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Press release from Marketwire

ENTREC Continues Strong Growth for the Quarter Ended September 30, 2012

- Third quarter revenue more than doubled year-over-year with organic growth of $11.4 million or 46% - Adjusted EBITDA $8.5 million and net income $0.04 per share - 2013 Revenue expected to exceed $200 million ENTREC Corporation will host a conference call and webcast to discuss its 2012 third quarter and nine-month financial results on November 14, 2012 at 9:00 am (MDT) (11:00 am Eastern). The call can be accessed by dialing toll-free: 1-866-696-5910 or 416-340-2217 (GTA and International). Passcode: 1062034. A replay will be available approximately two hours after the completion of the call through Wednesday, November 21, 2012 by dialing 905-694-9451 / 1-800-408-3053, passcode: 2841110. The conference call will also be available via webcast within the Investors section of ENTREC's website at: www.entrec.com.

Tuesday, November 13, 2012

ENTREC Continues Strong Growth for the Quarter Ended September 30, 201218:47 EST Tuesday, November 13, 2012SPRUCE GROVE, ALBERTA--(Marketwire - Nov. 13, 2012) - ENTREC Corporation ("ENTREC" or the "Company") (TSX VENTURE:ENT), a leading provider of cranes and heavy haul transportation services, is pleased to announce its 2012 third quarter financial results. $ thousands, except per share amountsThree Months EndedNine Months EndedSept 30 2012Oct 31 2011Sept 30 2012Oct 31 2011Revenue36,29815,01088,46519,661Gross profit12,2224,88530,9365,698Gross margin33.7%32.5%35.0%29.0%Adjusted EBITDA(1)8,5202,99921,7862,796Adjusted EBITDA margin(1)23.5%20.0%24.6%14.2%Per share(1)0.110.090.340.14Net income3,1439168,684192Per share - basic0.040.030.140.01Per share - diluted0.040.030.130.01Note:(1)See "Non-IFRS Financial Measures" section of the Company's Management Discussion & Analysis for the three months ended September 30, 2012."We achieved significant growth in revenue, EBITDA, and net income in the third quarter of 2012 as we continued to execute our growth strategies and respond to robust demand from Western Canada's resource industries," said John M. Stevens, ENTREC's President and COO. "Since our founding acquisition in May 2011, we have completed a total of nine acquisitions and undertaken a significant capital expenditure program to expand our fleet and service offering, and increase our geographic and customer diversification."For the three months ended September 30, 2012, revenue more than doubled to $36.3 million from $15.0 million during the comparative three months ended October 31, 2011. The strong revenue performance reflects the positive impact of the Company's business acquisitions, as well as significant organic growth. On a pro forma combined basis, third quarter revenue was $11.4 million or 46% higher than what ENTREC and each of the acquired businesses achieved independently during the same period in 2011. The strong organic growth reflects a combination of enhanced operational efficiency and equipment utilization, pricing improvements and expansion of the Company's equipment fleet. Adjusted EBITDA for the three months ended September 30, 2012 increased by 184% to $8.5 million, reflecting the higher revenue and an improved gross margin percentage of 33.7%, compared to 32.5% last year. Adjusted EBITDA margin climbed to 23.5% of revenue from 20.0% during the comparable period ended October 31, 2011. Third quarter net income increased to $3.1 million or $0.04 per share from $0.7 million or $0.03 per share during the comparable period last year.For the nine months ended September 30, 2012, revenue increased to $88.5 million from $19.7 million during the comparable period in 2011. Adjusted EBITDA increased to $21.8 million from $2.8 million, while Adjusted EBITDA margin grew to 24.6% from 14.2%. Net income for the first nine months of 2012 increased to $8.7 million or $0.14 per share from $0.2 million or $0.01 per share during the comparable period last year. Strong Outlook for Remainder of 2012 and 2013"Our outlook for the remainder of 2012 and 2013 continues to be positive," said Mr. Stevens. "Capital spending levels on projects within the Alberta oil sands region and across Western Canada remain robust, resulting in high demand for both crane and heavy haul transportation services. Utilization rates for our fleet are currently strong and we continue to field a large volume of requests for additional equipment from our customers."The recent acquisitions of Rain Coast Cranes & Equipment Inc. ("Rain Coast") and Tiggo Transport Ltd. ("Tiggo"), position the Company to benefit from the burgeoning industrial development occurring in Northern BC and North-west Alberta. This includes the development of LNG facilities planned for the Kitimat, BC region over the coming years as well as ongoing mining, hydro-electric, pipelines, and oil and gas projects throughout these areas.The Rain Coast acquisition also builds on ENTREC's crane service offering, which was established with the June 2012 acquisition of the Mains Group. Crane services are highly complementary to heavy haul transportation and allow customers to obtain both their heavy haul and lifting needs from one vendor. They also increase access to recurring onsite maintenance, operation and repair ("MRO") support work in the Alberta oil sands region, as cranes are key to performing this work. A large part of ENTREC's capital expenditure program in 2013 will be directed to adding additional crane assets in order to grow the Company's capability and market share in this important area.Revenue Guidance IncreasedBased on current expectations for future business activity, the Company currently estimates revenue for the year ending December 31, 2012 could be between $125 million and $130 million. This represents an increase from ENTREC's previous revenue guidance of $115 million and primarily reflects the anticipated incremental revenue from the Rain Coast and Tiggo acquisitions.Looking Forward to 2013"Moving into 2013, we expect our revenue and net earnings to continue to show strong growth as we execute our capital expenditure programs," added Mr. Stevens. "While we will not finalize our 2013 plan until early in the new year, we currently anticipate that our 2013 capex program could increase to the $50 million range as we capitalize on growth opportunities. This would include approximately $40 - $45 million of growth capital to significantly increase our fleet of cranes and heavy haul transportation trucks and trailers." Based on current expectations for future business activity, the Company currently estimates revenue for the year ending December 31, 2013 could exceed $200 million.A complete set of ENTREC's most recent financial statements and Management's Discussion and Analysis will be filed on SEDAR (www.sedar.com) and posted on the Company's website (www.entrec.com).About ENTRECENTREC specializes in the lifting, transportation (over the road and on-site), loading, off-loading and setting of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries. The common shares of ENTREC trade on the TSX Venture Exchange under the trading symbol "ENT". Non-IFRS Financial MeasuresAdjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, loss (gain) on disposal of property, plant and equipment, and share-based compensation. In addition to net income, Adjusted EBITDA is a useful measure as it provides an indication of the financial results generated by ENTREC's principal business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions and before certain non-cash expenses. Please see ENTREC's Management Discussion & Analysis for the three months ended September 30, 2012 for a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measure calculated and presented in accordance with IFRS.Consolidated Statements of Financial Position As atSeptember 30December 3120122011(thousands of Canadian dollars)$ $ASSETSCurrent assetsCash5,779115Trade and other receivables33,90813,679Inventory1,597576Prepaid expenses and deposits1,99940643,28314,776Non-current assetsLong-term deposits777400Property, plant and equipment94,11445,680Intangible assets18,1526,440Goodwill41,22210,356Total assets197,54877,652LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilitiesBank indebtedness-267Trade and other payables13,8765,949Income taxes payable2,790-Acquisition consideration payable1,5504,125Current portion of credit facilities-5,251Current portion of long-term debt12,907-Current portion of obligations under finance lease782313Credit facilities-22,23831,90538,143Non-current liabilitiesLong-term debt50,771-Obligations under capital lease2,6731,141Deferred income taxes13,5421,877Total liabilities98,89141,161Shareholders' equityShare capital82,04134,759Contributed surplus7,3751,125Retained earnings9,291607Accumulated other comprehensive income(50)-Total shareholders' equity98,65736,491Total liabilities and shareholders' equity197,54877,652Interim Consolidated Statements of IncomeThree Months EndedNine Months Ended(thousands of Canadian dollars, except per share amounts)Sept 30 2012 $Oct 31 2011 $Sept 30 2012 $Oct 31 2011 $Revenue36,29815,01088,46519,661Direct costs24,07610,12557,52913,963Gross profit12,2224,88530,9365,698Operating expensesGeneral and administrative expense3,7021,8869,1502,902Depreciation of property, plant and equipment2,5041,0145,6371,546Amortization of intangible assets5561861,100212Share-based compensation193185811278Loss (gain) on disposal of property, plant and equipment43(21)171(21)6,9983,25016,8694,917Income before finance items and income taxes5,2241,63514,067781Finance itemsFinance costs8803282,009499Finance income(2)(1)(19)(33)8783271,990466Income before income taxes4,3461,30812,077315Income taxesCurrent735-1,176-Deferred4683922,2171231,2033923,393123Net income3,1439168,684192Earnings per share - basic0.040.030.140.01Earnings per share - diluted0.040.030.130.01Forward-looking StatementsThis press release contains forward-looking statements which reflect ENTREC's current beliefs and are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond ENTREC's control. Examples of such forward-looking statements in this press release relate to, but are not limited to: ENTREC's projection that revenue for the year ending December 31, 2012 could be between $125 and $130 million; expectation the recent acquisitions of Rain Coast and Tiggo will complement the Company's current crane and heavy haul transportation operations and position ENTREC to benefit from the burgeoning industrial development throughout Northern BC and North-west Alberta; projection that revenue for the year ending December 31, 2013 could exceed $200 million; expectation the Company will execute its 2012 capital expenditure program of $39 million; and projection that ENTREC's 2013 capital expenditure program could be in the $50 million range.These forward-looking statements involve a number of significant assumptions. Key assumptions utilized in developing forward-looking statements related to ENTREC's future growth expectations include achieving its internal revenue, net income and cash flow forecasts for 2012 and 2013. Achieving these forecasts is largely dependent on a number of factors beyond ENTREC's control including all of the risks discussed further under the "Business Risks" section in ENTREC's Management Discussion and Analysis for the three months ended September 30, 2012. These risk factors are interdependent and the impact of any one risk or uncertainty on a particular forward-looking statement is not determinable. ENTREC's ability to finance its capital expenditure programs is dependent on its ability to achieve debt financing terms acceptable to the lenders and ENTREC as well as meeting ENTREC's internal cash flow forecasts. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, ENTREC. These forward-looking statements are made as of the date of this press release. Except as required by applicable securities legislation, ENTREC assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.FOR FURTHER INFORMATION PLEASE CONTACT: Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Contact Information: ENTREC CorporationRod MarlinChairman & CEO(780) 960-5647ENTREC CorporationJohn M. StevensPresident & COO(780) 960-5625ENTREC CorporationJason VandenbergCFO(780) 960-5630www.entrec.com