 30% | ||
Discretionary free cash flow(1) | 37 | 26 | 11 | 42% | ||
- per share ($), basic and diluted | 0.31 | 0.25 | 0.06 | 24% | ||
Net Debt to Adjusted EBITDA(1)(2) | 3.33 | 2.26 | 1.07 | |||
Shares as at March 31 (000's of shares)(3) | ||||||
Shares outstanding | 117,557 | 104,626 | 12,931 | 12% | ||
Weighted average shares outstanding | 117,557 | 104,626 | 12,931 | 12% |
(1) | Refer to Tervita's Q1 2019 Management's Discussion and Analysis ("MD&A") and unaudited Interim Condensed Consolidated Financial Statements ("Interim Financial Statements") for further information. |
(2) | Net Debt to Adjusted EBITDA in Q1 2019 is Pro Forma the Newalta Transaction. See Tervita's Q1 2019 MD&A for further definition and reconciliation. |
(3) | As at May 2, 2019, the Company had 117,557,112 common shares, 2,702,649 common share purchase warrants, and 2,824,483 options, exercisable for a maximum of one |
Q1 2019 vs Q1 2018 Financial Highlights
Q1 2019 vs Q4 2018 Financial and Other Highlights
Outlook
MD&A and Financial Statements
The Q1 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.
First Quarter 2019 Conference Call
Tervita will host a conference call on Friday May 3, 2019 at 11:00 a.m. MT to discuss details related to the first 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, May 10, 2019 by dialing 855-859-2056 and using the pass code 9529678.
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, long-term oil and gas environmental services market outlook in Canada will generate sufficient demand for Tervita's services, market outlook with respect to drilling activity, relatively stable oil and gas prices, Western Canadian oil and gas production levels, 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, the expected continued benefits of the arrangement involving Tervita and Newalta, our plans and objectives for future operations, anticipated operational and financial performance (including expected synergies and cost reductions) for each operating segment, 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, 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 Q1 2019 available at www.sedar.com.
SOURCE Tervita Corporation
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