TORONTO, ONTARIO--(Marketwire - April 19, 2010) - Semcan Inc. (TSX VENTURE:STT) today reported financial results for its financial year and for the quarter ended 31^st December 2009.

"During 2009, we executed a significant part of our divestiture plan, and managed to repay over $10 million of debt during the year," said Phil Jamieson, Chairman & CEO. "We are currently managing our way through another tough year but I remain confident that we are up to the challenge - we have managed to retain our best people and I am grateful to them for their continuing loyalty and hard work in a very difficult environment."

Continuing Operations

Revenues for the fiscal year 2009 were $31.3 million, an increase of 6.8% percent over revenues of $29.3 million in the fiscal year 2008. The net loss from continuing operations for fiscal 2009 was $0.2 million, compared to a net loss of $2.3 million for the fiscal year 2008. Non-GAAP adjusted EBITDA for fiscal year 2009 was $1.81 million, compared to $1.88 million for fiscal year 2008. Adjusted gross margins were 24.2% compared to 26.9% in fiscal 2008.

Revenues for the quarter ended 31^st December 2009 were $5.2 million, a reduction of 53.1% compared to revenues of $11.1 million in the quarter ended 31^st December 2008. The net income from continuing operations for the quarter ended 31^st December 2009 was $0.7 million, compared to a net loss of $0.2 million for the quarter ended 31^st December 2008.

Non-GAAP adjusted EBITDA for the quarter ended 31^st December 2009 was $0.5 million, compared to $1.5 million for the quarter ended 31^st December 2008. Adjusted gross margins for the quarter ended 31^st December 2009 were 22.0% compared to 26.3% for the quarter ended 31^st December 2008.

For fiscal year 2009 the Company incurred $1.2 million in interest and financing charges compared to $1.3 million in the fiscal year 2008.

At 31^st December 2009, the Company's order backlog was approximately $5.3 million (31^st December 2008 - $18.7 million). In addition, the Company has approximately $2.2 million of confirmed orders which have currently been placed on hold by its customers.

Discontinued Operations

The discontinued operations are comprised of Naston Ltd. ("Naston"), Enviro-Pro-Tech, Inc. ("Enviro"), and Nucleus Distribution Inc. ("Nucleus"). The sale of Nucleus closed on 27^th April 2009 and the sale of Enviro closed on 31^st August 2009.

Revenues for the fiscal year 2009 were $22.5 million, a decrease of 58.7% compared to revenue of $54.6 million in the fiscal year 2008. Net profit from discontinued operations for fiscal 2009 was $0.03 million, compared to a net loss from discontinued operations of $0.8 million for fiscal year 2008. The Company recorded losses or provisions against the carrying value of discontinued operations of $10.7 million during 2009.

Non-GAAP adjusted EBITDA for fiscal year 2009 was $0.2 million, compared to $0.9 million for fiscal year 2008. Adjusted gross margins were 23.4% compared to 18.2% in fiscal 2008.

Revenues for the quarter ended 31^st December 2009 were $(0.8) million, compared with revenues of $18.2 million in the quarter ended 31^st December 2008. Net loss from discontinued operations for the quarter ended 31^st December 2009 was $1.65 million, compared to a net loss from discontinued operations of $0.9 million for the quarter ended 31^st December 2008. The Company recorded losses or provisions against the carrying value of discontinued operations of $2.0 million during the quarter ended 31^st December 2009.

Non-GAAP adjusted EBITDA for the quarter ended 31^st December 2009 was ($1.9) million, compared to $(1.5) million for the quarter ended 31^st December 2008. Adjusted gross margins for the quarter ended 31^st December 2009 were (153.5%) compared to 8.8% for the quarter ended 31^st December 2008.

About Semcan Inc.

Semcan is a worldwide supplier of industrial processes and environmental solutions with specific emphasis on water remediation and emission control systems

Caution Regarding Forward-Looking Information and Non-GAAP 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 Semcan. 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 Semcan 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 Semcan 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-GAAP Measures

The term "EBITDA" is a financial measure used in this document which is not a standard measure under Canadian generally accepted accounting principles. Semcan's method of calculating EBITDA may differ from the methods used by other issuers. Therefore, Semcan'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 generally accepted accounting principles, before depreciation and amortization, interest 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-GAAP measure, is not an alternative to measures under GAAP 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.