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HSE Reports 2006 Year End Financial Results – Revenue Rises By 70%, Ebitda Increases By 102%

NEWS RELEASE - April 26, 2007

HSE Integrated Ltd. (“HSE” or the “Company”) is pleased to announce its financial results for the year ended December 31, 2006. Financial and operating highlights are summarized below:

  • Revenue increased by 70% for the year to $100.5 million as compared to 2005
  • Approximately three quarters of the $41.4 million increase in revenue from 2005 to 2006 is attributable to acquisitions
  • Organic revenue growth for 2006 (over the same period in the prior year) is estimated to be 15%
  • EBITDA increased by almost 102% to $15.3 million as compared to 2005
  • Five acquisitions were completed within the year: Key Safety Services Inc (January), Key Monitoring Solutions Corp (January), Sentry Fire Equipment Ltd (April), Front-Line Safety Services Ltd (April), and Bear’s Safety and Rescue Services Ltd (July)
  • Majority of $8 million capital program completed by year end, with the remainder expected to be completed by the first half of 2007
  • Sector diversification continues as industrial safety services revenues as a percentage of the total business mix grows – 23% in 2006 compared to 17% in the previous year

David Yager, Chairman and CEO, offered the following comments in HSE’s 2006 financial results.

“The significant growth of HSE in 2006 reflects the creation of Canada’s first national industrial safety services company. The internal and acquisition growth that was undertaken has given us the equipment, manpower and financial capacity to meet the needs of industry on the important, Health, Safety and Environment file. Combined with our strong balance sheet, what HSE achieved in 2006 is financial strength, regional capacity, and industry sectorial diversity. This platform will permit HSE to continue to grow in 2007 despite the challenges facing the conventional upstream oil and gas industry at the present time.”

For further information and analysis please see the attached Management’s Discussion and Analysis and Financial Statements.

CONFERENCE CALL

HSE will be hosting a conference to discuss their results at 11 AM (Eastern Daylight Saving Time, 9 AM Mountain Daylight Saving Time) on Friday April 27, 2007. To participate call 1-800-731-5774 or 416-644-3418. Details on the webcast and conference call replay are contained in a separate News Release.

HSE is an integrated, national supplier of industrial Health, Safety and Environmental services. From its head office in Calgary, Alberta, its serves its clients from field service locations in Alberta, British Columbia, Ontario, Nova Scotia, New Brunswick and Michigan. HSE trades on the TSX Venture Exchange under the symbol “HSL”.

Forward-Looking Statements

This news release may contain forward-looking statements concerning, among other things, the Company’s prospects, expected revenues, expenses, profits, financial position, strategic direction, and growth initiatives, all of which are subject to risks, uncertainties and assumptions. These forward-looking statements are identified by their use of terms and phrases such as expect, anticipate, estimate, believe, may, will, intend, plan, continue, project, objective and other similar terms and phrases. These statements are based on certain assumptions and analyses made by the Company based on its experience and assessment of current conditions, known trends, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to numerous external variables, both known and unknown, such as changes in commodity prices for natural gas and oil, changes in drilling activity, weather conditions, industry-specific and general economic conditions and exchange rate fluctuations. If any of these risks and uncertainties materializes or if assumptions are incorrect, actual results may differ materially from those expressed or implied in the forwardlooking statements. The forward looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon.

Non-GAAP Measures

This report makes reference to EBITDA, a measure that is not recognized under generally accepted accounting principles (GAAP). Management believes that, in addition to net earnings, EBITDA is a useful supplementary measure. EBITDA provides investors with an indication of earnings before provisions for interest, taxes, amortization, gains or losses on the disposal of property and equipment, and the non-cash effect of stock-based compensation expense. Investors should be cautioned that EBITDA should not be construed as an alternative to net earnings determined by GAAP as an indication of the Company’s performance. This method of calculating EBITDA may differ from that of other companies and accordingly may not be comparable to measures used by other companies.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.

For the full release please click here

For more information please contact:

David Yager, Chairman & CEO
Telephone: (403) 266-1833
E-Mail:

Tony Hidalgo, Chief Financial Officer
Telephone: (403) 266-1833
E-Mail: