Strad Energy Services Ltd. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported revenue of CAD 33,923,000 against CAD 20,277,000 a year ago. Adjusted EBITDA was CAD 9,418,000 or CAD 0.16 per share basic and diluted against CAD 1,247,000 or CAD 0.03 per share basic and diluted a year ago. Funds from operations were CAD 11,397,000 or CAD 0.19 per diluted share against CAD 2,881,000 or CAD 0.01 per diluted share a year ago. Capital expenditures were CAD 7,233,000 against CAD 3,215,000 a year ago. Strad reported an increase in revenue and adjusted EBITDA of 67% and 655%, respectively during the three months ended September 30, 2017, compared to the same period in 2016. Strads third quarter results were driven by increased drilling activity in the WCSB and Strads U.S. operating regions, in addition to increased customer pricing. Furthermore revenue was impacted by the increase in utilization within the Canadian surface equipment product lines and both of the U.S. product lines, due to the increase in drilling activity. Net cash generated from operating activities was CAD 4,223,000 against net cash used in operating activities of CAD 1,867,000 a year ago. Net income was CAD 598,000 or CAD 0.01 per diluted share against net loss of CAD 3,746,000 or CAD 0.09 per diluted share a year ago. Loss before income tax was CAD 1,721,000 compared to CAD 4,027,000 a year ago.

For the nine months, the company reported revenue of CAD 90,077,000 against CAD 45,115,000 a year ago. Adjusted EBITDA was CAD 19,505,000 or CAD 0.34 per share basic and diluted against LBITDA of CAD 338,000 or CAD 0.01 per share basic and diluted a year ago. Net loss was CAD 3,911,000 or CAD 0.07 per diluted share against net loss of CAD 13,697,000 or CAD 0.36 per diluted share a year ago. Funds from operations was CAD 23,000,000 or CAD 0.40 per diluted share against CAD 3,839,000 or CAD 0.10 per diluted share a year ago. Capital expenditures were CAD 16,967,000 against CAD 3,806,000 a year ago. Net cash generated from operating activities was CAD 10,795,000 against CAD 7,814,000 a year ago. Loss before income tax was CAD 2,775,000 compared to CAD 14,876,000 a year ago. Purchase of property, plant and equipment was CAD 16,967,000 compared to CAD 3,806,000 a year ago. Purchase of intangible assets was CAD 34,000 compared to CAD 65,000 a year ago.

The company is expecting to spend the remaining CAD 9 million of the CAD 26 million annual capital budget in the fourth quarter of 2017, in order to continue to meet the needs of energy infrastructure clients.