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Strong Foundation
What has grown to become CCS Corporation began in 1984 as Canadian Crude Separators Inc. Founded by CCS' current CEO, David Werklund, this successful, privately held enterprise became a publicly-traded common stock company in 1993. Recognizing the investing public's desire for tax-efficient income, Canadian Crude Separators then converted to an income trust in May 2002 and was re-named CCS Income Trust. On November 14, 2007 CCS announced the close of its going-private transaction and converted from an income trust into a corporation and was re-named CCS Corporation.
Throughout its history, CCS has remained focused on its core businesses of providing differentiated services to the oil and gas sector, and has continually pursued opportunities to improve, to grow and to lead.
2006
- CCS achieved a significant milestone in the third quarter surpassing $1 billion in year-to-date revenue for the first time in its history.
- In September 2006, CCS announced its fourth increase to distributions for the year, to 17.5 cents per trust unit (annualized - $2.10 per unit), a year-to-date increase of 46 percent.
- On October 11, 2006 the Trust announced the $10 million acquisition of the operating assets of Lionhead Engineering & Consulting Ltd.
- Also during the third quarter CCS acquired ARKLA Disposal Services Inc. (“ARKLA”) for approximately $11 million. ARKLA owns and operates an industrial waste water treatment plant located in the Port of Shreveport, Louisiana.
- The Spirit River TRD commenced operations in July 2006.
- On May 1, 2006 the Trust acquired the operating assets of the Grizzly, Hi-West and Poncho Well Servicing Group (“Grizzly”) for $280 million. This acquisition expands Concord’s rig fleet by 86 rigs making Concord the third largest service well drilling fleet in Canada.
- On April 13, 2006, the Trust completed a bought-deal subscription receipt financing, for gross proceeds of $245 million.
- On April 3, 2006 the Trust acquired the operating assets of HMI Industries Inc. (“HMI”) for approximately $34 million. HMI operates a scrap metal processing facility in Red Deer, Alberta.
- The Brooks, Alberta TRD commenced operations in March 2006
- On February 23, 2006, CCS entered the U.S market through the $22 million acquisition of Environmental Treatment Team (ETT), an oilfield waste processing company based in Louisiana.
2005
- CCS’ record setting growth continued in 2005 with net income for the year reaching $79.2 million; an increase of 67% over 2004.
- In 2005, CCS acquired the assets of four operating companies for consideration totaling $17.7 million
- Monthly cash distributions increased to $0.125 per unit (annualized $1.44 per unit).
- CCS’ payout ratio of 45% for the twelve months ended December 31, 2005 represents the Trust’s continued commitment to reinvest a significant amount of its cash flow in growth opportunities.
- On February 15, 2005, CCS Income Trust announced a two-for-one trust unit split to unitholders of record on February 28, 2005.
- Operations commenced at the Boundary Lake TRD facility
2004
- CCS Inc. acquired 100 percent of the issued and outstanding shares of HAZCO Environmental Services Ltd. The transaction was finalized on December 10, 2004 and is CCS' largest acquisition to date.
- CCS revenues grew by 67 percent year-over-year, to $301 million
- Funds from operations increased by 54 percent, $1.99 per unit
- Monthly cash distributions were increased for the fifth time since trust conversion to $0.0925 per unit.
- CCS acquired two new disposal wells, located in Fort Nelson, B.C. and Medicine Hat, Alberta
- CCS added a heavy oil treater at the High Prairie, Alberta TRD facility.
- CCS Energy Marketing division commenced operations in October 2004 to complement the Energy Services division by marketing recovered oil volumes at the Energy Services facilities. The CEM division has brought the marketing resources in-house, thereby capturing the incremental value created through the marketing chain.
2003
- Revenues increased 53% to $180.1 million
- Net income increased 74% to $37.7 million
- Funds from operations were $70.3 million
- Monthly distributions increased from $0.14 per trust unit in April 2003 to $0.165 per trust unit in December 2003.
- Added 14 rigs to the Concord fleet
2002
- Revenues reached $118.1 million Funds from operations were $47.1 million
- CCS Income Trust (the Trust or CCS) commenced operations. Holders of common shares of Canadian Crude Separators Inc. exchanged their common shares for either trust units of CCS or exchangeable shares of CCS Inc, the wholly-owned operating subsidiary of the Trust.
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