Tornado Global Hydrovacs Responds to Covid-19 Pandemic
CALGARY, Alberta, April 09, 2020 (GLOBE NEWSWIRE) — Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TGH: TSX-V) provides the following update regarding our response to the ongoing Covid-19 pandemic.
With a number of hydrovac truck orders put on hold by our clients as a result of the Coronavirus pandemic, the Company has reduced truck production and put in place an aggressive program to conserve cash. The Company was outsourcing approximately 1/3 of its production before the pandemic and this has been discontinued entirely. Production at the Company’s manufacturing facility in Stettler has also been reduced by approximately 60% for the next three months.Effective April 8th, approximately 65% of the Company’s employees were temporarily laid off. In addition, the Chief Executive Officer, Chief Financial Officer and 2 other head office employees have taken a significant salary reduction. These measures are intended to allow the Company to conserve cash and maintain its workforce through a period of lower production. The cost savings generated by the temporary layoffs and salary reductions are intended to protect the Company’s balance sheet and to allow the Company to quickly ramp-up production once the pandemic has passed. The service and parts team are expected to remain unaffected so they can continue to assist customers.The governments of Canada and Alberta have introduced wage subsidy programs and loan guarantee initiatives. The Company believes that it qualifies for some of these initiatives and will apply for applicable programs as appropriate. The Company anticipates recalling the employees back to work when the orders that were put on hold get reactivated and new orders are awarded.About Tornado Global Hydrovacs Ltd.The Company designs and manufactures hydrovac trucks in Canada and sells hydrovac trucks for excavation service providers to the municipal and oil and gas markets in Canada and the USA. Hydrovac trucks use high pressure water to pulverize soil and turn it into mud, and then vacuum up the resulting mud into its tank. Tornado currently operates in North America. In China, the Company’s subsidiary is used principally to source certain parts to the Company’s North America operations.For more information about Tornado Global Hydrovacs Ltd., visit www.tornadotrucks.com or contact:AdvisoryCertain statements contained in this news release constitute forward-looking statements. These statements relate to future events. All statements other than statements of historical fact are forward-looking statements. The use of the words “anticipates”, “should”, ‘‘may”, “expected”, “expects”, “believes” and other words of a similar nature are intended to identify forward-looking statements. These 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 statements. Although Tornado believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Such statements include statements with respect to the expected result of the response to the Covid-19 pandemic, the anticipated conservation of the Company’s cash and ability to maintain its workforce through a period of lower production, the intention to protect the Company’s balance sheet, the anticipated recall of the Company’s employees and future ramp-up of production and the belief that the Company will qualify for the government wage subsidy programs and loan guarantee initiatives. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Tornado. The forward-looking statements contained in this news release represent Tornado’s expectations as of the date hereof and are subject to change after such date. Tornado disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.Neither the Exchange nor its Regulation Service Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.