November 15 - ENTREC Corporation, provider of heavy lift and heavy haul services, has announced its third quarter 2013 financial results.
ENTREC's revenue increased by 63 percent to USD59.1 million from USD36.3 million during the same period of 2012.
The growth reflected the positive impact of business acquisitions over the past year, such as the purchase of GT's Crane and Transportation Services (GT's) in July, partially offset by lower rates of equipment utilisation.
Adjusted EBITDA increased to USD16.1 million during the third quarter of 2013 from USD8.9 million in the comparative quarter in 2012, with the adjusted EBITDA margin increasing to 27.2 percent from 24.6 percent during the same period last year. Adjusted net income also increased to USD6.2 million from USD3.5 million last year.
The year-on-year improvement reflects continued expansion into higher margin crane services, as well as more cross-utilisation of equipment resources across geographic areas, which has enhanced margins by reducing ENTREC's reliance on third party contractors.
In light of the growth in 2013, John Stevens, ENTREC's president and chief operating officer, claims that the company's outlook for 2014 remains very positive.
Despite lower demand levels in some markets in recent months, oil sands demand is expected to gain momentum in 2014, which is thought to provide ENTREC with various heavy haul transportation projects.
With the acquisition of GT's, ENTREC now has a promising market position in northeast British Colombia and northwest Alberta, and the company hopes to expand its operations into Fort St John, British Colombia.
