STT Enviro Corp. Reports Financial Results for Its Quarter Ended September 30th, 2015

TORONTO, ON--(Marketwired - November 10, 2015) - STT Enviro Corp. ("STT" or the "Company") (TSX VENTURE: STT) today reported financial results for the quarter ended September 30^th, 2015 of approximately $7.9 million of revenue, $237,650 of EBITDA and net income after tax of $98,478. For the nine months ended September 30^th, 2015, the Company reported approximately $27.8 million of revenue, $2.1 million of EBITDA and net income after tax of $982,556.

Financial Highlights for the Quarter:

Financial Highlights for the Year-to-Date:

The Company's profitability was impacted during the third quarter as a result of cost overruns on a large project in our Tanks & Industrial division. This resulted in overall gross margin of 19.6% for the third quarter, compared with our average gross margin of 23.4% for the first two quarters of the year. The Company has taken steps to strengthen its project control processes to help mitigate the impact of project cost escalations in the future.

The following chart shows the Company's current and historical working capital and cash position:

The Company's closing cash position of $6,502,286 is equivalent to $0.138 per issued common share.

During 2015, the Company repaid in full its outstanding term debt (aside from one small vehicle loan), resulting in $141,996 of interest savings in 2015 compared to 2014, and concluding an aggressive debt repayment effort which has seen our outstanding term debt decline as follows:

David Deacon, Chief Executive Officer, commented, "We continue to track towards a record year in terms of revenue. Our new order intake for the quarter was $3.9 million, and our sales funnel remains quite full. We have submitted bids on a number of projects for which the customers expect to award the work during the fourth quarter, and we are optimistic that we will be successful in securing some of these before year end. As noted in my report for last quarter, we are now tracking a much higher proportion of projects in the $3 million to $15 million range. With several of these larger projects we are seeing some delays in the request for quote (RFQ) stage and therefore may not see significant additions to our backlog until perhaps the first quarter of 2016. In the past we rarely had more than two or three of these large projects in our sales funnel. Projects of this scale offer their own set of challenges, requiring a ramp-up of our team of highly skilled project execution staff, which increases our activity in terms of recruiting, hiring and onboarding new staff. As a result we have recently initiated some personnel restructuring and organizational structure changes."

The Company will hold a conference call to discuss the financial results on November 12, 2015 at 11:00 am Eastern time. The call-in numbers are: 877-407-8031 (toll free) or 201-689-8031 (International).

The financial statements and MD&A are available on SEDAR and have also been posted on the company's website at http://www.sttenvirocorp.com/investors/financials.

About STT Enviro Corp.

STT Enviro Corp. (TSX VENTURE: STT) supplies cost-effective, incremental, environmental improvements to traditional industrial products. The Company's two operating groups, STT Enviro Corp Systems & Solutions and STT Enviro Corp Tanks & Industrial, work to reduce their customers' environmental footprint, cost efficiently.

STT Enviro Corp. Systems & Solutions engineers and supplies chemical make-down systems to neutralize pollutants (usually acid water) created in the ore or oil recovery process; and aftermarket services including optimization of chemical use for our customers to lower costs and reduce their carbon footprint.

STT Enviro Corp. Tanks & Industrial engineers and supplies bolted tanks with a smaller environmental footprint for both dry and liquid storage applications.

Environmental considerations are prerequisites in modern industrial expansion and STT Enviro Corp. is focused on being a leader and innovator on incremental environmental improvements. The Company's strategy is to grow organically and, longer term, to acquire companies at prices which are strategically and financially accretive.

For more information, please visit our website at www.sttenvirocorp.com.

Caution Regarding Forward-Looking Information and Non-IFRS Measures

Forward-Looking Information

This news release contains certain forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions regarding the growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and expectations and are based on information currently available to management of the Company. In particular, statements regarding the future operating results and economic performance are forward-looking statements. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including risks outlined under "Risk Factors" in our Annual Information Form, which is posted at www.sedar.com. In evaluating these statements, investors should specifically consider various factors, including such risks as Investment Risk; Business Valuations; Condition of Capital Markets; Dependence on Key Personnel; General Economic Factors; Interest Rate Risk; Competition; and Reliance on Key Suppliers. One or more of these "Risk Factors" could cause actual events or results to differ materially from any forward-looking statement. These factors should not be considered exhaustive. Although the forward-looking statements contained in this press release are based on what management of the Company considers to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and none of STT nor its directors assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking statements.

Non-IFRS Measures

The term "EBITDA" is a financial measure used in this document which is not a standard measure under International Financial Reporting Standards ("IFRS"). The Company's method of calculating EBITDA may differ from the methods used by other issuers. Therefore, STT's measure of EBITDA, as presented in this press release, may not be comparable to similar measures presented by other issuers. EBITDA refers to net earnings determined in accordance with IFRS before depreciation, amortization of intangible assets, gain or loss on disposal of property and equipment, interest expense, accretion expense, special charges and recoveries, stock compensation expense and income tax expense. Management believes that EBITDA is a useful supplemental measure of cash available for debt service, working capital, capital expenditures, income taxes, and distribution. Investors are cautioned that EBITDA, as a non-IFRS measure, is not an alternative to measures under IFRS and should not, on its own, be construed as an indicator of performance or cash flows, a measure of liquidity or as a measure of actual return.

The term "backlog" is a financial measure used in this document which is not a standard measure under IFRS. The Company's method of calculating backlog may differ from the methods used by other issuers. Therefore, STT's measure of backlog, as presented in this press release, may not be comparable to similar measures presented by other issuers. Backlog is the value of revenue remaining to be earned from purchase orders received from customers. The projects represented in backlog are executed according to a schedule agreed with each customer, which could range in duration from one month to eighteen months. Revenues are earned on a percentage of completion basis. Management uses this measure to i) monitor the Company's success in securing new orders, and ii) gauge the likelihood of meeting revenue objectives in future periods.

Investors are cautioned that backlog, as a non-IFRS measure, is not an alternative to measures under IFRS and should not, on its own, be construed as an indicator of performance or cash flows, a measure of liquidity or as a measure of actual return.

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 of this release.