Business
Zedcor Inc. Announces First Quarter Results for 2021 and Sale of Certain Rental Assets
Calgary, Alberta--(Newsfile Corp. - May 19, 2021) - Zedcor Inc. (TSXV: ZDC) (the "Co...
About this update from Zedcor Inc
[{"type":"text","content":"Zedcor Inc. Announces First Quarter Results for 2021 and Sale of Certain Rental AssetsCalgary, Alberta--(Newsfile Corp. - May 19, 2021) - Zedcor Inc. (TSXV: ZDC) (the \"Company\") today announced its financial and operating results for the quarter ended March 31, 2021, sale of its rig mat rental fleet and certain other oilfield rental assets.Sale of Rig Mat Rental Fleet:During the quarter, the Company continued to divest under-utilized Rental segment assets. As a result of declining customer demand and rental rates, the Company made the strategic decision to divest its rig mat rental fleet. In addition, the Company sold certain other assets during the quarter for total proceeds of $710. This sale allows the Company to focus on its other rental services and reduce its debt load in order to expand its Security & Surveillance segment. Financial and Operating Results for the Year Ended March 31, 2021:  Three months ended March 31(in $000s) 20212020Revenue 4,7604,715  Adjusted EBITDA1,2 2,1632,066  Adjusted EBIT1,2 1,172555  Net income (loss) from operations 224(287)  Net income (loss) per share from operations      Basic 0.004(0.005)    Diluted 0.004(0.005) 1 Adjusted for severance costs2 See Financial Measures Reconciliations belowZedcor recorded $2,163 of adjusted EBITDA and $224 of net income for the three months ended March 31, 2021. This compares to adjusted EBITDA of $2,066 and a net loss of $287 for the three months ended March 31, 2020. The S&S segment saw sharply higher revenues and margins as the company saw high utilization and had an expanded fleet of security towers (\"MobileyeZ\") in operation compared to Q1 2020. This was offset by decreased revenues and margins from the Rentals segment as demand for the Company's rental equipment remains depressed due to lower drilling rig activity in Western Canada as a result of the COVID-19 pandemic. While oil prices and drilling rig activity started to increase in Q1 2021 compared to the second half of 2020, rental rates are still at all-time lows and customers have not fully resumed activity levels seen historically. The Company qualified for the Canada Emergency Wage Subsidy (\"CEWS\") and the Canada Emergency Rent Subsidy (\"CERS\") programs as enacted in 2020 ...