We continue to execute our business plan, reflecting a 15% and 20% revenue and Adjusted EBITDA compound annual growth rate ("CAGR"), respectively, over the plan period to 2016. Our strong balance sheet will allow us to weather short-term fluctuations that may arise from time to time as we experienced in Q4 2012. We will work towards a debt leverage ratio of 2.0, and will remain well within debt covenant thresholds through 2013.
With our continued focus on business fundamentals to improve returns on existing assets, growth from our contract and project work, contributions from the 2012 capital program and continued market demand for our services, we are well positioned for growth in 2013 and beyond.
RESULTS OF OPERATIONS - FACILITIES DIVISION
Overview
Facilities includes an integrated network of 55 facilities located to service key market areas across Canada employing over 900 people. This division features Canada's largest lead-acid battery recycling facility located at Ville Ste-Catherine, Quebec, an engineered non-hazardous solid waste landfill located at Stoney Creek, Ontario, and over 25 oilfield facilities throughout western Canada. Facilities is organized into the Western Facilities, Eastern Facilities and VSC business units.
The business units contributed the following to division revenue:
Three months ended Year ended December 31, December 31, 2012 2011 2012 2011----------------------------------------------------------------------------Western Facilities 45% 49% 50% 47%Eastern Facilities 25% 25% 26% 25%VSC 30% 26% 24% 28%----------------------------------------------------------------------------
Facilities Revenue ($ millions) and Facilities Gross Profit ($ millions): http://media3.marketwire.com/docs/213nal_graphs.pdf
The following table compares Facilities' results for the periods indicated:
Three months ended Year ended December 31, December 31,($000s) 2012 2011 % change 2012 2011 % change----------------------------------------------------------------------------Revenue 122,899 124,234 (1) 446,217 463,606 (4)Cost of Sales(1) 101,189 97,930 3 346,176 356,820 (3)----------------------------------------------------------------------------Gross Profit 21,710 26,304 (17) 100,041 106,786 (6)----------------------------------------------------------------------------Gross Profit as % of revenue 18% 21% (14) 22% 23% (4)----------------------------------------------------------------------------Maintenance capital 7,917 7,899 - 21,913 21,658 1----------------------------------------------------------------------------Growth capital 18,487 11,029 68 43,279 32,515 33----------------------------------------------------------------------------Assets 655,882 624,814 employed(2)(3) 5--------------------------------------------------------------------------------------------------------------------------------------------------------
