TerraVest Capital Inc. (TSX: TVK) ("TerraVest" or the "Company") is pleased to announce its results for the three and six months ended March 31, 2017.
TerraVest's Fabrication and Service segments are experiencing the benefits of increasing levels of activity in Western Canada, although pricing pressure continues to affect profitability. TerraVest's non-oil and gas exposed business segment, the Fuel Containment division, experienced a decline over the comparable period in fiscal 2016 as a result of softer demand for propane related products. From an operational perspective, TerraVest continues to reinvest in the business in order to garner additional operating efficiencies that will benefit shareholders over the long term.
Highlights for the quarter include:
"Our results this quarter were mixed. The Fabrication and Service segments experienced increased utilization, while the Fuel Containment segment continued to experience soft demand for certain propane product lines following the second consecutive unseasonably warm winter. We are continuing to identify and invest in new growth opportunities for our businesses." said Dustin Haw, Chief Executive Officer of TerraVest.
TerraVest's Second quarter ended March 31, 2017 saw increase in revenue and Adjusted EBITDA of approximately 7% and 2%, respectively, versus the comparable period ended March 31, 2016. The increase in revenue is attributable to the increased activity in the Fabrication and Services segments.
TerraVest's Fuel Containment segment continues to see continuing demand for its residential and commercial oil tanks and related furnace product lines. Demand has been mixed for this segment's propane products with strong demand for storage tanks and persistently weak demand for its trailer and bobtail product lines relating to unseasonably warm temperature over the past winter.
TerraVest's Fabrication segment has experienced an increase in business activity compared to the prior year's comparable period. Backlogs in this segment are stronger than the prior year. However, pricing pressure continues to squeeze margin for this segment.
The Service segment is experiencing a similar situation to that of the Fabrication segment. Rig utilization has increased compared to the prior year, but pricing continues to weigh on profitability.
Overall management is expecting a stronger year for the Company compared to last, as Fuel Containment will see contributions from the recently acquired Vilco Group, and Fabrication and Service segments are experiencing the benefits of increased business activity in Western Canada.
TerraVest is also pleased to announce that The Board of Directors has declared its quarterly dividend of 10 cents per share upon the outstanding Common Shares in the capital stock of the Company being payable on July 11, 2017 to shareholders of record as at the close of business on June 30, 2017. The ex-dividend date is June 28, 2017. The dividend is designated an "eligible dividend" for Canadian income tax purposes.
Additional information can be found in TerraVest's unaudited interim condensed consolidated financial statements and MD&A which are available on SEDAR at www.sedar.com.
SOURCE: TerraVest Capital Inc
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