The Board of Directors of Badger Daylighting Ltd. (Badger) is aware that the significant drop in Badger’s share price following the release of our first quarter results has prompted various shareholders to contact the company to express concerns. We take the concerns and comments of shareholders and all stakeholders very seriously.
The Board’s responsibilities include helping to ensure that the company meets high ethical standards, that our financial controls assure financial integrity and transparent disclosure, approving the company’s long-term strategy and hiring a skilled, experienced management team.
Badger recently celebrated its 25th anniversary and has grown to be the largest hydrovac operator in North America. The company has created long-term shareholder value through a number of economic cycles and we believe we are well positioned to continue to do so.
There are numerous opportunities to continue to expand the use of our technology. North America is faced with aging infrastructure. As government and industry work to maintain and upgrade infrastructure, Badger is positioned to play a significant role. Badger technology provides a safe, non-destructive alternative to conventional excavation and hydrovac use continues to grow. Our strategy to exploit market opportunities is well thought out and we believe we have significant upside.
The recent economic environment has been challenging with the downturn in oil & gas activity. Our management team and employees have done an excellent job to find opportunities in new end use markets, diversify geographically, and reposition our trucks to keep our fleet effectively deployed.
We have increased our annual non-oil & gas revenues by more than $150 million from 2013 to 2016. We are proud of this accomplishment. Based on continued growth in non- oil & gas markets and the apparent bottoming of the oil & gas sector, we have announced that we are increasing our truck build rate to take advantage of this growth.
Badger’s business has historically been both seasonal and cyclical, which has driven volatility in both our quarterly results and share price performance. Our focus is and has always been to achieve profitable growth in the medium to long-term. We are confident that our strategy to increase sales and profits is sound and that the management team is effectively executing our strategy.
Badger is committed to continuous improvement across all aspects of our business. One area where we will continue to improve is communications. We believe we can better articulate our strategy and how it is progressing, and look at ways to help investors better understand our operations and our financials.
The Board is confident in the future of our company. Our governance policies and practices and our management team and organization are strong. We will continue to focus on creating long-term shareholder value through a well thought-out strategy and safe, effective execution.
Chairman of the Board