CCS Income Trust Releases Revenue, EBITDA Guidance for the Third Quarter of 2007 and Updates Going Private Transaction


    CALGARY, Oct. 22 /CNW/ - CCS Income Trust (the "Trust") today issued the
following guidance for the third quarter of 2007 while the investor group and
the Trust continue to prepare to complete the previously announced
going-private transaction.
    Consolidated revenue for the third quarter of 2007 is expected to be in
the range of $500 million to $520 million, an increase of approximately 19 to
24% over revenue reported in the second quarter of 2007 and an approximate 5
to 9% increase over the third quarter of 2006. It should be noted that the
second quarter is generally one of lower activity levels, as the ability to
move heavy equipment in the Canadian oil and gas fields is dependent on
weather conditions.
    EBITDA for the third quarter of 2007 is expected to be in the range of
$71 million to $77 million, an increase of approximately 69 to 83% over the
second quarter of 2007, but a decline of approximately 6 to 13% over the same
period in 2006. Based on this guidance, EBITDA for the twelve months ended
September 30, 2007 would be in the range of $278 million to $284 million. This
compares with EBITDA of $273 million for the twelve months ended September 30,
    EBITDA is a financial measure that does not have any standardized meaning
prescribed by Canadian Generally Accepted Accounting Principles ("GAAP") and
may not be comparable to a similar measure provided by other companies or
trusts. The Trust has reconciled its previous use of EBITDA to GAAP measures
most recently in the Second Quarter Interim Report which is available on
SEDAR. For the purposes of this press release, EBITDA is defined as operating
margin less general and administrative expense, but before deducting either
unit option expense or asset retirement accretion expense. Typically, for the
Trust, EBITDA is determined from the consolidated statements of income and
accumulated earnings and is defined as operating margin less general and
administrative expense. We have changed the definition of EBITDA in this press
release to conform to the definitions used in the completion process for the
going-private transaction.
    While it was anticipated that drilling activity levels and industry
conditions would improve in the second half of 2007, the amount of such
improvement was dependent on producer capital spending plans and other factors
outside the control of the Trust. Year-over-year improvement in drilling
activity did not occur, and that impacted the Trust's results, particularly in
the Concord Well Servicing division where operating margins are expected to be
approximately 45% lower than those reported in the third quarter of 2006. All
other divisions are expected to report improvements in operating margins for
the third quarter of 2007, in comparison to the third quarter of 2006.
    The Trust continues to move towards closing the going private
transaction, with closing expected to occur on or before November 15, 2007.
Closing is subject to the closing conditions in the acquisition agreement and
subject to the rights of the parties to the acquisition agreement.
    Securityholders who are registered holders of CCS security certificates
are urged to deposit their letters of transmittal and trust unit or
exchangeable share certificates as soon as possible to ensure prompt payment
following closing. Other securityholders who own through a broker, bank or
intermediary are requested to ensure they instruct their intermediary to
implement action and deposit the relevant securities held in their account, as
required by the intermediary.
    In order to receive payment for registered certificates for trust units
and exchangeable shares held by securityholders, a letter of transmittal and
the relevant security certificate must be delivered by such securityholder (or
brokerage or nominee on behalf of such securityholder) to Computershare Trust
Company of Canada. For more information regarding letters of transmittal and
deposit of securities, CCS securityholders should contact Kingsdale
Shareholder Services Inc., the Canadian and non-US proxy solicitation agent,
at 1-800-749-9890 (banks and brokers should call Kingsdale collect at
416-867-2272) or Innisfree M&A Incorporated, the US proxy solicitation agent,
at 1-888-750-5834 (banks and brokers should call Innisfree collect at

    CCS Income Trust (TSX: CCR.UN) is a recognized industry leader providing
integrated and environmentally responsible services to upstream and downstream
oil and gas companies in Canada and the U.S. Headquartered in Calgary,
Alberta, CCS has close to 3,000 employees and provides a diverse number of
services across four divisions. CCS Midstream Services provides oilfield waste
treatment, recovery and disposal through a network of facilities across
western Canada and in the United States. CCS Energy Marketing provides crude
oil and condensate marketing services. HAZCO Environmental Services offers
integrated remediation, waste management and decommissioning solutions
including the operation of engineered landfills throughout Canada. Concord
Well Servicing manages well completions, workovers and abandonments with a
fleet of 140 rigs. Additional integrated services include NORM management,
regulatory compliance expertise, inactive well management, well and pipeline
abandonments, oilfield equipment rental, metals recycling and geotechnical and
environmental drilling.

    Forward-looking statements

    This news release contains "forward-looking statements" within the
meaning of applicable securities laws relating to the proposal to take the
Trust private, including statements regarding the terms and conditions of the
proposed transaction, its status and closing, the timing of closing and
receipt of distributions of the Trust. Readers are cautioned not to place
undue reliance on forward-looking statements. Actual results and developments
may differ materially from those contemplated by these statements depending
on, and including that, among other things, the risks that the parties will
not proceed with a transaction, that the ultimate terms and implementation
timing of the transaction will differ from those that currently are
contemplated, and that the transaction will not be successfully completed for
any reason (including, without limitation, the failure to obtain the required
approvals or clearances from regulatory authorities). The statements in this
news release are made as of the date of this release. We undertake no
obligation to comment on analyses, expectations or statements made by third
parties in respect of the Trust, its financial or operating results or its

    %SEDAR: 00017961E

For further information:

For further information: Investors: David Werklund, President and Chief
Executive Officer, CCS Income Trust, Phone: (403) 233-7565; Marshall McRae,
Chief Financial Officer, CCS Income Trust, Phone: (403) 231-1103; Media: David
Ryan, Longview Communications, Phone: (604) 694-6031; Shauna Lowry, Corporate
Communications Manager, Phone: (403) 231-1127

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