Financial News

Tornado Global Hydrovacs Reports First Quarter 2021 Results

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CALGARY, Alberta, Could 19, 2021 (GLOBE NEWSWIRE) — Twister International Hydrovacs Ltd. (“Twister” or the “Firm”) (TGH: TSX-V) right this moment reported its unaudited condensed consolidated monetary outcomes for the Three Months ended March 31, 2021. The unaudited condensed consolidated monetary statements and MD&A have been filed on SEDAR and may be reviewed at www.sedar.com and on the Firm’s website online www.tornadotrucks.com.

Monetary and Working Highlights (in CAD $000’s besides per share information)

Three months ended March 31
2021 2020
Income (1) $ 7,978 $ 11,838
Price of gross sales (1) 5,754 10,254
Gross Revenue 2,224 1,584
Promoting and common administrative bills 1,125 1,244
Depreciation and amortization 449 404
Finance expense 39 29
Accretion expense 39
Inventory-based compensation 44
Different 88
Earnings (loss) earlier than tax 528 (181 )
Earnings tax restoration (expense) (167 ) 72
Web earnings (loss) $ 361 $ (109 )
Web earnings (loss) per share – fundamental and diluted $ 0.003 $ (0.001 )
EBITDAS (2) $ 1,099 $ 340
EBIT (2) $ 606 $ (64 )
Complete belongings $ 28,479 $ 30,607
Shareholders Fairness $ 15,441 $ 15,385

1 As described within the Monetary Statements and MDA for the three months ended March 31, 2021, the 2020 comparative figures introduced have been restated, with a discount to each income and price of gross sales of $1.6 million. There was no impact on fundamental or diluted web loss per share and didn’t have any impact on the Firm’s condensed consolidated assertion of economic place or condensed consolidated assertion of money flows.
2 Earnings (loss) earlier than curiosity, tax, depreciation, amortization, impairment write-down and stock-based compensation (“EBITDAS”) and earnings (loss) earlier than curiosity and tax (“EBIT”) are usually not outlined by IFRS. The definition of EBITDAS doesn’t contemplate beneficial properties and losses on the disposal of belongings, truthful worth adjustments in overseas foreign money ahead contracts and non-cash elements of stock-based compensation. Whereas not an IFRS measure, EBITDAS is utilized by administration, collectors, analysts, traders and different monetary stakeholders to evaluate the Firm’s efficiency and administration from a monetary and operational perspective.

First Quarter 2021 Overview and Current Developments

  • The Firm’s North American Operations continued to be negatively affected by COVID-19 in Q1 2021.
  • Income of $7,978, decreased 32.6% in comparison with $11,838 in Q1/2020 and was negatively impacted by COVID-19 in the course of the quarter.
  • Gross revenue of $2,224, elevated by $640 in comparison with $1,584 in Q1/2020 resulting from decreased worker prices related to the Firm’s North American Operations and recoveries from the Canada Emergency Wage Subsidy (the “wage subsidy”). Gross revenue was additionally positively impacted by the elevated advantages from price financial savings on elements sourced from China in the course of the quarter.
  • EBITDAS of $1,099, elevated by $759 in comparison with $340 in Q1/2020, resulting from elevated gross revenue in North America and the wage subsidy of $208.
  • Web earnings of $361, elevated by $470 in comparison with a web lack of $109 in Q1/2020. This was because of the components mentioned above.

Segmented info (in CAD $000’s)

Three months ended March 31, 2021 North America China Company Complete
Income $ 7,978 $ 0 $ 0 $ 7,978
Price of gross sales 5,754 0 0 5,754
Promoting and common administrative 882 71 172 1,125
EBITDAS $ 1,342 $ 71 $ 172 $ 1,099
Three months ended March 31, 2020 North America China Company Complete
Income $ 11,838 $ 0 $ 0 $ 11,838
Price of gross sales 10,254 0 0 10,254
Promoting and common administrative 1,000 127 117 1,244
EBITDAS $ 584 $ 127 $ 117 $ 340

Outlook

The Firm continues to guage its enterprise operations within the context of COVID-19, with a give attention to well being and security of its workers, present firm operations, enterprise continuity and managing liquidity. As permitted by present authorities laws, the Firm continues to function its manufacturing amenities with strict cleansing protocols and social distancing measures in place. In April 2020, the Firm diminished truck manufacturing and put in place an aggressive program to preserve money. Manufacturing on the facility positioned in Stettler, Alberta was diminished by roughly 60% for the second half of 2020 and 20% for Q1/2021. As at March 31, 2021, roughly 25% of the Firm’s workers had been completely laid off.

These measures are meant to permit the Firm to preserve money and keep its workforce by means of a interval of decrease manufacturing. The price financial savings put in place are meant to guard the Firm’s steadiness sheet and to permit the Firm to shortly ramp-up manufacturing as soon as the pandemic has handed. The service and elements crew stay unaffected to allow them to proceed to help prospects.

On account of the (i) unfold of COVID-19 in all related jurisdictions to the Firm’s provide chain and buyer base; (ii) influence of presidency measures imposed to assist handle the unfold of the virus; (iii) actions undertaken by the Firm to make sure the well-being and security of its workers; and (iv) uncertainty over the length of enterprise disruptions, administration expects that the Firm’s consolidated monetary leads to 2021, together with its monetary efficiency and liquidity, could also be negatively impacted.

Administration acknowledges that whereas it continues to answer and navigate the impacts of COVID-19 on the Firm’s enterprise, the state of affairs continues to evolve particularly with respect to the influence of the roll out of vaccinations in the USA and Canada. At this level, the Firm has entry to debt and different types of authorities help accessible to companies impacted by the pandemic. Because the Firm’s manufacturing and income improve, the Firm will add employees as wanted. On account of a rise in manufacturing and a corresponding improve in income, the Firm expects that the Firm’s entry to authorities help presently accessible will probably be diminished or eradicated.

Administration believes the underlying fundamentals of the Firm’s enterprise stay robust and expects its manufacturing and gross sales of hydrovac vehicles in North America to get well and return to and ultimately exceed the extent achieved in 2019 over the long run for the next causes:

  • Expanded capability and manufacturing and manufacturing efficiencies from the manufacturing facility positioned in Pink Deer, Alberta (“Pink Deer Facility”), which is predicted to turn into totally operational in mid 2021.
  • Administration anticipates the continued enlargement of elements and companies enterprise within the Pink Deer Facility.
  • Elevated spending on infrastructure in North America, notably within the US on account of lately introduced proposed infrastructure applications, is anticipated put up COVID-19 to help the market demand of hydrovac vehicles in North America. 
  • Administration believes the Firm’s dedication to steady enchancment of its hydrovac truck design has compelling benefits over hydrovac vehicles presently provided available in the market.

About Twister International Hydrovacs Ltd.

The Firm designs and manufactures hydrovac vehicles in Canada and sells hydrovac vehicles for excavation service suppliers to the municipal and oil and fuel markets in Canada and the USA. Hydrovac vehicles use excessive strain water to pulverize soil and switch it into mud, after which vacuum up the ensuing mud into its tank. Twister presently operates in North America. In China, the Firm’s subsidiary is used principally to supply sure elements to the Firm’s North American operations.

For extra details about Twister International Hydrovacs Ltd., go to www.tornadotrucks.com or contact:

Advisory

Sure statements contained on this information launch represent forward-looking statements. These statements relate to future occasions. All statements aside from statements of historic truth are forward-looking statements. Using the phrases “anticipates”, “ought to”, ‘‘might”, “anticipated”, “expects”, “believes” and different phrases of the same nature are meant to determine forward-looking statements. These statements contain identified and unknown dangers, uncertainties and different components that will trigger precise outcomes or occasions to vary materially from these anticipated in such forward-looking statements. Though Twister believes these statements to be affordable, no assurance may be on condition that these expectations will show to be appropriate and such forward-looking statements included on this information launch shouldn’t be unduly relied upon. Such statements embrace these with respect to: (i) the Firm’s outlook for the 2021 fiscal 12 months; (ii) price saving measures meant to permit the Firm to preserve money keep its workforce by means of a interval of decrease manufacturing and shortly ramp-up manufacturing as soon as the COVID-19 pandemic has handed; (iii) the expectation that the service and elements crew will stay unaffected and might proceed to help prospects; (iv) the anticipated damaging influence of COVID-19 on the Firm’s monetary outcomes and liquidity in 2021; (v) the expectation that the Firm’s entry to authorities help presently accessible will probably be diminished or eradicated because the Firm’s manufacturing and income will increase; (vi) administration’s perception that the underlying fundamentals of the Firm’s enterprise will stay robust over the long run; (vii) the expectation that long run manufacturing and gross sales of hydrovac vehicles in North America will get well and ultimately exceed the degrees achieved in 2019; (viii) the anticipated elevated spending on infrastructure in North America put up COVID-19 to help the market demand of hydrovac vehicles in North America; (ix) administration’s perception that the Firm’s dedication to steady enchancment of its hydrovac truck design has compelling benefits over hydrovac vehicles presently provided available in the market; (x) the anticipated manufacturing and manufacturing efficiencies from the Pink Deer Facility, as soon as it turns into totally operational in mid 2021; (xi) administration’s anticipation of continued enlargement of elements and companies enterprise within the Pink Deer Facility; and (xii) administration’s anticipation that the Firm might elevate extra funds within the brief time period and long run by means of both the issuance of extra fairness, acquisition of extra debt, or a mixture thereof. These statements contain identified and unknown dangers, uncertainties and different components that will trigger precise outcomes or occasions to vary materially from these anticipated in such forward-looking statements. Precise outcomes might differ materially from these anticipated in these forward-looking statements on account of prevailing financial situations, and different components, lots of that are past the management of Twister. Though Twister believes these statements to be affordable, no assurance may be on condition that these expectations will show to be appropriate and such forward-looking statements included on this information launch shouldn’t be unduly relied upon. The forward-looking statements contained on this information launch signify Twister’s expectations as of the date hereof and are topic to alter after such date. Twister disclaims any intention or obligation to replace or revise any forward-looking statements whether or not on account of new info, future occasions or in any other case, besides as could also be required by relevant securities laws.

Neither the Alternate nor its Regulation Service Supplier (as that time period is outlined in insurance policies of the Alternate) accepts accountability for the adequacy or accuracy of this information launch.

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