Badger Income Fund Announces "Outlook" Update Concerning Badger Daylighting Build
Calgary, 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.
Badger 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.
Badger 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 certain locations Badger has established corporate run operations to market and deliver the service in the local area.
This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Badger to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas related products and services, political and economic conditions, the demand for services provided by Badger, industry competition and Badger's ability to attract and retain key personnel.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
For more information regarding this Press Release, please contact:
Tor Wilson Greg Kelly, CA
President and CEO Vice President Finance and CFO
2820, 715 - 5th Avenue SW Phone (403) 264-8500
Calgary, Alberta T2P 2X6 Fax (403) 228-9773
Source: Badger Income Fund (TSX - BADUN) www.badgerinc.com
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