ENTREC Announces 2013 Fourth Quarter and Year-End Financial Results

ENTREC Corporation ("ENTREC" or the "Company") (TSX VENTURE:ENT), a leading
provider of heavy lift and heavy haul services, today announced financial
results for the fourth quarter and year ended December 31, 2013. 




                                  Three Months Ended        Year Ended      
$ thousands, except per share      Dec. 31    Dec. 31    Dec. 31    Dec. 31 
 amounts and margin percent           2013       2012       2013       2012 
                                                                            
Revenue                             52,821     44,026    212,911    132,491 
                                                                            
Gross profit                        16,068     14,164     72,513     45,100 
Gross margin                          30.4%      32.2%      34.1%      34.0%
                                                                            
Adjusted EBITDA(1)                  11,364     10,829     53,610     33,471 
  Margin(1)                           21.5%      24.6%      25.2%      25.3%
  Per share(1)                        0.10       0.13       0.49       0.49 
                                                                            
Adjusted net income(1)               2,254      3,566     18,420     13,025 
  Per share(1)                        0.02       0.04       0.17       0.19 
                                                                            
Net income                             342      3,428     15,813     12,112 
  Per share - basic                   0.00       0.04       0.15       0.18 
  Per share - diluted                 0.00       0.04       0.14       0.17 
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Note 1: See "Non-IFRS Financial Measures" section of the Company's Management
Discussion & Analysis for the year ended December 31, 2013.


"In 2013, we continued to make strong progress in positioning ourselves for the
future," said John M. Stevens, ENTREC's President and CEO. "Through the
acquisition of GT's and a robust $59 million capital expenditure program, we
expanded our operations in key geographical areas and added significant scale to
our fleet. We believe we are now well-positioned to capture a major share of the
overall work in our growing markets throughout western Canada and in the Bakken
region of North Dakota." 


"This includes Alberta's oil sands, where construction activity is expected to
remain strong, and maintenance, repair and operation (MRO) work is expected to
grow over the next several years. In addition, our operations are
well-positioned to take advantage of liquefied natural gas (LNG) development in
northeast B.C., where much of the natural gas is expected to be sourced, and in
northwest B.C. where the LNG facilities and the connecting pipelines are
expected to be constructed in future years. We consider these two industries to
be our critical growth drivers over the next decade."


2013 Financial Results

Overall, the Company's financial results in 2013 were mixed. ENTREC started the
year strong, but was hampered in the second half through lower utilization of
its equipment fleet, which impacted revenue. A combination of certain projects
winding down and the deferred start of other large projects until later in 2014
caused the decline. 


Revenue increased by 61% year-over-year to $212.9 million in 2013 from $132.5
million in 2012, reflecting the positive impact of business acquisitions
completed over the past year. On a pro forma basis, revenue in the year ended
December 31, 2013 was slightly lower than the $219.9 million ENTREC and each of
its acquired businesses achieved on a combined basis in the year ended December
31, 2012.


Over the past year ENTREC has created the foundation for substantial organic
revenue growth from the expansion of its equipment fleet, though its capital
expenditure programs. The anticipated growth was, however, offset for the short
term by lower equipment utilization, especially in the second half of 2013.
Compared to the previous year, revenue from the conventional oil and natural gas
industry was weaker in 2013. In addition, ENTREC also experienced a temporary
slowdown in demand for its services in the Alberta oil sands market in the
second half of 2013. This temporary period of lower activity in regional crane
and heavy haul transportation projects extended into the first two months of
2014. 


Adjusted EBITDA increased to $53.6 million during the year ended December 31,
2013 from $33.5 million in 2012. As a percentage of revenue, the 2013 adjusted
EBITDA margin of 25.2% was consistent with the adjusted EBITDA margin of 25.3%
achieved in 2012. The Company's continued expansion in crane services in 2013
contributed to higher EBITDA margins in the year. The increases were, however,
completely offset by lower equipment utilization in crane services and heavy
haul transportation than in 2012.


Adjusted net income increased to $18.4 million in 2013 from $13.0 million in
2012, reflecting the higher year-over-year revenue. Adjusted earnings per share
were $0.17 per share in the year ended December 31, 2013, compared to $0.19 per
share last year.


For the year ended December 31, 2013, net income grew to $15.8 million or $0.15
per share from $12.1 million or $0.18 per share in 2012. Net income includes the
after-tax effect of acquisition-related intangible asset amortization, interest
accretion on convertible debentures and gains on the revaluation of the embedded
derivative component of convertible debentures; all of which are components
excluded from the calculation of adjusted net income. 


The higher adjusted net income and net income reported in 2013 were offset by an
increase in the weighted average number of shares outstanding. This resulted in
adjusted net income and net income on a per share basis being lower in 2013 than
in 2012. Adjusted net income and net income in 2013 also included $1.4 million
in non-recurring acquisition and integration costs, primarily related to
ENTREC's acquisition of GT's (year ended December 31, 2012 - $1.3 million). 


Outlook for 2014 and Beyond

"Our outlook for the future remains positive," said Mr. Stevens. "Despite the
lower demand we have seen in some markets in recent months, quoting activity in
our key markets continues to be strong for work commencing later in 2014 and
beyond. In the short term, we expect continuing modest activity in the first
half of 2014 as equipment utilization remains lower. We are, however,
experiencing strong activity from our operations in northeast B.C. and northwest
Alberta in early 2014, which are supporting LNG-related natural gas projects in
those regions." 


Oil sands demand for ENTREC's services is expected to gain momentum as the year
progresses. The Company is currently working with oil sands customers on large
crane and heavy haul transportation projects that will commence as 2014 unfolds.
Certain of these projects will extend through 2017. 


Consistent with its strategy, the Company is expanding the amount of long-term
maintenance, repair and operation (MRO) contract work it performs in the Alberta
oil sands region. ENTREC was recently awarded a five-year MRO contract with a
new oil sands customer, which commenced in late 2013. The Company also continues
to cross-sell its crane and heavy haul transportation services to existing and
new oil sands customers. 


"We believe in situ-related oil sands production will grow at a brisk pace over
the next several years as new projects commence and existing facilities are
expanded," added Mr. Stevens. "We believe we are well-positioned to support our
customers through the construction and the MRO phases of these developments."


Northwest B.C. continues to be a busy area for ENTREC's business. The Company is
working on various mining, hydro-electric, pipeline, and oil and natural gas
projects in the region and is providing crane and transportation services to
support a multi-billion-dollar revitalization of an aluminum smelter in Kitimat,
B.C. The Company will continue to expand its service capabilities in this
important region throughout 2014 in preparation of the planned development of
LNG facilities in future years. These projects, along with ancillary
infrastructure developments, are expected to require extensive crane and heavy
haul transportation services.


With ENTREC's acquisition of GT's in 2013, it now has a leading market position
in northeast B.C. and northwest Alberta. The Company believes this will be a
busy area in 2014 as it supports oil and natural gas projects in the region,
including customer investments in LNG-driven natural gas production and
infrastructure. ENTREC also recently expanded its operations into Fort St. John,
B.C. to better serve customers in the region.


Based on current expectations for future business activity, and assuming no
business acquisitions are completed, ENTREC reiterates its previous guidance
that revenue for the year ending December 31, 2014 could range between $250 and
$270 million. This compares to pro forma revenue of $237 million that ENTREC and
each of its acquired businesses achieved on a combined basis in the year ended
December 31, 2013. The Company expects revenue to trend upward throughout 2014
as project work begins to ramp up and utilization levels increase. Any business
acquisitions completed in fiscal 2014 could increase the revenue achieved and/or
trigger revised revenue guidance.


The Company also continues to estimate that its overall adjusted EBITDA margin
for fiscal 2014 could approximate 25%. Consistent with the anticipated trend in
revenue, ENTREC believes its adjusted EBITDA margin will also begin 2014 lower
and then increase as the year progresses and utilization improves.


2014 Capital Expenditure and Share Buy-back Programs

The Company has commenced its previously announced $46 million capital
expenditure program for 2014. The program is focused on growing ENTREC's crane
fleet to expand its service capabilities in this market and consists of $34
million in growth capital expenditures and $12 million in maintenance capital
expenditures.


In addition, with ENTREC's positive outlook for the future, it believes one of
the best investments it can make is in itself. In November 2013 ENTREC
implemented a normal course issuer bid (NCIB) to purchase for cancellation, from
time to time, its issued and outstanding common shares. Pursuant to the NCIB,
ENTREC may purchase for cancellation up to a maximum of 8,561,671 common shares,
being approximately 10% of the public float, during the NCIB's term. The NCIB
commenced November 20, 2013 and will terminate on November 19, 2014 or such
earlier time as it is completed or otherwise terminated at ENTREC's option. At
current market prices, ENTREC plans to initiate purchases under the NCIB
shortly.


ENTREC intends to fund its 2014 capital expenditure program and NCIB purchases
from its new asset-based debt facility (the "ABL Facility"), finance leases and
cash from operating activities. The Company also expects to have the flexibility
to increase its capital expenditure program throughout 2014 should customer
demand warrant. ENTREC does not believe it will need to raise additional equity
to fund its 2014 capital expenditure program.


New ABL Facility

On March 6, 2014, ENTREC closed a new $240 million senior secured ABL Facility
with a syndicate of lenders led by Wells Fargo Capital Finance Corporation
Canada. The ABL Facility replaced the Company's previous senior debt facilities
and will be used to fund future capital expenditures and business acquisitions
and for general corporate purposes.


The ABL Facility has a five year term and requires payments of interest only.
Amounts borrowed bear interest, at ENTREC's option, at bank prime or bankers'
acceptance rates, plus a credit spread based on a sliding scale. ENTREC may
prepay all or any part of the ABL Facility at any time.


"This facility is covenant light with a borrowing base that increases as our
business grows making the ABL Facility a perfect fit with our business," said
Jason Vandenberg, ENTREC's Chief Financial Officer. "The customized financing
provided by Wells Fargo demonstrates the strong value in our equipment fleet and
will provide us with significant financial flexibility to continue to execute
our growth strategies." 


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 ENTREC

ENTREC is a leading provider of heavy lift and heavy haul services with
offerings encompassing crane services, heavy haul transportation, engineering,
logistics and support. ENTREC provides these services to the oil and natural
gas, construction, petrochemical, mining and power generation industries.
ENTREC's common shares trade on the TSX Venture Exchange under the trading
symbol "ENT".


Fourth Quarter and Year-end Conference Call

ENTREC will host a conference call and webcast to discuss its 2013 fourth
quarter and year-end financial results tomorrow, March 11, 2014 at 9:00 am (MDT)
(11:00 am Eastern). The call can be accessed by dialing toll-free:
1-866-225-0198 or 416-340-2219 (GTA and International). 


A replay will be available approximately two hours after the completion of the
call until March 18, 2014, by dialing 905-694-9451 / 1-800-408-3053, passcode:
8507621.


The conference call will also be available via webcast within the Investors
section of ENTREC's website at: www.entrec.com.




Consolidated Statements of Financial Position       December 31 December 31 
As at                                                      2013        2012 
(thousands of Canadian dollars)                               $           $ 
                                                                            
ASSETS                                                                      
Current assets                                                              
  Cash                                                      651       2,511 
  Trade and other receivables                            45,146      41,789 
  Inventory                                               2,552       1,968 
  Prepaid expenses and deposits                           2,487       1,936 
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                                                         50,836      48,204 
Non-current assets                                                          
  Long-term deposits and other assets                     4,910         523 
  Deposits on business acquisitions                           -       4,273 
  Property, plant and equipment                         207,205     134,761 
  Intangible assets                                      27,560      23,868 
  Goodwill                                               69,276      53,575 
  Deferred income taxes                                       -         165 
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Total assets                                            359,787     265,369 
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LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current liabilities                                                         
  Trade and other payables                               18,335      16,781 
  Income taxes payable                                    1,876       2,703 
  Acquisition consideration payable                         587       2,320 
  Current portion of long-term debt                      20,619      14,226 
  Current portion of obligations under finance                              
   lease                                                  1,788       1,298 
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                                                         43,205      37,328 
Non-current liabilities                                                     
  Long-term debt                                         76,321      64,281 
  Obligations under finance lease                         2,422       4,914 
  Notes payable                                           7,294           - 
  Convertible debentures                                 23,557      23,426 
  Deferred income taxes                                  27,220      19,428 
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Total liabilities                                       180,019     149,377 
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Shareholders' equity                                                        
  Share capital                                         141,711      94,880 
  Contributed surplus                                     9,155       8,429 
  Retained earnings                                      28,532      12,719 
  Accumulated other comprehensive income (loss)             370         (36)
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Total shareholders' equity                              179,768     115,992 
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Total liabilities and shareholders' equity              359,787     265,369 
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Consolidated Statements of                                                  
 Income                           Three Months Ended        Year Ended      
                                  December   December   December   December 
(thousands of Canadian dollars,    31 2013    31 2012    31 2013    31 2012 
 except per share amounts)               $          $          $          $ 
                                                                            
Revenue                             52,821     44,026    212,911    132,491 
Direct costs                        36,753     29,862    140,398     87,391 
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Gross profit                        16,068     14,164     72,513     45,100 
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Operating expenses                                                          
General and administrative                                                  
 expense                             4,816      3,747     20,331     12,897 
Depreciation of property, plant                                             
 and equipment                       5,486      3,424     18,705      9,061 
Amortization of intangible                                                  
 assets                                966        725      3,479      1,825 
Share-based compensation               331        584      1,567      1,395 
Loss on disposal of property,                                               
 plant and equipment and other                                              
 assets                                 49         58          1        229 
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                                    11,648      8,538     44,083     25,407 
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Income before finance items and                                             
 income taxes                        4,420      5,626     28,430     19,693 
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Finance items                                                               
  Finance costs                      2,208      1,570      7,876      3,579 
  Finance income                         -          -          -        (19)
  Loss (gain) on change in fair                                             
   value of embedded derivative      1,314       (691)    (1,002)      (691)
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                                     3,522        879      6,874      2,869 
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Income before income taxes             898      4,747     21,556     16,824 
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Income taxes                                                                
  Current                              831       (120)     2,666      1,056 
  Deferred                            (275)     1,439      3,077      3,656 
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                                       556      1,319      5,743      4,712 
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Net income                             342      3,428     15,813     12,112 
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Earnings per share - basic            0.00       0.04       0.15       0.18 
Earnings per share - diluted          0.00       0.04       0.14       0.17 
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Non-IFRS Financial Measures

Adjusted EBITDA is defined as earnings before interest, income taxes,
depreciation, amortization, loss (gain) on disposal of property, plant and
equipment, change in fair value of embedded derivative, share-based
compensation, and non-recurring business acquisition and integration costs. 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. Adjusted EBITDA also illustrates what ENTREC's EBITDA is, excluding
the effect of non-recurring business acquisition and integration costs. Adjusted
EBITDA margin is calculated as adjusted EBITDA divided by revenue. Per share
amounts are calculated as adjusted EBITDA divided by the basic weighted average
number of shares outstanding during the period.


Adjusted net income is calculated excluding the after-tax amortization of
acquisition-related intangible assets, notional interest accretion expense
arising from convertible debentures, and the gain (loss) on change in fair value
of the embedded derivative related to such convertible debentures. These
exclusions represent non-cash charges the Company does not consider indicative
of ongoing business performance. ENTREC also believes the elimination of
amortization of acquisition-related intangible assets provides management and
investors an improved view of its business results by providing a degree of
comparability to internally developed intangible assets for which the related
costs are expensed as incurred. Adjusted earnings per share are calculated as
adjusted net income divided by the basic weighted average number of shares
outstanding during the applicable period. 


Please see ENTREC's Management Discussion & Analysis for the year ended December
31, 2013 for reconciliations of adjusted EBITDA and adjusted net income to net
income, the most directly comparable financial measure calculated and presented
in accordance with IFRS.


Forward-looking Statements

This 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 MD&A include, but are not
limited to: plans to execute a 2014 capital expenditure program of $46 million;
expectation that ENTREC's equipment utilization will remain lower as activity
levels in the first half of 2014 will continue to be modest; expectation that
demand for the Company's services in the Alberta oil sands region will gain
momentum as the year progresses; belief that in situ-related oil sands
production will grow at a brisk pace over the next several years as new projects
commence and existing facilities are expanded, and that ENTREC is
well-positioned to support its customers through both the construction and MRO
phases of these developments; intention that ENTREC will continue to expand its
service capabilities in northwest B.C. throughout 2014, due to the anticipation
that LNG facilities and related infrastructure will be developed; expectation
that northwest Alberta and northeast B.C. will be a busy area for ENTREC in 2014
as it supports oil and natural gas projects in the region, including customer
investments in LNG-driven natural gas production and infrastructure; estimate
that revenue for the year ending December 31, 2014 could range between $250
million and $270 million; estimate that overall adjusted EBITDA margin for
fiscal 2014 could approximate 25%; intention that the 2014 capital expenditure
program and NCIB purchases will be funded from the Company's asset-based debt
facility, finance leases and cash from operating activities; and belief that the
Company will have the flexibility to increase its 2014 capital expenditure
program throughout 2014 should customer demand warrant and that ENTREC will not
need to raise additional equity to fund its 2014 capital expenditure program.


ENTREC's forward-looking statements involve a number of significant assumptions.
Key assumptions utilized in developing forward-looking statements related to
ENTREC's growth and revenue expectations include achieving its internal revenue,
net income and cash flow forecasts for 2014 and beyond. Key assumptions involved
in preparing ENTREC's internal forecasts include, but are not limited to, its
expectations and estimates that: demand for crane and heavy haul transportation
services in western Canada increase from current levels in 2014; ENTREC will be
able to retain key personnel and attract additional high-quality personnel to
support its planned revenue growth; construction projects and production
activity in the Alberta oil sands region and in northern British Columbia
continue at or above current levels; ENTREC is able to achieve anticipated
revenues on current and future MRO contracts; the planned development of LNG
facilities proceeds and certain customers choose to utilize ENTREC's services;
there are no significant unplanned increases in ENTREC's cost structure,
including those costs related to fuel and wages; market interest rates remain
similar to current rates and that additional debt financing remains available to
ENTREC on similar terms to its existing debt financing; there is no prolonged
period of inclement weather that impedes or delays the need for crane and heavy
haul transportation services; the competitive landscape in western Canada for
crane and heavy haul transportation services does not materially change during
the remainder of 2014; and there is no material adverse change in overall
economic conditions.


Achieving these forecasts largely depends on a number of factors beyond ENTREC's
control including several of the risks discussed further under "Business Risks"
in ENTREC Management's Discussion & Analysis for the year ended December 31,
2013. The business risks that are most likely to affect ENTREC's ability to
achieve its internal revenue, net income and cash flow forecasts for 2014 and
beyond are the volatility of the oil and gas industry, its exposure to the
Alberta oil sands, workforce availability, competition, weather and seasonality,
availability of debt and equity financing, competition, and business integration
risks. 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 intention to acquire shares pursuant to its NCIB is subject to
potential fluctuations in the market price of its shares and the potential
management may find another, more desirable use for its available funds.


ENTREC's ability to finance its capital expenditure program through its debt
facilities depends on its ability to achieve debt financing terms acceptable to
the lenders and ENTREC as well as meeting its 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.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
ENTREC Corporation
John M. Stevens
President & CEO
[phone]


ENTREC Corporation
Jason Vandenberg
CFO
[phone]
www.entrec.com