FOR IMMEDIATE DISTRIBUTION
May 18, 2017
BADGER DAYLIGHTING LTD. RELEASES LETTER TO SHAREHOLDERS
Calgary, Alberta – The Board of Directors of Badger Daylighting Ltd. (Badger) is aware that the significant drop in Badger’s share price following the release of our first quarter results has prompted various shareholders to contact the company to express concerns. We take the concerns and comments of shareholders and all stakeholders very seriously.
The Board’s responsibilities include helping to ensure that the company meets high ethical standards, that our financial controls assure financial integrity and transparent disclosure, approving the company’s long-term strategy and hiring a skilled, experienced management team.
Badger recently celebrated its 25th anniversary and has grown to be the largest hydrovac operator in North America. The company has created long-term shareholder value through a number of economic cycles and we believe we are well positioned to continue to do so.
There are numerous opportunities to continue to expand the use of our technology. North America is faced with aging infrastructure. As government and industry work to maintain and upgrade infrastructure, Badger is positioned to play a significant role. Badger technology provides a safe, non-destructive alternative to conventional excavation and hydrovac use continues to grow. Our strategy to exploit market opportunities is well thought out and we believe we have significant upside.
The recent economic environment has been challenging with the downturn in oil & gas activity. Our management team and employees have done an excellent job to find opportunities in new end use markets, diversify geographically, and reposition our trucks to keep our fleet effectively deployed.
We have increased our annual non-oil & gas revenues by more than $150 million from 2013 to 2016. We are proud of this accomplishment. Based on continued growth in non- oil & gas markets and the apparent bottoming of the oil & gas sector, we have announced that we are increasing our truck build rate to take advantage of this growth.
Badger’s business has historically been both seasonal and cyclical, which has driven volatility in both our quarterly results and share price performance. Our focus is and has always been to achieve profitable growth in the medium to long-term. We are confident that our strategy to increase sales and profits is sound and that the management team is effectively executing our strategy.
Badger is committed to continuous improvement across all aspects of our business. One area where we will continue to improve is communications. We believe we can better articulate our strategy and how it is progressing, and look at ways to help investors better understand our operations and our financials.
The Board is confident in the future of our company. Our governance policies and practices and our management team and organization are strong. We will continue to focus on creating long-term shareholder value through a well thought-out strategy and safe, effective execution.
Chairman of the Board
REQUIRED CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION
Certain statements contained in this letter, including statements related to Badger’s projected growth, view and outlook toward margins, future market opportunities and statements, and information that contain words such as “could”, “should”, “can”, “anticipate”, “expect”, “believe”, “will”, “may” and similar expressions relating to matters that are not historical facts, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. 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. Badger believes the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Such forward-looking statements and information included in this letter should not be unduly relied upon.
In particular, forward looking statements in this letter include discussion reflecting Badger’s belief that:
- Badger is well positioned to continue to create shareholder value;
- Badger has the ability to continue to expand the use of its technology;
- Badger is well positioned to play a significant role in government and industry projects to address North America’s aging infrastructure; and
- Badger has significant upside.
Risk factors and other uncertainties that could cause actual results to differ materially from those anticipated in such forward- looking statements include, but are not limited to: price fluctuations for oil and natural gas and related products and services; political and economic conditions; industry competition; Badger’s ability to attract and retain key personnel; changes in laws or regulations, including taxation and environmental regulations; extreme or unsettled weather patterns; and fluctuations in foreign exchange or interest rates.
Readers are cautioned that the foregoing factors are not exhaustive. Additional information on these and other factors that could affect Badger’s operations and financial results is included in our management’s discussion and analysis of our financial results for the year ended December 31, 2016 which may be accessed through the SEDAR website (www.sedar.com) or at our website. The forward-looking statements contained in this letter are expressly qualified by this cautionary statement. These forward- looking statements and information speak only as of the date of this letter. Badger does not undertake any obligation to publicly 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 laws.