North American Construction (NOA) Tops Q2 EPS by 55c, Revenues Beat

North American Construction (NYSE: NOA) reported Q2 EPS of $0.45, $0.55 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $70.8 million versus the consensus estimate of $54.97 million.

Financial Highlights of the Second Quarter Ended June 30, 2020

• Revenue for the quarter was $70.8 million, compared to $176.9 million for the same period in the prior year, a decrease of $106.2 million (or 60%).
• Year to date revenue was $269.6 million, compared to $363.3 million for the same period in the prior year, a decrease of $93.8 million (or 26%).
• Adjusted EBITDA for the quarter was $31.9 million, compared to $37.1 million for the same period in the prior year, a decrease of $5.2 million (or 14%).
• Year to date Adjusted EBITDA was $92.1 million, compared to $89.2 million for the same period in the prior year, an increase of $2.9 million (or 3%).
• Adjusted EPS for the quarter was $0.45, compared to $0.43 for same period in the prior year, an increase of $0.02 (or 5%).
• Year to date Adjusted EPS was $1.14, compared to $0.93 for the same period in the prior year, an increase of $0.21 (or 23%).
• Free cash flow for the quarter was $10.6 million, compared to $1.7 million for the same period in the prior year, an increase of $8.9 million.
• Year to date free cash flow was $20.1 million, compared to $(3.6) million for the same period in the prior year, an increase of $23.6 million.
• Total liquidity at quarter-end was of $135.4 million, compared to $114.6 million at December 31, 2019, a increase of $20.8 million.

NACG Chairman and CEO, Martin Ferron, commented: “As one of very few companies that provided any sort of outlook for the second quarter, we were determined to both minimize the impact of the COVID-19 pandemic on the health and safety of our workforce; and mitigate its effect on our business performance. Therefore, we are pleased to report that good headway was made on both objectives, as we also helped our customers manage the virus risk on their worksites.

“A close stewardship of costs rewarded us with a nicely profitable quarter, despite a greater than 60% sequential fall in our revenues, in the toughest operating environment we have ever experienced. We also hit our free cash flow target and reduced our net debt by around 10%, with that cash flow and the call of a convertible debenture.”

Mr. Ferron added, “Looking ahead, we anticipate that our core business activity will gradually improve as the year progresses, such that we now expect our full year adjusted EBITDA to be in the range of $140-$170 million.”

For earnings history and earnings-related data on North American Construction (NOA) click here.

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