ENTREC Approves 2013 Capital Expenditure Program and Increases Revenue Guidance

ENTREC Corporation (TSX VENTURE:ENT) ("ENTREC" or the "Company"), a leading
provider of cranes and heavy haul transportation services, today approved a $50
million capital expenditure program for 2013. The program consists of growth
capital expenditures of $41 million and $9 million in maintenance capital
expenditures. 


"Moving into 2013, demand for our services remains very strong across the
resource and industrial sectors we serve," said John M. Stevens, ENTREC's
President and COO. "Our 2013 capital expenditure program will enable us to meet
customer demand and continue to enhance our position as one of Western Canada's
largest providers of both crane and heavy haul transportation services."


ENTREC believes oil sands infrastructure investment will continue to be a key
driver of demand for its services throughout 2013 and 2014. In addition,
ENTREC's recent acquisitions of Rain Coast Cranes & Equipment Inc. ("Rain
Coast") and Tiggo Transport Ltd. ("Tiggo") position the Company to benefit from
the burgeoning industrial development occurring in Northern BC and Northwest
Alberta. This includes the development of LNG facilities planned for the
Northwest, BC region, as well as ongoing mining, hydro-electric, pipelines, and
oil and gas projects throughout these areas.


2013 Capital Expenditure Program

ENTREC's 2013 capital expenditure program will include:



Cranes (all-terrain, rough terrain, crawlers, truck cranes)    $  20 million
Picker trucks                                                  $   4 million
Heavy haul transportation equipment                            $  15 million
Fort McMurray land purchase                                    $   5 million
Other                                                          $   6 million
----------------------------------------------------------------------------
Total                                                          $  50 million



A large portion of the 2013 capital expenditure program will focus on the
continued building of ENTREC's capability and market share in crane services.
The Company anticipates that it may obtain additional crane units through
rent-to-purchase options to further support expected demand.


Crane services are highly complementary to heavy haul transportation as they
allow customers to obtain both their heavy haul and lifting needs from one
vendor. Crane services also increase access to recurring onsite maintenance,
repair and operation ("MRO") support work in the Alberta oil sands region, as
well as to the significant industrial construction work occurring in both the
oil sands and in Northwest BC. ENTREC has been building a strong presence in the
crane market with its June 2012 acquisition of the Mains Group of Companies and
October 2012 acquisition of Rain Coast. On December 31, 2012, ENTREC further
expanded its crane capabilities with the acquisition of Taylor Crane Service,
Inc. ("Taylor Crane"), which services customers in the Bakken oil formation
region.


ENTREC's 2013 capital program includes $5 million in growth capital earmarked to
complete the purchase of a new 10-acre property located in Fort McMurray,
Alberta. The Company intends to build a shop and office on the property to
support ENTREC's growth in the region.


2012 Capital Expenditure Program

For the year ended December 31, 2012, ENTREC expects to report capital
expenditures of approximately $50 million, subject to final year-end
adjustments. This is higher than the previously announced program of $39
million, with the increase primarily reflecting the impact of a $3.5 million
initial deposit related to the acquisition of the Fort McMurray property and $9
million incurred in the fourth quarter of 2012 to buy out existing crane units
previously rented under short-term operating leases. At December 31, 2012,
ENTREC's net debt was approximately $107 million (subject to final year-end
adjustments), including the value of the unsecured subordinated debentures
financing for gross proceeds of $25 million completed in October 2012.


Revenue Guidance Increased

Based on current expectations for future business activity, ENTREC estimates
revenue for the year ending December 31, 2013 could exceed $215 million. This
represents an increase from previous revenue guidance of $200 million and
includes anticipated incremental revenue of $4 million from the Taylor Crane
acquisition.


For the year ended December 31, 2012, ENTREC estimates its revenue will slightly
exceed the high end of its previous revenue guidance of between $125 million and
$130 million. Final 2012 revenue results are subject to final year-end billing
and accounting adjustments, and as a result, may be different from current
expectations.


About ENTREC

ENTREC specializes in the lifting, transportation (over the road and on-site),
loading, off-loading and setting of overweight and oversized cargo for the oil
and gas, construction, petrochemical, mining and power generation industries.
The common shares of ENTREC trade on the TSX Venture Exchange under the trading
symbol "ENT". 


Forward-looking Statements

This press release contains forward-looking statements which reflect ENTREC's
current beliefs and are based on information currently available to ENTREC.
These statements require ENTREC to make assumptions it believes are reasonable
and are subject to inherent risks and uncertainties. Actual results and
developments may differ materially from the results and developments discussed
in the forward-looking statements as certain of these risks and uncertainties
are beyond ENTREC's control. 


Examples of such forward-looking statements in this press release relate to, but
are not limited to: ENTREC's projection that revenue for the year ending
December 31, 2013 could exceed 215 million, ENTREC's expectation that revenue
for the year ended December 31, 2012 will slightly exceed the high end of its
previous guidance of between $125 and $130 million; expectation the recent
acquisitions of Rain Coast, Tiggo and Taylor Crane will complement the Company's
current crane and heavy haul transportation operations and position ENTREC to
benefit from the burgeoning industrial development throughout Northern BC and
Northwest Alberta; expectation the Company will execute its 2013 capital
expenditure program of $50 million; and that ENTREC's 2012 capital expenditure
program will approximate $50 million.


These forward-looking statements involve a number of significant assumptions.
Key assumptions utilized in developing forward-looking statements related to
ENTREC's future growth expectations include achieving its internal revenue, net
income and cash flow forecasts for 2013 and 2014. Achieving these forecasts is
largely dependent on a number of factors beyond ENTREC's control including all
of the risks discussed further under the "Business Risks" section in ENTREC's
Management Discussion and Analysis for the three months ended September 30,
2012. These risk factors are interdependent and the impact of any one risk or
uncertainty on a particular forward-looking statement is not determinable. 


ENTREC's ability to finance its capital expenditure programs is dependent on its
ability to achieve debt financing terms acceptable to the lenders and ENTREC as
well as meeting ENTREC's internal cash flow forecasts. 


Consequently, all of the forward-looking statements made in this press release
are qualified by these cautionary statements and other cautionary statements or
factors contained herein, and there can be no assurance that the actual results
or developments will be realized or, even if substantially realized, that they
will have the expected consequences to, or effects on, ENTREC. These
forward-looking statements are made as of the date of this press release. Except
as required by applicable securities legislation, ENTREC assumes no obligation
to update publicly or revise any forward-looking statements to reflect
subsequent information, events, or circumstances.


FOR FURTHER INFORMATION PLEASE CONTACT: 
ENTREC Corporation
Rod Marlin
Chairman & CEO
(780) 960-5647


ENTREC Corporation
John M. Stevens
President & COO
(780) 960-5625


ENTREC Corporation
Jason Vandenberg
CFO
(780) 960-5630
www.entrec.com
Millrock Resources (TSXV:MRO)
過去株価チャート
から 5 2024 まで 6 2024