CALGARY, ALBERTA--(Marketwire - May 11, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
The news release contains "forward-looking information and statements" within the meaning of applicable securities laws. For a full disclosure of the forward-looking information and statements and the risks to which they are subject, see the "Cautionary Statement Regarding Forward-Looking Information and Statements" later in this news release.
Strad Energy Services Ltd., ("Strad" or the "Company") (TSX:SDY) is pleased to report record first quarter results. Henry van der Sloot, Chief Executive Officer of Strad, stated "Momentum for Strad continues as the Company capitalizes on organic opportunities across North America. The continuing trend to larger well pads, and higher standards for safety and environmental solutions, has driven demand for Strad products and services to new levels. Both our market and our market share continue to grow. We are pleased with the $32 million of new equipment allocated to strategic areas of focus in the first quarter of the year. Disciplined growth remains our priority."
Effective January 1, 2011, Strad began reporting its financial results in accordance with International Financial Reporting Standards ("IFRS"). Prior year comparative amounts were changed to reflect results as if Strad had always prepared its financial results using IFRS. Please see additional discussion regarding IFRS later in this news release.
Highlights for the three months ended March 31, 2011, include:
- Record first quarter EBITDA of $8.4 million for 2011, a 30% increase compared to $6.5 million in the first quarter 2010;
- Notwithstanding the seasonal inactivity of the matting operation in Q1, annualized EBITDA return on average total Drilling Services assets for the three months ended March 31, 2011 of 30.0%;
- Capital expenditures of $31.9 million; $24.0 million allocated to the United States. Q1 capital additions are generally expected to be deployed in the field in Q2;
- Successful introduction of new products, including solids control, composite matting and satellite communications equipment, with $6.2 million spent on these initiatives in the quarter. Field deployment is expected to occur in the second quarter.
(1) Earnings before interest, taxes, depreciation and amortization ("EBITDA") is not a recognized measure under IFRS or previous GAAP; see "Non-GAAP Measures Reconciliation" in this press release.
Andy Pernal, President of Strad emphasized, "The Company is strategically adding new product lines to its fleet of drilling and completions rental equipment to better service our customers in North America. New product lines such as solids control, composite mats, and satellite communications systems help our customers become more efficient and decreases their logistical costs by providing a single source of supply for rental equipment. In addition, Strad is now supplying more rental equipment directly to our customers whereas previously, certain equipment was supplied by third party vendors. This enables the Company to increase its margin without impacting our customers."
SELECTED FINANCIAL AND OPERATING HIGHLIGHTS Three months ended March 31st, -------------------------------------- ($000's except per share amounts) 2011 2010 % Change -------------------------------------- Revenue 44,608 33,458 33.3 EBITDA (1) 8,445 6,495 30.0 Net Income 1,587 1,558 1.9 Funds from Operations (2) 8,369 5,501 52.1 EBITDA - per share Basic 0.23 0.32 (28.1) Diluted 0.23 0.32 (28.1) Capital Spending (3) 31,901 6,572 385.4 Funds from Operations - per share Basic 0.23 0.27 (14.8) Diluted 0.23 0.27 (14.8) Net Income - Per Share Basic 0.04 0.08 (50.0) Diluted 0.04 0.08 (50.0) Common Shares Outstanding ('000's) 37,246 20,149 84.9 (1) EBITDA is a non-GAAP measure. See "Non-GAAP Measures Reconciliation". (2) Funds from operations are cash flow from operating activities excluding changes in working capital. See "Non-GAAP Measures Reconciliation". (3) Includes assets acquired under finance lease. FINANCIAL POSITION AND RATIOS March 31st, ------------------------- ($000's except ratios) 2011 2010 ------------------------- Working Capital (1) 17,582 2,906 Funded Debt (2) 33,083 42,387 Total Assets (3) 213,330 142,235 Funded Debt to EBITDA(2) 1.0 4.7 (1) Working capital is calculated as current assets less current liabilities. See "Non-GAAP Measures Reconciliation". (2) Funded debt includes bank indebtedness plus current and long-term portion of debt plus current and long-term obligations under finance lease. EBITDA is based on trailing twelve months. See "Non-GAAP Measures Reconciliation". (3) Includes assets acquired under finance lease.
Summary for the three months ended March 31, 2011:
- Revenue increase of 33% over first quarter 2010; first quarter 2011 revenue was $44.6 million versus $33.5 million for the first quarter 2010. Revenue for the three months ended March 31, 2011, was consistent with the fourth quarter of 2010.
- EBITDA margin as a percentage of revenue of 19% for the three months ended March 31, 2011, was consistent with the first quarter of 2010 and the fourth quarter of 2010.
- Net earnings in the first quarter of 2011 of $1.6 million was consistent with the first quarter of 2010. Net earnings in the first quarter of 2011 were impacted by a 40% increase in depreciation expense from 2010 capital additions and a three percent increase in the effective tax rate. In the first quarter of 2011, a higher proportion of earnings were derived from the United States. The United States is a higher tax jurisdiction than Canada.
- Diluted earnings per share of $0.04 for the three months ended March 31, 2011, as compared to diluted earnings per share of $0.08 in the first quarter of 2010 and $0.09 for the fourth quarter of 2010. Diluted earnings decreased as the number of common shares increased through the initial public offering completed in November 2010.
- Capital expenditures for the three months ended March 31, 2011, totalled $31.9 million compared to $6.6 million in the first quarter of 2010 and $10.8 million in the fourth quarter of 2010.
- United States Drilling Services revenue totalled $9.0 million or 33% of total Drilling Services revenue compared to $3.5 million or 20% of total Drilling Services revenue for the first quarter of 2010. United States net capital assets of $49.1 million at the end of Q1 2011 grew 546% over the first quarter of 2010.
The record first quarter revenue and EBITDA are due to Strad's ability to effectively deploy its 2010 capital program of $42.9 million in its focus areas of North America. In 2011, the Company is executing on a $66.5 million capital program and 48% of the program has been spent at the end of the quarter. The 2010 and 2011 capital programs increased net capital assets by 115% from the first quarter of 2010. Strad's expanded rental equipment fleet has allowed the Company to proactively respond to rising industry activity created by improved oil and liquid rich natural gas pricing and the change in drilling technology facilitated by a higher proportion of horizontal wells. Horizontal wells generally require more rental equipment, thus creating more demand for Strad's rental fleet. Strad's commodity exposure is well balanced as it works with customers to maintain good diversification among oil, natural gas liquids and dry natural gas drilling programs.
OUTLOOK
Industry conditions to date in 2011 have been positive. All indications point toward this trend continuing through to the end of this year and into 2012. Higher oil and liquids rich natural gas prices driven by political instability in the Middle East and strong global demand from improved economic activity has boosted exploration and development activity throughout North America. Weak natural gas pricing is dampening activity in some areas of North America but has had limited overall impact. In the Western Canadian Sedimentary Basin ("WCSB"), drilling utilization of 74% for the first quarter of 2011 has increased to its highest level since the first quarter of 2006 and was 24% more than the first quarter of 2010; well permits for the first quarter of 2011 increased 30% over the first quarter of 2010; and meters drilled in the first quarter of 2011 increased 16.5% over that of the first quarter of 2010. In the United States, land rig counts have stayed consistent with that of December 2010 and increased 24% over the first quarter of 2010. The shift to oil is prevalent throughout North America. In Canada, 70% of wells being drilled are oil related and in the United States approximately 50% are directed towards oil. Horizontal drilling and multi-stage fracking are being utilized more often to exploit both unconventional resource plays and mature conventional plays. Horizontal rig activity makes up 57% of United States rig activity compared to 51% in 2010 while in Canada it is estimated 44% of wells drilled are horizontal compared to 42% in 2010 and 29% from 2009. Horizontal techniques require more advanced planning and equipment on the well site which management believes is positive for Strad.
The Company's improved revenue and EBITDA for the three months ended March 31, 2011, reflects the increased asset base that was added in 2010. The results also reflect the improved industry activity throughout North America . First quarter consolidated revenue and EBITDA are consistent with the fourth quarter of 2010 and have met management's expectations. Return on assets of Strad continues to out-perform with strong utilization of equipment during Q4 and Q1. New product initiatives such as solids control, satellite communications equipment and composite mats made up $6.2 million of capital expenditures in the first quarter. These products are expected to be deployed and generating revenue in the second quarter of 2011. The new products and services enhance the technical component of products the Company offers to its customers and helps to further diversify its product suite. Strad expects the high standards of safety and environmental stewardship to continue to be a serious concern for customers, particularly in the high profile new resource plays. These higher standards have created a trend to single source, full service vendors like Strad.
New capital will continue to be allocated in the coming months. The Company normally experiences a three month lag between the date of expenditures and the date that assets are deployed in the field and generating revenue. The lag is due to internal preparation to ready the equipment for customer use. During the first quarter, most of the capital expenditures occurred in February and March, and are not expected to generate revenue until the second quarter.
The Company's growing United States business is stabilizing seasonal impacts for its rental equipment operations. The typical decline experienced by Canadian oilfield service providers in the second quarter due to wet field conditions and road bans is increasingly minimized for Strad as growth in the United States continues. The impact of spring break up is not as disruptive for operations based in the United States. Approximately 75% of the $31.9 million of capital expenditures for the three months ended March 31, 2011, have been placed in the United States. Total net assets based in the United States now comprise 45% of total Drilling Services net assets compared to 12% at the end of the first quarter of 2010. The Company expects a greater proportion of revenue and EBITDA will therefore be generated from the United States as the year progresses eliminating much of the decrease normally experienced in the second quarter by Canadian based companies.
The Company's product mix also helps to minimize the impact of the traditional decrease in second quarter Canadian activity. The wet field conditions create demand for the Company's matting products which helps to mitigate decreased utilization of drilling equipment products. The Company is expecting strong utilization of matting in the second quarter of 2011 given the high levels of precipitation during the winter and spring. Access matting requirements are typically nominal in the first quarter of the year in Canada. Consistent with a typical seasonal pattern, Matting EBITDA for the first quarter of 2011 was $2.0 million less than the fourth quarter of 2010. Second quarter 2011 matting activity is expected to be consistent with fourth quarter 2010.
As additional capital is deployed in the United States, the typical seasonal pattern for Strad activity will include strong utilizations for all equipment in the first quarter with the exception of matting products, decreased Canadian equipment utilizations in the second quarter offset by strong utilizations for Canadian matting and US operations, and strong third and fourth quarter utilizations for all products and services. The Company expects second quarter EBITDA to be comparable to the first quarter of 2011.
The positive industry conditions continue to provide many organic opportunities. Strad's disciplined process of allocating capital based on four key strategies (customer, resource play, contract and economic return) encourages optimal deployment of capital. Strad is cognizant that a strong balance sheet is also part of being a successful company over the long term. The funds raised last November through the initial public offering plus operational cash flow have provided the funding to undertake the 2011 capital program and maintain a strong balance sheet. At March 31, 2011, the funded debt to EBITDA ratio was 1.0.
SEGMENTED INFORMATION
Strad operates in Canada and the United States through two business segments: Drilling Services and Production Services. Drilling Services includes a comprehensive range of drilling-related products and services, including a wide range of environmental solutions. Production Services includes mechanical services, production equipment packaging and electrical and instrumentation services. All divisional figures are reported based on these two segments.
CONSOLIDATED REVIEW Three months ended March 31st, --------------------------------------- ($000's) 2011 2010 % Change --------------------------------------- Revenue: Drilling Services 26,782 17,404 53.9 Production Services 17,826 16,054 11.0 --------------------------------------- TOTAL REVENUE 44,608 33,458 33.3 EBITDA (1) : Drilling Services 8,710 6,196 40.6 Production Services 1,287 1,597 (19.4) Corporate (1,552) (1,298) 19.6 --------------------------------------- TOTAL EBITDA 8,445 6,495 30.0 (1) EBITDA is a non-GAAP measure. See "Non-GAAP Measures Reconciliation". SEGMENT REVIEW OF DRILLING SERVICES Three months ended March 31st, -------------------------------- ($000's) 2011 2010 -------------------------------- Drilling Services Revenue 26,782 17,404 EBITDA (1) 8,710 6,196 EBITDA % 32.5% 35.6% Capital Expenditures(2) 31,779 6,342 Gross Capital Assets 114,327 53,238 Total Assets 151,234 79,414 Annualized Return on Average Total Assets %(3) 30.0% 30.4% (1) EBITDA is a non-GAAP measure. See "Non-GAAP Measures Reconciliation". (2) Includes assets acquired under finance lease. Segmented information does not include capital expenditures for the corporate segment of Strad as they are minimal. (3) Annualized Return on Average Total Assets is a non-GAAP measure. See "Non-GAAP Measures Reconciliation".
Revenue generated from the Company's Drilling Services segment for the three months ended March 31, 2011 increased 54% to $26.8 million versus $17.4 million for the three months ended March 31, 2010. Increases resulted primarily from additions to the rental asset fleet in both Canada and the United States. Revenue generated out of the United States increased 157% to $9.0 million in the first quarter of 2011 from $3.5 million in the first quarter of 2010. Canadian Drilling Services revenue also improved for the three months ended March 31, 2011, revenue of $17.8 million improved 28% as compared to revenue of $13.9 million for the three months ended March 31, 2010. The first quarter of 2010 Canadian Drilling Services revenue included an environmental access matting project not typical for the season, which increased revenue by $2.7 million.
Drilling Services EBITDA increased 41% to $8.7 million for the first quarter of 2011 compared to $6.2 million for the first quarter of 2010 and $8.4 million in the fourth quarter of 2010. Drilling Services EBITDA as a percentage of revenue decreased for the three months ended March 31, 2011, to 33% from 36% for the three months ended March 31, 2010. Canadian Drilling Services EBITDA included the environmental access matting project not typical for the season, which increased Q1 2010 EBITDA by approximately $1 million. EBITDA as a percentage of revenue for the fourth quarter of 2010 was 31%.
SEGMENT REVIEW OF PRODUCTION SERVICES Three months ended March 31st, -------------------------------- ($000's) 2011 2010 -------------------------------- Production Services Revenue 17,826 16,054 EBITDA (1) 1,287 1,597 EBITDA % 7.2% 9.9% Capital Expenditures(2) 15 137 Gross Capital Assets 15,777 15,111 Total Assets 61,134 61,274 Annualized Return on Average Total Assets %(3) 8.4% 9.8% (1) EBITDA is a non-GAAP measure. See "Non-GAAP Measures Reconciliation". (2) Includes assets acquired under finance lease. Segmented information does not include capital expenditures for the corporate segment of Strad as they are minimal. (3) Annualized Return on Average Total Assets is a non-GAAP measure. See "Non-GAAP Measures Reconciliation".
Production Services revenue improved 11% to $17.8 million for the three months ended March 31, 2011, compared to $16.1 million for the same time period in 2010. Revenue increased as the number of field technicians in the group increased 16% over March 31, 2010, but was negatively impacted by cold weather and wet field conditions preventing technicians from accessing customer sites. Industry conditions in the WCSB have not changed significantly over that of last year due to depressed natural gas prices.
Production Services EBITDA for the three months ended March 31, 2011, of $1.3 million decreased from EBITDA of $1.6 million from the first quarter of 2010. EBITDA as a percentage of revenue decreased to 7% for the three months ended March 31, 2011, from 10% for the three months ended March 31, 2010. Natural gas compression and electrical and instrumentation service pricing remains at competitive levels due to reduced activity in the conventional natural gas service market.
SEGMENT REVIEW OF CORPORATE SERVICES
The Corporate segment had an EBITDA loss of $1.6 million for the first quarter of 2011 compared to a loss of $1.3 million for the first quarter of 2010. Increases in Corporate Services expenses are due to higher levels of Company activity and costs associated with being a publicly traded company.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2011, Strad's principal sources of liquidity include working capital of $17.6 million, a revolving demand facility of $20.0 million of which $13.3 million is drawn, a 364-day revolving capital expenditure facility of $19.0 million of which $11.0 million is drawn and a lease facility of $10.0 million of which $5.5 million is drawn as of March 31, 2011.
The net working capital position of Strad at March 31, 2011, was $17.6 million as compared to $2.9 million as of March 31, 2010, and $33.6 million as of December 31, 2010. Working capital increased from the prior year's quarter due to increased business volumes and increases in accounts receivable, which are not fully offset by accounts payable increases. Working capital decreased from December as bank facilities were undrawn at the end of 2010. Funds from the initial public offering that were received in November of 2010 were not applied to the capital spending until 2011.
As at December 31, 2010, the Company was in compliance with all of the bank facility covenants.
NON-GAAP MEASURES RECONCILIATION
Strad uses certain supplementary measures that do not have any standardized meaning as prescribed under IFRS to assess performance and believes these non-GAAP measures provide useful supplemental information to the investor. These measures are further explained below.
Management believes that in addition to net income, EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company's principal business activities prior to consideration of how those activities are financed or how the results are taxed. EBITDA is calculated as net income prior to interest, taxes, depreciation and amortization. EBITDA also calculates earnings prior to non-controlling interest, (gain)/loss on disposal of property plant and equipment ("PP&E"), (gain)/loss on foreign exchange, and impairment of goodwill. Segmented EBITDA is based upon the same calculation for defined business segments, which are comprised of Drilling Services, Production Services and Corporate.
Funds from operations are cash flow from operating activities excluding changes in working capital. It is a supplemental measure to gauge performance of the Company before non-cash items. Working capital is calculated as current assets minus current liabilities. Working capital is used by Management to gauge what banking facilities are available for reinvestment in the business.
Funded debt is bank indebtedness plus current and long-term portion of debt, plus current and long-term obligations under finance lease.
Annualized return on average total assets is calculated as annualized current period EBITDA divided by the average of total assets over the prior quarter. The three month lag represents the time between the purchase of capital assets and when they are deployed in the field and earning revenue.
Reconciliation of Non-GAAP Measures ($000's) Three Months Three Months Ended Ended March 31st, March 31st, ------------------------------ 2011 2010 ------------------------------ (unaudited) (unaudited) Net income (loss) 1,587 1,558 Add: Depreciation and amortization 4,681 3,346 Gain on disposal of PP&E (12) (34) Share-based payments 214 154 Non-controlling interest 543 214 Deferred income tax (recovery) 1,122 (198) Interest expense 234 461 ------------------------------ Funds from operations 8,369 5,501 Add: Loss on foreign exchange 270 129 Income tax expense 20 1,019 Subtotal 8,659 6,649 Deduct: Share-based payments 214 154 ------------------------------ EBITDA 8,445 6,495 ------------------------------ ------------------------------
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
Certain statements and information contained in this Press Release constitute forward-looking statements. These statements relate to future events or to the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements.
The use of any of the words "expect", "plan", "continue", "estimate", "anticipate", "targeting", "intend", "could", "might", "should", "believe", , "may", or "will" and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this Press Release. The forward-looking information and statements included in this Press Release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and 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 information or statements. These factors include, but are not limited to, such things as the impact of general industry conditions, fluctuation of commodity process, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. The risks outlined above should not be construed as exhaustive. Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Accordingly, readers should not place undue reliance upon any of the forward-looking information set out in this Press Release. All of the forward looking statements of the Company contained in this Press Release are expressly qualified, in their entirety, by this cautionary statement. Except as required by law, the Company disclaims any intention or obligation to update or revise any forward-looking information or statements, whether the results of new information, future events or otherwise.
Strad Energy Services Ltd. Consolidated Statement of Financial Position (Unaudited) (in thousands of Canadian dollars) March 31, December 31, January 1, 2011 2010 2010 $ $ $ Assets Current assets Cash and cash equivalent - 8,416 - Accounts receivable 47,205 41,700 18,547 Inventories 14,712 15,171 17,935 Prepaid expenses and deposits 2,208 2,887 981 Other current assets 64 241 195 ----------------------------------------- 64,189 68,415 37,658 Non-current assets Property, plant and equipment 97,094 70,128 40,810 Intangible assets 10,745 11,446 14,856 Goodwill 36,004 36,004 36,004 Deferred income taxes 5,298 5,475 2,447 ----------------------------------------- Total assets 213,330 191,468 131,775 ----------------------------------------- ----------------------------------------- Liabilities Current liabilities Bank indebtedness 13,345 - 13,249 Accounts payable and accrued liabilities 23,374 26,755 13,081 Current portion of long-term debt 2,750 - 3,587 Deferred revenue 3,094 3,387 119 Current portion of obligations under finance lease 3,988 4,662 3,957 Income taxes payable 56 36 - ----------------------------------------- 46,607 34,840 33,993 Non-current liabilities Long-term debt 8,250 - 11,214 Obligations under finance lease 4,750 5,282 5,765 Deferred income tax liabilities 11,353 10,462 5,281 Other long-term liabilities - - 278 ----------------------------------------- Total liabilities 70,960 50,584 56,531 Equity Equity attributable to owners of the parent Share capital 157,009 157,071 99,091 Contributed surplus 2,435 2,221 1,661 Accumulated other comprehensive loss (1,640) (924) - Deficit (16,648) (18,235) (25,544) ----------------------------------------- 141,156 140,133 75,208 Non-controlling interests 1,214 751 36 ----------------------------------------- Total equity 142,370 140,884 75,244 ----------------------------------------- Total liabilities and equity 213,330 191,468 131,775 ----------------------------------------- ----------------------------------------- Strad Energy Services Ltd. Consolidated Statement of Income For the three months ended March 31, 2011 and 2010 (Unaudited) (in thousands of Canadian dollars) 2011 2010 $ $ Revenue 44,608 33,458 Expenses Operating expenses 28,786 21,260 Depreciation 3,835 2,425 Amortization of intangible assets 846 921 General administration 7,163 5,549 Share-based payments 214 154 Other gain (net) (12) (34) Foreign exchange loss 270 129 Interest expense 234 461 ------------------------- Income before income tax 3,272 2,593 Income tax 1,142 821 ------------------------- Net income for the period 2,130 1,772 ------------------------- ------------------------- Net income attributable to: Owners of the parent 1,587 1,558 Non-controlling interests 543 214 ------------------------- 2,130 1,772 ------------------------- ------------------------- Earnings per share: $ 0.04 $ 0.08 Basic $ 0.04 $ 0.08 Diluted Strad Energy Services Ltd. Consolidated Statement of Comprehensive Income For the three months ended March 31, 2011 and 2010 (Unaudited) (in thousands of Canadian dollars) 2011 2010 $ $ Net income for the period 2,130 1,772 ------------------------- Other comprehensive loss Cumulative translation adjustment (796) - ------------------------- Total other comprehensive loss (796) - ------------------------- Comprehensive income for the period 1,334 1,772 ------------------------- ------------------------- Comprehensive income attributable to: Owners of the parent 871 1,558 Non-controlling interests 463 214 ------------------------- 1,334 1,772 ------------------------- ------------------------- Strad Energy Services Ltd. Consolidated Statementof Cash Flow For the three months ended March 31, 2011 and 2010 (Unaudited) (in thousands of Canadian dollars) 2011 2010 $ $ Cash flow provided by (used in) Operating Activities Net income for the period 2,130 1,772 Adjustments for: Depreciation and amortization 4,681 3,346 Deferred income tax 1,122 (198) Share-based payments 214 154 Net interest expense 234 461 Other (12) (34) Changes in items of working capital: Accounts receivable (5,505) (8,644) Inventories 459 1,817 Prepaid expenses 679 (595) Accounts payable and accrued liabilities (3,381) 3,359 Other current liabilities (98) 758 ------------------------- Net cash generated from operating activities 523 2,196 ------------------------- Investing activities Purchase of property, plant and equipment (31,118) (6,216) Proceeds from sale of property, plant and equipment 152 222 Purchase of intangible assets (135) (11) ------------------------- Net cash generated from investing activities (31,101) (6,005) ------------------------- Financing activities Change in bank indebtedness 13,345 1,643 Proceeds on issuance of debt 11,000 2,000 Repayment of debt - (480) Share issue costs (62) - Repayment of finance lease obligations (net) (1,854) 1,107 Interest paid on debt (234) (461) ------------------------- Net cash generated in financing activities 22,195 3,809 ------------------------- Effect of exchange rate changes on cash and cash equivalents (33) - Increase (decrease) in cash and cash equivalents (8,416) - Cash and cash equivalents - Beginning of period 8,416 - ------------------------- Cash and cash equivalents - End of period - - ------------------------- ------------------------- Cash paid for income tax - -
FIRST QUARTER 2011 EARNINGS CONFERENCE CALL
Strad Energy Services Ltd. has scheduled a conference call to begin promptly at 9:00 a.m. MT on Thursday, May 12, 2011.
The conference call dial in numbers are 1-866-542-4239 or 1-416-340-8527.
An archived recording of the conference call will be available approximately one hour after the completion of the call.
The replay dial in number is 1-800-408-3053 or 1-905-694-9451.
The pass code for replay is 8368231. This recording will be made available until Thursday, May 19th.
ABOUT STRAD ENERGY SERVICES LTD.
Strad is a diversified energy services company that focuses on providing oilfield solutions to the oil and natural gas industry in the WCSB and throughout the United States. Strad operates with two core divisions: Drilling Services and Production Services. Drilling Services focuses on providing complete customer solutions in drilling-related oilfield equipment for producers active in unconventional resource plays. Production Services focuses on delivering a range of products and services to support the ongoing maintenance of natural gas and oil production.
Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol "SDY".
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contact Information:
Henry van der Sloot
Chief Executive Officer
(403) 249-7336
(403) 232-6901 (FAX)
hvandersloot@stradenergy.com
Strad Energy Services Ltd.
Andy Pernal
President
(403) 775-9202
(403) 232-6901 (FAX)
apernal@stradenergy.com
Strad Energy Services Ltd.
Byron Johnson
Chief Financial Officer
(403) 775-9219
(403) 232-6901 (FAX)
bjohnson@stradenergy.com