Business
Badger Income Fund Announces "Outlook" Update Concerning Badger Daylighting Build
Badger Income Fund Announces "Outlook" Update Concerning Badger Daylighting Build
About this update from Badger Infrastructure Solutions Ltd
[{"type":"text","content":"Badger Income Fund Announces \"Outlook\" Update Concerning Badger Daylighting Build\n\n\n\nBadger Income Fund Announces \"Outlook\" Update Concerning Badger Daylighting Build\n\nCalgary, Alberta CANADA, December 19, 2008 /FSC/ - Badger Income Fund (BAD.UN - TSX), (\"Badger\") announces it has reduced its monthly build rate by approximately fifty percent for the foreseeable future. In Badger's third quarter report Badger stated it planned to build new daylighting units at a rate of six to eight units per month. At the beginning of 2008 Badger had 334 units in its fleet. So far in 2008 Badger added 84 units to the fleet and retired 4 units resulting in a fleet size of 414 units as of today. This represents a growth in fleet size of 24 percent year to date in 2008. In these times of economic uncertainty plus weakness in the Oil and Gas industry Badger believes it is prudent to reduce its build and focus on revenue generation to keep its fleet utilized. \n\nBadger Income Fund is an open-ended trust that is North America's largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. Our key technology is the Badger Hydrovac, which is used primarily for safe digging in congested grounds and challenging conditions. The Badger Hydrovac uses a pressurized water stream to liquefy the soil cover, which is then removed with a powerful vacuum system and deposited into a storage tank. Badger manufactures its truck-mounted hydrovac units.\n\nBadger Income Fund's business model involves the provision of excavating services through two distinct entities: the Operating Partners (franchisees in the United States and agents in Canada), and Badger Corporate. Badger Corporate works with its Operating Partners to provide Hydrovac service to the end user. In this partnership, Badger provides the expertise, the trucks, and North American marketing and administration support. The Operating Partners deliver the service by operating the equipment and developing their local markets. All work is invoiced by Badger and then shared with the Operating Partner based upon a revenue sharing formula. In c...