Secure Energy Services Inc. ("Secure" or the "Corporation") (TSX:SES) today
announced financial and operational results for the three and nine months ended
September 30, 2013. The following should be read in conjunction with the
management's discussion and analysis ("MD&A"), the condensed consolidated
interim financial statements and notes of Secure which are available on SEDAR at
www.sedar.com.
THIRD QUARTER AND YEAR TO DATE 2013 FINANCIAL AND OPERATIONAL HIGHLIGHTS
Three Months Ended Sept 30, Nine Months Ended Sept 30,
($000's except
share and per % %
share data) 2013 2012 change 2013 2012 change
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Revenue
(excludes oil
purchase and
resale) 153,868 99,503 55 386,520 283,836 36
Oil purchase
and resale 289,892 149,705 94 718,071 466,747 54
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Total revenue 443,760 249,208 78 1,104,591 750,583 47
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EBITDA(1) 41,542 24,915 67 95,404 71,264 34
Per share
($), basic 0.38 0.25 52 0.89 0.76 17
Per share
($), diluted 0.37 0.25 49 0.87 0.74 18
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Net earnings 12,036 6,354 89 27,418 22,418 22
Per share
($), basic 0.11 0.06 83 0.26 0.24 8
Per share
($), diluted 0.11 0.06 83 0.25 0.23 9
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Funds from
operations(1) 33,069 21,879 51 85,672 63,011 36
Per share
($), basic 0.30 0.22 36 0.80 0.67 19
Per share
($), diluted 0.30 0.22 36 0.78 0.65 20
Cash dividends
per common
share 0.04 - - 0.06 - -
Capital
Expenditures 75,656 50,245 51 160,601 133,983 20
Total assets 962,836 699,982 38 962,836 699,892 38
Long term
borrowings 210,489 89,187 136 210,489 89,187 136
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Total long
term
liabilities 420,082 234,600 79 420,082 234,600 79
Common Shares
- end of
period 108,909,620 104,492,885 4 108,909,620 104,492,885 4
Weighted
average
common shares
basic 108,648,873 98,724,604 10 106,750,533 93,655,304 14
diluted 111,500,617 101,492,349 10 109,537,459 96,645,131 13
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(1)Refer to "Non GAAP measures and operational definitions"
Revenue (excluding oil purchase and resale) for the three and nine months ended
September 30, 2013 increased 55% and 36% respectively while earnings before
interest, taxes, depreciation and amortization ("EBITDA") improved 67% and 34%
respectively compared to the same periods in 2012. Secure continued to
experience strong demand for its processing, recovery and disposal services,
strong demand for its drilling services with an increase in revenue per
operating day of 29% in the third quarter, and strong demand for services
offered in the new on site division.
Secure completed the acquisition of Target Rentals Ltd. ("Target") on July 2,
2013. The acquisition continues to expand the value chain of services the
Corporation offers its customers. In addition to the acquisition of Target,
growth and expansion capital expenditures incurred during the three and nine
months ended September 30, 2013 totaled $52.6 million and $130.3 million
respectively. The Corporation continues to seize market opportunities by
executing organic growth initiatives and strategic acquisitions to complement
its current service offerings.
REVENUE INCREASES
-- Revenue (excluding oil purchase and resale) of $153.9 million and
$386.5 million for the three and nine months ended September 30,
2013 improved 55% and 36% respectively compared to the same periods
in 2012.
-- PRD division revenue (excluding oil purchase/resale) for the
three months and nine months ended September 30, 2013 increased
43% and 41% respectively compared to the same periods in 2012.
Third quarter revenue increased due to increased demand and new
facility additions and expansions subsequent to the third
quarter of 2012. This includes the opening of the new Kaybob SWD
in Alberta and Stanley SWD in North Dakota in the third quarter
of 2013. Crude oil marketing revenue increased 46% and 57% for
the three and nine months ended September 30, 2013 respectively
compared to the same periods in 2012 as a result of increased
throughput at the Corporation's pipeline connected FST's, the
Corporation's ability to capitalize on market spread
differential opportunities and the Judy Creek FST becoming
pipeline connected in the third quarter.
-- DS division revenue of $87.6 million and $221.9 million for the
three and nine months ended September 30, 2013 increased 46% and
25% respectively compared to the same periods in 2012. Third
quarter revenue increased due to increased demand, activity and
the acquisition of Target on July 2, 2013. DS Canadian revenue
per operating day increased by 29% from the third quarter 2013
compared to third quarter of 2012. Overall higher field activity
was reported by the Canadian Association of Drilling Contractors
("CAODC") as average rig count increased 4% quarter over
quarter. In addition, meters drilled in Canada increased by 9%
in the third quarter of 2013 compared to the third quarter of
2012.
-- OS division revenue for the three and nine months ended
September 30, 2013 increased by 196% and 130% respectively
compared to the same periods in 2012. Third quarter revenue
increased due to the acquisition of Frontline Integrated
Services Ltd ("Frontline") in the second quarter of 2013, the
backlog of projects following a wet spring, and environmental
services rental of CleanSite bins increased over the prior year
quarter.
-- Oil purchase and resale revenue in the PRD division increased to
$289.9 million and $718.1 million for the three and nine months
ended September 30, 2013 compared to the same periods in 2012. The
increase resulted from increased throughput and crude oil marketing
activity at existing facilities and the Judy Creek FST becoming
pipeline connected in the third quarter of 2013.
-- EBITDA OF $41.5 MILLION IN THE THIRD QUARTER AND $95.4 MILLION YEAR-TO-
DATE
-- For the three months ended September 30, 2013 EBITDA increased 67%
as compared to the same period in 2012. EBITDA increased in all
three divisions through the addition of new facilities and higher
demand in the PRD division, increase in market share and revenue per
operating day in the DS division combined with the acquisition of
Target, and the increase in project work and the acquisition of
Frontline in the OS division as detailed above in the revenue
highlights.
-- DIVERSIFICATION INTO NEW MARKETS AND NEW AREAS
-- Organic expansion and growth capital totaled $130.3 million for the
nine months ended September 30, 2013 and includes 2012 carryover
capital related to the Judy Creek and Rocky FST's. Major
expenditures for the nine months ended September 30, 2013 included:
-- 2012 carry over capital of Rocky and Judy Creek FST's, of which
completion and commissioning of the Judy Creek and Rocky FST's
occurred during the second quarter of 2013;
-- Growth capital consisting of seven new PRD facilities with
construction commencing or completed in 2013:
-- Three FST's - Edson, Kindersley and Keene (North Dakota) of
which all three are expected to be opened at the start of
the second quarter of 2014;
-- Two SWD's - Kaybob and Stanley (North Dakota) were completed
and commissioned during the third quarter of 2013;
-- Two landfills - Saddle Hills and 13 Mile (North Dakota) both
were under construction in the third quarter. The landfills
are expected to be open during the fourth quarter;
-- Expansion capital consisting of:
-- Landfill cells at Fox Creek, South Grande Prairie, Pembina
and Willesden Green, all of which were under construction in
the quarter. The additional cell capacity will be available
for the fourth quarter and subsequent years;
-- Second treaters at Fox Creek and Drayton valley were
completed and commissioned and were fully operational at the
end of the third quarter;
-- Additional disposal wells at both 13 Mile and Obed were
completed and commissioned, both of which will be
operational during the fourth quarter;
-- Various long lead purchases for 2013 and 2014 PRD capital
projects and rental equipment for the DS division. Both the PRD
and DS divisions continue to heavily invest in business
development, including research and development activities,
pilot projects for water and oil recycling, and front end
development for 2014 projects.
-- SOLID BALANCE SHEET
-- Secure's debt to EBITDA ratio was 1.88 as of September 30, 2013;
well under the Corporation's credit facility covenant of 3.00.
-- BRAZEAU SWD UPDATE
-- During the third quarter, the Corporation began dismantling the
damaged property within the facility. Brazeau is expected to be
operational by the end of the year.
-- SUBSEQUENT EVENT
-- Subsequent to September 30, 2013, the Corporation entered into an
amended and extended $400 million revolving credit facility (the
"new credit facility"). The previous revolving credit facility was
increased from $300 million to $400 million and includes an
accordion feature which if exercised, would increase the credit
facility by $50 million. The credit facility consists of a $390
million extendible revolving term credit facility and a $10 million
revolving operating facility. The new credit facility was extended
with an interest rate reduction of 25 basis points.
PRD DIVISION OPERATING HIGHLIGHTS
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
% %
($000's) 2013 2012 Change 2013 2012 Change
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Revenue
Processing, recovery and
disposal services (a) 47,439 33,083 43 127,756 90,564 41
Oil purchase and resale
service 289,892 149,705 94 718,072 466,746 54
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Total PRD division
revenue 337,331 182,788 85 845,828 557,310 52
--------------------------------------------------
Operating Expenses
Processing, recovery and
disposal services (b) 17,214 12,827 34 47,527 35,255 35
Oil purchase and resale
service 289,892 149,705 94 718,072 466,746 54
Depreciation, depletion,
and amortization 12,003 7,330 64 30,858 20,146 53
--------------------------------------------------
Total PRD division
operating expenses 319,109 169,862 88 796,457 522,147 53
General and
administrative 6,560 3,498 88 17,265 8,433 105
--------------------------------------------------
Total PRD division
expenses 325,669 173,360 88 813,722 530,580 53
Operating Margin(1) (a-b) 30,225 20,256 49 80,229 55,309 45
Operating Margin as a %
of revenue (a) 64% 61% 5 63% 61% 3
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(1) Refer to "Non GAAP measures and operational definitions"
Highlights for the PRD division included:
-- Processing: For the three and nine months ended September 30, 2013,
processing volumes increased 20% and 16% from the comparative periods in
2012. Part of the significant increase relates to the addition of the
following new facilities and services added after the third quarter of
2012 ("new facilities and services"): completion of the Crosby SWD in
North Dakota in December 2012; Fox Creek Landfill in December 2012;
Edson temporary water injection facility in January 2013; Rocky and Judy
Creek FST's in May 2013; Kaybob SWD in August 2013; and the Stanley SWD
in North Dakota in September 2013. Also contributing to the increase in
revenue was an increase in overall demand for the PRD division's
services.
-- Recovery: Revenue from recovery includes revenue from the sale of oil
recovered through waste processing, crude oil handling, marketing and
terminalling. Revenue from recovery for the three and nine months ended
September 30, 2013 increased by 61% and 47% from the comparative periods
in 2012. A significant portion of the increase in recovery revenue for
the three and nine months ended September 30, 2013 is a result of the
Corporation's ability to capitalize on crude oil marketing opportunities
at its FST's, higher throughput and an increase in the price of crude
oil of 15% from the third quarter of 2012 to the third quarter of 2013.
Crude oil marketing revenue increased by 46% and 57% for the three and
nine months ended September 30, 2013, from the comparative periods of
2012. Increased oil throughput at the Corporation's pipeline connected
FST's, in conjunction with the Corporation's ability to capitalize on
market spread differential opportunities (including maximizing crude oil
marketing opportunities available by shipping crude oil via rail), led
to the significant increases in revenue from this service line as
compared to the same periods of 2012. In addition, the Corporation's
Judy FST was pipeline connected and fully operational in the third
quarter of 2013.
-- Disposal: Secure's disposal volumes increased by 20% and 41% for the
three and nine months ended September 30, 2013 from the comparative
periods of 2012. As described above, increased demand for the PRD
division's new facilities and services are the primary reasons for the
increase.
-- Operating margin as a percentage of revenue for the three and nine
months ended September 30, 2013 was 64% and 63% compared to 61% and 61%
for the comparative period of 2012. The 3% increase to operating margin
for the three months ended September 30, 2013 and the 2% increase to
operating margin for the nine months ended September 30, 2013 is a
result of improvements in operating efficiencies at the facilities,
increases in recovery including crude oil marketing activities at the
Corporation's pipeline connected FST's, and from volumes managed by rail
at the Silverdale FST.
-- General and administrative ("G&A") expenses increased for the three and
nine months ended September 30, 2013 to $6.6 million and $17.3 million
from $3.5 million and $8.4 million in the comparative periods of 2012.
Major drivers of the increase on quarter over quarter and year to date
comparatives is a 52% and 60% increase in wages & salaries to support
the opening of new facilities and growth at existing facilities both in
Canada and the US, a 126% and 174% increase in building and lease costs
to accommodate growth of staff in Canada, and the opening of the Denver,
Colorado office in the second quarter of 2012, and a 51% and 61%
increase in information technology expenses related to information
technology systems and licensing of software to support the growth of
the division and consolidate software systems used in the head office
and the field to gain operational efficiencies. The increase in G&A is
reflective of management's intention to prepare for the growth of the
new and expanding facilities as well as the growth in the US PRD
operations.
DS DIVISION OPERATING HIGHLIGHTS
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
% %
($000's) 2013 2012 Change 2013 2012 Change
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Revenue
Drilling services (a) 87,622 60,060 46 221,873 177,240 25
Operating expenses
Drilling services (b) 63,729 46,305 38 167,894 136,043 23
Depreciation and
amortization 5,184 3,683 41 12,658 9,340 36
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Total DS division
operating expenses 68,913 49,988 38 180,552 145,383 24
General and administrative 6,609 5,892 12 17,571 16,844 4
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Total DS division expenses 75,522 55,880 35 198,123 162,227 22
Operating Margin(1) (a-b) 23,893 13,755 74 53,978 41,197 31
Operating Margin %(1) 27% 23% 17 24% 23% 3
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(1) Refer to "Non GAAP measures and operational definitions"
Highlights for the DS division included:
-- Revenue from the DS Division for the three and nine months ended
September 30, 2013 increased to $87.6 million and $221.9 million from
$60.1 million and $177.2 million in the comparative periods of 2012. The
significant increase in revenue for the three months ended September 30,
2013 is the result of a combined 40% increase in drilling fluids service
line revenue and a 98% increase in revenue for the equipment rentals
service line from the comparative period in 2012. Major drivers for the
drilling fluids service line revenue increases in the third quarter are
due to increased market share, an increase in meters drilled, and an
increase in revenue per operating day. The increase in the equipment
rentals service line is a result of an 11% increase in equipment
utilization over the comparative period of 2012, an increase in rental
equipment market share as the division increased its rental fleet size,
and the addition of Target on July 2, 2013 which contributed to an
increase of 52% in revenue for the quarter.
-- Drilling fluids revenue per operating day for the three and nine months
ended September 30, 2013 increased to $6,807 and $6,278 from $5,267 and
$5,362 from the comparative periods of 2012. The increase in revenue per
day for both the quarter and year to date can be attributed to an
increase in meters drilled for the Corporation and the industry overall
which led to higher product usages, higher probability of lost
circulation events, and a higher usage of specialty chemicals. In
addition, the Corporation realized a 21% and 31% increase in the
proportion of SAGD wells relative to the 2012 comparable periods. SAGD
wells are more complex and require more costly drilling fluids which
contribute to the increase in revenue per operating day.
-- WCSB market share increased by 4% for the three months ended September
30, 2013 to 34% from 30% and 33% from 30% for the nine months ended
September 30, 2013, from the comparative periods of 2012. The CAODC
average monthly rig count for Western Canada provides the basis for
market share calculations. Operating rig days for the three and nine
months ended September 30, 2013 were 10,595 and 29,385 compared to 9,113
and 27,586 for the 2012 comparative periods. Market share has continued
to increase as a result of the addition of the Drayton Valley blending
plant, increase in SAGD wells drilled, and the successful integration of
the XL and New West Drilling Fluids Inc. ("New West") acquisitions.
-- For the three months ended September 30, 2013, operating margins
increased 4% to 27% from 23% for the 2012 comparative period. Operating
margins for the drilling fluids service line increased 3% as the DS
division saw an increase in the use of specialized products associated
with the increase in meters drilled. Depending on the wells drilled in
the quarter, the product mix and operating margin may fluctuate in the
above range. The remaining 1% increase relates to the addition of Target
rentals as rental items have higher operating margins, which also
contributed to increasing the operating margin for the third quarter.
-- As a percentage of revenue for both the three and nine months ended
September 30, 2013, G&A expenses were 8% compared to 10% for the
comparable periods of 2012. G&A increased by $0.7 million for the three
and nine months ended September 30, 2013 compared to the same periods in
2012 as a result of supporting the US operations as well as the newly
acquired Target acquisition.
OS DIVISION OPERATING HIGHLIGHTS
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
% %
($000's) 2013 2012 Change 2013 2012 Change
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Revenue
Onsite services (a) 18,807 6,360 196 36,890 16,033 130
Operating expenses
Onsite services (b) 13,739 4,339 217 29,675 10,415 185
Depreciation and
amortization 1,241 104 1,093 2,595 230 1,028
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Total OS division
operating expenses 14,980 4,443 237 32,270 10,645 203
General and administrative 1,647 938 76 4,300 2,825 52
------------------------------------------------
Total OS division expenses 16,627 5,381 209 36,570 13,470 171
Operating Margin(1) (a-b) 5,068 2,021 151 7,215 5,619 28
Operating Margin %(1) 27% 32% (15) 20% 35% (43)
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(1) Refer to "Non GAAP measures and operational definitions"
Highlights for the OS division included:
-- Revenue for the three and nine months ended September 30, 2013 increased
to $18.8 million and $36.9 million from $6.4 million and $16.0 million
for the comparative periods of 2012. Frontline was acquired on April 1,
2013 and significantly contributed to the increase in revenues for the
three and nine months ended September 30, 2013. Frontline realized a
substantial increase in utilization of its equipment fleet in the third
quarter as projects ramped up quickly that were delayed due to wet
weather in the second quarter.
-- Environmental services revenue for the three and nine months ended
September 30, 2013 increased 21% and 46% respectively over 2012
comparative periods, due to an increase in the number of environmental
projects completed and the start-up of the CleanSite business as this
service line began operations in the fourth quarter of 2012.
-- Operating margin for the third quarter of 2013 declined to 27% as a
result of combining the Frontline services in the second quarter of 2013
with that of the environmental services group. The operating margin for
the OS division is expected to fluctuate depending on the volume and
type of projects undertaken and the blend of business between
remediation and reclamation projects, demolition projects, pipeline
integrity projects, site clean-up and other services in any given
period.
-- G&A expenses for the three and nine months ended September 30, 2013
increased to $1.6 million and $4.3 million from $0.9 million and $2.8
million for the comparative periods of 2012. G&A expenses increased due
to the Frontline acquisition and increases in demand for Frontline
services over the prior quarter, and increases in environmental services
through the startup of the "CleanSite" business in the fourth quarter of
2012.
OUTLOOK
Oil and gas industry pricing fundamentals during the third quarter did not see
significant changes from the second quarter however, prices have rebounded
significantly since the third quarter of 2012. Commodity prices have increased,
heavy oil differentials between world and North American pricing have narrowed
and oil transportation bottlenecks have been partially relieved. Expectations
are that oil and gas producer capital spending will continue to slowly increase
over the next few quarters due to expanded capital budgets, which in turn will
improve activity for oil and gas service providers. In addition, several
projects that were delayed by the wet spring have started late in the third
quarter and will be completed before the year end. Rig count and related
drilling services equipment utilization into the last quarter of the year is
anticipated to improve, with expectations that prices could weaken in the fourth
quarter through the peak drilling season into 2014. Despite the less than
optimal field conditions in the second quarter and a slower start to the third
quarter due to continued unfavourable weather, meters drilled in Canada
increased by 9% in the third quarter of 2013 compared to the third quarter of
2012. The number of WCSB horizontal wells licensed in the nine months ended
September 30, 2013 increased to 81.8% of the total wells licensed in 2013; this
is an 11 percentage point increase over comparable period of 2012. The increase
in the number of meters drilled and continued emphasis on horizontal drilling
are positive indicators for the Corporation as it is anticipated these factors
create demand for the Corporation's products and services. Secure is well
positioned to take advantage of the expected industry upswing through its
expanded geographic and service offerings.
The acquisition of Frontline in the second quarter and Target in the third
quarter brings new growth platforms that complement the Corporation's existing
PRD and DS divisions. The management teams of Frontline and Target are
experienced with proven capabilities to manage growth. The financial strength of
Secure will provide the capital necessary to finance the growth initiatives of
both of these new service lines. The Corporation is excited to increase Secure's
environmental expertise to expand the value chain of services provided.
Total capital expenditures for the nine months ended September 30, 2013 of
$160.6 million are reflective of the continued execution of the Corporation's
strategy. Capital expenditures on new facilities such as the Kindersley FST, the
conversion of the Edson SWD to an FST, Saddle Hills landfill and construction of
the Corporation's first landfill in the US are expected to enhance financial and
operational performance once commissioned. The list of organic opportunities
contains several other projects that reflect the ability of Secure to take
advantage of market potential that exists today. The Corporation increased the
2013 capital expenditure budget in the second quarter from the previously
announced total of $155.0 million to $195.0 to take advantage of Secure's
opportunities. The added capital will be deployed in Canada and the US primarily
for new growth projects and long lead items for 2014 projects. The Corporation
is well positioned to fund its expanded 2013 capital program with its recently
expanded debt capacity from its credit facilities and increasing cash flow from
operations.
Managing growth in a prudent manner ensures the Corporation's strong balance
sheet is maintained. Secure has a focused strategy of helping the Corporation's
customers with new facilities and services in both under-serviced and capacity
constrained markets complemented with strategic acquisitions. A solid balance
sheet provides the leverage and flexibility to execute this strategy. With now
over 1,000 employees, the Corporation strives to keep its agile and disciplined
entrepreneurial culture to ensure that Secure's abundant opportunities are
adequately financed and executed by the right people.
FINANCIAL STATEMENTS AND MD&A
The condensed consolidated financial statements and MD&A of Secure for the three
and nine months ended September 30, 2013 are available immediately on Secure's
website at www.secure-energy.ca. The condensed consolidated financial statements
and MD&A will be available tomorrow on SEDAR at www.sedar.com.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this document constitute "forward-looking
statements" and/or "forward-looking information" within the meaning of
applicable securities laws (collectively referred to as forward-looking
statements). When used in this document, the words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and
similar expressions, as they relate to Secure, or its management, are intended
to identify forward-looking statements. Such statements reflect the current
views of Secure with respect to future events and operating performance and
speak only as of the date of this document. In particular, this document
contains forward-looking statements pertaining to: general market conditions;
the oil and natural gas industry; activity levels in the oil and gas sector,
including drilling levels; commodity prices for oil, natural gas liquids
("NGLs") and natural gas; the increase in quarter over quarter 2013 operating
days; demand for the Corporation's services; expansion strategy; the amounts of
the PRD, DS and OS divisions' expanded 2013 capital budgets and the intended use
thereof; debt service; capital expenditures; completion of facilities including
the Edson, Kindersley and Keene FSTs and the Saddle Hills and 13 Mile landfills
as well as completion of repairs to the Brazeau FST and additional cells at the
Fox Creek, South Grande Prairie, Pembina, and Willesden Green landfills; the
impact of new facilities on the Corporation's financial and operational
performance; future capital needs; access to capital; acquisition strategy; the
Corporation's capital spending on the Kindersley, Saskatchewan FST; capital
spending on the Kaybob, Alberta SWD; expansion of the new Edson, Alberta SWD to
a FST; and capital spending on the Keene FST and Stanley SWD in North Dakota;
and oil purchase and resale revenue.
Forward-looking statements concerning expected operating and economic conditions
are based upon prior year results as well as the assumption that increases in
market activity and growth will be consistent with industry activity in Canada,
United States, and internationally and growth levels in similar phases of
previous economic cycles. Forward-looking statements concerning the availability
of funding for future operations are based upon the assumption that the sources
of funding which the Corporation has relied upon in the past will continue to be
available to the Corporation on terms favorable to the Corporation and that
future economic and operating conditions will not limit the Corporation's access
to debt and equity markets. Forward-looking statements concerning the relative
future competitive position of the Corporation are based upon the assumption
that economic and operating conditions, including commodity prices, crude oil
and natural gas storage levels, interest rates, the regulatory framework
regarding oil and natural gas royalties, environmental regulatory matters, the
ability of the Corporation and its subsidiaries' to successfully market their
services and drilling and production activity in North America will lead to
sufficient demand for the Corporation's services and its subsidiaries' services
including demand for oilfield services for drilling and completion of oil and
natural gas wells, that the current business environment will remain
substantially unchanged, and that present and anticipated programs and expansion
plans of other organizations operating in the energy service industry will
result in increased demand for the Corporation's services and its subsidiary's
services. Forward-looking statements concerning the nature and timing of growth
are based on past factors affecting the growth of the Corporation, past sources
of growth and expectations relating to future economic and operating conditions.
Forward-looking statements in respect of the costs anticipated to be associated
with the acquisition and maintenance of equipment and property are based upon
assumptions that future acquisition and maintenance costs will not significantly
increase from past acquisition and maintenance costs.
Forward-looking statements involve significant risks and uncertainties, should
not be read as guarantees of future performance or results, and will not
necessarily be accurate indications of whether such results will be achieved.
Readers are cautioned not to place undue reliance on these statements as a
number of factors could cause actual results to differ materially from the
results discussed in these forward-looking statements, including but not limited
to those factors referred to and under the heading "Business Risks" and under
the heading "Risk Factors" in the Corporation's annual information form ("AIF")
for the year ended December 31, 2012. Although forward-looking statements
contained in this Press Release are based upon what the Corporation believes are
reasonable assumptions, the Corporation cannot assure investors that actual
results will be consistent with these forward-looking statements. The
forward-looking statements in this Press Release are expressly qualified by this
cautionary statement. Unless otherwise required by law, Secure does not intend,
or assume any obligation, to update these forward-looking statements.
Non GAAP Measures and Operational Definitions
1. The Corporation uses accounting principles that are generally accepted
in Canada (the issuer's "GAAP"), which includes, International Financial
Reporting Standards ("IFRS"). These financial measures are Non- GAAP
financial measures and do not have any standardized meaning prescribed
by IFRS. These non-GAAP measures used by the Corporation may not be
comparable to a similar measures presented by other reporting issuers.
See the management's discussion and analysis available at www.sedar.com
for a reconciliation of the Non-GAAP financial measures and operational
definitions. These non-GAAP financial measures and operational
definitions are included because management uses the information to
analyze operating performance, leverage and liquidity. Therefore, these
non-GAAP financial measures and operational definitions should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with GAAP.
FOR FURTHER INFORMATION PLEASE CONTACT:
Secure Energy Services Inc.
Rene Amirault
Chairman, President and Chief Executive Officer
(403) 984-6100
(403) 984-6101 (FAX)
Secure Energy Services Inc.
Allen Gransch
Chief Financial Officer
(403) 984-6100
(403) 984-6101 (FAX)
www.secure-energy.ca
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