CALGARY, Dec. 10, 2019 /CNW/ - Strad Inc. ("Strad" or the "Company") (TSX:SDY) today announced its Board of Directors has approved $25 million of growth capital in 2020 to focus on increasing and maintaining its Industrial Matting fleet in Canada and the U.S. The $25 million capital plan consists of $15 million for matting growth and $10 million for matting maintenance.
"We continue to see the business drivers of matting adoption continue for environmental stewardship best practice, elevated standards for worker safety, project efficiency and overall growth in large-scale infrastructure projects across North America," said Andy Pernal, President and Chief Executive Officer. "Through 2020, Strad will continue to evaluate capital opportunities and assess the size of the capital program based on industry conditions and customer demand, similar to the Company's approach in the last two years. Strad's current financial position and free cash flow generation provide significant flexibility to pursue additional growth opportunities that may arise during the year."
Currently, Strad's matting business is working on three meaningfully sized projects in Canada, including two related to midstream construction and the third related to power transmission construction which are expected to continue into the second quarter of 2020. In the U.S., Strad is experiencing higher utilization rates, increasing project volumes, and has a significant pipeline of opportunities of various sizes. Along with serving the pipeline and power transmission sector, Strad also operates in a broad range of industrial sectors across North America, including: wind power, mining, construction as well as oil and gas. Strad will continue to evaluate capital opportunities through 2020 and will assess the size of its capital program from time to time based on industry conditions and customer demand.
Strad specializes in industrial matting and equipment rentals for projects of any size, from a network of branches across Canada and the United States. Strad aims to exceed customer expectations in many industrial sectors, including Pipeline, Oil & Gas, Transmission & Distribution, and Construction.
Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol "SDY".
Forward Looking Information, Statements and Advisories
The Company anticipates remaining disciplined with its budgeted 2020 capital program as it monitors business conditions throughout the balance of the fiscal year. Where deemed prudent, the Company may make adjustments to its 2020 capital program. Actual spending may vary due to a variety of factors including, without limitation, economic conditions, prevailing debt and/or equity markets, field activity and the impact of any future strategic transactions. The Company has flexibility to adjust the level of its capital investments as circumstances warrant.
This news release contains certain forward looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "estimate", "may", "will", "project", "should", "believe", "plan", "intends", "forecast" and similar expressions are intended to identify forward looking information or statements. In particular, but without limiting the foregoing, this news release contains forward looking information and statements pertaining to the following: Strad's currently planned 2020 capital program, including the planned expansion of the Company's matting fleet; methods of funding and financial capacity required to carry out the Company's capital program; the anticipated growth in the Company's industrial matting division and the Company's ability to capitalize on opportunities within the current marketplace. Forward looking information or statements are based on a number of expectations or assumptions of Strad which have been used to develop such information or statements, but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward looking information or statements are reasonable, undue reliance should not be placed on forward looking information or statements because the Company can give no assurance that such expectations or assumptions will prove to be correct. The forward looking information and statements contained in this news release speak only as of the date hereof and Strad does not assume any obligation to publicly update or revise any of the included forward looking information or statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
SOURCE Strad Inc.
For further information: Andy Pernal, President & Chief Executive Officer, (403) 775-9202, Email: [email protected]; Michael Donovan, Chief Financial Officer, (403) 775-9221, Email: [email protected], Stradinc.com