Badger Infrastructure Solutions Ltd. Announces 2022 Fourth Quarter Results and Increases Quarterly Dividend

March 23, 2023

CALGARY, Alberta, March 23, 2023 (GLOBE NEWSWIRE) -- Badger Infrastructure Solutions Ltd. (“Badger”, the “Company”, “we”, “our” or “us”) (TSX:BDGI) reported fourth quarter and annual 2022 results today. All results are presented in U.S. dollars unless otherwise stated. Prior year comparatives have been normalized for the Canada Emergency Wage Subsidy ("CEWS") benefits received in 2021 which did not recur in 2022.

2022 Fourth Quarter and Annual Financial and Operational Highlights
  • Revenue in the quarter was $149.0 million and $570.8 million for the year, up 22.6% and 25.8%, respectively, from 2021.
  • Gross profit margin in the quarter improved to 25.3% and to 24.4% for the year, up from 19.1% and 20.4%, respectively, from 2021.
  • Adjusted EBITDA in the quarter improved to $28.1 million and to $100.0 million for the year, up 108.4% and 80.1%, respectively, from 2021.
  • Adjusted EBITDA margin also improved in the quarter to 18.8% and to 17.5% for the year, up from 11.1% and 12.2%, respectively, from 2021.
  • Consolidated revenue per truck per month (“RPT”) for the quarter was $42,064 and $39,649 for the year, up from 25.0% and 28.6%, respectively, from 2021.
  • The Board of Directors of Badger has approved a 4.5% increase in the quarterly dividend to $0.1725 per common share from $0.165 per common share effective with the March 2023 dividend.

“We delivered stronger operating and financial performance in the quarter as well as the full year. The improvements in revenue and margin are a result of improved operating discipline across our branch network, increased asset utilization and strategic investments in sales and marketing,” said Rob Blackadar, President & Chief Executive Officer.

“We are encouraged by the continued strengthening in the North American infrastructure and non-residential construction markets and the increasing demand for non-destructive excavation services across our end markets. In 2023, we plan to build between 200 to 230 units, up from 115 in 2022, and to retire between 80 to 100 units,” concluded Mr. Blackadar.

Key Financial Highlights

  Three months ended Twelve months ended
  December 31, December 31,
($ U.S. thousands, except RPT, per share and share information)   2022     2021     2022     2021  
Non-destructive excavation service revenue   143,016     115,709     547,858     432,460  
Other revenue   6,014     5,828     22,954     21,450  
Total revenue   149,030     121,537     570,812     453,910  
RPT - Consolidated (mixed currency) ¹   42,064     33,664     39,649     30,841  
RPT - U.S. (U.S. dollars) ¹   41,697     32,773     39,114     30,795  
RPT - Canada (Canadian dollars) ¹   43,039     35,957     41,061     30,955  
Adjusted EBITDA ¹   28,076     13,472     99,956     57,933  
Adjusted EBITDA per share, basic and diluted ¹ ² $ 0.81   $0.39   $ 2.90   $1.67  
Adjusted EBITDA margin¹   18.8 %     11.1%     17.5 %     12.8%  
Earnings (loss) before income tax   6,592     (6,635 )   22,883     (11,272 )
Net earnings (loss)   4,238     (4,582 )   18,290     (8,737 )
Net earnings (loss) per share, basic and diluted ² $ 0.12   ($0.13 ) $ 0.53   ($0.25 )
Cash flow from operating activities before working capital and other adjustments   28,417     13,510     100,601     57,790  
Cash flow from operating activities before working capital and other adjustments per share, basic and diluted ² $ 0.82   $0.39   $ 2.92   $1.67  
Dividends paid 3   4,226     4,309     14,506     17,224  
Weighted average common shares outstanding ²   34,473,438     34,505,599     34,473,438     34,600,681  

(1)   See “Non-IFRS Financial Measures” and “Key Financial Metrics and Other Operational Metrics” in the Company's 2022 Annual management's discussion and analysis ("MD&A") for additional detail on the definition and calculation of Adjusted EBITDA, Adjusted EBITDA margin and RPT. Per share, basic and diluted measures calculated by dividing the respective financial measure with the weighted average common shares outstanding for the respective period. RPT reflects the updated calculation methodology and the comparative year’s RPT has been restated to reflect the updated methodology.
(2)   See “Share Capital” in the Company’s 2022 Annual MD&A for additional details.
(3)   The frequency of dividend payments was changed from monthly to quarterly effective with the March 2022 dividend payment.

2023 Business Outlook

The Company will continue to focus on sales activities and pricing strategies to improve revenue growth and margin levels. Badger is continuing to align its sales resources with the market and customer opportunities while leveraging its branch network. The company continues to see strong demand in its end markets, which include infrastructure, energy and non-residential construction.

Badger continues to focus on fleet management and utilization to support near-term growth requirements and will continue to leverage its vertically integrated manufacturing capabilities to support its medium and long-term growth requirements. The Company’s fleet is well positioned to take advantage of market demand in 2023 and the Company expects to produce between 200 and 230 non-destructive excavation units and retire between 80 and 100 units. Badger continues to be comfortable with chassis and key component availability and does not expect to be impacted materially by supply chain disruptions, based on the Company’s supplier relationships and inventory planning completed in 2022.

Badger continues to be encouraged by the need for near and long-term reinvestment in North America’s critical infrastructure, including the addition of new sustainable energy technology and Badger is well positioned to capture the market demand for non-destructive excavation across North America. Badger has managed through the recent inflationary environment by increasing its focus on sales activities, fleet utilization, pricing improvements, fuel recovery program and operating cost management. It is too early for the Company to determine what impact, if any, may result from the increasing global recessionary risks, however, increased revenue diversity and new national account programs are expected to help mitigate any market downturns.

About Badger Infrastructure Solutions Ltd.

Badger Infrastructure Solutions Ltd. (TSX:BDGI) is North America’s largest provider of non-destructive excavating services. Badger works for contractors and facility owners in a broad range of infrastructure industries and in general commercial construction. Badger’s customers typically operate near high concentrations of underground power, communication, water, gas and sewer lines, where safety and economic risks are high and where non-destructive excavation provides a safe alternative for certain customer excavation requirements.

The Company’s key technology is the Badger Hydrovac™, which is used primarily for safe excavation around critical infrastructure and in congested underground conditions. The Badger Hydrovac uses a pressurized water stream to liquify the soil cover, which is then removed with a powerful vacuum system and deposited into a storage tank. To complement the Badger Hydrovac, the Company introduced the Badger Airvac™(1), in late 2021. The Badger Airvac is also used for safe excavation but utilizes compressed air instead of water to loosen the cover soil before vacuuming and depositing excavation materials into a storage tank. Badger is unique in the non-destructive excavation industry because it designs and manufactures all of its hydrovac and airvac units at its plant in Red Deer Alberta, which has an annual production capacity of more than 350 hydrovac and airvac units.

2022 Fourth Quarter and Annual Results Conference Call

A conference call and webcast for investors, analysts, brokers and media representatives to discuss the 2022 fourth quarter and annual results is scheduled for 7:00 a.m. MT on Friday, March 24, 2023. Participants can register for the call here: or join the webcast here:

2022 Fourth Quarter and Annual Disclosure Documents

Badger’s 2022 Annual Management’s Discussion and Analysis ("MD&A") and 2022 Audited Consolidated Financial Statements, along with all previous public filings of Badger Infrastructure Solutions Ltd. may be found on SEDAR at

Non-IFRS Financial Measures

This press release contains references to certain financial measures, including some that do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and that may not be comparable to similar measures presented by other companies or entities. These financial measures are identified and defined below. See “Non-IFRS Financial Measures” in the Company’s 2022 Annual MD&A for detailed reconciliations of non-IFRS financial measures.

“Adjusted EBITDA” is earnings before interest, taxes, depreciation and amortization, share-based compensation, gains and losses on derivative instruments, gains and losses on sale of property, plant and equipment and gains and losses on foreign exchange. Adjusted EBITDA is a measure of the Company’s operating profitability and is therefore useful to management and investors as it provides improved continuity with respect to the comparison of operating results over time. Adjusted EBITDA provides an indication of the results generated by the Company’s principal business activities prior to how these activities are financed, the results are taxed in various jurisdictions and assets are amortized. In addition, Adjusted EBITDA excludes gains and losses on sale of property, plant and equipment as these gains and losses are considered incidental and secondary to the principal business activities, gains and losses on foreign exchange as such gains and losses can vary significantly based on factors beyond the Company’s control; and share-based compensation and gains and losses on derivative instruments as these expenses can vary significantly with changes in the price of the Company’s common shares.

“Adjusted EBITDA margin” is Adjusted EBITDA as defined above, expressed as a percentage of revenues.

Key Financial Metrics and Other Operational Metrics

“Revenue per truck per month” (“RPT”) is a measure of non-destructive excavation fleet utilization. It is calculated using non-destructive excavation revenue only. RPT is calculated on both a consolidated basis and for each geographic segment by dividing non-destructive excavation revenue for each segment, in the respective local currency, by the average number of non-destructive excavation units in the segment during the period.

See “Key Financial Metrics and Other Operational Metrics” in the Company’s 2022 Annual MD&A for additional details on RPT.

Cautionary Statements Regarding Forward-Looking Information and Statements
Certain statements and information contained in this press release and other continuous disclosure documents of the Company referenced herein, including statements and information that contain words such as “could”, “should”, “can”, “anticipate”, “expect”, “believe”, “will”, “may”, “continues to”, “target”, “focused on”, “proposed” and similar expressions relating to matters that are not historical facts, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. These statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements and information. The Company believes the expectations reflected in such forward-looking statements and information are reasonable, but no assurance can be given that these expectations will prove to be correct. Such forward-looking statements and information included in this press release should not be unduly relied upon. These forward-looking statements and information speak only as of the date of this press release.

In particular, forward-looking information and statements in this press release include, but are not limited to the following:

  • Badger’s focus on cost management, sales activities and operational efficiencies and its impact on growth and on maximizing shareholder value;
  • Badger’s expectations with respect to the production and retirement of non-destructive excavation and specialty units in 2023;
  • Badger's continued focus on enhancing operating leverage;
  • The expectation of reinvestment in North America’s critical infrastructure and Badger’s ability to position operations to capture resulting market demand for non-destructive excavation;
  • The expectation of future market opportunities for Badger with respect to infrastructure strengthening;
  • Disclosure under the heading “2023 Business Outlook”;
  • The market conditions, demand trends and supply chain capacity anticipated by Badger throughout 2023;
  • Badger’s ability to respond to global recessionary risk;
  • Badger’s ability to continue to grow its business, including revenue, as a result of capitalizing on the long-term growth opportunity in the North American non-destructive excavation market;
  • Badger's focus on fleet optimization and increased utilization;
  • The payment of Badger's quarterly cash dividends and anticipated timing thereof; and
  • The benefits, if any, that Badger’s operational scale creates related to financial and operating performance.

The forward-looking information and statements made in this press release rely on certain expected economic conditions and overall demand for Badger’s services and are based on certain assumptions. The assumptions used to generate this forward-looking information and statements are, among other things, that:

  • Badger will maintain its financial position and financial resources will continue to be available to Badger;
  • Business activity levels will continue to increase as there is continuous economic recovery following the COVID-19 pandemic;
  • The actions taken by Badger to protect the health and safety of its employees, customers and communities, and to mitigate the operational and financial effects of COVID-19, will continue to have the intended effects;
  • The overall market for Badger’s services or its ability to provide service will not be adversely affected in the long-term by COVID-19, economic disruption, or other factors beyond Badger’s control such as weather, natural disasters, global events, legislation or regulatory changes and technological advances;
  • There will be long-term sustained customer demand for non-destructive excavation and related services from a broad range of end use markets in North America;
  • Badger will maintain relationships with current customers and develop successful relationships with new customers;
  • Badger will collect customer payments in a timely manner;
  • Badger will be able to compete effectively for the demand for its services;
  • There will not be significant changes in profit margins due to pricing changes driven by market conditions, competition, regulatory factors or other unforeseen factors; and
  • Badger will realize and continue to realize the efficiencies and benefits of the executed business restructuring activities and other business improvement initiatives; and
  • Badger will obtain all labour, parts and supplies necessary to complete the planned Badger non-destructive excavation build at the costs and on the timeline expected.

Risks and other uncertainties that could cause actual results to differ materially from those anticipated in such forward-looking statements include, but are not limited to: political and economic conditions; industry competition; price fluctuations for oil and natural gas and related products and services; Badger’s ability to attract and retain key personnel; the availability of future debt and equity financing; changes in laws or regulations, including taxation and environmental regulations as well as COVID-19 related regulations (e.g. vaccination mandates) which may adversely impact the labour supply and operating costs of Badger; extreme or unsettled weather patterns; and fluctuations in foreign exchange or interest rates.

Readers are cautioned that the foregoing factors are not exhaustive. Additional information on these and other factors that could affect the Company’s operations and financial results is included in reports on file with securities regulatory authorities in Canada and may be accessed through the SEDAR website ( or at the Company’s website. The forward-looking statements and information contained in this press release are expressly qualified by this cautionary statement. The Company does not undertake any obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

For further information:
Rob Blackadar, President & Chief Executive Officer              
Pramod Bhatia, Vice President Finance & Interim Chief Financial Officer
Trevor Carson, Vice President, Investor Relations & Corporate Development

Badger Infrastructure Solutions Ltd.
ATCO Building II
4th Floor, 919 11th Avenue, SW
Calgary, Alberta T2R 1P3
Telephone (403) 264-8500
Fax (403) 228-9773
Source: Badger Infrastructure Solutions Ltd.

1 Badger Airvac is a registered trademark in Canada. The trademark is currently “pending” in the United States.

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Source: Badger Infrastructure Solutions Ltd.