Investor Update January 2017
FORWARD-LOOKING INFORMATION & STATEMENTS This presentation contains statements and information that constitute forward-looking statements. These statements relate to future events or to the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The use of the words “expect”, “plan”, “continue”, “estimate”, “anticipate”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “may”, or “will” and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this presentation. The forward-looking information and statements included in this presentation are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements 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 information or statements. These factors include, but are not limited to, such things as the impact of general industry conditions, fluctuation of commodity process, industry competition, availability of qualified personnel and management, stock market volatility and timely and cost effective access to sufficient capital from internal and external sources. The risks outlined above should not be construed as exhaustive. Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Accordingly, readers should not place undue reliance upon any of the forward-looking information in this presentation. All of the forward looking statements of the Company contained in this presentation are expressly qualified, in their entirety, by this cautionary statement. Except as required by law, the Company disclaims any intention or obligation to update or revise any forward-looking information or statements, whether the results of new information, future events or otherwise. 2
ABOUT STRAD CUSTOMER COUNTRIES PRODUCT GROUPS VERTICALS Upstream Oil & Gas Canada Surface Rentals (Drilling & Completions ) Energy Infrastructure Matting Solutions USA (Pipeline, Power & Other) 3
THIRD QUARTER RESULTS Q3 2016 RESULTS ($MM) 3Q16 2Q16 1Q16 4Q15 3Q15 Revenue Canadian Operations Total Revenue 20.3 9.6 15.3 22.0 25.3 Matting activity in energy EBITDA infrastructure CAN Ops 2.5 (0.5) 1.7 2.7 3.0 Reduced cost structure US Ops (0.3) (1.2) (0.4) 1.1 1.3 Continued pricing pressure Product Sales 0.3 0.6 0.1 (0.6) 0.3 Corporate (1.3) (0.9) (0.9) (0.7) (0.6) U.S. Operations Total EBITDA 1.2 (2.0) 0.4 2.5 4.0 Slight increase in drilling EBITDA Margin % activity CAN Ops 18% -10% 20% 22% 22% Price pressure in all markets US Ops -11% -49% -9% 15% 15% Headcount increase from Q2 2016 Product Sales 9% 27% 3% -29% 8% One time costs of $1.2MM Total EBITDA Margin % 6% -21% 3% 11% 16% 4
REVENUE & EBITDA 70.0 250.0 60.0 200.0 Revenue $MM EBITDA $MM 50.0 150.0 40.0 30.0 100.0 20.0 50.0 10.0 0.0 0.0 2012A 2013A 2014A 2015A 2016 2017 2018 Fcst* Fcst* Fcst* EBITDA Revenue 2016 2017 2018 2012A 2013A 2014A 2015A EBITDA Fcst* Fcst* Fcst* Margin 23% 21% 27% 16% 4% 19% 24% *Average Analyst Estimates 2016, 2017 & 2018 5
TOTAL DEBT TOTAL DEBT Mar. 31, 2016 Jun. 30, 2016 Sep. 30, 2016 Total debt $14.8 MM $10.2 MM $30.2 MM BALANCE SHEET AT SEPTEMBER 30, 2016 Total Bank $48.5 MM Total Assets $189 MM Facility Debt to 3.2 Total Debt $30.2 MM EBITDA 6
STAYING POWER STRONG BALANCE SHEET Aggressive cost reduction – 55% or $24 MM annual reduction in SG&A and indirect costs Minimal capital spending Reduction in working capital Monetizing asset fleet CUSTOMER BASE Diversified regions and resource plays Diversified customer verticals – Energy infrastructure 48% of YTD revenue 7
CUSTOMER VERTICALS OIL & GAS Conventional drilling and completions Upstream focused ENERGY INFRASTRUCTURE Pipeline construction and maintenance Power transmission construction Mining Facilities construction and turnarounds 8
ASSET MIX September 30, 2016 2% Surface equipment 12% Matting 47% 50% Canada 10% Drill Pipe 50% US Solids Control 30% Ecopond Gross Capital Asset Value: $284 MM 9
REDNECK ACQUISITION Transaction Details August 31, 2016 close $31.6 MM - $14MM debt assumption and shares Redneck Oilfield Services (Fort St. John) and Raptor Oilfield Services (Grande Prairie) Strategic Rationale Montney & Duvernay focus Surface Rentals Best in class operator Share merger Accretive to SDY shareholders 10
WELL POSITIONED FOR RECOVERY NEW COST STRUCTURE $24 MM reduction of SG&A and indirect annual cost $12 MM is permanent cost reduction ENERGY INFRASTRUCTURE Energy Infrastructure accounts for 48% of company revenue through Q3 Starting to bid on U.S. projects Continue to maintain and grow this customer base SIZE & SCALE Look at acquisitions through downturn Double EBITDA capacity 11
THANK YOU 12
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