 ACHESON, Alberta, July 29, 2020 GLOBE NEWSWIRE -- North American Construction Group Ltd. NACG TSX:NOANYSE:NOA today announced results for the second quarter ended June 30, 2020. Financial Highlights of the Second Quarter Ended June 30, 2020 Revenue for the quarter was 70.8 million, compared to 176.9 million for the same period in the prior year, a decrease of 106.2 million or 60. Year to date revenue was 269.6 million, compared to 363.3 million for the same period in the prior year, a decrease of 93.8 million or 26. Adjusted EBITDA for the quarter was 31.9 million, compared to 37.1 million for the same period in the prior year, a decrease of 5.2 million or 14. Year to date Adjusted EBITDA was 92.1 million, compared to 89.2 million for the same period in the prior year, an increase of 2.9 million or 3. Adjusted EPS for the quarter was 0.45, compared to 0.43 for same period in the prior year, an increase of 0.02 or 5. Year to date Adjusted EPS was 1.14, compared to 0.93 for the same period in the prior year, an increase of 0.21 or 23. Free cash flow for the quarter was 10.6 million, compared to 1.7 million for the same period in the prior year, an increase of 8.9 million. Year to date free cash flow was 20.1 million, compared to 3.6 million for the same period in the prior year, an increase of 23.6 million. Total liquidity at quarter-end was of 135.4 million, compared to 114.6 million at December 31, 2019, a increase of 20.8 million.NACG Chairman and CEO, Martin Ferron, commented: As one of very few companies that provided any sort of outlook for the second quarter, we were determined to both minimize the impact of the COVID-19 pandemic on the health and safety of our workforce; and mitigate its effect on our business performance. Therefore, we are pleased to report that good headway was made on both objectives, as we also helped our customers manage the virus risk on their worksites.A close stewardship of costs rewarded us with a nicely profitable quarter, despite a greater than 60 sequential fall in our revenues, in the toughest operating environment we have ever experienced. We also hit our free cash flow target and reduced our net debt by around 10, with that cash flow and the call of a convertible debenture.Mr. Ferron added, Looking ahead, we anticipate that our core business activity will gradually improve as the year progresses, such that we now expect our full year adjusted EBITDA to be in the range of 140-170 million.Other Highlights of the Quarter Ended June 30, 2020 On April 6, 2020, our 5.50 convertible debentures due March 31, 2024 were redeemed in accordance with their original terms. The redemption was satisfied through issuance of 4,583,655 voting common shares and all accrued and unpaid interest was paid in cash. On June 21, 2020, formal handover of the management services agreement was completed for the operation of a coal mine operation in Texas, USA.COVID-19 - Impact and Response Diligent attention was paid to improve personal hygiene and physical distancing, primarily at mine sites but also our maintenance and administrative facilities with objective of limiting the spread of COVID-19. This resulted in numerous enhancements and practical adjustments to existing health and safety procedures. Cleaning and disinfection practices were increased in frequency and rigor and daily questionnaires were implemented to monitor health of employees. Technical accommodations were made for staff to work from home.Declaration of Quarterly DividendOn July 28th, 2020, the NACG Board of Directors declared a regular quarterly dividend the Dividend of four Canadian cents 0.04 per common share, payable to common shareholders of record at the close of business on August 31, 2020. The Dividend will be paid on October 2, 2020 and is an eligible dividend for Canadian income tax purposes.Consolidated Financial Highlights Three months ended Six months ended June 30, June 30, dollars in thousands, except per share amounts2020 2019 2020 2019 Revenue70,771 176,935 269,588 363,343 Project costs12,331 73,938 72,448 144,429 Equipment costs25,792 57,432 97,533 114,485 Depreciation11,551 22,099 43,859 51,380 Gross profiti21,097 23,466 55,748 53,049 Gross profit margini29.8 13.3 20.7 14.6 General and administrative expenses excluding stock-based compensation3,467 5,992 12,137 14,812 Stock-based compensation expense benefit2,213 872 4,650 5,106 Interest expense, net4,274 5,123 9,802 10,584 Net income and comprehensive income available to shareholders13,299 13,894 32,334 21,075 Adjusted EBITDAiii31,941 37,122 92,073 89,192 Adjusted EBITDA marginiii45.1 21.0 34.2 24.5 Per share information Basic net income per share0.46 0.55 1.19 0.84 Diluted net income per share0.42 0.45 1.07 0.70 Adjusted EPSi0.45 0.43 1.14 0.93 iSee Non-GAAP Financial Measures. iiIn the three months ended December 31, 2019 we changed the calculation of adjusted EBITDA. This change has not been reflected in results prior to the three months ended December 31, 2019. Applying this change to previously reported periods would result in no change for the three months ended June 30, 2019 and an increase of 0.2 million in adjusted EBITDA for the six months ended June 30, 2019.Results for the Three and Six Months Ended June 30, 2020For the three months ended June 30, 2020, revenue was 70.8 million, down from 176.9 million in the same period last year. The decrease in revenue is primarily due to reduced activity at our mine sites as several customers suspended all services in late Q1 and throughout the majority of Q2 as part of their risk mitigation measures against the COVID-19 pandemic. Additionally, contributing to the slower quarter was unfavorable weather conditions which resulted in shift cancellations and continuous delays for overburden removal work due to haul road repairs. The completion of the Highland Valley Copper Mine contract and the heavy civil construction work at the Fort Hills Mine in Q4 2019 also contributed to the year over year decrease.For the six months ended June 30, 2020, revenue was 269.6 million, down from 363.3 million in the same period last year. This decrease of 25.8 reflects the Q2 challenges mentioned above, combined with the effect of the change in consolidation method for Nuna whereby revenues are now included within equity earnings. These decreases were partially offset by the completion of the new civil construction services work at the Mildred Lake Mine and the increased volume on the winter works program at the Aurora Mine.For the three months ended June 30, 2020, gross profit was 21.1 million, and a 29.8 gross profit margin, down from a 23.5 million gross profit but up from a 13.3 gross profit margin in the same period last year. The gross profit margin achieved was the result of an effectively operated fleet, albeit smaller in number than originally anticipated, and the disciplined cost constraints in place during the customer imposed reductions at the various mine sites. Furthermore, the mix of work that was executed in the quarter were higher margin scopes than the prior year.For the six months ended June 30, 2020, gross profit was 55.7 million, and a 20.7 gross profit margin, up from 53.0 million, and a 14.6 gross profit margin in the same period last year. The improvement in current year gross profit and margin was impacted by the Q2 factors discussed above, and the strong margins achieved in Q1 from the favorable operating conditions at our mine sites particularly in January and February.For the three months ended June 30, 2020, depreciation was 11.6 million, or 16.3 of revenue, down from 22.1 million, or 12.5 of revenue, in the same period last year. For the six months ended June 30, 2020, depreciation was 43.9 million, or 16.3 of revenue, down from 51.4 million, or 14.6 of revenue, in the same period last year. The significant drop in depreciation is the result of a significant reduction in revenue and utilization of the heavy equipment fleet in the months of April and May as a result of the impacts of COVID-19. Depreciation as a percentage of revenue increased significantly as a result of lower revenue and lower depreciation of the heavy equipment fleet, relative to assets under straight-line depreciation when compared to the same period in 2019.For the three months ended June 30, 2020, we recorded operating income of 14.7 million, a decrease of 3.9 million from the 18.6 million for the same period last year. General and administrative expense, excluding stock-based compensation expense, was 3.5 million or 4.9 of revenue for the quarter, lower than the 6.0 million or 3.4 of revenue in the prior year. Stock-based compensation expense increased 3.1 million compared to the prior year, primarily from the effect of a fluctuating share price on the carrying value of our liability classified award plans.For the six months ended June 30, 2020, we recorded operating income of 47.1 million, an increase of 14.0 million from the 33.1 million for the same period last year. General and administrative expense, excluding stock-based compensation expense was 12.1 million or 4.5 of revenue compared to the 14.8 million or 4.1 of revenue for the six months ended June 30, 2019. Stock-based compensation expense decreased by 9.8 million for the same period in the prior year.For the three months ended June 30, 2020, we recorded 13.3 million of net income and comprehensive income available to shareholders basic income per share of 0.46 and diluted income per share of 0.42, compared to 13. 