Edmonton, Alberta - McCoy Global Inc. ('McCoy,' 'McCoy Global' or 'the Corporation') (TSX:MCB) announced its operational and financial results for the three months ended June 30, 2022.

Net earnings remained strong at $1.1 million compared to $1.2 million in 2021 (of which $2.4 million related to loan forgiveness of the Corporation's US Paycheck Protection Program borrowings), and improved by $0.9 million from $0.2 million in the first quarter of 2022;

Adjusted EBITDA1 improved more than tenfold to $2.3 million, or 18% of revenue, compared with $0.2 million, or 3% of revenue, in 2021. Sequentially, Adjusted EBITDA improved by $1.1 million from $1.4 million, or 16% of revenue, reported in the first quarter of 2022;

Revenue more than doubled to $12.9 million compared with $6.1 million in 2021;

Subsequent to June 30, 2022, McCoy received $11.3 million of orders received for Hydraulic Power Tongs, Casing Running Tools (CRT) and McCoy Torque Turn systems and related parts and accessories from a customer based in the Kingdom of Saudi Arabia, resulting in backlog of $27.4 million as at August 4, 2022, a level not experienced since Q1 2015;

Twelfth (12th) quarter of positive Adjusted EBITDA, demonstrating solid earnings performance and operating leverage despite the unprecedented market conditions presented by the COVID-19 pandemic; and

Advanced its Digital Technology Roadmap:

Successfully completed customer field trials for McCoy's smartCRTTM , an intelligent, connected enhancement of our conventional casing running tool that offers superior safety, efficiency and simplified operating procedure with a Middle East National Oil Company. With this achievement behind us, we have also accepted an order for two of the smartCRTTM tools, scheduled for delivery in the fourth quarter of 2022.

Reported the first two commercial sales for McCoy's FMS, the hydraulic rotary flush mounted spider that when fully connected (smartFMSTM), handles casing while providing information on the state of the tool to the driller's display in real-time as well as the ability to integrate with the smartCRT.

'McCoy's strong second quarter financial results reflect steadily increasing customer demand and demonstrate the solid financial operating leverage we expect to deliver as our order book continues to build. With recent order intake activity, our backlog now sits at the highest levels we've seen since 2015 and we are solidly positioned to deliver on our financial results for the second half of 2022.' said Jim Rakievich, President & CEO of McCoy. 'Despite current economic uncertainty and commodity price volatility, increased drilling activity levels over the medium term paired with new international market entrants will serve to further enhance commercial opportunities. The strategic priorities we executed upon in 2020 and 2021 to first optimize cost structure and second, to advance our investments in developing smart technologies, positions us to capitalize on opportunities as market activity improves.'

'Our second quarter performance demonstrated continued strength in several of our financial metrics. McCoy's continued fiscal discipline resulted in a more than tenfold increase in Adjusted EBITDA1 of $2.3 million or 18% of revenue for the second quarter (Q2 2021 - Adjusted EBITDA of $0.2 million, or 3% of revenue). Though operating cashflows were impacted by $4.2 million investment in working capital, this was largely driven by an increase in trade receivable balances related to the large volume of customer shipments that took place near the end of the quarter. Despite the many supply chain challenges faced globally, successful supply chain management has also allowed us to not only navigate cost headwinds, but also successfully sustain inventory investment levels in conjunction with increasing order intake activity.' said Lindsay McGill, Vice President & CFO of McCoy. 'As of June 30, 2022, McCoy reported net cash of $4.1 million with an additional US$2.5 million available under an undrawn operating facility, which will well position McCoy for revenue growth in the year ahead.'

McCoy Global is transforming well construction using automation and machine learning to maximize wellbore integrity and collect precise connection data critical to the global energy industry. The Corporation has offices in Canada, the United States of America, and the United Arab Emirates and operates internationally in more than 50 countries through a combination of direct sales and key distributors.

Throughout McCoy's 100-year history, it has proudly called Edmonton, Alberta, Canada its corporate headquarters. The Corporation's shares are listed on the Toronto Stock Exchange and trade under the symbol 'MCB'.

1. EBITDA is calculated under IFRS and is reported as an additional subtotal in the Corporation's consolidated statements of cash flows. EBITDA is defined as net earnings (loss), before depreciation of property, plant and equipment; amortization of intangible assets; income tax expense (recovery); and finance charges, net. Adjusted EBITDA is a non-GAAP measure defined as net (loss) earnings, before: depreciation of property, plant and equipment; amortization of intangible assets; income tax expense (recovery); finance charges, net; provisions for excess and obsolete inventory; other (gains) losses, net; restructuring charges; share-based compensation; and impairment losses. The Corporation reports on EBITDA and adjusted EBITDA because they are key measures used by management to evaluate performance. The Corporation believes adjusted EBITDA assists investors in assessing McCoy Global's current operating performance on a consistent basis without regard to non-cash, unusual (i.e. infrequent and not considered part of ongoing operations), or non-recurring items that can vary significantly depending on accounting methods or non-operating factors. Adjusted EBITDA is not considered an alternative to net (loss) earnings in measuring McCoy Global's performance. Adjusted EBITDA does not have a standardized meaning and is therefore not likely to be comparable to similar measures used by other issuers. For comparative purposes, in previous financial disclosures 'adjusted EBITDA' was defined as 'net earnings (loss) before finance charges, net, income tax expense (recovery), depreciation, amortization, impairment losses, restructuring charges, non-cash changes in fair value related to derivative financial instruments and share-based compensation.'

This News Release contains forward looking statements and forward looking information (collectively referred to herein as 'forward looking statements') within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward looking statements. Forward looking information is often, but not always, identified by the use of words such as 'could', 'should', 'can', 'anticipate', 'expect', 'objective', 'ongoing', 'believe', 'will', 'may', 'projected', 'plan', 'sustain', 'continues', 'strategy', 'potential', 'projects', 'grow', 'take advantage', 'estimate', 'well positioned' or similar words suggesting future outcomes. This New Release contains forward looking statements respecting the business opportunities for the Corporation that are based on the views of management of the Corporation and current and anticipated market conditions; and the perceived benefits of the growth strategy and operating strategy of the Corporation are based upon the financial and operating attributes of the Corporation as at the date hereof, as well as the anticipated operating and financial results. Forward looking statements regarding the Corporation are based on certain key expectations and assumptions of the Corporation concerning anticipated financial performance, business prospects, strategies, the sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and the ability to obtain financing on acceptable terms, which are subject to change based on market conditions and potential timing delays. Although management of the Corporation consider these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. By their very nature, forward looking statements involve inherent risks and uncertainties (both general and specific) and risks that forward looking statements will not be achieved. Undue reliance should not be placed on forward looking statements, as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in the forward looking statements, including inability to meet current and future obligations; inability to complete or effectively integrate strategic acquisitions; inability to implement the Corporation's business strategy effectively; access to capital markets; fluctuations in oil and gas prices; fluctuations in capital expenditures of the Corporation's target market; competition for, among other things, labour, capital, materials and customers; interest and currency exchange rates; technological developments; global political and economic conditions; global natural disasters or disease; and inability to attract and retain key personnel. Readers are cautioned that the foregoing list is not exhaustive. The reader is further cautioned that the preparation of financial statements in accordance with IFRS requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. These judgments and estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes. The information contained in this News Release identifies additional factors that could affect the operating results and performance of the Corporation. We urge you to carefully consider those factors. The forward looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward looking statements included in this News Release are made as of the date of this New Release and the Corporation does not undertake and is not obligated to publicly update such forward looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

(C) 2022 Electronic News Publishing, source ENP Newswire