Calgary, Canada – May 14, 2020 – High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its’ first quarter results today.
RECENT GLOBAL DEVELOPMENTS
The following highlights the Corporation’s results for Q1-2020:
– Internal promotion of Mike Maguire to CEO to lead the Corporation’s response to the current global crisis.
– Revenue of $39.6 million (Q1-2019 $46.5 million) and adjusted EBITDA of $2.7 million (Q1-2019 $5.5 million) for the Quarter.
– Implementation of programs with a target to reduce annualized cash outflows by $25 million compared to 2019.
– Deliverance of top-tier quality essential services to our core customers during the onset of the crisis to maintain our base business.
– Strict oversight of working capital to manage our cash balances and maintain a strong balance sheet through the crisis.
Mike Maguire, Chief Executive Officer commented: “We are in challenging times, but we have a corporate culture of delivering high quality services for our customers. Our team is focused on keeping our base business and balance sheet strong to ensure we are ready to excel in the recovery when it comes.”
The Corporation’s strategic priorities for 2020 include:
– Safety excellence and a focus on quality through global standards, including safeguarding our people against COVID-19.
– Reinforcement of existing core markets evidenced by top-tier customer market share in Canada and PNG.
– Cost control focused on operating cash flow while balancing strategic priorities, to emerge from the current conditions ready to reactivate and grow.
– Capital stewardship characterized by disciplined working capital management and capital allocation to maintain value for shareholders including common share buybacks, where appropriate.
The unaudited interim consolidated financial statements (“Financial Statements”) and management discussion & analysis (“MD&A”) for the quarter ended March 31, 2020 will be available on SEDAR at www.sedar.com, and on High Arctic’s website at www.haes.ca. Non-IFRS measures, such as EBITDA, Adjusted EBITDA, Adjusted net earnings (loss), Oilfield services operating margin, Operating margin %, Percent of revenue, Funds provided from operations, Working capital and Net cash are included in this News Release. See Non-IFRS Measures section, below. All amounts are denominated in Canadian dollars (“CAD”), unless otherwise indicated.
Within this News Release, the three months ended March 31, 2020 may be referred to as the “Quarter” or “Q1-2020”. The comparative three months ended March 31, 2019 may be referred to as “Q1-2019”. References to other quarters may be presented as “QX-20XX” with X being the quarter/year to which the commentary relates.
For the full copy of the release click the link below.