Will Shareholder show their interest To Invest in This Stock? North American Construction Group Ltd. (NYSE: NOA)

Morning Updates

On FRIDAY, North American Construction Group Ltd. (NYSE: NOA) ended the last transaction at $11.54, with a change of -0.35%. The daily volume was calculated at 81373 shares. The company has a market worth of $322.43M. It holds an average volume of 117.09K shares. In 52-week session, the stock hit the peak level of -15.27% and touched to lowest level of 47.57%.

North American Construction Group Ltd. (NYSE: NOA) recently reported results for the third quarter ending September 30, 2019.

Highlights of the Third Quarter

  • Revenue for the quarter was $166.3M, contrast to $84.9M for the previous year, a raise of $81.4M (or 96%). Adjusted EBITDA for the quarter was $37.2M contrast to $19.1M for the previous year, a raise of $18.2M (or 95%) meaning the profit trend was consistent with the revenue trend despite the non-routine operational challenges faced in July & August of this year
  • Adjusted net earnings of $10.5M in the quarter was $5.9M higher than the previous year as the increase in Adjusted EBIT and the deferred income tax benefit were partially offset by a raise in interest expense
  • On August 7, 2019, the Company reported a change to its dividend policy whereby the regular dividend will be increased to $0.16 per ordinary share per year, payable on a quarterly basis, up from the current $0.08 per year
  • On August 8, 2019, the Company reported the appointments of Maryse Saint-Laurent and Kristina Williams to its Board of Directors
  • Construction of the new component rebuild facility occurred throughout the quarter and is nearing the completion date planned for mid to late Q4

Declaration of Quarterly Dividend

On October 29, 2019, the NACG Board of Directors reported a regular quarterly dividend (the “Dividend”) of four Canadian cents ($0.04) per ordinary share, payable to ordinary shareholders of record at the close of business on November 30, 2019. The Dividend will be paid on January 3, 2020 and is an eligible dividend for Canadian income tax purposes.

Results for the Third Quarter

For the three months ended September 30, 2019, revenue was $166.3M, up from $84.9M in the same period last year. The revenue growth in the current year is largely attributable to the fleet purchased in Q4 2018, which provided new work at the Fort Hills and Aurora mine sites and important incremental work at the Millennium mines. Current year revenue at the Suncor site was primarily Because of a raise in mine support services revenue and overburden removal activity, despite the abnormally wet weather experienced at the mine during the summer months. These increases were partially offset by reduced scope during the quarter at the Kearl mine. Revenue from Nuna of $12.8M reflected peak activity volumes in their busy summer season with major project execution work on Baffin Island and in northern Saskatchewan. Of note, factoring in the Company’s share of equity accounted revenue from Nuna of $12.6M, the Company’s share of combined revenue of $25.4M is a record quarter for the Nuna Group of Companies as momentum continues to build and revenue synergies are realized.

For the three months ended September 30, 2019, gross profit was $18.3M, and a 11.0% gross profit margin, up from a $14.3M gross profit and down from a 16.9% gross profit margin in the same period last year. The gross profit increase of 27.6% was a direct result of the higher revenue in the quarter, but the decrease in margin was primarily Because of the difficult operating conditions in July and August as a result of consistent rainfall. Increases in site clean-up activities which are not billable to the client and a larger proportion of low margin sub-contract activities were the primary specific drivers of margin reduction. Additionally, margins were influenced by increased equipment maintenance activities as the Company’s equipment fleet was more readily accessible for required repairs and maintenance during these months. Partially offsetting these decreases were improved operating efficiency at the Kearl mine and strong gross margins achieved by Nuna.

The Company has 27.94 million shares outstanding and 26.02 million shares were floated in market. The short ratio in the company’s stock is documented at # ref and the short float is around of # ref. The average true range of the stock is observed at 0.4 and the relative strength index of the stock is recorded at 52.51.