- Badger Daylighting Ltd (TSX:BAD) has announced its response to the ongoing COVID-19 pandemic
- The company has pulled its 2020 outlook, as projections no longer make sense in a COVID-19 affected world
- Badger is regarded as an essential service by most regional governments across North America and therefore potentially wouldn’t be affected by state-mandated lockdowns
- Leadership salaries have been cut substantially, between 20 and 40 per cent to reduce costs
- Badger Daylighting Ltd (BAD) is trading up 3 per cent at C$22.70 per share with a market cap of $767 million
Badger Daylighting Ltd (TSX:BAD) is withdrawing it’s 2020 outlook as a COVID-19 affected world means previous projections are no longer applicable.
Badget Daylighting are considered an essential service in a host of provinces in North America, meaning they can continue to deliver services, despite government mandated lockdowns.
Badger’s services are related to construction, maintenance and repair of critical infrastructure.
However, Badger have conceded that decisions will be made by customers and governments that could materially affect them in the short term.
As a result, the company has withdrawn its 2020 financial outlook, in regard to Adjusted EBITDA and hydrovac builds.
Hyrdovac truck production has been mothballed at the company’s Red Deer facilities in Alberta.
The company’s CEO Paul Vanderberg said Badger was taking actions to optimise operations.
“Badger’s strong team, business model and operating scale will enable us to manage effectively through this uncertain environment.
“We are focused on retaining our strong financial position and prudently managing shareholder capital.
“We continue to service customers across our branch network and see excellent long term growth opportunities across our broad range of end use markets as the impact of the virus lessens,” he said.
The company’s senior management have taken steps to lessen the cost burden on the company, by cutting senior executive salaries by between 20 and 40 per cent.
Alongside this, the company has reduced staffing levels and is minimising discretionary spending.
The goal is to optimise free cash flow, so the company can be strongly positioned once the disruptions to Badger’s operations end.
Badger Daylighting Ltd (TSX:BAD) is trading up 3 per cent at $22.70 per share at 10:47 am EST.