Strad Energy Services Ltd. reported consolidated earnings results for the fourth quarter and year ended of December 31, 2015. For the full year, the company reported revenue of CAD 111,548,000 compared to CAD 219,784,000 a year ago. Loss before income tax was CAD 40,393,000 compared to profit before income tax of CAD 31,416,000 a year ago. Net loss for the period was CAD 30,361,000 compared to net income for the period of CAD 22,997,000 a year ago. Basic and diluted loss per share was CAD 0.82 compared to CAD 0.61 per diluted earnings per share a year ago. Net cash generated from operating activities was CAD 36,511,000 compared to CAD 45,678,000 a year ago. Purchase of property, plant and equipment was CAD 9,529,000 compared to CAD 42,127,000 a year ago. Purchase of intangible assets was CAD 77,000 compared to CAD 312,000 a year ago. Adjusted EBITDA was CAD 17,432,000 compared to CAD 58,694,000 a year ago. Funds from operations were CAD 18,543,000 compared to CAD 56,742,000 a year ago. Diluted Adjusted EBIDTA per share was CAD 0.47 compared to CAD 1.56 a year ago. Basic and diluted funds from operations per share was CAD 0.50 compared to CAD 1.51 a year ago.

For the quarter, the company reported net loss of CAD 8,316,000 compared to net income of CAD 6,125,000 a year ago. Funds from operations were CAD 3,004,000 compared to CAD 16,785,000 a year ago. Adjusted EBITDA was CAD 2,500,000 compared to CAD 17,571,000 a year ago. Capital expenditures totaled CAD 1.3 million. The decrease in adjusted EBITDA was due to lower sales revenue insufficient to cover the fixed overhead in the manufacturing facility during the fourth quarter of 2015 compared to the same period in the prior year. Revenue decreased 80% to CAD 2.1 million from CAD 10.6 million for the same period in 2014, resulting primarily from lower sales of in-house manufactured products sold to external customers and third party equipment sales. During the fourth quarter, Product Sales consisted of CAD 0.9 million of in-house. Diluted Adjusted EBIDTA per share was CAD 0.07 compared to CAD 0.47 a year ago. Basic and diluted loss per share was CAD 0.23 compared to CAD 0.16 per diluted earnings share a year ago. Basic and diluted funds from operations per share was CAD 0.08 compared to CAD 0.45 a year ago.

The Company expects to realize the full benefit of the most recent cost reductions in the first quarter of 2016.

The company expects the maintenance capex requirement in 2016 to be modest and is anticipated to be managed at or below CAD 5 million in this environment. The company has approved a 2016 capital budget of CAD 7.0 million which will be allocated to maintenance capital spending and select growth opportunities.