Clearly the underlying business is improving and the stock is still very cheap.
I think it's worth keeping the following one-time factors in mind, when considering the earnings that will be released Wednesday:
- They donated a $100K fire truck:
https://www.inews880.com/Channels/Reg/LocalNews/Story.aspx?id=1446859
- They consolidated two centres with larger centres during the quarter. I assume they will save $200-400K annually from this and improve working capital, but there may be some one-time costs associated with this consolidation.
- There was a temporary dip in rig utilisation in June probably due to wild fires.
- There may be some one-time costs associated with the $7 Mill increase in the ABL facility.
- There may be some one-time costs associated with getting the Texas acquisition off the ground.
- There may be some small one-time costs associated increased hiring activity.
BUT these are all past events with no negative impact on future earnings. While I don't expect any guidance as such, I expect the tone to be bullish i.e. we are now in growth mode, future earnings will improve, the balance sheet is strong.
And underlying business activity continues to improve:
https://www.riglocator.ca/zoom.asp?img=abactive_z.gif&title=Alberta+Drilling+Rigs