Armtec Expects to meet Senior Debt Covenants
and books over $50 million in new Engineered Solutions projects in the Second Quarter
Toronto Stock Exchange: ARF; ARF.DB
GUELPH, 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.