Armtec Reports Financial Results for the Second Quarter 2014
CONCORD, ON, Aug. 7, 2014 /CNW/ - Armtec Infrastructure Inc. ("Armtec" or the "Company") (TSX: ARF; ARF.DB) ("Armtec") today reported financial results for the second quarter ended June 30, 2014.
- Revenue for the three months ended June 30, 2014 was $117.8 million, a $6.1 million or 5.0% decrease over the same period in 2013. Revenue in Drainage Solutions ("Drainage") was $42.3 million, down 5.8% from the same period last year. Revenue in Precast Concrete Solutions ("Precast") was $75.4 million, or 4.5% below 2013 levels. Year to date, revenue was $187.3 million, a $15.5 million or 7.7% decrease over the first six months of 2013. Drainage revenue was $58.2 million, a decrease of 7.8% compared to the same period in 2013. Precast revenue of $129.1 million represents a decrease of 7.6% over 2013 levels.
- Earnings from operations for the second quarter of 2014 were $9.1 million, compared to $12.1 million in the same period of 2013. Performance in both of the business units ("BU or BUs") was impacted by lower revenue, unfavourable product mix and, in Drainage, increased raw material input costs and competition that compressed margins. Year to date, the loss from operations was $1.4 million, compared to earnings of $9.1 million in the same period of 2013.
- Gross margin in the second quarter was $23.0 million, a reduction of $3.4 million over the comparative period in 2013. As a percentage of revenue, gross margin was 19.5%, compared to 21.3% in the prior year. Year to date, gross margin was $26.1 million, or 13.9% of revenue, a reduction of $10.5 million as compared to $36.6 million, or 18.0% of revenue, for the first half of 2013.
- Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") for the second quarter of 2014 was $12.0 million compared to $15.1 million in the year prior. In the first half of 2014, EBITDA was $4.4 million, compared to $15.1 million in 2013 (please see the section entitled "Non-GAAP Measure").
- The full year EBITDA is estimated to range from $30 to $34 million ($16 to $18 million for the three months ended September 30, 2014). The timing of engineered precast projects in the Prairies and Soundwall markets combined with the degree of success of recently announced price increases in the Drainage BU are projected as the main variables influencing second half profitability. The Company remains focused on executing its performance improvement plans to improve EBITDA in the second half of the year.
"Despite the challenging first half of the year, management remains focused on delivering improved results in the second half of 2014," said Mark Anderson, President and Chief Executive Officer. "Looking ahead, we remain excited about Armtec's role in Canada's infrastructure market and the opportunities that lie ahead - like the $70 million soundwall project announced in July - that will contribute to our financial performance and strengthen our market position going forward." (Note that this is forward-looking information and for more information please see the section entitled "Caution Regarding Forward-Looking Statements.")
Summary of Results
|Three Months Ended||Six Months Ended|
|(in thousands of Canadian dollars except per share amounts)||June 30,||June 30,||June 30,||June 30,|
|As a % of revenue||19.5%||21.3%||13.9%||18.0%|
|Selling, general and administrative||$||13,859||$||14,380||$||27,505||$||27,432|
|As a % of revenue||11.8%||11.6%||14.7%||13.5%|
|Earnings (loss) from operations||$||9,093||$||12,046||$||(1,430)||$||9,120|
|As a % of revenue||7.7%||9.7%||(0.8)%||4.5%|
|As a % of revenue||6.6%||6.2%||8.3%||7.5%|
|Net earnings (loss) attributable to owners of the Company||$||953||$||3,228||$||(12,613)||$||(4,501)|
|As a % of revenue||0.8%||2.6%||(6.7)%||(2.2)%|
|Basic and diluted earnings (loss) per share||$||0.04||$||0.13||$||(0.52)||$||(0.19)|
|As a % of revenue||10.2%||12.2%||2.4%||7.5%|
|Breakdown of depreciation and amortization by financial statement line item:|
|Cost of sales||$||1,505||$||1,620||$||3,022||$||3,252|
|Selling, general and administrative||1,406||1,391||2,854||2,750|
|Total depreciation and amortization||$||2,911||$||3,011||$||5,876||$||6,002|
Second Quarter Results
Armtec recorded revenue of $117.8 million in the second quarter of 2014; a $6.1 million or 5.0% decrease from the same quarter of 2013. Declines in building-related construction activity over prior year levels exceeded volume improvements in infrastructure activity in the quarter. Agricultural and natural resource end use application revenue levels were consistent with prior years. The shift in revenue by end use application is largely reflective of the change in the precast project mix in the quarter with more bridge infrastructure projects whereas 2013 revenue comprised of parking garages, natural resource infrastructure and retail building projects.
Earnings from Operations
The earnings from operations for the second quarter of 2014 were $9.1 million compared to $12.1 million for the 2013 comparative period. Depreciation and amortization in the quarter of $2.9 million was consistent with 2013 levels. The resulting EBITDA of $12.0 million for the quarter was $3.1 million lower than the prior year second quarter EBITDA of $15.1 million. Performance in both BUs was impacted by lower revenue, unfavourable product mix and, in the Drainage BU, increased raw material costs and ongoing competitive pricing pressures that compressed margins.
Gross margin in the second quarter of $23.0 million, or 19.5% of revenue, was a reduction of $3.4 million as compared to $26.4 million, or 21.3% of revenue, for the comparative quarter of 2013. The Drainage BU continued to face lower gross margins through the second quarter relative to the prior year. With the excess capacity created by extreme weather in the Central and Eastern market areas throughout the first four months of 2014, competition increased in plastic products creating pricing pressures despite rising resin costs. Increased competition in the Western market area continued to impact performance of corrugated steel pipe products.
The shift in product mix and lower project volumes in the Pacific and Central market areas impacted the performance of the Precast BU. The Central market area realized improved results over the first quarter of 2014 with the Highway 407 East expansion project, a contract to supply and deliver precast girders for new bridge structures being constructed in the Greater Toronto Area, reaching improved production levels after being severely impacted by schedule delays associated mainly with weather related production challenges and Ministry of Transportation of Ontario approvals. Overall revenue levels did not, however, achieve the same revenue levels of the second quarter of 2013 where the projects consisted of multiple parking garages and the Kitimat smelter modernization which had higher margins than the replacement bridge jobs in 2014. Armtec's portion of the Kitimat smelter modernization project was announced in December of 2011 to supply precast components to expand and upgrade Rio Tinto Alcan's aluminum smelter in Kitimat, British Columbia. Revenue from standard precast products was consistent when compared to 2013 levels.
Selling, general and administrative expenses, before depreciation and amortization, for the three months ended June 30, 2014 were $12.5 million or $0.5 million lower than the $13.0 million during the second quarter of 2013. The decrease in the quarter was driven by reduced discretionary expenses which more than offset the planned investment in additional resources, to primarily support the sales function.
Year to Date Results
Armtec recorded revenue of $187.3 million in the first half of 2014, $15.5 million or 7.7% less than revenue of $202.8 million for the six months ended June 30, 2013. Lower activity levels in the Company's building construction, agricultural, municipal infrastructure and natural resource markets offset improved activity in light rail and highway infrastructure projects. Improved engineered precast volumes in the Prairie market area partially mitigated the shortfalls in the Pacific precast market where the Kitimat smelter modernization project nears completion in 2014 as compared to full production in 2013.
During the first four months of 2014, the severe winter weather conditions impacted the Precast BU, through significant project schedule delays and hindered its ability to manufacture at its outdoor facilities at seasonally normal rates. The Drainage BU revenue was heavily impacted in Central Canada where the weather caused the deferral of many infrastructure projects and agricultural drainage installations. In addition, price levels were impacted by competitive activity in corrugated steel in Western Canada and plastic products in Central and Eastern Canada.
Earnings (loss) from Operations
The loss from operations for the first six months of 2014 was $1.4 million as compared to earnings of $9.1 million in the same period of 2013. Depreciation and amortization in the first half of the year was $5.9 million, consistent with prior year. The EBITDA of $4.4 million for the first half of 2014 was 2.4% of revenue as compared to $15.1 million or 7.5% of revenue in the first six months of 2013.
Gross margin to date in 2014 of $26.1 million, or 13.9% of revenue, was a reduction of $10.5 million as compared to $36.6 million, or 18.0% of revenue, for the first half of 2013. Margins were affected in the Drainage BU by lower volumes and the resulting delayed start-up of production in many facilities causing the under-absorption of operating overheads. Competition in the Western market area continued to impact performance of corrugated steel pipe products. With the excess inventory and capacity in the Central and Eastern market areas caused by the delayed start to the construction season, competition increased in plastic products creating downward pricing pressures despite rising resin costs.
Performance in the Precast BU was impacted by lower volumes, a shift in product mix and under-absorbed operating overheads associated with the negative impacts of weather at the start of the year. The Central market area was impacted severely by lower volumes and challenging manufacturing conditions caused primarily by the prolonged harsh winter that disrupted project schedules and significantly increased production costs and inefficiencies through the first four months of the year. During the first half of 2013, the engineered precast projects consisted of multiple parking garages and the Kitimat smelter modernization work which delivered higher margins than the replacement bridge jobs in 2014.
Selling, general and administrative expenses, before depreciation and amortization, for the six months ended June 30, 2014 were $24.7 million, consistent with the prior year. Planned investment in additional resources, which primarily support the sales function and severances were offset by lower incentive costs and reduced discretionary spend.
Results by Segment
|Three Months Ended||Six Months Ended|
|June 30,||June 30,||June 30,||June 30,|
|(in thousands of Canadian dollars) (unaudited)||2014||2013||2014||2013|
|Earnings from operations||$||4,022||$||6,431||$||1,230||$||4,313|
|As a % of revenue||9.5%||14.3%||2.1%||6.8%|
|Depreciation and amortization||$||536||$||516||$||1,073||$||1,044|
|As a % of revenue||1.3%||1.1%||1.8%||1.7%|
|As a % of revenue||10.8%||15.5%||4.0%||8.5%|
Second quarter Drainage revenue for 2014 was $42.3 million, a decrease of $2.6 million, or 5.8%, from the same period in 2013. The continued softness in Western and Eastern Canada were not fully offset by improved revenue levels in Central Canada. Revenue improvements during the quarter in agricultural applications, primarily in Central Canada, and a slight increase in infrastructure related projects as compared to the same quarter of 2013 did not compensate for the reduced commercial building construction and natural resource volumes in Western Canada. Revenue continued to be impacted by the competitive pressures in Western Canada. International drainage volumes were lower than prior year levels as a result of ongoing delays in mining project activity, competitive pricing in certain markets where infrastructure spends have reduced and lower demand for engineered steel products in Russia.
Drainage revenue for the first six months of 2014 was $58.2 million, a decrease of $4.9 million, or 7.8%, from the same period in 2013. The decline was primarily in the Central and Western Canada market areas where harsh winter weather conditions shortened the construction and agricultural drainage installation season. The improvement in infrastructure revenue did not offset the softer natural resource and building construction volumes, primarily in Western Canada. Volumes in each end use application were lower in Central Canada despite the improvements in the second quarter compared to the prior year.
Earnings from operations
For the three months ended June 30, 2014, earnings from operations were $4.0 million, a decrease of $2.4 million or 37.5% lower than the same quarter of 2013. On a year to date basis, earnings from operations decreased $3.1 million to $1.2 million from $4.3 million in the same period of 2013. EBITDA for the three and six month periods was $4.6 million and $2.3 million respectively as compared to $6.9 million and $5.3 million for the same periods in 2013.
Manufacturing cost improvements were delivered through the focus on performance improvement plans during the quarter. Gains were made with the utilization of raw materials and production throughput. However, with the delayed start to the construction season, many production facilities, particularly in Central and Eastern Canada remained closed for longer periods than normal in 2014 in order to mitigate the cost of under absorption to the Company. Competitive pricing impacted the business on two fronts, despite the increase in both resin and steel costs. First, the pricing pressure in Western Canada continued due to the entry of new producers in Alberta and Saskatchewan. Second, plastic product pricing in Central and Eastern Canada has remained low due to excess capacity which was the result of the slow start to the 2014 installation season. The investment in additional sales and operations personnel were offset by tighter cost controls in selling, general and administrative spend. Depreciation and amortization were consistent with 2013 levels.
Precast Concrete Solutions
|Three Months Ended||Six Months Ended|
|June 30,||June 30,||June 30,||June 30,|
|(in thousands of Canadian dollars) (unaudited)||2014||2013||2014||2013|
|Earnings from operations||$||9,075||$||10,678||$||5,698||$||13,721|
|As a % of revenue||12.0%||13.5%||4.4%||9.8%|
|Depreciation and amortization||$||1,991||$||2,105||$||4,020||$||4,204|
|As a % of revenue||2.6%||2.7%||3.1%||3.0%|
|As a % of revenue||14.7%||16.2%||7.5%||12.8%|
Revenue for the Precast BU in the second quarter of 2014 was $75.4 million, or 4.5% below 2013 levels. Engineered precast revenue declined by $3.6 million or 6.0% over the prior year. The Prairie market area realized an improvement in revenue with previously delayed bridge projects reaching full production levels in the quarter. Revenue in the Pacific market area declined due to the near completion of the Kitimat smelter modernization project which was not fully replaced by new rail infrastructure projects. The Central market area volumes have softened, as anticipated, despite the Highway 407 East expansion project reaching full production levels in the second quarter after significant weather related schedule delays in the early months of 2014. During the second quarter of 2013, the Central market area had a number of parking garage projects underway that have been completed.
Precast revenue in the first half of 2014 of $129.1 million was $10.6 million, or 7.6% below 2013 levels. Engineered precast revenue declined by $10.2 million or 9.1% over the prior year. The Central market area volumes were significantly impacted by the prolonged and extremely cold winter and project schedule delays, particularly related to the Highway 407 East expansion which is manufactured in an outdoor facility. By comparison, in 2013 the Central market area was performing at full project volumes on a number of parking garages and flexwall projects. The Prairie market area realized improved revenue with increased activity related mainly to bridge projects despite schedule delays in the first quarter for certain large project. Revenue in the Pacific market area declined due to the near completion of the Kitimat smelter modernization project.
For the three and six month periods ending June 2014, standard precast revenue was consistent with prior year levels with growth in the Pacific and Prairie market areas partially offsetting weather related declines experienced in the first four months of the year in the Eastern and Central market areas.
Earnings from operations
Earnings from operations for the three and six months ended June 30, 2014 were below prior year levels by $1.6 million and $8.0 million respectively. EBITDA of $11.1 million in the quarter and $9.7 million in the first half were $1.7 million and $8.2 million below the respective periods in 2013. Performance improvements and a better product mix were realized on standard precast products in the second quarter. However, these gains did not fully compensate for the decline in the engineered precast gross margin. The unfavourable mix of engineered precast projects further impacted the results as compared to the prior year. As the Kitimat smelter modernization project in the Pacific market area winds down, new projects in the ramp up stage were at expected lower gross margin levels. The Central market area produced more bridge components which generate lower contributions than the parking garage projects that were the main driver in the same period of 2013. Despite the improved revenue in the Prairie market area, the less favourable project mix contributed lower incremental earnings.
Results for the first six months were further impacted by the severe weather conditions, project schedule delays, production cost increases related to the incremental resources required to manufacture in the extreme temperatures and additional costs to maintain the temperature of manufacturing inputs, such as aggregates, which are stored outside. Cure times for the concrete took longer and labour was impacted by the ability to work outdoors in the extreme temperatures, reducing productivity to well below seasonal norms. The combination of not achieving expected output levels and incurring higher operating costs had a significant impact on the first quarter earnings from Precast which were not recovered in the second quarter of 2014.
The investment in additional sales personnel caused a slight increase in selling, general and administrative spend over 2013. Depreciation and amortization were consistent with 2013 levels.
This section contains forward-looking information. For more information please see the section entitled "Caution Regarding Forward-Looking Statements".
The long-term outlook for Armtec's markets remains favourable; driven by a stable macro-economic climate in Canada and ongoing infrastructure investments required across the country. The demand factors for Armtec's products appear stable to favourable with solid infrastructure prospects in the Prairie Provinces, the recent Soundwall project secured in Central Ontario and the potential for improved government spending on infrastructure in Ontario and Quebec.
In the near-term, the Eastern market area continues to face challenges with the ongoing Charbonneau Commission Inquiry and reduced municipal-level government spend, though it is anticipated that improved demand may return in the second half of 2014 if the effects begin to ease. The Charbonneau Commission Inquiry is a public proceeding in Quebec into alleged corruption in the management of public construction contracts.
Outside of certain public, private partnership projects such as the Hwy 407 East expansion and the Herb Gray Parkway as well as the rail infrastructure improvement plans, the Company continues to see general softness in Ontario. The lower municipal-level government spending is expected to provide further headwinds for the Company in Ontario.
Market conditions in Western Canada remain positive with stronger activity in oil & gas and forestry, which are expected to directly and indirectly, drive favourable demand for Armtec's products. Management anticipates that the Prairie market area will realize solid demand in residential, commercial and infrastructure construction driven largely from investments expected in highways & bridges and oil & gas infrastructure initiatives.
Near term opportunities are expected from improved United States market demand with specific prospects identified for engineered precast products, primarily for the Pacific and Soundwall market areas. However, approximately 50% of the historical international demand for Engineered Drainage products has come from Russia. It is anticipated that international shipments for drainage products will remain depressed throughout 2014 and 2015 due to the unfavourable geo-political environment and the shifting of Armtec's focus to other international markets.
Looking ahead, overall earnings from operations for the business are anticipated to improve over the coming quarters in comparison to what has been experienced so far in 2014. Improved installation conditions will be the primary driver with stronger sales and production volumes leading to better operating efficiencies. Significant competitive pressures and higher raw material costs are expected to continue to place downward pressure on margins in the Drainage BU. A strong focus on controllable costs, production efficiencies and recently announced selling price increases in certain markets are being aggressively pursued to counter the impacts of higher raw material costs and competitive dynamics, particularly in the Western Canada corrugated steel pipe market and Central and Eastern Canada's plastic market. The net effects of these factors are expected to result in continued lower EBITDA for the Drainage business for the next several quarters.
Precast revenue is expected to return to more normal levels in the second half of the year, however, due to unfavourable project mix, the gross margin is anticipated to be lower than what was experienced in the prior year. The volumes and related gross margin that had been driven by the Kitimat smelter modernization project in the Pacific market area and parking garages in the Ontario market have largely been replaced by the strong demand for bridge components at lower gross margins in the Ontario and Prairie markets. At the end of June 2014, the Company had a backlog of engineered precast projects totaling $107 million versus a prior year backlog of $158 million. On July 23, 2014 Armtec announced a Soundwall project for $70 million to support rail infrastructure initiatives in central Ontario, which will be booked as backlog in the third quarter. While this project will commence production prior to the end of 2014, the revenue and related EBITDA will largely impact 2015.
The full year EBITDA is estimated to range from $30 to $34 million ($16 to $18 million for the three months ended September 30, 2014). The timing of engineered precast projects in the Prairies and Soundwall markets combined with the degree of success of recently announced price increases in the Drainage BU are projected as the main variables influencing second half profitability. The Company remains focused on executing its performance improvement plans to improve EBITDA in the second half of the year.
Management will host a conference call at 9:30 a.m. (ET) on Friday, August 8, 2014 to discuss the results. Investors who wish to participate can access the call using the following numbers: 1-800-319-4610 or +1-604-638-5340 outside Canada and the U.S. The call will be archived on Armtec's website at armtec.com.
A taped rebroadcast will be available to listeners following the call until midnight on Friday, August 15, 2014. To access the rebroadcast, please dial 1-800-319-6413 or +1-604-638-9010 outside of Canada and the U.S. and quote the passcode 3271#.
About Armtec Infrastructure Inc.
Armtec is a manufacturer and marketer of a comprehensive range of infrastructure products and engineered construction solutions for customers in a diverse cross-section of industries that are located in every region of Canada, as well as in selected markets globally. These markets include Canada's national and regional public infrastructure markets and private sector markets in agricultural drainage, commercial building, residential construction and natural resources. Armtec operates through a network of offices and production facilities across the country. Armtec operates in two business units: Drainage Solutions and Precast Concrete Solutions. Drainage manufactures and markets corrugated high-density polyethylene pipe, corrugated steel pipe and other drainage related products including small bridge structures. Precast manufactures and markets highly engineered precast systems such as parking garages, bridges, sport venues and building envelopes as well as standard precast products such as steps, paving stones and utility vaults.
References to EBITDA are to earnings before finance (income) expense - net, income taxes, depreciation and amortization, certain non-recurring expenses and certain other non-cash amounts. Management believes that in addition to net earnings, EBITDA is a useful supplemental measure of cash available prior to debt service, changes in working capital, capital expenditures and income taxes. However, EBITDA is not a recognized measure under GAAP. Investors are cautioned that EBITDA should not be construed as an alternative to net and comprehensive earnings determined in accordance with GAAP as an indicator of Armtec's performance or as an alternative to cash flows from operating, investing and financing activities as a measure of Armtec's liquidity and cash flows. Armtec's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, Armtec's EBITDA may not be comparable to similarly named measures used by other issuers.
Risks and Uncertainties
Armtec is subject to certain risks and uncertainties that could have a material adverse effect on Armtec's results of operations, business prospects, financial condition, and the trading price of Armtec's shares. These risks and uncertainties are largely derived from Armtec's business environment. These uncertainties and risks include, but are not limited to: capital and liquidity risk; access to bonding and letters of credit; competition; large project risk; credit risk; fluctuations in operating results; seasonality and adverse weather; relationships with suppliers; lack of long-term agreements; existing legal proceedings; risk of future legal proceedings; industry cyclicality; change management; availability and price volatility of raw materials; acquisition and expansion risk; current global financial conditions; reduction in demand for products; reliance on key personnel; labour markets; environmental; currency fluctuations; product liability; expiration of rights under license and distribution arrangements; operating hazards; intellectual property; collective bargaining; pension plans; interest rates; information management; uninsured and underinsured losses; insurance coverage; securities laws compliance and corporate governance standards; income tax and other taxes; geographical risk; and geopolitical. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Armtec Infrastructure Inc. with the securities regulatory authorities, available at www.sedar.com.
Caution Regarding Forward-Looking Statements
This news release contains "forward-looking" statements (including those set out under the headings "Summary" and "Outlook") within the meaning of applicable securities legislation which involve known and unknown risks, uncertainties and other factors which may cause the actual results, events, performance or achievements of Armtec or industry results, to be materially different from any future results, events, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements typically contain such words or phrases as "may", "outlook", "objective", "intend", "estimate", "anticipate", "should", "could", "would", "will", "expect", "believe", "plan" and other similar terminology suggesting future outcomes or events. Forward-looking statements reflect current expectations regarding future results, events, performance and achievements and are based on information currently available to Armtec's management, anticipated operating and financial results of Armtec and current and anticipated market conditions.
Forward-looking statements involve numerous assumptions and should not be read as guarantees of future results, events, performance or achievements. Such statements will not necessarily be accurate indications of whether or not such future results, events, performance or achievements will be achieved. You should not unduly rely on forward-looking statements as a number of factors, many of which are beyond the control of Armtec, could cause actual results, events, performance or achievements to differ materially from the results, events, performance or achievements discussed in the forward-looking statements, including, but not limited to the factors discussed in Armtec's materials filed with the Canadian securities regulatory authorities from time to time. These factors also include, but are not limited to, known and unknown risks with respect to: restrictive covenants and obligations under the Senior Notes, the Brookfield Facility and the Revolving Credit Facility; access to bonding and letters of credit; market competition, including potential new market entrants; cost estimates vs. actual profit in respect of large projects; credit risk in respect of Armtec's receivables; fluctuations in operating results; seasonality and adverse weather; relationships with suppliers of raw materials and the availability and volatile pricing of such materials; uncertainties with respect to short-term customer and supplier agreements; the outcome of pending and future claims and litigation; industry cyclicality; ineffective change management, the ability to attract and retain key personnel and competition for labour; acquisition and expansion risk and associated geographical risks related thereto; current global financial conditions, currency and interest rate fluctuations; a reduction in demand for Armtec's products; current and future environmental obligations pursuant to federal, provincial and municipal environmental laws and regulations; product liability in respect of both Armtec's products and the products incorporated from third parties; expiration of rights under license and distribution arrangements and potential infringement in respect of Armtec's intellectual property and any of Armtec's licensed intellectual property; operating hazards; collective bargaining; pension plans; information management; current insurance coverage, uninsured and underinsured losses with respect to Armtec's insurance policies; changes to securities laws and corporate governance standards; changes in and Armtec's compliance with respect to income tax and other tax laws; and geopolitical risk.
Although the forward-looking statements contained in this news release are based upon what management of Armtec believes are reasonable assumptions, Armtec cannot assure investors that actual results, events, performance or achievements will be consistent with these forward-looking statements. All forward-looking statements in this news release are qualified by these cautionary statements. These forward-looking statements are made as of the date of this news release and, except as required by applicable law, Armtec assumes no obligation to update or revise them to reflect new events or circumstances.
Capitalized terms that are not otherwise defined in this news release shall have the meanings given to them in Armtec's management's discussion and analysis for the three months ended June 30, 2014.
SOURCE Armtec Infrastructure Inc.For further information:
Vice President & Corporate Secretary
Tel: (647) 795-9290