North American Construction (NYSE: NOA) reported Q1 EPS of $0.62, $0.72 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $168.41 million versus the consensus estimate of $54.97 million.

First Quarter 2021 Highlights:

• Adjusted EBITDA of $61.1 million represents a $1.2 million increase over the prior year, reflecting a strong operational quarter and the continued recovery of operating hours towards pre-pandemic levels.
• Gross profit margin of 19.0% compared to 17.4% in prior year reflecting relatively standard winter season operating conditions allowing for efficient and effective execution of volume commitments.
• COVID-19 related safety protocols and mine site access restrictions continue impacting all aspects of operations but are becoming more routine and less disruptive in nature.
• Nuna Group of Companies ("Nuna") achieved a record first quarter, which has historically been the slowest quarter of the year. Our share of Nuna revenue was $25.2 million in the quarter compared to $10.4 million in Q1 2020. This quarter over quarter increase of 142% was achieved due to the strong ramp-up of work being completed by the joint venture owned by Nuna and North American at a gold mine project in Northern Ontario.
• Free cash flow ("FCF") in the quarter was $5.5 million was generated by strong adjusted EBITDA offset by our front-weighted capital maintenance program. Furthermore, the timing of working capital balances resulted in use of cash of $18.5 million which is expected to reverse during the remainder of the year.
• Net debt was $397.2 million at March 31, 2021. The increase of $11.5 million from the December 31, 2020 balance of $385.6 million was primarily driven by the share purchase program, through which we purchased and cancelled 1.1 million shares during the quarter.
• On February 2, 2021, we issued our inaugural sustainability report. The annual report provides structured framework for environmental, social and governance initiatives moving forward and will allow for measurement of progress towards our goals in various business areas.
• In mid-February 2021 and effective January 1, 2021, Barry Palmer was appointed Chief Operating Officer.
• On April 6, 2021, we announced our intention to commence a normal course issuer bid ("NCIB") to purchase for cancellation up to 2,000,000 common shares. This represented approximately 6.7% of the issued and outstanding common shares as of April 6, 2021. The NCIB commenced on April 9, 2021 and will terminate no later than April 8, 2022.

NACG President and CEO, Joe Lambert, commented: "It is always very pleasing to start a new year beating expectations. My thanks to the NACG team for their continued dedication to operational excellence during the start of 2021 which continued our positive trend of recovery from the Q2 2020 pandemic influenced lows."

Mr. Lambert added: "The next few months will provide opportunity to showcase our excellence in execution and potentially win some tenders that could accelerate our strategic plans for 2021 and several years to come. We are proud of our Q1 results and the team continues to work hard in delivering safe, low-cost, diversified and sustainable growth going forward."

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