/EINPresswire.com/ -- SHERWOOD PARK, ALBERTA--(Marketwired - Nov 8, 2017) - (TSX VENTURE:VTX) - Vertex Resource Group Ltd. (Vertex or the Company) is pleased to report its financial and operational results for the three and nine months ended September 30, 2017, with comparisons to the same periods in 2016.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

"We continue to grow our top and bottom line results as the Company pursues customer and industry diversification, while improving our cost structure. As economic conditions and commodity prices stabilize, Vertex is positioned to capitalize on strategic growth opportunities." - Terry Stephenson, President and CEO.

Key financial and operational highlights for the third quarter and nine months ending September 30, 2017 and 2016 are as follows:

(in thousands of Canadian Dollars, except per share amounts or unless otherwise stated)		Three months ended September 30,				Nine months ended September 30,
		2017		2016		2017		2016
Revenue		34,989		20,519		82,647		61,142
Gross profit		9,175		5,552		23,540		17,323
Income before taxes, finance, amortization		4,670		(493	)	11,857		4,263
Net loss and comprehensive loss for the period		(198	)	(3,541	)	(1,245	)	(5,728	)
Net loss and comprehensive loss for the period per share - basic and diluted (cents)		(0.01	)	(0.28	)	(0.06	)	(0.45	)
Weighted average number of shares outstanding for the purpose of calculating earnings per share - basic and diluted		21,766,692		12,675,739		19,373,713		12,633,626
Adjusted EBITDA by segment
	Environmental Services	4,145		1,298		11,529		3,914
	Industrial Services	2,060		1,187		3,497		4,442
	Corporate Services	(1,275	)	(987	)	(3,662	)	(1,611	)
Adjusted EBITDA (1)		4,930		1,498		11,364		6,745
Adjusted EBITDA per share, basic and diluted		0.23		0.12		0.59		0.53
Gross profit (% of revenue)		26	%	27	%	28	%	28	%
Adjusted EBITDA (% of revenue)		14	%	7	%	14	%	11	%

(1) Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other companies. Adjusted EBITDA is used by many analysts as one of several important analytical tools and management of Vertex believes it is useful for providing readers with additional clarity on Vertex's operational performance prior to consideration of how its activities are financed, taxed, amortized or depreciated. Adjusted EBITDA should not be considered in isolation or used as an alternative to net income (loss) or any of the other measures of performance prepared in accordance with IFRS. Non-IFRS financial measures are identified and defined under the heading 2.0 under Financial Highlights in Vertex's Management's Discussion and Analysis dated November 7, 2017 for the three and nine months ended September 30, 2017.

The three and nine months ending September 30, 2017, were very active, as the Company continued to experience positive effects from the completion and integration of four complimentary and synergistic acquisitions, all of which were effective in the second quarter. In addition, the Company restructured its credit facilities in the second quarter to provide greater financial flexibility as Vertex continues to be active in delivering acquisition and organic growth opportunities.

On October 16, 2017, the Company completed the reverse takeover of Vier Capital Corp., a public listed company on the TSX Venture Exchange (the Transaction). Full details of the Transaction are available on SEDAR at www.sedar.com.

STRONG RESULTS CONTINUED IN THE THIRD QUARTER

The results for the third quarter and nine months of 2017 trended positively as revenue, gross profit, Adjusted EBITDA and net loss all improved from the same periods last year.

Revenue for the three and nine months ended September 30, 2017, has increased by 71% and 35%, respectively, from the same periods in 2016. This is attributable to increased work flow in Vertex's environmental services segment with improving utilization of equipment both within the oil and gas industry as well as other industries. In addition, several current and past acquisitions continue to be additive to the Company's results.

While Vertex continues to see improvement in revenue, gross profit as a percentage of revenue was slightly down in the quarter, given competition for projects and resources have slightly increased. Vertex's gross profit as a percentage of revenue for the quarter was 26% as compared to 27% in the same quarter of 2016 and 28% for both nine-month periods. Overall, Vertex's gross profit is up 65% or $3.6 million from the same quarter last year and 36% or $6.2 million from the same nine-month period last year.

Adjusted EBITDA for the quarter was $4.9 million, up 229% or $3.4 million from the comparative quarter in 2016. The first nine months of 2017 saw adjusted EBITDA increase 68% relative to the first nine months of 2016. Vertex had a strong third quarter of 2017 as demand for its services continues to increase utilization in all segments of the business.

Vertex's net loss and comprehensive loss also improved significantly as compared to the same period last year. Net loss for the quarter was $0.2 million in 2017 as compared to $3.5 million in the same quarter last year. For the nine months, the net loss was $1.2 million in 2017 as compared to $5.7 million for the same period in 2016.

OUTLOOK

Heading into the last quarter of 2017, Vertex continues to be optimistic for its results for the remainder of the year. Commodity pricing has improved and stabilized from a year ago. Vertex has experienced customer spending rebound from 2016; not to historical levels or margins, but to a level where the Company has seen positive growth in overall revenue and gross profits.

Vertex's prudent cost controls should continue to benefit the Company into the last quarter of fiscal 2017. Vertex is diligently working to reduce the costs of the business and diversify its services, product offerings and customer base. These efforts will continue to improve performance and the financial position of the Company in order to capitalize on strategic growth opportunities. Through this economic and commodity trough, Vertex has been able to invest in the Company, diversify the business and generate positive operational results.

ABOUT VERTEX

Established in 1976, Vertex has grown to become a leading provider of environmental and industrial services. Headquartered in Sherwood Park, Alberta, Vertex employs a staff of approximately 800 employees that service a wide array of customers in industries such as upstream and midstream oil and gas, utilities, telecommunication, forestry, agriculture and government. Vertex's management team is comprised of industry veterans with a successful track record for industry consolidation and opportunistic acquisitions. Vertex principally operates in western Canada and maintains a presence in select locations in the United States.

FORWARD-LOOKING INFORMATION

Certain statements contained in this news release, such as the Company's expectations regarding its results and the impact of its cost controls, and diversification efforts for the remainder of the year, constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events, that the Company's expectation regarding the impact of its costs controls and diversification efforts are accurate and assumptions regarding future commodity prices, exchange rates and demand for the Company's services. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, as well as the other risks and uncertainties applicable to the provision of environmental and industrial services and to the Company as set forth in the Company's Filing Statement in respect of the Transaction filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

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 press release.