North American Construction (NOA) Tops Q1 EPS by 80c, Revenues Beat

North American Construction (NYSE: NOA) reported Q1 EPS of $0.70, $0.80 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $198.8 million versus the consensus estimate of $54.97 million.

Financial Highlights of the First Quarter Ended March 31, 2020

• Revenue for the quarter was $198.8 million, compared to $186.4 million for the same period in the prior year, an increase of $12.4 million (or 7%).
• Adjusted EBITDA for the quarter was $59.9 million, compared to $52.1 million for the same period in the prior year, an increase of $7.9 million (or 15%).
• Adjusted EPS for the quarter was $0.70, compared to $0.51 for same period in the prior year, an increase of $0.19 (or 37%).
• Free cash flow for the quarter was $9.4 million, compared to $(5.3) million for the same period in the prior year, an increase of $14.7
• million.
• Total liquidity at quarter-end was of $107.7 million, compared to $114.6 million at December 31, 2019, a decrease of $6.9 million.

NACG Chairman and CEO, Martin Ferron, commented: “I will look back on Q1 2020 when, firing on all cylinders, my amazing team of employees put up numbers to be immensely proud of. Going forward in an economy decimated by the COVID-19 virus, shareholders should take comfort in the fact that we are battle hardened from previous dealings with perils in our operating environment, especially in the late 2014 to 2016 timeframe. I contend that we are strong operators in any market conditions, good to difficult.

Unfortunately, it is the latter condition that has prevailed from around March 15. Consequently, we are expecting a slow but modestly profitable Q2 as we apply best efforts to help our customers mitigate the direct and indirect impacts of the dreaded virus. Hopefully, we will return to a more normal work environment as the year progresses and will update our outlook accordingly.”

Mr. Ferron added, “We have adequate liquidity and a manageable debt level, especially after the call of the convertible debenture that occurred early in Q2. We will keep an iron grip on what we can control and a wary eye on what we cannot influence. As with the last downturn, we will emerge stronger at the end of this one.”

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

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