TORONTO, ON–(Marketwired – November 14, 2016) – STT Enviro Corp. (“STT” or the “Company”) (TSX VENTURE: STT) today reported financial results for the quarter ended September 30^th, 2016 of approximately $5.0 million of revenue, EBITDA of ($347,313), and net loss after tax of $309,121. For the nine months ended September 30^th, 2016, the Company reported approximately $18.2 million of revenue, EBITDA of ($964,767), and net loss after tax of $811,558.

Financial Highlights for the Quarter:

Financial Highlights for the Year-to-Date:

Despite small improvements in our margins in the third quarter, the delay of some of our Industrial projects due to site approvals and the delay of final documentation on some Systems projects put the Company about a month and a half behind planned activity and meant our anticipated third quarter improvement did not materialize.

As disappointing as this was, all approvals are now complete and these projects are now underway. The delays mean that management’s anticipated improvements in our results have been pushed to fourth quarter of 2016, when we anticipate a modest profit and then moving to stronger profitability in first half 2017.

This year, in an effort to deal with the approval delays that have occurred throughout the year, the Company made significant cuts to its selling, general and administrative expenses (excluding stock compensation) with third quarter costs reduced by $202,000 and year to date costs reduced by a total of $650,000. Executive management has taken a salary cut and there have been periods when employees have been furloughed as we have worked to deal with the delays, while not reducing our capacity to execute as soon as projects were green lighted.

Our new orders of $8,532,767 for the quarter were as robust as the Company anticipated in its second quarter report, increasing the backlog from $11,645,470 at the close of the second quarter to $15,264,137 at the close of the third quarter.

David Deacon, Chief Executive Officer commented, “The Company has managed to shift its business into a number of new opportunity areas such as cement transload facilities, cement batch plants, bolted tank farms and Frac Sand transload facilities, utilizing the design expertise from its traditional Systems business. These are important developments in broadening our product offering.”

“This growth has been obscured by the collapse of oil & gas and mining activity in our Systems business, which led to a decline in order intake from $27 million (virtually all of the new orders) in 2011 to under $500,000 (less than 10% of Systems revenues) in 2016. The chart in Figure 1 shows how we have shifted our focus to the new opportunity areas noted above, which are driving our Tanks & Industrial group revenues, to counter that slide. We are now seeing some signs of an improvement in oil & gas and mining in 2017, and potentially a strong rebound by 2018, which could, in concert with the new initiatives, bring far greater upside potential than we had before the commodities crash.”

To view Figure 1, please click here.

He continued “As we become more positive about our revenue prospects, we are also working carefully to improve our operating margins following the issues experienced in 2016 on some of our Tanks group projects. It is becoming apparent that to some extent the bolted tank business has become more commoditized, as competitors offering lower quality tanks have gained traction in the last two years. In response, STT has designed and developed its own proprietary tank and silo jacks to enable us to jack build in certain applications where our competitors cannot. This will allow us to be more competitive in terms of our labour costs, assisting our competitive bids as well as allowing us to achieve greater margin. As well, our successful completion of the major tank farm project in the oil sands should result in significant ongoing opportunities in that sector once oil prices recover. With the lessons learned we are confident we can now turn that major opportunity into profitable business.”

“We continue to pursue strategic relationships in several areas where we believe there are excellent opportunities to extend the value of our design and engineering expertise and are hopeful that our outreach in these areas will result in some tangible agreements in the not too distant future.”

The Company will hold a conference call to discuss the financial results on November 15, 2016 at 11:00 am Eastern time. The call-in numbers are +1 877-407-9205 (toll free) or +1 201-689-8054 (international).

The financial statements and MD&A are available on SEDAR and have also been posted on the company’s website at http://www.sttenvirocorp.com/investors/financials.

About STT Enviro Corp.

STT Enviro Corp. (TSX VENTURE: STT) supplies cost-effective, incremental, environmental improvements to traditional industrial products. The Company’s two operating groups, STT Enviro Corp Systems & Solutions and STT Enviro Corp Tanks & Industrial, work to reduce their customers’ environmental footprint, cost efficiently.

STT Enviro Corp Systems & Solutions engineers and supplies chemical make-down systems to neutralize pollutants (usually acid water) created in the ore or oil recovery process; and aftermarket services including optimization of chemical use for our customers to lower costs and reduce their carbon footprint.

STT Enviro Corp Tanks & Industrial engineers and supplies bolted tanks with a smaller environmental footprint for both dry and liquid storage applications.

Environmental considerations are prerequisites in modern industrial expansion and STT Enviro Corp. is focused on being a leader and innovator on incremental environmental improvements. The Company’s strategy is to grow organically and, longer term, to acquire companies at prices which are strategically and financially accretive.

For more information, please visit our website at www.sttenvirocorp.com.

Caution Regarding Forward-Looking Information and Non-IFRS Measures

Forward-Looking Information

This news release contains certain forward-looking statements. These statements relate to future events or future performance and reflect management’s current expectations and assumptions regarding the growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management’s current beliefs and expectations and are based on information currently available to management of the Company. In particular, statements regarding the future operating results and economic performance are forward-looking statements. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including risks outlined under “Risk Factors” in our Annual Information Form, which is posted at www.sedar.com. In evaluating these statements, investors should specifically consider various factors, including such risks as Investment Risk; Business Valuations; Condition of Capital Markets; Dependence on Key Personnel; General Economic Factors; Interest Rate Risk; Competition; and Reliance on Key Suppliers. One or more of these “Risk Factors” could cause actual events or results to differ materially from any forward-looking statement. These factors should not be considered exhaustive. Although the forward-looking statements contained in this press release are based on what management of the Company considers to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with these forward-looking statements, and management’s assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and none of STT nor its directors assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking statements.

Non-IFRS Measures

The term “EBITDA” is a financial measure used in this document which is not a standard measure under International Financial Reporting Standards (“IFRS”). The Company’s method of calculating EBITDA may differ from the methods used by other issuers. Therefore, STT’s measure of EBITDA, as presented in this press release, may not be comparable to similar measures presented by other issuers. EBITDA refers to net earnings determined in accordance with IFRS before depreciation, amortization of intangible assets, gain or loss on disposal of property and equipment, interest expense, accretion expense, special charges and recoveries, stock compensation expense and income tax expense. Management believes that EBITDA is a useful supplemental measure of cash available for debt service, working capital, capital expenditures, income taxes, and distribution. Investors are cautioned that EBITDA, as a non-IFRS measure, is not an alternative to measures under IFRS and should not, on its own, be construed as an indicator of performance or cash flows, a measure of liquidity or as a measure of actual return.

The term “backlog” is a financial measure used in this document which is not a standard measure under IFRS. The Company’s method of calculating backlog may differ from the methods used by other issuers. Therefore, STT’s measure of backlog, as presented in this press release, may not be comparable to similar measures presented by other issuers. Backlog is the value of revenue remaining to be earned from purchase orders received from customers. The projects represented in backlog are executed according to a schedule agreed with each customer, which could range in duration from one month to eighteen months. Revenues are earned on a percentage of completion basis. Management uses this measure to i) monitor the Company’s success in securing new orders, and ii) gauge the likelihood of meeting revenue objectives in future periods.

Investors are cautioned that backlog, as a non-IFRS measure, is not an alternative to measures under IFRS and should not, on its own, be construed as an indicator of performance or cash flows, a measure of liquidity or as a measure of actual return.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

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Investor Relations:
Holly Hendershot
Director of Corporate Affairs
STT Enviro Corp
Tel: +1 905-875-5584
Email: [email protected]