Strad Energy Services Ltd. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Capital Spending Guidance for the Year 2018
March 28, 2018
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Strad Energy Services Ltd. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the year, the company reported revenue of CAD 117,599,000 against CAD 72,378,000 a year ago. Loss before income tax was CAD 6,792,000 against CAD 18,181,000 a year ago. Loss for the period was CAD 7,276,000 against CAD 16,803,000 a year ago. Basic and diluted loss per share was CAD 0.12 against CAD 0.41 a year ago. Net cash generated from operating activities was CAD 29,877,000 against CAD 8,756,000 a year ago. Purchase of property, plant and equipment was CAD 22,124,000 against CAD 4,570,000 a year ago. Purchase of intangible assets was CAD 65,000 against CAD 185,000 a year ago. Adjusted EBITDA was CAD 24,674,000 or CAD 0.42 per share basic and diluted against CAD 4,444,000 or CAD 0.11 per share basic and diluted a year ago. Funds from operations were CAD 29,648,000 or CAD 0.50 per diluted share against CAD 8,310,000 or CAD 0.20 per diluted share a year ago. Capital expenditures were CAD 22,124,000 against CAD 4,755,000 a year ago. Net cash generated from operating activities was CAD 29,877,000 against CAD 8,756,000 a year ago. Purchase of property, plant and equipment was CAD 22,124,000 against CAD 4,570,000 a year ago. Purchase of intangible assets was CAD 65,000 against CAD 185,000 a year ago.
For the quarter, the company reported revenue of CAD 27,522,000 against CAD 27,263,000 a year ago. Adjusted EBITDA was CAD 5,169,000 or CAD 0.09 per share basic and diluted against CAD 4,782,000 or CAD 0.10 per share basic and diluted a year ago. Funds from operations were CAD 6,648,000 or CAD 0.11 per diluted share against CAD 5,476,000 or CAD 0.11 per diluted share a year ago. Capital expenditures were CAD 5,157,000 against CAD 884,000 a year ago. The company's fourth quarter results were driven by increased drilling activity in the WCSB and Strad's U.S. operating regions, in addition to increased customer pricing. Higher drilling activity during the quarter resulted in improved utilization of the Canadian surface equipment fleet and both the U.S. matting and surface equipment fleets resulting in increased revenue year-over-year.
For 2018, the company's CAD 8.0 million capital program is expected to comprise of maintenance spending including CAD 5.0 million allocated to replacement matting, CAD 1.5 million in information technology upgrades, and CAD 1.5 million of other maintenance capital.
Strad Inc is a Canada-based company that provides industrial products and services for oil & gas, power transmission, pipeline and agriculture sectors. The Company rents a range of products, which include rig mats, wood/access mats, tank farms - upright and horizontal, light towers, well-site trailers, crane mats, fluid storage/tanks, frost fighters, mobile mat wash unit, among others. It provides mat management, project planning, mat mobilization & demobilization, mobile mat washing, among other services.
Strad Energy Services Ltd. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Capital Spending Guidance for the Year 2018