BADGER DAYLIGHTING LTD. ANNOUNCES RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2014
Calgary, Alberta – Badger Daylighting Ltd. (the “Company” or “Badger”) is pleased to announce its results for the three months ended March 31, 2014.
Highlights for the three months ended March 31, 2014:
- Revenues increased by approximately 45 percent to $100.0 million from $69.2 million for the comparable quarter of 2013 due to a 42 percent increase in Canadian revenues and a 48 percent increase in United States revenues. This is the first full quarter in which Fieldtek, acquired in November 2013, has been part of the financial results. Without Fieldtek, Canadian revenues would have increased by 25 percent. As a result of the increase in revenues, the Company’s quarterly Adjusted EBITDA increased by 24 percent to $24.4 million for the first quarter of 2014 from $19.7 million in the first quarter of 2013;
- Adjusted EBITDA margins were 24 percent for the three months ended March 31, 2014 compared to 28 percent for the three months ended March 31, 2013;
- Funds generated from operations decreased by 2 percent period-over-period to $15.2 million from $15.6 million in the comparable quarter of 2013 mainly as a result of the increase in the market price for Badger’s shares and therefore the increase in the deferred unit plan expense, which increased from $1.8 million for the three months ended March 31, 2013 to $7.4 million for the three months ended March 31, 2014;
- Adjusted EBITDA margins in Canada decreased to 24 percent from 30 percent for the comparable period of last year due to a combination of factors. These factors include the addition of Fieldtek in November 2013 which lowered the Adjusted EBITDA margin by 1.5 percent, additional costs to establish the corporate Toronto area, plus reduced margins in the western Canadian corporate operations due to increased fuel prices, greater employee costs and a slow reaction to adjust prices accordingly. Adjusted EBITDA margins in the United States decreased to 25 percent from 27 percent for the comparable period of last year due to adverse weather conditions in the eastern half of the United States, which led to increased costs for moving equipment to other locations to keep the fleet busy;
- Profit per share was $0.15 per share for the first quarter of 2014 versus $0.22 per share for the first quarter of 2013. The main reason for the decrease was the increase in deferred unit plan expense;
- On January 24, 2014 the Company closed a private placement of senior secured notes, which rank pari passu with the senior credit facilities, have a principal amount of US $75 million, an interest rate of 4.83 percent per annum and mature in 2022. Amortized repayment of the notes begins in 2020;
- Badger had 846 daylighting units at the end of the first quarter of 2014, reflecting the addition of 57 daylighting units to the fleet to date in 2014 and the retirement of two units. Of the total, 376 units were operating in Canada and 470 in the United States at quarter-end. Badger had 324 units in Canada and 346 in the United States for a total of 670 units at March 31, 2013. The new units were financed from cash generated from operations and existing credit facilities; and
- On January 24, 2014 the Company completed a split of all the issued and outstanding common shares on the basis of three common shares for each existing common share held, leaving 37,033,893 common shares issued and outstanding on that date.