Toronto Stock Exchange: ARF; ARF.DB
CONCORD, ON, Nov. 11, 2014 /CNW/ - Armtec Infrastructure Inc. ("Armtec" or the "Company") (TSX: ARF; ARF.DB) ("Armtec") today reported financial results for the third quarter ended September 30, 2014.
- Revenue for the three months ended September 30, 2014 was $156.9 million, a $12.2 million or 8.4% increase over the same period in 2013. Revenue in Drainage Solutions ("Drainage") was $60.4 million, consistent with the same period last year. Revenue in Precast Concrete Solutions ("Precast") was $96.5 million, or 14.4% higher than 2013 levels. Year to date, revenue was $344.2 million, a $3.4 million or 1.0% decrease over the first nine months of 2013. Drainage revenue was $118.6 million, a decrease of $4.9 million compared to the same period in 2013. Precast revenue of $225.6 million represents an increase of $1.6 million over 2013 levels.
- Gross margin in the third quarter was $27.6 million, a reduction of $2.7 million over the comparative period in 2013. As a percentage of revenue, gross margin was 17.6%, compared to 20.9% in the prior year. Year-to-date, gross margin was $53.7 million, or 15.6% of revenue, a reduction of $13.1 million as compared to $66.8 million, or 19.2% of revenue, for the first nine months of 2013.
- Earnings from operations for the third quarter of 2014 was $13.2 million, compared to $16.1 million in the same period of 2013. Year-to-date, the earnings from operations was $11.7 million, compared to $25.2 million in the same period of 2013.
- Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") for the third quarter of 2014 was $16.1 million, compared to $19.0 million in the year prior. For the nine-month period ended September 30, 2014, EBITDA was $20.5 million, compared to $34.1 million in 2013 (please see the section entitled "Non-GAAP Measure").
- The backlog for engineered precast projects at September 30, 2014 was $140 million, exceeding prior year levels of $130 million. The EBITDA for 2014 is expected to be approximately $30 million. However, the timing of engineered precast projects, combined with the degree of success of recently announced price increases in Drainage, are projected as the main variables influencing estimated profitability. The Company remains focused on executing its performance improvement plans to improve EBITDA for the balance of the year.
- In October 2014, Armtec announced an amendment to the Brookfield Facility to extend the June Covenant Waiver and provide a short-term facility of an additional $10.0 million until February 27, 2015. The $4.0 million in associated fees were capitalized to the balance of the loan but will be excluded from future covenant calculations. The Company continues to review its liquidity, financial covenants, leverage and capital structure. A broad range of alternatives will also be reviewed and may involve the issuance of secured or unsecured debt, equity or other securities or other transactions.
"In the third quarter, the Company delivered against our EBITDA estimate of $16 million, and achieved solid results in our largest end-use market, infrastructure, where light-rail transit systems in BC, the 407 ETR Expansion, and a new project to supply and install $70 million of noise barriers and fencing from Toronto Pearson International Airport to downtown Toronto were significant contributors," said Mark Anderson, President and Chief Executive Officer. "Challenging markets, increased industry competition and rising raw material costs continued to affect our Drainage business in the quarter, and overall we are not seeing significant growth in most key markets despite favourable long-term fundamentals." (Note that this is forward-looking information and for more information please see the section entitled "Caution Regarding Forward-Looking Statements.")
|Summary of Results|
|Three Months Ended||Nine Months Ended|
| (in thousands of Canadian dollars except per share amounts)
|As a % of revenue||17.6%||20.9%||15.6%||19.2%|
|Selling, general and administrative||$||14,576||$||14,232||$||42,081||$||41,664|
|As a % of revenue||9.3%||9.8%||12.2%||12.0%|
|Earnings from operations||$||13,154||$||16,050||$||11,724||$||25,170|
|As a % of revenue||8.4%||11.1%||3.4%||7.2%|
|As a % of revenue||5.4%||5.5%||7.0%||6.6%|
|Net earnings (loss) attributable to owners of the Company||$||3,453||$||6,089||$||(9,160)||$||1,588|
|As a % of revenue||2.2%||4.2%||(2.7)%||0.5%|
|Basic and diluted earnings (loss) per share||$||0.14||$||0.25||$||(0.38)||$||0.07|
|As a % of revenue||10.2%||13.1%||6.0%||9.8%|
|Breakdown of depreciation and amortization by financial statement line item:|
|Cost of sales||$||1,534||$||1,568||$||4,556||$||4,820|
|Selling, general and administrative||1,366||1,407||4,220||4,157|
|Total depreciation and amortization||$||2,900||$||2,975||$||8,776||$||8,977|
Third Quarter Results
Armtec recorded revenue of $156.9 million in the third quarter of 2014, a $12.2 million or 8.4% increase over the same quarter of 2013. Improvements were achieved in each of the Company's key end use markets, primarily driven by the Precast BU. Revenue for the Drainage BU was consistent with prior year levels. Significant gains were achieved in Armtec's largest end use market, infrastructure, where light rail transit systems in British Columbia, bridge projects such as the 407 ETR Expansion ("407 ETR") in Ontario and the recently announced Soundwall project in Ontario were solid contributors. The Highway 407 East expansion project is a contract to supply and deliver precast girders for new bridge structures being constructed in the Greater Toronto Area. The recently announced Soundwall project is to supply and install approximately $70 million of noise barriers and fencing for a rail infrastructure project running from Toronto Pearson International Airport to Union Station in downtown Toronto, Ontario ("UP Express"). During 2013, significant growth was realized in the natural resource market as a result of the Alcan Kitimat smelter modernization project ("Kitimat"). 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. While this project neared completion in the third quarter of 2014, the Precast Prairie market realized increased project volumes related to the oil & gas market.
Earnings from Operations
The earnings from operations for the third quarter of 2014 were $13.2 million compared to $16.1 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 $16.1 million for the quarter was $2.9 million lower than the prior year third quarter EBITDA of $19.0 million.
Gross margin in the third quarter of $27.6 million, or 17.6% of revenue, was a reduction of $2.7 million as compared to $30.3 million, or 20.9% of revenue, for the third quarter of 2013. Performance in the Drainage BU continued to be impacted by increased raw material costs, compounded by the impact of the weakening Canadian dollar, and ongoing competitive pricing pressures resulting in compressed margins in both HDPE and steel products. Increased competition in the Western market area continued to impact selling prices of CSP products adding to the downward pressure on margins.
The positive contribution from the current soundwall projects offset the negative shift in product mix in the Central, Pacific and Prairie market areas. In the Central market area the 407 ETR project gross margin was lower than the 2013 mix of projects that consisted mainly of parking garages and flexwall projects. The Kitimat project in the Pacific market area had higher margins than the replacement 2014 bridge projects and structural work in the oil & gas sector in the Prairies. Standard precast product performance was consistent with 2013 levels.
Selling, general and administrative expenses, before depreciation and amortization, for the three months ended September 30, 2014 were $13.2 million or $0.4 million higher than the $12.8 million incurred during the third quarter of 2013 mainly the result of foreign exchange losses in the quarter.
Year to Date Results
Armtec recorded revenue of $344.2 million in the nine months of 2014, $3.4 million or 1.0% less than revenue of $347.6 million for the same period ended September 30, 2013. Lower activity levels in the Company's building construction, municipal infrastructure and natural resource markets offset improved activity in light rail and highway infrastructure projects. Improved engineered precast volumes, related to oil & gas applications in the Prairie market area and the commencement of the UP Express project in Ontario, partially mitigated the shortfalls in the Pacific precast market where the Kitimat project nears completion in 2014 compared to full production in 2013. The severe winter weather conditions during the first four months of 2014 impacted the Precast BU through significant project schedule delays and hindered its ability to manufacture at its outdoor facilities at seasonally normal production rates in the Central Precast market area.
The Drainage BU revenue was heavily impacted in Central Canada where the weather at the start of the year caused the postponement of many infrastructure projects and agricultural drainage installations. During the third quarter, the agricultural market recovered revenue that was lost earlier in the year. Improvements were also noted in infrastructure applications offsetting the softness in building construction and natural resource markets. Revenue levels in Central and Eastern Canada recovered to prior year levels; however, price levels continued to be adversely impacted by competitive activity in HDPE products. Corrugated steel pipe volumes and pricing levels in Western Canada remained depressed with the activity of the new market entrants attempting to gain market share. International drainage product revenue remained below prior year levels as a result of the reduced activity and higher tariffs in the Russian market.
Earnings from Operations
The earnings from operations for the first nine months of 2014 were $11.7 million as compared to $25.2 million in the same period of 2013. Depreciation and amortization in the first nine months of the year was $8.8 million, consistent with the prior year. EBITDA of $20.5 million for the period ended September 30, 2014 was 6.0% of revenue as compared to $34.1 million or 9.8% of revenue in the comparative period of 2013.
Gross margin to date in 2014 of $53.7 million, or 15.6% of revenue, was a reduction of $13.1 million as compared to $66.8 million, or 19.2% of revenue, for the same period 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. The excess inventory and capacity in the Central and Eastern market areas caused by the delayed start to the construction season resulted in downward pricing pressures despite rising resin costs. Competition in the Western market area continued to compress margins of CSP products as costs of galvanized steel rose.
Despite the improvements in the third quarter of 2014 and the commencement of the UP Express project, performance in the Precast BU for 2014 continued to lag 2013 results. Results were impacted by lower volumes, a negative shift in product mix to lower margin products 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 through the first four months of the year. During 2013, the engineered precast revenue consisted of multiple parking garages and the Kitimat project which delivered higher margins than the replacement bridge and oil & gas projects in 2014.
Selling, general and administrative expenses, before depreciation and amortization, for the nine months ended September 30, 2014 were $37.9 million, consistent with the prior year. Planned investment in additional resources to support the sales function, severances and foreign exchange losses were offset by lower incentive costs and reduced discretionary spend.
| Results by Segment
|Three Months Ended||Nine Months Ended|
|(in thousands of Canadian dollars) (unaudited)|| September
|Earnings from operations||$||5,961||$||9,673||$||7,191||$||13,986|
|As a % of revenue||9.9%||16.0%||6.1%||11.3%|
|Depreciation and amortization||$||534||$||551||$||1,607||$||1,595|
|As a % of revenue||0.9%||0.9%||1.4%||1.3%|
|As a % of revenue||10.8%||16.9%||7.4%||12.6%|
Third quarter Drainage revenue for 2014 was $60.4 million, consistent with the same period in 2013. International drainage volumes were lower than prior year levels as a result of competitive pricing in certain markets where infrastructure spends have reduced and shipments of engineered steel products to Russia have been negatively impacted by increased tariffs. The ongoing competitive pressure in Western Canada, and lower international volumes, were offset by improved revenue in Central and Eastern Canada. These revenue improvements were driven by agricultural applications and a slight increase in infrastructure related projects as compared to the same quarter of 2013. Revenue continued to be unfavourably impacted by the competitive pricing for CSP products in Western Canada.
Drainage revenue for the first nine months of 2014 was $118.6 million, a decrease of $4.9 million, or 4.0%, from the same period in 2013. The decline was primarily in Western Canada and International whereas Eastern and Central Canada recovered the revenue softness experienced in the first half of 2014 and were in line with 2013 levels. Improvements were noted in infrastructure volumes offsetting the softness in natural resources, primarily in mining applications. New building construction activity continued to lag prior year levels. Agricultural revenue levels recovered during the third quarter exceeding prior year levels.
Earnings from Operations
For the three months ended September 30, 2014, earnings from operations were $6.0 million, a decrease of $3.7 million or 38.4% lower than the same quarter of 2013. On a year to date basis, earnings from operations decreased $6.8 million, to $7.2 million, from $14.0 million in the same period of 2013. EBITDA for the three and nine month periods was $6.5 million and $8.8 million respectively as compared to $10.2 million and $15.6 million for the same periods in 2013.
Manufacturing cost improvements have been delivered through the focus on controllable expenses and other performance improvement plans during 2014. Gains were made with the utilization of raw materials and production throughput. However, with the delayed start to the construction season, many production facilities, particularly in Central and Eastern Canada remained closed for longer periods than normal in 2014 in order to mitigate the cost of labour and overheads. Downward pressure on pricing, at a time when steel and resin raw material costs were increasing and further impacted by the weakening Canadian dollar, was predominately caused by two issues. First, the pricing pressure in Western Canada continued due to the entry of new CSP producers in Alberta and Saskatchewan. Second, HDPE product pricing in Central and Eastern Canada has remained low due to excess capacity that was the result of the slow start to the 2014 installation season. The investment in additional sales and operations personnel were offset by tighter cost controls in selling, general and administrative spend. Depreciation and amortization were consistent with 2013 levels.
|Precast Concrete Solutions|
|Three Months Ended||Nine Months Ended|
|(in thousands of Canadian dollars) (unaudited)|| September
|Earnings from operations||$||11,764||$||10,938||$||17,462||$||24,659|
|As a % of revenue||12.2%||13.0%||7.7%||11.0%|
|Depreciation and amortization||$||1,963||$||2,059||$||5,983||$||6,263|
|As a % of revenue||2.0%||2.4%||2.7%||2.8%|
|As a % of revenue||14.2%||15.4%||10.4%||13.8%|
Revenue for the Precast BU in the third quarter of 2014 was $96.5 million or 14.4% higher than 2013 levels. Engineered precast revenue improved by $9.8 million or 15.3% over the prior year. The Prairie market area realized an improvement in revenue with new projects supporting oil & gas development in northern Alberta. Revenue in the Pacific market area declined due to the near completion of the Kitimat project which was not fully replaced by new rail infrastructure projects. The Central market area volumes remain soft, as anticipated, despite the 407 ETR project. The Soundwall market area benefitted from the start of the previously announced UP Express project.
Precast revenue in the nine months ended September 30, 2014 of $225.6 million was $1.6 million above 2013 levels. Engineered precast revenue was slightly above the prior year despite the lower revenue in the Central and Pacific market areas. In 2013, the Central market area was performing at full capacity with a number of parking garages and flexwall projects. In 2014, this market area experienced much softer market conditions and fewer opportunities for parking garage and flexwall work with bridge structures being the dominant product replacing 2013 revenue. Revenue in the Pacific market area declined due to the near completion of the Kitimat project. The Prairie market area realized improved revenue with increased activity related mainly to oil & gas initiatives as well as bridge projects. The start of the UP Express project in September supported the overall growth in infrastructure as compared to 2013 levels.
For the three and nine month periods ending September 30, 2014, standard precast revenue was slightly up on 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 months ended September 30, 2014 were $0.8 million ahead of prior year levels. On a year to date basis, earnings from operations were $17.5 million or $7.2 million below the comparative nine month period in 2013. EBITDA of $13.7 million in the quarter was $0.7 million better than the third quarter of 2013. However, EBITDA of $23.4 million in the first nine months was $7.5 million below the comparative period in 2013.
Engineered precast gross margin improved over the prior year; however, gross margin percentage of revenue declined due to the unfavourable mix of engineered precast projects as compared to the previous year. As the Kitimat 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 generated lower contributions than the parking garage and flexwall projects that were the main drivers of performance in the same period of 2013. Despite the improved revenue in the Prairie market area, the less favourable project mix contributed lower incremental earnings. Offsetting these declines in project mix was the commencement of the UP Express project.
Despite improved results in the third quarter of 2014, results for the first nine months were significantly 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 in the Company's outdoor facilities. Cure times for the concrete took longer and labour was impacted by the ability to work outdoors in the extreme winter conditions, 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 first quarter earnings as compared to 2013. In addition, the resultant delays impacted other projects in those facilities. 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 and the potential for improved government spending on infrastructure in Ontario and Quebec.
In the near term, market conditions across Canada remain mixed. In Eastern and Central Canada, newly elected Liberal governments in the provinces of Quebec and Ontario have announced plans to increase infrastructure spending. While these intentions are positive, significant concerns exist over the high levels of public debt and the ability of these provincial governments to deliver significantly increased spending in a timely manner.
The provinces in Western Canada continue to demonstrate stronger growth with solid demand from the oil & gas and forestry markets. The Prairie market area continues to demonstrate the greatest opportunity with solid demand expected in residential, commercial and infrastructure construction driven largely from investments in highways, bridges and oil & gas initiatives. However, it should be noted that recent sharp declines in oil prices could cause future investments in oil & gas projects to be scrutinized and/or delayed, tempering the potential growth rate in this market area.
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. It is anticipated that international shipments for drainage products will remain depressed throughout 2014 and 2015 due to the unfavourable geo-political environment, especially in Russia. Armtec continues to evaluate opportunities to increase its presence in other international markets.
Looking ahead, significant competitive pressures and higher raw material costs are expected to continue to place downward pressure on margins in the Drainage BU as the construction season comes to a close in the fourth quarter. A strong focus on controllable costs and production efficiencies will continue and selling price increases in certain markets are being aggressively pursued to counter the impacts of significantly higher steel and resin raw material costs and competitive dynamics, particularly in the Western Canada CSP market and Central and Eastern Canada's HDPE market. The net effects of these factors are expected to result in continued lower EBITDA for the Drainage business for the fourth quarter when compared to historical levels.
Precast revenue is expected to exceed prior year levels during the fourth quarter with improved gross margin performance. While the volumes and related gross margin that had been driven by the Kitimat project in British Columbia 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, the UP Express project is likely to contribute positively for the next three quarters as the owner strives to meet a compressed schedule related to the Pan American games. At the end of September 2014, the Company had a backlog of engineered precast projects of approximately $140 million versus a prior year backlog of $130 million.
The full year EBITDA is estimated to be approximately $30 million. The timing of engineered precast projects in the Prairie and Soundwall market areas, combined with the degree of success of recently announced price increases and the seasonal variability of installation conditions in the Drainage BU, are projected as the main variables influencing estimated profitability. The Company remains focused on executing its performance improvement plans to improve EBITDA for the balance of the year.
The Company continues to review its liquidity, financial covenants, leverage and capital structure. A broad range of alternatives will also be reviewed and may involve the issuance of secured or unsecured debt, equity or other securities, or other transactions.
Management will host a conference call at 10:00 a.m. (ET) on Wednesday, November 12, 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, December 12, 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 vault.
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, but not limited to, 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: capital and liquidity risk: 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 and nine months ended September 30, 2014.
SOURCE: Armtec Infrastructure Inc.
For further information:
Vice President & Corporate Secretary
Tel: (647) 795-9290