BADGER DAYLIGHTING LTD. PROVIDES AN OPERATIONAL AND FINANCIAL UPDATE RELATED TO COVID-19 AND UPCOMING EVENTS

CALGARY, Alberta, April 01, 2020 (GLOBE NEWSWIRE) -- Badger Daylighting Ltd. (“Badger” or the “Company”) today announces an operations and financial update related to the ongoing impact of COVID-19 on the North American economy.

In response to the COVID-19 pandemic and its potential impacts on the North American economies, the Company has implemented business actions to protect the health and safety of its employees, customers and communities in which we operate, and to minimize the disruption to its business. We are following the advice of governments and various health authorities in each jurisdiction that we operate in. We are also taking actions to support Badger’s profitability and maintain its strong financial position. 

Badger provides services related to the construction, maintenance and repair of critical infrastructure across North America. We have been designated as an essential service provider across our operating jurisdictions. We recognize, however, that the effects of the COVID‑19 pandemic and government or customer actions, although anticipated to be temporary, could materially disrupt Badger’s business operations in the short term.

Badger is taking a range of actions to manage costs and preserve shareholder capital. Effective April 2020, senior leadership salaries will be reduced by 20%, our Chief Executive Officer’s salary will be reduced by 40%, and the board of directors annual cash retainers will be reduced by 40%. In addition, we will be curtailing production of hydrovac trucks at our Red Deer, Alberta plant. Further cost reduction initiatives include the reduction of staffing levels and minimizing discretionary costs. We are implementing these measures to optimize free cash flow generation, which will support Badger’s strong balance sheet. We are undertaking these actions with a balanced approach, as we anticipate that the current uncertainty will lessen at some future point in time, and we want to ensure Badger is positioned to service customer demand that will exist longer term across our broad range of end use markets.

Badger maintains a strong financial position. As at March 31, 2020, we held over $90 million in cash and have access to ample liquidity through our $300 million credit facility, which is committed to September 30, 2024. We also have the option to increase our credit facility capacity by an additional $150 million with our existing syndicate of Canadian banks. As at March 31, 2020, we estimate our Total Debt, net of all cash balances, to Compliance EBITDA, calculated on a trailing twelve month basis, will be less than 1.5:1.0, well within the covenant threshold of 4.0:1.0.¹ Given our strong liquidity position, we are maintaining our current dividend level.