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NORTH AMERICAN CONSTRUCTION GROUP North American Construction Group Ltd. Announces Results for the Third Quarter Ended September 30 , 2021 ACHESON , Alberta , Oct. 27 , 2021 ( GLOBE NEWSWIRE ) -- North American Construction Group Ltd. ( " NACG " ) ( TSX : NOA / NYSE : NOA ) today announced results for the third quarter ended September 30 , 2021. Unless otherwise indicated , financial figures are expressed in Canadian dollars and comparisons are to the prior period ended September 30 , 2020 . Third Quarter 2021 Highlights : • Adjusted EBITDA of $ 47.5 million was 28 % higher than prior year adjusted EBITDA of $ 37.1 million reflecting improved operating conditions from the prior year , consistently increasing demand for our heavy equipment fleet and a step change in scope being completed by the Nuna Group of Companies ( " Nuna " ) . • Gross profit of $ 21.7 million or 13.1 % continued to reflect the macro impacts of COVID - 19 but was also impacted by equipment maintenance completed in anticipation of a busy winter season . The operational impacts of safety protocols and workforce availability are estimated to have impacted gross profit by approximately $ 3.0 million net of government assistance and wage subsidy programs . • Free cash flow ( " FCF " ) in the quarter of $ 10.0 million was generated from strong adjusted EBITDA less sustaining capital expenditures but was noticeably impacted by deferred timing of cash receipts from our various joint ventures which we expect to receive in the normal course . • Senior debt was $ 274.0 million as at September 30 , 2021 , a decrease of $ 79.2 million from the December 31 , 2020 balance as proceeds from newly issued debentures were used to reduce senior debt . • On July 21 , 2021 , we announced a contract amendment to a multiple use agreement between the Mikisew North American Limited Partnership and a major oil sands producer . We anticipate our share to be approximately $ 175 million in additional revenue over the remainder of the agreement . • On September 14 , 2021 , we announced a contract award to Mikisew North American Limited Partnership ( " MNALP " ) by a major oil sands producer . The contract extends the existing master service agreement between us and the producer to December 2023 but transitions to MNALP as the contractor . We anticipate the contract to generate approximately $ 275 million in revenue over the term of the agreement . • On September 29 , 2021 , we announced amendment and extension of our senior secured credit facility which extended the facility date by one year with a new maturity date of October 8 , 2024. In addition to the extension of existing favourable terms , amendments have also been incorporated that provide us a greater flexibility in operating through joint ventures , including joint ventures related to larger contracts under public - private - partnership financing models . NACG President and CEO , Joseph Lambert , commented : “ Thankfully , our Q3 financial performance was much more stable than Q2 and the consistency in operating conditions allowed for predictable results . Our operating margins continue to be impacted by the necessary safety protocols in place at the various mine sites , but the impacts were far less severe than last quarter . The financial close of the Fargo - Moorhead project and the seamless integration of DGI Trading are strong milestones in our strategy to diversify our business . That said , the resumption of work at Fort Hills and the contract amendments recently secured with oil sands producers illustrates the strength of this region and we remain committed to serving these customers . Without taking our eye off of this critical Q4 , we look to 2022 and have provided our range of outcomes based on the projects we currently have in place . I am , of course , keenly aware of the exciting momentum we feel internally here at NACG but it really shows up quantitatively when we look at the estimates for next year . We see the goals ahead of us and are focused on execution . " Consolidated Financial Highlights Three months ended September 30 , ( dollars in thousands , except per share amounts ) 2021 2020 ( iii ) 2021 Nine months ended September 30 , 2020 i ( iii ) Revenue $ 165,962 $ 93,563 $ 473,142 $ 362,392 Project costs 63,301 27,841 155,460 100,789 Equipment costs 59,524 32,095 171,363 129,419 Depreciation 21,426 18,845 78,966 62,534 Gross profit $ 21,711 $ 14,782 $ 67,353 $ 69,650 Gross profit margin ( i ) 13.1 % 15.8 % 14.2 % 19.2 % General and administrative expenses ( excluding stock - based compensation ) 7,136 3,698 20,074 16,225 Stock - based compensation expense ( benefit ) ( 62 ) 1,756 9,963 ( 2,895 ) Interest expense , net 4,845 4,428 13,782 14,221