Tornado Global Hydrovacs Reports Impressive Growth in Q2 2024
CALGARY, Alberta -- Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TSX-V: TGH; OTCQX: TGHLF) has announced its unaudited condensed consolidated financial results for the three and six month periods ending June 30, 2024. The detailed unaudited condensed consolidated financial statements and accompanying management discussion and analysis can be found on the Company’s issuer profile in Canada on SEDAR+ as well as on the Company’s website. All figures mentioned in this news release are in thousands ($000’s CAD), except for per share amounts.
Overview of Q2 2024 and Key Developments
Highlights:
- The Company achieved record sales in Q2 2024, marking its ninth consecutive quarter of record revenue.
- Net income per share (diluted) rose to $0.018, an increase of $0.010 (125.0%) compared to the previous year. Overall net income reached $2,511, up by $1,457 (138.2%) due to higher revenue and EBITDAS.
- EBITDAS per share (diluted) grew to $0.028, reflecting an increase of $0.013 (85.8%) from the previous year, with total EBITDAS rising to $3,770.
- Revenue surged to $34,423, a 46.3% increase year-over-year, driven by a product supply agreement with Ditch Witch and rising sales from Custom Truck.
- Gross profit reached $6,234, an increase of $2,330 (59.7%) from the previous year, indicative of strong sales growth.
- Selling and general administrative expenses increased to $2,550, up by $599 (30.7%), primarily due to higher employee and travel costs.
Brett Newton, President and CEO, shared insights on the Company's performance and future outlook, stating, "Building on our strong financial results in the second quarter, we are well-positioned to maintain this growth trend into 2025, fueled by strong demand for our products. Our sales backlog extends into next year, highlighting increasing market confidence in our offerings. We are dedicated to enhancing our production capacity and innovating our product line to address the demand in the infrastructure sector."
Financial and Operational Highlights
Here are the financial highlights for the three and six months ending June 30, 2024, presented 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
Future Outlook
Management anticipates strong growth in the production and sales of hydrovac trucks for the remainder of 2024, driven by several factors:
- Ongoing infrastructure investments across North America.
- Introduction of new and innovative products for the infrastructure, telecommunications, and oil and gas sectors.
- Increased revenues from the Supply Contract with Ditch Witch.
- Strengthened relationships with dealers to meet the rising demand.
- Expansion of maintenance and repair services across North America.
About Tornado Global Hydrovacs Ltd.
Tornado Global Hydrovacs is a prominent player in the vacuum truck industry, specializing in hydrovac trucks that are designed for safe excavation around critical infrastructure. Since 2005, the company has sold over 1,400 hydrovacs, supporting excavation service providers across various sectors.
For further information about Tornado Global Hydrovacs Ltd., please 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, indicating substantial growth compared to the previous year.
How did EBITDAS perform in the second quarter?
EBITDAS rose to $3,770, showcasing strong profitability relative to the prior year.
What factors contributed to the revenue growth in Q2 2024?
The increase in revenue was driven by a supply agreement with Ditch Witch, higher sales from Custom Truck, and increased pricing and demand for hydrovac trucks.
What are Tornado's future growth prospects?
Management expects continued growth in line with rising infrastructure spending and successful product innovations.
How has Tornado's leadership assessed the current market conditions?
Leadership emphasizes confidence in fulfilling growing market demands through enhanced production capabilities and innovative solutions.
