CALGARY, Alberta, Aug. 23, 2018 (GLOBE NEWSWIRE) -- Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TGH: TSX-V) today reported its unaudited condensed consolidated financial results for the Three and Six Month periods ended June 30, 2018. The unaudited condensed consolidated financial statements and MD&A have been filed on SEDAR and can be reviewed under the Company’s profile at www.sedar.com.
Financial and Operating Highlights (in CAD $000’s except per share data) | |||||||||||||
Three Months ended June 30 | Six Months ended June 30 | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Revenue | $ | 10,213 | $ | 6,733 | $ | 15,044 | $ | 12,722 | |||||
Cost of sales | 8,677 | 5,842 | 12,620 | 10,951 | |||||||||
Gross Profit | 1,536 | 891 | 2,424 | 1,771 | |||||||||
Selling and general administrative expenses | 1,229 | 1,181 | 2,473 | 2,154 | |||||||||
Depreciation and amortization | 295 | 239 | 551 | 478 | |||||||||
Loss on disposal of fixed assets | - | - | 4 | - | |||||||||
Stock-based compensation | 68 | - | 136 | - | |||||||||
Change in fair value of derivative financial instruments | 95 | (12 | ) | 99 | (39 | ) | |||||||
Net finance income and other | 5 | 20 | (4 | ) | 37 | ||||||||
Loss before tax | (156 | ) | (537 | ) | (835 | ) | (859 | ) | |||||
Income tax expense | (64 | ) | - | (20 | ) | - | |||||||
Net loss | $ | (220 | ) | $ | (537 | ) | $ | (855 | ) | $ | (859 | ) | |
Net loss per share - basic and diluted | $ | - | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||
EBITDAS (1) | $ | 307 | $ | (291 | ) | $ | (49 | ) | $ | (384 | ) | ||
EBIT (1) | $ | (56 | ) | $ | (530 | ) | $ | (740 | ) | $ | (862 | ) | |
Total assets | $ | 22,415 | $ | 19,358 | $ | 22,415 | $ | 19,358 | |||||
Shareholders Equity | $ | 17,320 | $ | 12,474 | $ | 17,320 | $ | 12,474 | |||||
Three months ended June 30, 2018
Segmented information (in CAD $000’s) | |||||||||||||||
Three Months ended June 30, 2018 | North America | China | Corporate | Total | |||||||||||
Revenue | $ | 10,213 | $ | - | $ | - | $ | 10,213 | |||||||
Cost of sales | 8,677 | - | - | 8,677 | |||||||||||
Selling and general administrative | 704 | 333 | 192 | 1,229 | |||||||||||
EBITDAS | $ | 832 | $ | (333 | ) | $ | (192 | ) | $ | 307 | |||||
Six Months ended June 30, 2018 | North America | China | Corporate | Total | |||||||||||
Revenue | $ | 15,044 | $ | - | $ | - | $ | 15,044 | |||||||
Cost of sales | 12,620 | - | - | 12,620 | |||||||||||
Selling and general administrative | 1,496 | 620 | 357 | 2,473 | |||||||||||
EBITDAS | $ | 928 | $ | (620 | ) | $ | (357 | ) | $ | (49 | ) | ||||
Outlook
The market demand for hydrovac trucks in North America from the municipal sectors in both Canada and United States is expected to stay strong during 2018. The Company is also benefiting from increased demand because of the significant design improvements of its hydrovac trucks. The Company continues to develop its sales and distribution relationship with its US strategic partner, Custom Truck One Source (“Custom Truck”). With Custom Truck’s integrated network of 23 locations across North America, the Company expects revenue growth in the 2nd half of 2018. As a result, the Company expects strong financial performance in North America.
In China, the Company continues to execute its business plan to capitalize on this significant market opportunity. By the end of Q2 2018, the Company had four unique hydrovac products for demonstration and potential future revenue. Additional sales staff have been recruited and marketing demonstrations were held in August. As a result of these factors management believes the Company’s medium and long-term outlook is positive in China.
About Tornado Global Hydrovacs Ltd.
The Company designs and manufactures hydrovac trucks in Canada and sells hydrovac trucks for excavation service providers to the oil and gas industry and the municipal markets in Canada and the USA. Hydrovac trucks use high pressure water to pulverize soil and turn it into mud, and then vacuum up the resulting mud into its tank. Tornado currently operates in North America. The Company intends to expand its hydrovac business into China and has established a wholly owned operation in China with a head office in Beijing.
For more information about Tornado Global Hydrovacs Ltd., visit www.tornadotrucks.com or contact: | ||
Bill Rollins | Al Robertson | |
Chief Executive Officer | Chief Financial Officer | |
Phone: (403) 204-6333 | Phone: (403) 204-6363 | |
Email: [email protected] | Email: [email protected] | |
Advisory
Neither the Exchange nor its Regulation Service Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events. All statements other than statements of historical fact are forward-looking statements. The use of the words ‘‘may”, “expects”, “expected”, “believes”, “anticipates” and other words of a similar nature are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Such statements include statements regarding the Company’s outlook for the rest of the year and the anticipated demand for the Company’s newly designed hydrovac truck. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, receipt of requisite regulatory approvals, and other factors, many of which are beyond the control of the Company. The forward-looking statements contained in this news release represent the Company’s expectations as of the date hereof, and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.