Armtec Issues Preliminary 2013 Year End Results and Guidance for 2014 First Quarter

CONCORD, ON, March 13, 2014 /CNW/ - Armtec Infrastructure Inc. ("Armtec") (TSX: ARF and ARF.DB) today announced preliminary results estimates for 2013 and expectations for the first quarter of 2014.

Management expects Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") for 2013 to be approximately $40.1 million; consistent with the prior year's $41.0 million (please see the section entitled "Non-GAAP Measure").  The basic and diluted loss per share for 2013 is expected to be approximately $0.12, an improvement of $1.38 per share as compared to the $1.50 per share loss in 2012.  Further information will be released for the fourth quarter and full year results for 2013 on March 18, 2014.

Although it is typical to experience an EBITDA loss in the first quarter, management anticipates a significant decline in 2014 first quarter earnings relative to prior years.  Harsh winter weather conditions, predominantly in Ontario and Manitoba, and unexpected project delays are expected to lead to lower precast revenue and higher precast costs.  The continued below average temperatures have adversely impacted precast production facilities with outdoor manufacturing processes.  The Drainage Business Unit will similarly be adversely affected by the weather conditions, but to a much lesser extent.

As a result, management estimates a first quarter 2014 EBITDA loss of approximately $8 million as compared to EBITDA of $0.1 million in the same period of 2013. A portion of the revenue and associated earnings foregone in the first quarter is expected to be recovered prior to the end of 2014.  On a basic and diluted per share basis, management estimates a loss of approximately $0.57 in the first quarter as compared to a loss of $0.32 per share in the first quarter of 2013.  Current liquidity projections for 2014 indicate sufficient liquidity to fund the operations of the business.  In the event of a further unanticipated decline in the business results, Armtec can access up to $10 million interest accrual option under the 2012 Brookfield Facility subject to certain conditions.  Despite the challenging start to 2014, the Company remains focused on executing its performance improvement plans with an aim of delivering improved earnings in the second half of 2014 over the same period in 2013.

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 manufactures and markets corrugated high-density polyethylene pipe, corrugated steel pipe and other drainage related products including small bridge structures; and Precast Concrete Solutions 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. Armtec's common shares and convertible debentures trade on the Toronto Stock Exchange under the symbols "ARF" and "ARF.DB," respectively.

Forward-Looking Statements

This news release contains "forward-looking" statements (including those relating to the expected financial results for 2013 and the first quarter and second half of 2014 and liquidity projections for 2014) 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. 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.

Non-GAAP Measure

EBITDA

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.

Defined Terms

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 and nine months ended September 30, 2013.

SOURCE: Armtec Infrastructure Inc.

Carrie Boutcher
Vice President & Corporate Secretary
Tel: [phone]
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