Badger Daylighting Ltd. Announces 2021 First Quarter Results and Inaugural Environmental, Social and Governance Report

By Globe Newswire10 days ago

CALGARY, Alberta, May 04, 2021 (GLOBE NEWSWIRE) -- Badger Daylighting Ltd. (Badger, the Company, we, our or us) (TSX:BAD) reported first quarter results today. All results are presented in Canadian dollars unless otherwise stated.

2021 First Quarter Financial and Operational Highlights

  • Revenue was $108.5 million or approximately 79% of revenue realized in the first quarter of 2020. After normalizing for the effects of foreign exchange, revenue was 83% of revenue realized in the first quarter of 2020.
  • Gross profit margin was 15.7% compared to 22.2% in 2020 and Adjusted EBITDA margin was 5.1% compared with 13.3% in the first quarter of 2020.
  • Adjusted EBITDA was $5.5 million compared to $18.1 million in the first quarter of 2020. Excluding one-time general and administrative expenses of $1.9 million in the quarter relating to investments in key strategic initiatives, Adjusted EBITDA was $7.4 million.
  • The Board of Directors of Badger approved a 5% increase in the dividend to $0.63 per common share on an annualized basis and the Toronto Stock Exchange accepted Badger's notice to implement a Normal Course Issuer Bid pursuant to which the Company may acquire for cancellation up to a maximum of 1.5 million common shares.
  • Continued improvements in working capital, collection of aged receivables and the extension of the Company's $100 million supplemental secured credit facility for an additional year all supported Badger's strong liquidity position maintained at over $300 million in the quarter.

During the first quarter, Badger continued to position its operations for the summer construction season and anticipated 2021 market recovery. Activity levels were impacted by extended holiday jobsite shutdowns in January and severe winter weather in February. The revenue run-rate improved significantly in March as the reopening of economies in the U.S. accelerated as a result of increasing vaccination rates. We are seeing early signs of a strong market recovery in 2021 as the North American economy, particularly in the U.S., reopens and recovers from the COVID-19 pandemic. We added operators, sales and support staff to capture this anticipated growth, said Paul Vanderberg, President and Chief Executive Officer.

The severe winter weather experienced in the first quarter impacted a wide range of critical infrastructure, highlighting the potential need for work on facilities and system upgrades.This needed work, along with increased focus on upgrading and expanding North America's infrastructure, represents significant long-term opportunity for Badger and provision of non-destructive excavation services, added Mr. Vanderberg.

In support of sustainability and consistent with Badger's strong commitment to the health and safety of our employees, customers and communities, we are pleased to communicate our sustainability initiatives in Badger's inaugural ESG Report available on our website. Badger's business model is very well positioned to support sustainability initiatives across the infrastructure segments that we service, concluded Mr. Vanderberg.

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