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Tornado Global Hydrovacs Reports First Quarter 2024 Results

CALGARY, May 23, 2024 (GLOBE NEWSWIRE) — Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TSX-V: TGH; OTCQX: TGHLF) today reported its unaudited condensed consolidated financial results for the three months period ended March 31, 2024. The unaudited condensed consolidated financial statements and related management discussion and analysis are available on the Company’s issuer profile in Canada on SEDAR+ at www.sedarplus.com, the United States at www.otcmarkets.com and on the Company’s website at www.tornadotrucks.com. All amounts reported in this news release are in thousands ($000’s CAD) except per share amounts.

First Quarter 2024 Overview and Significant Developments

EBITDAS is calculated by subtracting interest, tax, depreciation and amortization, gain/loss on disposal of fixed assets and stock-based compensation from earnings. EBITDAS per share (diluted) is calculated by dividing EBITDAS by the total number of diluted common shares. The terms EBITDAS and EBITDAS per share (diluted) are non-IFRS financial measures, and readers are cautioned that EBITDAS and EBITDAS per share (diluted) should not be considered to be more meaningful than net income determined in accordance with IFRS.

Brett Newton, President and CEO of Tornado, commented on the Company’s recent performance and strategic direction, saying, “The first quarter of 2024 marked our eighth consecutive quarter of record revenue. The hydrovac sector is expanding rapidly within the broader North American infrastructure market, and Tornado is ideally situated to leverage this momentum. We will be focusing on moving from exclusively producing hydrovac equipment to becoming a comprehensive provider of infrastructure solutions. Our strategy includes offering turnkey solutions to our clients, aimed at capturing a larger market share in the hydrovac space and venturing into new product areas. We are committed to adding new and innovative products to our product line that will support the ongoing demand of the infrastructure, telecommunications and oil and gas industries.”

Financial and Operating Highlights (in CAD $000’s except outstanding common share and per share data)

  Three Months ended March 31
    2024     2023  
     
Revenue $ 33,904   $ 21,095  
Cost of sales   28,162     17,655  
Gross profit   5,742     3,440  
     
Selling and general administrative expenses   2,387     1,789  
Other (gain) loss – foreign exchange   (279 )   64  
Depreciation and amortization   188     260  
Finance expense   78     161  
Stock-based compensation   196     129  
     
Income before tax   3,172     1,037  
Income tax expense   (745 )   (252 )
     
Net income $ 2,427   $ 785  
     
EBITDAS (1) $ 3,434   $ 1,723  
     
Outstanding common shares   135,931,119     135,791,519  
     
EBITDAS per share – diluted (1) $ 0.025   $ 0.013  
Net income per share – diluted $ 0.018   $ 0.006  

1 EBITDAS is calculated by subtracting interest, tax, depreciation and amortization, gain/loss on disposal of fixed assets and stock-based compensation from earnings. EBITDAS per share (diluted) is calculated by dividing EBITDAS by the total number of diluted common shares. The terms EBITDAS and EBITDAS per share (diluted) are non-IFRS financial measures and readers are cautioned that EBITDAS and EBITDAS per share (diluted) should not be considered to be more meaningful than net income determined in accordance with IFRS.

Outlook

Management expects the Company’s production and sales of hydrovac trucks and profitability to continue to grow in the remainder of 2024 for the following reasons:

About Tornado Global Hydrovacs Ltd.

Tornado is a pioneer and leader in the vacuum truck industry and has been a choice of utility and oilfield professionals with over 1,300 hydrovacs sold since 2005. The Company designs and manufactures hydrovac trucks as well as provides heavy duty truck maintenance operations in central Alberta. It sells hydrovac trucks to excavation service providers in the infrastructure and industrial construction and oil and gas markets. Hydrovac trucks use high pressure water and vacuum to safely penetrate and cut soil to expose critical infrastructure for repair and installation without damage. Hydrovac excavation methods are quickly becoming a standard in North America to safely excavate in urban areas and around critical infrastructure greatly reducing infrastructure damage and related fatalities.

For more information about Tornado Global Hydrovacs Ltd., visit www.tornadotrucks.com or contact:

Brett Newton
President and Chief Executive Officer
Phone: (587) 802-5070
Email: bnewton@tghl.ca
Derek Li
Vice President, Finance
Phone: (403) 204-6350
Email: dli@tghl.ca
 

Advisory

Certain statements contained in this news release constitute forward-looking statements and future oriented financial information. These statements relate to future events. All statements other than statements of historical fact are forward-looking statements. The use of the words “anticipates”, “should”, ‘‘may”, “expected”, “expects”, “believes” 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 or, as applicable, future oriented financial information. Although Tornado believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements and future oriented financial information included in this news release should not be unduly relied upon. Such statements include those with respect to:

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. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Tornado. Although Tornado 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. The forward-looking statements contained in this news release represent Tornado’s expectations as of the date hereof and are subject to change after such date. Tornado 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.

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.


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