Newalta Announces $87 Million Capital Spending Program for 2010 - Reorganizes Reporting Structure to Better Align the Business for Continued Growth
CALGARY, ALBERTA – December 7, 2009 /CNW/ - Newalta Inc. ("Newalta") (TSX:NAL) today announced its planned capital budget of $87 million for 2010. Growth capital expenditures of approximately $60 million are comprised of $35 million for Onsite Services, with the majority to support the growth in the Heavy Oil business unit, and $20 million in Facilities, divided equally between facilities located in eastern Canada and western Canada. The remaining $5 million in growth capital expenditures are for corporate investments. Maintenance capital expenditures are budgeted to be approximately $27 million. Included in the maintenance capital budget is approximately $9 million for the construction of additional landfill cells, primarily at Stoney Creek Landfill. At current landfill volumes the Stoney Creek Landfill has an estimated life of 10 years and the expenditures in 2010 will be directed at the construction of an additional landfill cell to provide capacity for approximately two years. The capital expenditures will be funded from funds from operations, with approximately 40% expected to be spent in the first half of 2010.
Newalta also announced that effective January 1, 2010, it will reorganize its reporting structure into two divisions - Onsite and Facilities - in order to better align the business for continued growth. Newalta will maintain the current reporting structure of Western and Eastern divisions for the remainder of fiscal 2009.
"Our onsite services have grown dramatically over the past few years and now represent 25% of revenue. This is a national business with shared resources and technical expertise directed primarily at large customers with complex environmental challenges," said Al Cadotte, Newalta's President and CEO. "The onsite business is primarily contractual in nature and involves sales, finance and management capabilities distinctly different from our facilities business."
The reorganization of the two new segments will be as follows:
There will be no changes to the current key performance indicator disclosure information provided in Newalta's MD&A, other than it will be provided under different divisional headings. Newalta will provide historical financial information based on the new segments in early 2010.
In addition, on January 1, 2010, Newalta Inc. will amalgamate with its wholly-owned operating subsidiary, Newalta Corporation. In connection with this internal reorganization, the name of the resulting public entity will be changed to Newalta Corporation. Both Newalta's shares and debentures will continue to trade under the same respective symbols of NAL and NAL.DB and shareholders and debentureholders will not be required to take any action with respect to their share certificates.
Newalta Inc. is Canada's largest industrial waste management and environmental services provider and focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. It also provides environmentally sound disposal of solid, non-hazardous industrial waste. With talented people and a national network of facilities, Newalta serves customers in the automotive, construction, forestry, lead, manufacturing, mining, oil and gas, petrochemical, pulp and paper, refining, steel and transportation service industries. Providing solid investor returns, exceptional customer service, safe operations and environmental stewardship has enabled Newalta to expand into new service sectors and geographic markets. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.
This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. This forward-looking information includes, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Specific forward-looking information contained in this news release include statements regarding Newalta's 2010 capital spending program, demand for our services and growth strategy and the results of such program, services and strategy, including expected financial and operating results. Readers are cautioned not to place undue reliance on such forward-looking information. Forward-looking information is based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Newalta and described in the forward-looking information contained in this news release. Among the various factors that could cause results to vary materially from those indicated in the forward-looking information include failure to realize growth anticipated by the proposed capital spending, a reduction in funds from operations, limitations on bank borrowing, fluctuations in commodity prices, currency value and interest rates, increased costs for equipment purchases and facility construction and delays in obtaining equipment and in the construction of facilities. In addition, Newalta regularly assesses the allocation of capital expenditures and, as such, the aggregate dollar amount to be expended and the amounts allocated to each growth area and operating division may be reallocated between the divisions and specific projects. Readers should also be aware that the forward-looking information is also affected by the risk factors described in Newalta's Annual Information Form and those set forth from time to time in Newalta's continuous disclosure filings with Canadian securities regulatory authorities, which are available through Newalta's website at www.newalta.com and on the SEDAR website at www.sedar.com. No assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do so, what benefits Newalta will derive therefrom.
The forward-looking statements contained in this news release are made as of the date hereof and Newalta undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Newalta also announced that effective January 1, 2010, it will reorganize its reporting structure into two divisions - Onsite and Facilities - in order to better align the business for continued growth. Newalta will maintain the current reporting structure of Western and Eastern divisions for the remainder of fiscal 2009.
"Our onsite services have grown dramatically over the past few years and now represent 25% of revenue. This is a national business with shared resources and technical expertise directed primarily at large customers with complex environmental challenges," said Al Cadotte, Newalta's President and CEO. "The onsite business is primarily contractual in nature and involves sales, finance and management capabilities distinctly different from our facilities business."
The reorganization of the two new segments will be as follows:
Onsite
- Western Business Unit
- Eastern Business Unit
- Heavy Oil Business Unit
Facilities
- Western Business Unit
- Eastern Business Unit
- Ville Ste-Catherine (VSC)
There will be no changes to the current key performance indicator disclosure information provided in Newalta's MD&A, other than it will be provided under different divisional headings. Newalta will provide historical financial information based on the new segments in early 2010.
In addition, on January 1, 2010, Newalta Inc. will amalgamate with its wholly-owned operating subsidiary, Newalta Corporation. In connection with this internal reorganization, the name of the resulting public entity will be changed to Newalta Corporation. Both Newalta's shares and debentures will continue to trade under the same respective symbols of NAL and NAL.DB and shareholders and debentureholders will not be required to take any action with respect to their share certificates.
Newalta Inc. is Canada's largest industrial waste management and environmental services provider and focuses on maximizing the value inherent in industrial waste through the recovery of saleable products and recycling. It also provides environmentally sound disposal of solid, non-hazardous industrial waste. With talented people and a national network of facilities, Newalta serves customers in the automotive, construction, forestry, lead, manufacturing, mining, oil and gas, petrochemical, pulp and paper, refining, steel and transportation service industries. Providing solid investor returns, exceptional customer service, safe operations and environmental stewardship has enabled Newalta to expand into new service sectors and geographic markets. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.
This news release contains statements that may constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable Canadian securities legislation. This forward-looking information includes, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Specific forward-looking information contained in this news release include statements regarding Newalta's 2010 capital spending program, demand for our services and growth strategy and the results of such program, services and strategy, including expected financial and operating results. Readers are cautioned not to place undue reliance on such forward-looking information. Forward-looking information is based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Newalta and described in the forward-looking information contained in this news release. Among the various factors that could cause results to vary materially from those indicated in the forward-looking information include failure to realize growth anticipated by the proposed capital spending, a reduction in funds from operations, limitations on bank borrowing, fluctuations in commodity prices, currency value and interest rates, increased costs for equipment purchases and facility construction and delays in obtaining equipment and in the construction of facilities. In addition, Newalta regularly assesses the allocation of capital expenditures and, as such, the aggregate dollar amount to be expended and the amounts allocated to each growth area and operating division may be reallocated between the divisions and specific projects. Readers should also be aware that the forward-looking information is also affected by the risk factors described in Newalta's Annual Information Form and those set forth from time to time in Newalta's continuous disclosure filings with Canadian securities regulatory authorities, which are available through Newalta's website at www.newalta.com and on the SEDAR website at www.sedar.com. No assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do so, what benefits Newalta will derive therefrom.
The forward-looking statements contained in this news release are made as of the date hereof and Newalta undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
For further information: Anne M. MacMicken, Executive Director, Investor Relations, (403) 806-7019, www.newalta.com