Tornado Global Hydrovacs Reports Strong Growth in Q2 2024
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Tornado Global Hydrovacs Reports Strong Growth in Q2 2024
CALGARY, Alberta -- Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TSX-V: TGH; OTCQX: TGHLF) today reported its unaudited condensed consolidated financial results for the three and six month periods ended June 30, 2024. The unaudited condensed consolidated financial statements and related management discussion and analysis are available on the Company’s issuer profile in Canada on SEDAR+ and on the Company’s website. All amounts reported in this news release are in thousands ($000’s CAD) except per share amounts.
Second Quarter 2024 Overview and Significant Developments
Key Highlights:
- The Company achieved record quarterly sales in Q2 2024, marking the ninth consecutive quarter of record revenue.
- Net income per share (diluted) of $0.018 increased by $0.010 (125.0%) compared to the previous year. Net income of $2,511 increased by $1,457 (138.2%) due to increased revenue and EBITDAS.
- EBITDAS per share (diluted) of $0.028 increased by $0.013 (85.8%) compared to the previous year. EBITDAS increased to $3,770.
- Revenue reached $34,423, representing a 46.3% increase compared to the previous year, driven by a product supply agreement with Ditch Witch and increasing sales from Custom Truck.
- Gross profit of $6,234 increased by $2,330 (59.7%) compared to the previous year, reflecting robust sales growth.
- Selling and general administrative expenses rose to $2,550, an increase of $599 (30.7%), primarily due to employee and travel costs.
Brett Newton, President and CEO, commented on the Company's performance and outlook, stating, "Building on our strong financial performance in the second quarter, we are poised to continue this upward trajectory well into 2025, thanks to robust demand for our products. Our sales backlog extends into next year, underscoring growing market confidence in our offerings. We are committed to enhancing production capacity and innovating our product line to meet demand in the infrastructure sector."
Financial and Operating Highlights
Below are the financial highlights for the three and six months ended June 30, 2024, expressed in thousands (CAD $000s):
- Revenue: Q2 2024: $34,423; Q2 2023: $23,530
- Net Income: Q2 2024: $2,511; Q2 2023: $1,054
- EBITDAS: Q2 2024: $3,770; Q2 2023: $2,025
- Gross Profit: Q2 2024: $6,234; Q2 2023: $3,904
- Selling and Administrative Expenses: Q2 2024: $2,550; Q2 2023: $1,951
Outlook for the Future
Management expects strong growth in production and sales of hydrovac trucks for the remainder of 2024 due to several factors:
- Continuing infrastructure investments in North America.
- New and innovative products for infrastructure, telecommunications, and oil and gas sectors.
- Increasing revenues from the Supply Contract with Ditch Witch.
- Strengthened dealer relationships to meet growing demand.
- Expansion of North American maintenance and repair services.
About Tornado Global Hydrovacs Ltd.
Tornado Global Hydrovacs is a leader in the vacuum truck industry, providing hydrovac trucks designed for safe excavation around critical infrastructure. The company has sold over 1,400 hydrovacs since 2005, supporting excavation service providers across a variety of industries.
For more information about Tornado Global Hydrovacs Ltd., contact:
- Brett Newton
President and Chief Executive Officer
Phone: (587) 802-5070
Email: bnewton@tghl.ca - Derek Li
Vice President, Finance
Phone: (403) 204-6350
Email: dli@tghl.ca
Frequently Asked Questions
What were Tornado's key financial results for Q2 2024?
Tornado reported record quarterly sales of $34,423 and net income of $2,511, reflecting significant year-over-year growth.
How did EBITDAS perform in the second quarter?
EBITDAS increased to $3,770, demonstrating strong profitability compared to the previous year.
What factors contributed to the revenue growth in Q2 2024?
Revenue growth was attributed to a supply agreement with Ditch Witch, increased sales from Custom Truck, and higher pricing and demand for hydrovac trucks.
What are Tornado's future growth prospects?
Management anticipates continued growth mirroring rising infrastructure spending and effective product innovations.
How has Tornado's leadership assessed the current market conditions?
Leadership stresses confidence in meeting growing market demands through enhanced production capacity and innovative solutions.
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