NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES ("U.S.")

The news release contains “forward-looking information and statements” within the meaning of applicable securities laws. For full disclosure of the forward-looking information and statements and the risks to which they are subject, see the “Cautionary Statement Regarding Forward-Looking Information and Statements” later in this news release.

CALGARY, Alberta, May 09, 2019 (GLOBE NEWSWIRE) -- Strad Energy Services Ltd. (“Strad” or the “Company”), an industrial matting and equipment rentals company, today announced its financial results for the three months ended March 31, 2019. All amounts are stated in Canadian dollars unless otherwise noted.

FIRST QUARTER SELECTED FINANCIAL AND OPERATIONAL HIGHLIGHTS:

• Revenue increased 9% to $30.9 million as compared to $28.4 million for the same period in 2018;
• EBITDA^(1,4)increased 75% to $9.2 million as compared to $5.3 million for the same period in 2018. EBITDA increased due to improved revenue in addition to the $1.2 million impact from the adoption of IFRS 16 as noted in the "New Accounting Standards" section;
• Net income improved to $1.6 million compared to net loss of $(0.4) million for the same period in 2018;
• Capital additions totaled $6.6 million and was deployed to grow and maintain the Company's industrial matting fleet to meet the expected demand in Canada and the U.S.;
• Grew the industrial matting fleet by 6% to 118,080 mats at March 31, 2019;
• Relocated 6% of Canadian surface rental fleet into the U.S. to meet the growing demands in the Marcellus, Rockies, and Permian basins;
• Reduced funded debt⁽²⁾ by 41% to $8.2 million at March 31, 2019, compared to $14.0 million at December 31, 2018. Funded debt⁽²⁾ to covenant EBITDA⁽³⁾ ratio was 0.3 : 1.0 at March 31, 2019; and
• Purchased and canceled 481,921 common shares under the current normal course issuer bid ("NCIB").

Notes:

1. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is not a recognized measure under IFRS, and, accordingly, Strad's use of such a term may not be comparable to similarly defined measures presented by other entities; see “Non-IFRS and Additional IFRS Measures and Reconciliations”.
2. Funded debt includes bank indebtedness plus long-term debt less cash.
3. Covenant EBITDA, as defined in the Company's credit facility agreement, is based on trailing twelve month EBITDA plus share based payments, plus additional one-time charges, less right of use asset amortization, less interest expense associated with leases.
4. During the second quarter of 2018, the Company changed the method of calculation for EBITDA by no longer adjusting for gains or losses resulting from foreign exchange or the disposal of property, plant and equipment during the normal course of business. These changes have been updated for prior period balances.

"Our 2019 results continue to demonstrate the opportunity in and the free cash flow created by our Industrial Matting division. The large-scale matting project which began in the fourth quarter of 2018 and required more than 20,000 mats on the North Montney line continued through the entire first quarter, significantly enhancing our financial results. While our Surface Rentals remain soft in Canada, the outlook for the U.S. market remains optimistic across all business lines. We are seeing increased levels of activity in the Bakken, Marcellus, and Rockies basins resulting in Strad relocating 6% of our Canadian Surface rental fleet to meet this demand,” said Andy Pernal, President and CEO of Strad. “In 2019, as we continue with our strategy to increase our matting fleet to 180,000 units by 2021, we deployed $6.6 million of capital to maintain and increase our fleet and have $26.0 million approved out of our expected $30.0 million capital program for 2019.”

“The first quarter continued to highlight the impact of our Industrial Matting business to deliver high rates of return, with a 156% EBITDA increase from the segment. In the quarter, we benefited from the continued large Montney region matting project and saw increased activity from the U.S. in both Matting and Surface Rentals. This activity combined with a change in IFRS contributed to a 9% increase in revenue and a 75% increase in EBITDA respectively, for the quarter,” said Michael Donovan, CFO of Strad. “With our available cash flow from the quarter we invested in our matting fleet, made payments on our long-term debt, and bought back 1% of our shares through our NCIB.”

On May 1, 2019, the Company entered into an agreement (the "Nominee Agreement") with Ewing Morris pursuant to which the Company has agreed to appoint Lee Matheson, a partner of Ewing Morris, to the Board and to include Mr. Matheson on the slate of directors proposed for election at the Meeting, along with the seven (7) nominees proposed by management and which have been agreed to by Ewing Morris.  Mr. Matheson is a Partner at Ewing Morris & Co. Investment Partners Ltd. ("Ewing Morris") since 2017. Mr. Matheson is currently a director of the Canadian Art Foundation and serves as a board member for exactEarth Ltd. and Echelon Financial Holdings Inc. Prior thereto, he was a principal of Broadview Capital Management Inc.

Pursuant to the Nominee Agreement, the Company has granted Ewing Morris an additional right for a period of ninety (90) days following the date of the Meeting to request the Board to cause the appointment of one (1) additional independent director to the Board, which additional director shall be jointly agreed upon by the Company and Ewing Morris, acting reasonably. Such additional director, if any, shall be appointed to fill the vacancy to be created by the resignation of one of the current directors, other than the Ewing Morris nominee, as may be determined by the Board.  Under the terms of the Nominee Agreement, Ewing Morris has agreed to vote all of its Shares in favor of all matters to be acted on at the Meeting.

“Strad is always endeavoring to elevate its governance, believing a strong board is fundamental to a strong company. With that, we would like to welcome Lee Matheson of Ewing Morris to our Board of Directors,” said Mick McNulty, Chairman of Strad. “Over the past two years Ewing Morris has become our second largest shareholder and we look forward to working with them directly on our Board.”

FIRST QUARTER FINANCIAL HIGHLIGHTS

Notes:

1. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is not a recognized measure under IFRS, and, accordingly, Strad's use of such a term may not be comparable to similarly defined measures presented by other entities; see “Non-IFRS and Additional IFRS Measures and Reconciliations”. During the second quarter of 2018, the Company changed the method of calculation for EBITDA by no longer adjusting for gains or losses resulting from foreign exchange or the disposal of property, plant and equipment during the normal course of business.
2. The current period results include impacts from the adoption of IFRS 16 "Leases", which was adopted by the Company on January 1, 2019. These impacts are discussed in further detail in the "New Accounting Standards" section of the Management's Discussion and Analysis. Comparative information has not been restated, and therefore, may not be comparable.
3. Earnings before interest and tax (“EBIT”) is an additional measure under IFRS, see “Non-IFRS and Additional IFRS Measures and Reconciliations”.

FINANCIAL POSITION AND RATIOS

Notes:

1. Working capital is calculated as current assets less current liabilities.
   
2. Funded debt includes bank indebtedness plus long-term debt less cash.
   
3. EBITDA is based on trailing twelve months adjusted EBITDA plus share based payments, plus severance and transaction costs.

FIRST QUARTER RESULTS

Strad reported an increase in revenue and EBITDA of 9% and 75%, respectively during the three months ended March 31, 2019, compared to the same period in 2018. During the three months ended March 31, 2019, Strad reported net income of $1.6 million compared to net loss of $(0.4) million in 2018.

For the three months ended March 31, 2019, Strad's Industrial Matting segment reported an increase in revenue and EBITDA of 70% and 156% as compared to the same period in 2018. Earnings before interest and taxes ("EBIT") from Industrial Matting increased from $1.6 million in the first quarter of 2018 to $4.2 million in the first quarter of 2019.  The increase in revenue, EBITDA and EBIT was a result of a large matting project that began in the fourth quarter of 2018 and carried through the first quarter of 2019, as compared to the first quarter of 2018, during which Strad had no significant matting projects. The increase in revenue for the first quarter of 2019 was further impacted by increased average pricing.

Strad’s Equipment Rentals segment reported a decrease in revenue and EBITDA of 27% and 24%, respectively, during the three months ended March 31, 2019, compared to the same period in 2018. The decrease in revenue was a result of lower rig activity and utilization in Canada, which was partially offset by an increase in pricing and utilization in the U.S.

During the first quarter of 2019, capital expenditures were $6.6 million in Industrial Matting. The majority of the capital additions were related to wood matting additions, which were acquired to prepare for and to support industrial matting projects that are planned for 2019.

OUTLOOK

Subsequent to the quarter, the United Conservative Party won the Provincial election in Alberta and will form a majority government. The party’s platform is pro-business and includes many reforms aimed at increasing capital investment in businesses based in Alberta. These reforms include a proposed reduction in the Provincial corporate tax rate to 8%, pursuing all possible pipeline projects and alternatives to get Alberta oil products to market and creating a job creation tax cut for employers.

While the Provincial government will encourage investment and the construction of pipelines, the energy sector still faces several challenges. The Federal government has introduced legislation under Bill C-69 which proposes new criteria for review of major infrastructure projects. Many believe this legislation could result in stagnated approval processes and effectively end construction of new pipelines. Should new pipelines begin construction during 2019, the economic impact may still not be felt for several years.

Despite these challenges, we believe strongly in the opportunities presented in both Canada and the U.S. for our Industrial Matting segment. Formal approval of the LNG Canada project and associated Coastal GasLink project could continue to provide significant opportunity for the Industrial Matting segment in late 2019 and subsequent years. The Coastal GasLink project is progressing with construction activities across northern British Columbia by preparing workforce accommodation sites and beginning right-of-way clearing in preparation for construction in mid to late 2019. Despite opposition to LNG Canada and Coastal GasLink, the organizations responsible for those pipelines have committed to advancing the projects and maintaining the construction schedule.

Our results continue to demonstrate the opportunity and free cash flow provided by our Industrial Matting segment. The large scale matting project which began in the fourth quarter of 2018 and required a substantial number of mats on the North Montney Mainline continued through the entire first quarter, supporting our strong results for the quarter.

In 2019, we will look to employ our expertise in deploying matting projects in the U.S. market. With increasing environmental responsibility and regulation throughout North America, we expect the overall matting market to increase as we also look to increase our market share. Our internal estimates place the current market size for matting in North America at over $2.0 billion annually.

The outlook for the U.S. equipment rentals business remains consistent with 2018. The business environment remains strong with low corporate tax rates and relatively high West Texas Intermediate (“WTI”) pricing. In Canada, however, we see challenging times ahead. First quarter rig counts were down approximately 32% year-over-year in Canada and the forecast for the remainder of the year places 2019 estimates only marginally ahead of historic lows experienced in 2016. Beginning in the first quarter and continuing into the second quarter, we moved equipment from Canada to regions in the U.S. experiencing higher demand. Year to date, we have moved approximately $2.5 million net book value of equipment to the U.S., including the Permian Basin in West Texas. We will continue to be opportunistic with our equipment rentals fleet, deploying equipment in the U.S. where possible.

Consistent with our strategy to double our matting fleet to 180,000 units by 2021, we deployed $6.6 million of capital to maintain and increase our fleet in the first quarter of 2019. To date, the Board of Directors has approved $26.0 million of capital spending in 2019 of an expected $30.0 million total capital program.

On November 26, 2018, the Company obtained approval from the Toronto Stock Exchange to renew the normal course issuer bid until November 27, 2019, with the number of common shares the Company can buy back limited to a maximum of 4,067,205 common shares. Under the previous NCIB, which ended on September 9, 2018, the Company purchased and canceled 2,768,320 common shares. Since the inception of the renewed NCIB, the Company has purchased 481,921 common shares.

Free cash flow generation and a strong balance sheet provide the flexibility to evaluate many alternatives to create shareholder value, including organic growth opportunities, continued repurchasing of shares under our NCIB, and strategic acquisitions while carrying a minimal amount of debt.

RESULTS OF OPERATIONS

Industrial Matting

Notes:

1. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is not a recognized measure under IFRS, and, accordingly, Strad's use of such term may not be comparable to similarly defined measures presented by other entities; see “Non-IFRS and Additional IFRS Measures and Reconciliations”. During the second quarter of 2018, the Company changed the method of calculation for EBITDA by no longer adjusting for gains or losses resulting from foreign exchange or the disposal of property, plant and equipment during the normal course of business. These changes have been updated for prior period balances. 
2. The current period results include impacts from the adoption of IFRS 16 "Leases", which was adopted by the Company on January 1, 2019. These impacts are discussed in further detail in the "New Accounting Standards" section of the Management's Discussion and Analysis. Comparative information has not been restated, and therefore, may not be comparable.
3. Earnings before interest and tax (“EBIT”) is an additional measure under IFRS, see “Non-IFRS and Additional IFRS Measures and Reconciliations”.
4. Includes purchases of intangible assets.
5. Matting fleet balances are as at March 31, 2019 and 2018. 
6. Matting fleet balances are averages for the three months ended March 31, 2019 and 2018.
7. Utilization includes matting on rent only and is calculated using gross asset value.

Revenue for the three months ended March 31, 2019, of $17.7 million increased 70% compared to $10.5 million during the same period of 2018. Increased revenue was primarily due to the timing of industrial matting projects in comparison to the same quarter of 2018. In Canada, a large scale matting project carried over from the fourth quarter of 2018 through the first quarter of 2019 as compared to the same quarter of 2018, which had no large scale matting projects. Further impacting revenue was an increase in average utilization to 36% from 27% for the first quarter of 2019 compared to the first quarter of 2018, as well as an increase in average matting pricing by 15% driven by a change in the matting product mix as compared to the same period in 2018.

During the first quarter of 2019, Strad's matting fleet increased to 118,080 mats at March 31, 2019, compared to 89,200 mats at March 31, 2018, to meet the expected increase in customer demand.

EBITDA for the three months ended March 31, 2019, increased 156% to $7.6 million as compared to $3.0 million during the three months ended March 31, 2018. EBITDA as a percentage of revenue was 43% at March 31, 2019, compared to 28% at March 31, 2018. The increase in EBITDA is driven primarily by the increase in revenue and as well as a $0.7 million reduction in operating expenses due to the adoption of IFRS 16.

During the first quarter of 2019, EBIT increased to $4.1 million compared to $1.6 million during the same period of 2018. The primary driver for the increase in EBIT was the increase in EBITDA for the first quarter of 2019 compared to the first quarter of 2018.

Operating expenses for the three months ended March 31, 2019, increased 42%, to $8.8 million as compared to $6.2 million during the same period of 2018. The increase in operating expenses was primarily due to higher transportation and increased cost of goods sold related to mats sold to a customer during the quarter, as compared to the same period in 2018.

Equipment Rentals

Notes:

1. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is not a recognized measure under IFRS, and, accordingly, Strad's use of such term may not be comparable to similarly defined measures presented by other entities; see “Non-IFRS and Additional IFRS Measures and Reconciliations”. During the second quarter of 2018, the Company changed the method of calculation for EBITDA by no longer adjusting for gains or losses resulting from foreign exchange or the disposal of property, plant and equipment during the normal course of business. These changes have been updated for prior period balances. 
2. The current period results include impacts from the adoption of IFRS 16 "Leases", which was adopted by the Company on January 1, 2019. These impacts are discussed in further detail in the "New Accounting Standards" section of the Management's Discussion and Analysis. Comparative information has not been restated, and therefore, may not be comparable.
3. Earnings before interest and tax (“EBIT”) is an additional measure under IFRS, see “Non-IFRS and Additional IFRS Measures and Reconciliations”.
4. Includes purchases of intangible assets. 
5. Surface equipment fleet balances are as at March 31, 2019 and 2018. 
6. Surface equipment fleet balances are averages for the three months ended March 31, 2019 and 2018.
7. Equipment utilization includes surface equipment on rent only and is calculated using gross asset value.
8. Source: Baker Hughes "North America Rotary Rig Count". Rig Counts are average rig counts for the period.

Revenue for the three months ended March 31, 2019, decreased 27% to $13.1 million from $17.9 million during the same period in 2018. Revenue decreased due to lower Canadian revenue, which was the result of a 32% decrease in western Canadian rig activity, resulting in a 9% decrease in Canadian utilization, as compared to the same period of 2018. In the U.S., utilization and pricing increased 3% and 40% respectively, compared to the first quarter of 2018, partially offsetting the decline in Canada. U.S. utilization improved as a result of the increase in rig counts in the  Bakken, Marcellus and the Rockies by 16%, 3% and 8% respectively.

During the first quarter, EBITDA decreased 24% to $2.5 million from $3.3 million during the first quarter of 2018. EBITDA as a percentage of revenue increased to 19% during the first quarter, compared to 18% for the same period of 2018. The decrease in EBITDA was driven primarily by the decrease in revenue during the first quarter and offset by a $0.5 million reduction of operating expenses due to the IFRS 16 adoption.

EBIT for the three months ended March 31, 2019, decreased to $(1.1) million from $(0.8) million during the same period of 2018.  The decrease in EBIT is driven primarily by the decrease in EBITDA.

Operating expenses for the three months ended March 31, 2019, decreased 32%, to $8.7 million as compared to $12.8 million during the same period of 2018. The decrease in operating expenses for the three months ended March 31, 2019, is primarily the result of the adoption of IFRS 16.  The adoption of IFRS 16 led to changes in lease accounting which resulted in decreased rent and lease related expense.

LIQUIDITY AND CAPITAL RESOURCES

Notes:

1. Working capital is a Non-IFRS measure and calculated as current assets less current liabilities, as derived from the Company's consolidated statement of financial position; see “Non-IFRS and Additional IFRS Measures and Reconciliations”.
2. Facilities are subject to certain limitations on accounts receivable, inventory, and net book value of fixed assets and are secured by a general security agreement over all of the Company's assets. As at March 31, 2019, Strad had access to $48.5 million of credit facilities.

As at March 31, 2019, working capital was $14.4 million compared to $19.3 million at December 31, 2018. The change in current assets was a result of a 15% decrease in accounts receivable to $27.3 million for the first quarter of 2019 compared to $32.0 million for the fourth quarter of 2018. The decrease in accounts receivable was due to the timing of collections of accounts receivable outstanding. Inventory decreased by 72% to $0.5 million at March 31, 2019, from $1.8 million at December 31, 2018. Prepaid expenses decreased 86% to $0.3 million at March 31, 2019, as compared to $2.1 million at December 31, 2018. The decrease in inventory was due to mats held in inventory at December 31, 2018, which were sold in the first quarter of 2019. The decrease in prepaids was due to a large deposit made in the fourth quarter of 2018 being cleared out in the first quarter of 2019.

The change in current liabilities was a result of a 28% decrease in accounts payable and accrued liabilities to $11.8 million at March 31, 2019, compared to $16.4 million at year end. The decrease in accounts payable was primarily due to the timing of payments made for the first quarter of 2019.

Cash flow from operating activities for the three months ended March 31, 2019, increased to $13.4 million compared to $6.5 million for the three months ended March 31, 2018, due to net income as opposed to a net loss, increased cash generated from used fleet sales and increased depreciation expense due to the changes in lease accounting resulting in a new depreciable asset in 2019. Funds from operations for the three months ended March 31, 2019, increased to $11.1 million compared to $6.5 million for the three months ended March 31, 2018. Capital expenditures totaled $6.6 million for the three months ended March 31, 2019. Management monitors funds from operations and the timing of capital additions to ensure adequate capital resources are available to fund Strad’s capital program.

As at March 31, 2019, the Company’s syndicated banking facility consists of an operating facility with a maximum principal amount of $7.0 million CAD and $5.0 million USD, and a $36.5 million CAD syndicated revolving facility, both of which are subject to certain limitations on accounts receivable, inventory, and net book value of fixed assets and are secured by a general security agreement over all of the Company’s assets. As at March 31, 2019, the Company had access to the maximum credit facilities. The syndicated banking facility will mature on September 29, 2021. The syndicated banking facility bears interest at bank prime plus a variable rate, which is dependent on the Company’s funded debt to covenant EBITDA ratio.

Based on the Company's funded debt to covenant EBITDA ratio, the interest rate on the syndicated credit facility is bank prime plus 0.50% on prime rate advances and at the prevailing rate plus a stamping fee of 1.50% on bankers' acceptances. For the three months ended March 31, 2019, the overall effective rates on the operating facility and revolving facility were 4.70% and 3.11%, respectively. As of March 31, 2019, $nil was drawn on the operating facility and $9.9 million was drawn on the revolving facility. Required payments on the revolving facility are interest only.

As at March 31, 2019, the Company was in compliance with all of the financial covenants under its credit facilities.

The relevant definitions related to the financial debt covenant ratio terms as set forth in the Company's syndicated banking facility are as follows:

• Funded debt includes bank indebtedness plus long-term debt less cash.
• Covenant EBITDA is based on trailing twelve months adjusted EBITDA plus share based payments, plus additional one-time charges, less right of use asset amortization, less interest expense associated with leases.
• Interest expense ratio is calculated as the ratio of trailing twelve month EBITDA plus share based payments to trailing twelve month interest expense on loans and borrowings.

The above noted definitions are not recognized under IFRS and are provided strictly for the purposes of the financial covenant calculation.

NON-IFRS AND ADDITIONAL IFRS MEASURES AND RECONCILIATIONS

Certain supplementary measures in this Press Release do not have any standardized meaning as prescribed under IFRS and, therefore, are considered non-IFRS measures. These measures are described and presented in order to provide shareholders and potential investors with additional information regarding the Company’s financial results, liquidity and its ability to generate funds to finance its operations. These measures are identified and presented, where appropriate, together with reconciliations to the equivalent IFRS measure. However, they should not be construed as alternative measures to IFRS measures, and as they do not have standardized meanings or standardized methods of calculation, the may not be consistent with or comparable to similar measures presented by other companies. These measures are further explained below.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is not a recognized measure under IFRS.  Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s principal business activities prior to consideration of how those activities are financed and taxed. As of June 30, 2018, the Company implemented changes to its method of calculating EBITDA, which no longer includes adjustments for gains and losses due to foreign exchange or disposal of property, plant and equipment that occur during the normal course of business. EBITDA is now calculated as net income (loss) before interest, taxes, and depreciation and amortization. Segmented EBITDA is based upon the same calculation for defined business segments, which are comprised of Industrial Matting and Equipment Rentals. The Company’s method of calculating EBITDA may differ from that of other organizations and, accordingly, its EBITDA may not be comparable to that of other companies.

Earnings before interest and taxes (“EBIT”) is an additional measure under IFRS.  Management believes that in addition to net income (loss), EBIT is a useful supplemental measure as it provides an indication of the results generated by the Company’s principal business activities prior to consideration of how those activities are financed.

Funds from operations are cash flow from operating activities excluding changes in non-cash working capital. Funds from operations is a non-IFRS measure commonly used in the energy services industry to assist in measuring a company's ability to finance its capital programs, debt repayments and other financial obligations. Funds from operations is not intended to represent net cash generated from operating activities or other measures of financial performance in accordance with IFRS. It is a supplemental measure to gauge performance of the Company before non-cash items. The Company’s method of calculating funds from operations may differ from that of other organizations and, accordingly, its funds from operations may not be comparable to that of other companies.

Working capital is calculated as current assets minus current liabilities, as derived from the Company's consolidated statement of financial position. Working capital, cash forecasting, and banking facilities are used by Management to ensure funds are available to finance growth opportunities. 

Funded debt is a measure used in calculating our bank financial covenants. Funded debt is calculated as bank indebtedness plus long-term debt less cash from syndicate institutions.

Reconciliation of Funds from Operations

Reconciliation of EBITDA and EBIT

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements and information contained in this Press Release constitute forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “plan”, “continue”, “estimate”, “anticipate”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “may”, “predict”, or “will” and similar expressions are intended to identify forward-looking information or statements. More particularly, this Press Release contains forward-looking statements concerning future capital expenditures of the Company, including its 2019 capital program and possible increases thereto, planned allocations of capital expenditures, possible further repurchases under our NCIB, and funding thereof, by way of cash flow, anticipated cash flow, debt, anticipated growing demand for the Company’s products and services in 2019 and beyond, and anticipated revenue allocations amongst our service offerings, drilling activity in North America, pricing of the Company’s products and services, and expectations for 2019 and potential for improved profitability and the potential impact of changes in governments at legislation, and the potential for growth and expansion of certain components of the Company's business, including further capital being allocated to increase our matting fleet, expanding our matting offerings in the U.S., our strategy to double our matting fleet by 2021, anticipated benefits from cost reductions and timing thereof, manufacturing capacity to meet anticipated demand for the Company’s products, and expected exploration and production industry activity including the effects of industry trends, including the potential of LNG infrastructure, on demand for the Company's products. These statements relate to future events or to the Company’s future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements.

Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this Press Release. The forward-looking information and statements included in this Press Release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates, and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and 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 information or statements. In addition to other material factors, expectations, and assumptions which may be identified in this Press Release and other continuous disclosure documents of the Company referenced herein, assumptions have been made in respect of such forward-looking statements and information regarding, among other things: the Company will continue to conduct its operations in a manner consistent with past operations; the general continuance of current industry conditions; anticipated financial performance, business prospects, impact of competition, strategies, the general stability of the economic and political environment in which the Company operates; exchange and interest rates; tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services and the adequacy of cash flow; debt and ability to obtain financing on acceptable terms to fund its planned expenditures, which are subject to change based on commodity prices; market conditions and future oil and natural gas prices; and potential timing delays. Although Management considers these material factors, expectations, and assumptions to be reasonable based on information currently available to it, no assurance can be given that they will prove to be correct.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with the Canadian Securities Regulatory Authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Company's website. The forward-looking statements and information contained in this Press Release are expressly qualified by this cautionary statement. The Company does not undertake any obligation to publicly update or revise any forward looking statements or information, whether as a result of new information, future events, or otherwise, except as may be required by applicable securities laws.

FIRST QUARTER EARNINGS CONFERENCE CALL

Strad has scheduled a conference call to begin promptly at 8:00 a.m. MT (10:00 a.m. ET) on Friday, May 10, 2019.

The conference call dial in number is 1-844-388-0561, followed by Conference ID code 9387837

The conference call will also be accessible via webcast at www.stradenergy.com

A replay of the call will be available approximately after the conference call ends until Friday, May 17th, 2019, at 1:00 p.m. ET. To access the replay, call 1-855-859-2056, followed by pass code 9387837.

ABOUT STRAD

Strad specializes in industrial matting and equipment rentals for projects of any size, from a network of branches across Canada and the United States. Strad aims to exceed customer expectations in many industrial sectors, including Oil and Gas, Pipeline, Power Transmission, and Mining.

Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol “SDY”.