“In 2010 the Company achieved record financial results, increasing revenue by 105% and EBITDA by 483% compared to 2009. This growth was all achieved through organic initiatives. This growth was driven by the robust improvements in drilling activity across North America, the substantial changes to drilling equipment requirements resulting from increased horizontal drilling and multi-stage fracturing, and the successful penetration of Strad into key new resource areas across North America.”
Highlights in the year include:
- Record Earnings before interest, taxes, depreciation and amortization (“EBITDA(1)” ) of $29.2 million for 2010, compared to $5.0 million in 2009;
- EBITDA return on average total Drilling Services assets for the year ended December 31, 2010 of 30% ;
- Successful deployment of $42.9 million of capital assets (includes $2.4 million of assets acquired under capitalized leases), the largest capital program in the Company’s history;
- Expansion of its customer base beyond the Western Canadian Sedimentary Basin (“WCSB”) into some of the most active areas in the United States, namely the Marcellus in Pennsylvania, the Bakken in North Dakota, the Eagle Ford in Texas and various areas within the western United States Rockies;
- Initial public offering raising gross proceeds of $45.0 million, the Company was listed on the Toronto Stock Exchange in November under the symbol “SDY”.
(1) EBITDA is not a recognized financial measure under Generally Accepted Accounting Principles (“GAAP); see “Non-GAAP Measures “ in this report
In addition to capitalizing on the general increase in industry activity, Strad has successfully leveraged off of the dramatic changes in drilling equipment requirements presented by horizontal drilling and multi-stage fracturing. The increased demand for greater quantities of equipment has been matched by increased demand for the highest standards of safety and environmental stewardship. Strad’s focus on safety, service, environmental solutions, and its unique ability to meet these demands through its broad base of locations and proprietary manufacturing capabilities make Strad a preferred vendor for its customers.
Andy Pernal, President of Strad commented, “As the capital intensity of our business increases, and the demands for safety and environmental protection become more onerous, the competitive landscape of our business is changing. It now requires a large and sophisticated infrastructure to successfully meet the standards set by customers. Fortunately, Strad is at the forefront of these changes, and as a result, is in a position to further increase its market share going forward.”
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