The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

Armtec Expects to meet Senior Debt Covenants

Thursday, June 14, 2012

Armtec Expects to meet Senior Debt Covenants08:39 EDT Thursday, June 14, 2012and books over $50 million in new Engineered Solutions projects in the Second Quarter Toronto Stock Exchange: ARF; ARF.DBGUELPH, ON, June 14, 2012 /CNW/ -Armtec Infrastructure Inc. ("Armtec") (TSX: ARF and ARF.DB) today announced that it has had a solid start to the second quarter of 2012 and, as a result, the company estimates that it has achieved a Senior Debt to EBITDA ratio for the twelve months ending May 31, 2012 of just below 5.1 times.  As previously disclosed, management expects to meet this same covenant of no greater than five times when it becomes effective under the Brookfield Facility at the end of June 2012.  The Company is currently in compliance with the Tangible Net Equity covenant under the Brookfield Facility and expects to remain in compliance with this covenant.Armtec also announced it has been successful in securing over $50 million in revenue in new Engineered Solutions projects during the second quarter.  The new projects include 3 parking structures in Ontario, a sound wall project in Quebec, a bridge construction project in British Columbia and several insulated wall panel projects for commercial applications across the country.  The majority of these projects will commence production in 2012 and continue into 2013."We are pleased with our 2012 performance to date and in our ability to meet or exceed our internal targets in each of the last eight months.  The Turnaround Plan efforts remain on track and are contributing to the improved results over 2011 levels.  As a result, we continue to expect that Armtec will achieve the Senior Debt to EBITDA covenant under the Brookfield Facility at June 30, 2012," said Mark Anderson, President and Chief Executive Officer. "In addition, the continued strength in our bookings with expected margin improvements, as compared to 2011, demonstrates our ability to deliver innovative solutions that meet the needs of our valued customers."Armtec will hold its Annual Meeting of Shareholders on Thursday, June 21, 2012, at 10:30 a.m. (ET).  The meeting will take place at the TMX Broadcast Centre, The Exchange Tower, 130 King Street West, Toronto, Ontario. Following the formal meeting, there will be a presentation by management and a question and answer session.ABOUT ARMTEC INFRASTRUCTURE INC.Armtec is a leading 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.  Operating through its network of regional offices and production facilities across the country, Armtec's broad range of engineered solutions include products for drainage, bridge applications, soil retention, rehabilitation and water management systems including corrugated high-density polyethylene, corrugated steel and concrete pipe; an array of architectural and structural precast and pre-stressed concrete products from steps, paving stones, slabs and wall panels to highly engineered structural components designed and installed for projects such as bridges, sports venues and parking garages; and a full suite of noise barriers, acoustic enclosure and wall systems along with associated retaining wall and traffic barrier systems.FORWARD-LOOKING STATEMENTSThis news release contains "forward-looking" statements within the meaning of applicable securities legislation (including with respect to the expectation that Armtec will meet the financial covenants under the Brookfield Facility and expected margin improvements) 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.For further information: Carrie Boutcher Vice President, Investor Relations & Treasurer Tel:  (519) 822-0210 Fax: (519) 822-8894