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Tornado Global Hydrovacs Reports Second Quarter 2024 Results

CALGARY, Alberta, Aug. 21, 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 and six month periods ended June 30, 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.

Second Quarter 2024 Overview and Significant Developments

1 EBITDAS is calculated by subtracting interest, tax, depreciation and amortization, gain/loss on disposal of fixed assets, gain/loss on foreign exchange 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 performance and outlook, stating, “Building on our strong financial performance in the second quarter, we are poised to continue this upward trajectory well into 2025, thanks to robust demand for our products in both the U.S. and Canada. Our sales backlog, extending into next year, underscores the growing market confidence in our offerings. As we actively explore ways to enhance our production capacity to meet this robust demand, our commitment to the infrastructure sector remains stronger than ever. We are not only expanding our product line but are also innovating within the space, ensuring that Tornado leads the way in delivering comprehensive infrastructure solutions.”

Financial and Operating Highlights (in CAD $000’s except outstanding common share and per share data)
  Three months ended June 30   Six Months ended June 30
    2024     2023       2024     2023  
           
Revenue $ 34,423   $ 23,530     $ 68,327   $ 44,625  
Cost of sales   28,189     19,626       56,351     37,281  
Gross profit   6,234     3,904       11,976     7,344  
           
Selling and general administrative expenses   2,550     1,951       4,937     3,740  
Other (gain) loss – foreign exchange   (61 )   14       (340 )   78  
Depreciation and amortization   195     286       383     546  
Finance expense   74     164       152     325  
Stock-based compensation   197     98       393     227  
Gain on disposal of fixed assets   (9 )         (9 )    
           
Income before tax   3,288     1,391       6,460     2,428  
Income tax expense   (777 )   (337 )     (1,522 )   (589 )
           
Net income $ 2,511   $ 1,054     $ 4,938   $ 1,839  
           
EBITDAS $ 3,779   $ 2,025     $ 7,212   $ 3,748  
           
Outstanding common shares   137,556,119     137,556,119       137,556,119     135,871,119  
           
EBITDAS per share – diluted $ 0.028   $ 0.015     $ 0.053   $ 0.027  
Net income per share – diluted $ 0.018   $ 0.008     $ 0.036   $ 0.013  

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 1,400 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. 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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