AKITA Drilling Ltd. Announces Year-to-Date Earnings and Cash Flow
Apr 27, 2018
CALGARY, April 27, 2018 /CNW/ - AKITA Drilling Ltd.'s net loss for the three months ended March 31, 2018 was $1,912,000 (net loss of $0.11 per share basic and diluted) on revenue of $27,089,000, compared to a net loss of $4,975,000 (net loss of $0.28 per share basic and diluted) on revenue of $19,193,000 for the corresponding period in 2017. Funds flow from operations for the quarter ended March 31, 2018 was $4,519,000 compared to $1,824,000 in the corresponding quarter of 2017.
AKITA had improved results in the first quarter of 2018, with drilling activity across the Western Canadian Sedimentary Basin continuing to increase when compared to the same period in 2017, resulting in improved results for the Company. The increased activity was due to higher crude oil prices, with West Texas Intermediate (WTI) remaining above $50 USD since October of last year. The Company's heavy oil rigs were very active in the quarter generating over half of the Company's revenue for the first quarter of 2018. Although day rates have begun to increase they have been slow to recover from the downturn. There is still insufficient demand in the Canadian market to create significant upward pricing pressure. During the quarter AKITA moved a second rig to the United States, which began drilling in March. The Company has been successful in relocating and contracting idle rigs from Canada to the US Permian Basin at minimal capital cost.
Selected information from AKITA Drilling Ltd.'s Management Discussion and Analysis from the Quarterly Report as follows:
Introduction and General Overview
Activity levels in the contract drilling industry are highly correlated to the market prices of both crude oil and natural gas. Average West Texas Intermediate (WTI) crude oil prices increased 22% when comparing the first quarter of 2018 to the first quarter of 2017, while Alberta Energy Company (AECO) natural gas spot prices decreased 22% over the same time period. This shift in commodity prices has increased the demand for the Company's rigs drilling for oil while at the same time reducing demand for the Company's rigs drilling for dry gas. As AKITA is typically more active in heavy oil drilling, the increase in demand due to crude oil prices increased the Company's utilization for the first quarter of 2018 compared to the first quarter of 2017.
Readers of this MD&A should be aware that historically, the first quarter of the calendar year is the most active in the drilling industry, as operators take advantage of frozen ground, which makes the movement of heavy equipment easier. Lower activity levels that result from spring break-up and associated travel bans on public roads characterize the second quarter.
Fleet and Rig Utilization
AKITA had 28 drilling rigs at March 31, 2018, including five that operated under joint ventures (26.750 net to AKITA), the same as at March 31, 2017. During the first quarter of 2018, a second rig was moved to the United States. The Company currently has 26 rigs in Canada and two in the United States.
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change |
|
Operating days |
1,174 |
961 |
213 |
22% |
|
Utilization rate |
47% |
38% |
9 |
24% |
Generally, AKITA meets or exceeds industry average rig utilization rates as a result of positive customer relations, meaningful joint ventures with Aboriginal and First Nations partners, employee expertise, safety performance, drilling performance and that the majority of the Company's rig fleet are high-demand pad drilling rigs.
The following table compares first quarter utilization for AKITA to the industry for 2018 and 2017:
|
Utilization Rates Expressed in Percentages |
AKITA |
Industry(1) |
|
2018 January to March |
47% |
41% |
|
2017 January to March |
38% |
39% |
|
(1) Source: CAODC |
The improvement in utilization in the first quarter of 2018 compared to the first quarter of 2017 was driven by AKITA's fleet of pad triple drilling rigs obtaining more operating days in 2018, while other rig categories obtained similar results as in the prior year.
Revenue and Operating & Maintenance Expenses
|
$Millions |
||||
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change |
|
Contract drilling revenue |
27.1 |
19.2 |
7.9 |
41% |
|
Operating & maintenance expenses |
20.4 |
17.7 |
2.7 |
15% |
|
$Dollars |
||||
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change |
|
AKITA and joint ventures' revenue per operating day(1) |
29,363 |
26,367 |
2,996 |
11% |
|
AKITA and joint ventures' operating & maintenance expenses per operating day(1) |
21,848 |
22,625 |
(778) |
(3%) |
|
AKITA and joint ventures' operating margin per operating day(1) |
7,515 |
3,742 |
3,773 |
101% |
|
(1) |
AKITA and joint ventures' revenue per operating day, AKITA and joint ventures' operating & maintenance expenses per operating day and AKITA and joint ventures' operating margin per operating day are non-GAAP financial measures. See commentary in "Basis of Analysis in this MD&A, Non-GAAP and Additional GAAP Items". |
During the first quarter of 2018, revenue increased to $27,089,000 from $19,193,000 in the first quarter of 2017, due to increases in both utilization as well as revenue per day. Revenue per operating day increased to $29,363 (for AKITA including joint ventures) year-to-date in 2018 from $26,367 for the same period in 2017. The increase in revenue per operating day was a result of a slight strengthening of rates in the Canadian industry as well as the mix of rigs AKITA operated in the quarter. Pad triple drilling rigs, which generally demand higher day rates than other conventional drilling rigs, achieved more operating days in the first quarter of 2018 compared to the same period of 2017.
Operating and maintenance expenses are directly related to operating days and amounted to $20,389,000 ($21,848 per operating day for AKITA including joint ventures) during the first quarter of 2018, compared to $17,735,000 ($22,625 per operating day for AKITA including joint ventures) during the same period of the prior year. The increase in operating and maintenance expenses is due to more operating days in the first quarter of 2018 compared to the first quarter of 2017. High rig start-up costs incurred in the first quarter of 2017 were the main factor behind the per day decrease in operating and maintenance expense in the first three months of 2018.
Depreciation and Amortization Expense
|
$Millions |
||||
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change |
|
Depreciation and amortization expense |
5.9 |
6.7 |
(0.8) |
(12%) |
Depreciation and amortization expense decreased to $5,927,000 during the first quarter of 2018 from $6,736,000 during the corresponding period in 2017, primarily due to the asset write down and impairment loss recorded in the fourth quarter of 2017 which reduced the Company's depreciable property by $29,123,000. Also affecting depreciation in 2018 is a change in the Company's method of calculating depreciation. On January 1, 2018, AKITA changed its depreciation method to a straight-line calculation from a unit of production basis. The rationale for this change was to have rig depreciation more closely match the new lifecycle of rigs. Historically, rigs would last until they wore out. However, technology is a large part of modern drilling rigs and today drilling rigs' useful lives are reduced as new technologies are invented for modern drilling programs. As result, the passage of time plays a more significant part than operating days in determining a drilling rig's life. The straight-line depreciation method matches the new lifecycle more accurately than the unit of production depreciation method. In the first quarter of 2018, drilling rig depreciation accounted for 97% of total depreciation expense (Q1 2017 - 97%).
While AKITA conducts some of its drilling operations via joint ventures, the drilling rigs used to conduct those activities are owned jointly by AKITA and its joint venture partners, and not by the joint ventures themselves. As the joint ventures do not hold any property, plant, or equipment assets directly, the Company's depreciation expense includes depreciation on assets involved in both wholly-owned and joint venture activities.
Selling and Administrative Expenses
|
$Millions |
||||
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change |
|
Selling and administrative expenses |
4.4 |
4.0 |
0.4 |
10% |
Selling and administrative expenses increased to $4,419,000 in the first quarter of 2018 (16% of revenue) from $3,978,000 (16% of revenue) in the first quarter of 2017, due to a combination of increased administrative expenses and costs relating to US operations. Salaries and benefits accounted for 50% of these expenses (Q1 2017 - 43%).
Equity Income from Joint Ventures
|
$Millions |
||||
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change |
|
Proportionate share of revenue from joint ventures |
7.4 |
6.1 |
1.3 |
21% |
|
Proportionate share of operating & maintenance expenses from joint ventures |
5.3 |
4.0 |
1.3 |
33% |
|
Proportionate share of selling and administrative expenses from joint ventures |
0.1 |
- |
0.1 |
100% |
|
Equity income from joint ventures |
2.0 |
2.1 |
(0.1) |
(5%) |
The Company provides the same drilling services and utilizes the same management, financial and reporting controls for its joint venture activities as are in place for its wholly-owned operations. The increase in both revenue and expenses for the Company's proportionate share of joint ventures is related to increased activity for the Company's joint venture rigs in the first quarter of 2018 compared to the first quarter of 2017. Although there was more activity in the joint ventures in the first quarter of 2018 compared to the same period in the prior year, the average revenue per day decreased due to more rigs working at market rates in 2018 versus long term contract rates in 2017.
Other Income (Loss)
|
$Millions |
||||
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change |
|
Total other income (loss) |
0.1 |
0.2 |
(0.1) |
(50%) |
Total other income (loss) is the aggregate of interest income, interest expense, gain (loss) on sale of assets, and net other gains (losses) all of which are discussed below in detail.
Interest income decreased to $17,000 in the first quarter of 2018 from $120,000 in the same period of 2017, due to the collection of the interest-bearing long-term receivable held related to a contract cancellation fee recorded in 2016.
In the first quarter of 2018, the Company incurred interest expense of $83,000 with $41,000 relating to interest on the Company's line of credit (Q1 2017 – nil) and $42,000 relating to the future cost of the Company's defined benefit pension plan (Q1 2017-$42,000).
During the first quarter of 2018, the Company did not sell any ancillary assets compared to the same period in 2017 when assets were sold for proceeds of $80,000 that resulted in a gain of $76,000.
During the first quarter of 2018, net other gains of $124,000 related to the sale of previously written-off assets.
|
Income Tax Expense (Recovery) | |||||
|
$Millions |
|||||
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change | |
|
Current tax recovery |
- |
(2.0) |
2.0 |
100% | |
|
Deferred tax expense |
0.3 |
- |
0.3 |
- | |
|
Total income tax expense (recovery) |
0.3 |
(2.0) |
2.3 |
115% | |
The Company recorded a deferred tax expense of $339,000 in the first quarter of 2018 compared to a deferred tax recovery of $29,000 and current tax recovery of $2,046,000 in the corresponding period in 2017. The shift from current tax to deferred tax between the quarters is due to the Company having utilized all potential loss carry backs in 2017.
Net Loss, Funds Flow and Net Cash From Operating Activities
|
$Millions |
||||
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change |
|
Net loss |
(1.9) |
(5.0) |
3.1 |
62% |
|
Funds flow from operations(1) |
4.5 |
1.8 |
2.7 |
150% |
|
(1) |
Funds flow from operations is an additional GAAP measure under IFRS. See commentary in "Basis of Analysis in this MD&A, Non-GAAP and Additional GAAP Items". |
The Company incurred a net loss of $1,912,000 ($0.11 loss per share basic and diluted) for the first quarter of 2018, compared to a net loss of $4,975,000 ($0.28 earnings per share basic and diluted) in the first quarter of 2017. Funds flow from operations increased to $4,519,000 in the first quarter of 2018, from $1,824,000 during the corresponding quarter in 2017. The reduction in net loss and increase in funds flow is attributable to increased activity and higher average day-rates in the first quarter of 2018 compared to the same period in 2017.
The following table reconciles funds flow and cash flow from operations:
|
$Millions |
||||
|
Three Months Ended March 31 |
2018 |
2017 |
Change |
% Change |
|
Funds flow from operations(1) |
4.5 |
1.8 |
2.7 |
150% |
|
Change in non-cash working capital |
0.4 |
5.7 |
(5.3) |
(93%) |
|
Equity income from joint ventures |
(2.0) |
(2.1) |
0.1 |
5% |
|
Post-employee benefits and interest paid |
(0.1) |
- |
(0.1) |
- |
|
Current income tax recovery |
- |
(2.0) |
2.0 |
100% |
|
Net cash from operating activities |
2.8 |
3.4 |
(0.6) |
(17%) |
|
(1) |
Funds flow from operations is an additional GAAP measure under IFRS. See commentary in "Basis of Analysis in this MD&A, Non-GAAP and Additional GAAP Items". |
Liquidity and Capital Resources
Cash used for capital expenditures totalled $1,685,000 in the first quarter of 2018 (Q1 2017 - $4,587,000). Year-to-date capital spending relates to routine capital items (69%) and costs incurred for the expansion into the US. The prior year's first quarter capital expenditures largely related to routine items, while 33% related to the construction of an AC double pad drilling rig which commenced operations in the fourth quarter of 2017.
At March 31, 2018, AKITA's Statement of Financial Position included working capital (current assets minus current liabilities) of $16,111,000 compared to working capital of $29,980,000 at March 31, 2017, and working capital of $15,528,000 at December 31, 2017. The seasonal nature of AKITA's business typically results in higher non-cash working capital balances at the end of the first quarter than at year-end due to the high seasonal activity levels encountered in the first quarter. Working capital at March 31, 2018 decreased compared to March 31, 2017, due to lower working capital balances at December 31, 2017 compared to December 31, 2016 ($34,907,000).
The Company chooses to maintain a conservative Statement of Financial Position due to the cyclical nature of the industry. In addition to its cash balances, the Company has an operating loan facility with its principal banker totalling $50,000,000 that is available until 2019. The facility has been provided in order to finance general corporate needs, capital expenditures and acquisitions. Management used the facility in the first quarter of 2018 to fund working capital requirements. The first quarter of the year is typically the quarter with the highest cash requirement of the year due to increased drilling activity. The interest rate on the facility is 1.25% over prime interest rate or 2.5% over guaranteed notes, depending on the preference of the Company. The Company had $6,500,000 drawn on the facility at March 31, 2018 (no amounts were drawn in 2017).
The Company's objectives when managing capital are:
- to safeguard the Company's ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders; and
- to augment existing resources in order to meet growth opportunities.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, repurchase or issue new shares, sell assets or take on long-term debt. Since 1999, dividend rates have increased eight times with no decreases.
During the 10 year period since 2007, AKITA has repurchased and cancelled 443,208 Class A Non-Voting shares through normal course issuer bids and has issued 122,200 Class A Non-Voting shares upon exercise of stock options.
From time to time, the Company may provide guarantees for bank loans to joint venture partners in respect of sales of rig interests to joint venture partners. At March 31, 2018, AKITA provided $1,158,000 in deposits with its bank for those purposes (March 31, 2017 - $2,613,000 and December 31, 2017 - $1,525,000). AKITA's security from its partners for these guarantees includes interests in specific rig assets. These balances have been classified as restricted cash on the Interim Consolidated Statements of Financial Position.
Basis of Analysis in this MD&A, Non-GAAP and Additional GAAP Items
AKITA and its joint ventures' revenue per operating day and AKITA and its joint ventures' operating and maintenance expenses per operating day are not recognized GAAP measures under International Financial Reporting Standards ("IFRS"). Management and certain investors may find "per operating day" measures for AKITA and joint ventures' revenue indicate pricing strength while AKITA and joint ventures' operating and maintenance expenses per operating day demonstrates a degree of cost control and provides a proxy for specific inflation rates incurred by the Company. Readers should be cautioned that in addition to the foregoing, other factors, including the mix of drilling rigs that are utilized can also influence these results.
Funds flow from operations is considered an additional GAAP item under IFRS. AKITA's method of determining funds flow from operations may differ from methods used by other companies and includes cash flow from operating activities before working capital changes, equity income from joint ventures, and income tax amounts paid or recovered during the period. Management and certain investors may find funds flow from operations to be a useful measurement to evaluate the Company's operating results at year-end and within each year, since the seasonal nature of the business affects the comparability of non-cash working capital changes both between and within periods.
Forward-looking Statements
From time to time AKITA makes forward-looking statements. These statements include but are not limited to comments with respect to AKITA's objectives and strategies, financial condition, results of operations, the outlook for the industry and risk management.
By their nature, these forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that the predictions and other forward-looking statements will not be realized. Readers of this MD&A are cautioned not to place undue reliance on these statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, estimates and intentions expressed in such forward-looking statements.
Forward-looking statements may be influenced by factors such as the level of exploration and development activity carried on by AKITA's customers; world crude oil prices and North American natural gas prices; weather; access to capital markets and government policies. We caution that the foregoing list of factors is not exhaustive and that investors and others should carefully consider the foregoing factors as well as other uncertainties and events prior to making a decision to invest in AKITA. Except as required by law, the Company does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by it or on its behalf.
Selected Financial Information for the Company is as follows:
|
AKITA Drilling Ltd. | |||||||
|
Interim Consolidated Statements of Financial Position | |||||||
|
Unaudited |
March 31, |
March 31, |
December 31, | ||||
|
$ Thousands |
2018 |
2017 |
2017 | ||||
|
ASSETS |
|||||||
|
Current Assets |
|||||||
|
Cash and cash equivalents |
$ |
4,948 |
$ |
10,499 |
$ |
560 | |
|
Accounts receivable |
25,729 |
25,926 |
27,024 | ||||
|
Income taxes recoverable |
3,076 |
4,374 |
3,076 | ||||
|
Prepaid expenses and other |
1,108 |
756 |
89 | ||||
|
34,861 |
41,555 |
30,749 | |||||
|
Non-current Assets |
|||||||
|
Restricted cash |
1,158 |
2,613 |
1,525 | ||||
|
Other long-term assets |
520 |
907 |
528 | ||||
|
Investments in joint ventures |
5,006 |
4,253 |
4,096 | ||||
|
Property, plant and equipment |
166,366 |
203,776 |
170,599 | ||||
|
TOTAL ASSETS |
$ |
207,911 |
$ |
253,104 |
$ |
207,497 | |
|
LIABILITIES |
|||||||
|
Current Liabilities |
|||||||
|
Operating loan facility |
$ |
6,500 |
$ |
- |
$ |
- | |
|
Accounts payable and accrued liabilities |
10,725 |
10,050 |
13,696 | ||||
|
Dividends payable |
1,525 |
1,525 |
1,525 | ||||
|
18,750 |
11,575 |
15,221 | |||||
|
Non-current Liabilities |
|||||||
|
Financial instruments |
4 |
31 |
9 | ||||
|
Deferred income taxes |
12,931 |
23,673 |
12,592 | ||||
|
Deferred share units |
395 |
226 |
388 | ||||
|
Pension liability |
4,927 |
4,392 |
4,832 | ||||
|
Total Liabilities |
37,007 |
39,897 |
33,042 | ||||
|
SHAREHOLDERS' EQUITY |
|||||||
|
Class A and Class B shares |
23,871 |
23,871 |
23,871 | ||||
|
Contributed surplus |
4,545 |
4,346 |
4,500 | ||||
|
Accumulated other comprehensive loss |
(475) |
(366) |
(495) | ||||
|
Retained earnings |
142,963 |
185,356 |
146,579 | ||||
|
Total Equity |
170,904 |
213,207 |
174,455 | ||||
|
TOTAL LIABILITIES AND EQUITY |
$ |
207,911 |
$ |
253,104 |
$ |
207,497 | |
|
AKITA Drilling Ltd. | |||||
|
Interim Consolidated Statements of Net Loss and Comprehensive Loss | |||||
|
Unaudited |
Three Months Ended March 31 | ||||
|
$ Thousands except per share amounts |
2018 |
2017 | |||
|
REVENUE |
$ |
27,089 |
$ |
19,193 | |
|
COSTS AND EXPENSES |
|||||
|
Operating and maintenance |
20,389 |
17,735 | |||
|
Depreciation and amortization |
5,927 |
6,736 | |||
|
Selling and administrative |
4,419 |
3,978 | |||
|
Total Costs and Expenses |
30,735 |
28,449 | |||
|
Revenue Less Costs and Expenses |
(3,646) |
(9,256) | |||
|
EQUITY INCOME FROM JOINT VENTURES |
2,015 |
2,062 | |||
|
OTHER INCOME (LOSS) |
|||||
|
Interest income |
17 |
120 | |||
|
Interest expense |
(83) |
(42) | |||
|
Gain on sale of assets |
- |
76 | |||
|
Net other gains |
124 |
19 | |||
|
Total Other Income |
58 |
173 | |||
|
Income (Loss) Before Income Taxes |
(1,573) |
(7,021) | |||
|
INCOME TAXES |
339 |
(2,046) | |||
|
NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD ATTRIBUTABLE TO SHAREHOLDERS |
$ |
(1,912) |
$ |
(4,975) | |
|
Other comprehensive income |
20 |
- | |||
|
Comprehensive loss for the period attributable to shareholders |
$ |
(1,892) |
$ |
(4,975) | |
|
NET LOSS PER CLASS A AND CLASS B SHARE |
|||||
|
Basic |
$ |
(0.11) |
$ |
(0.28) | |
|
Diluted |
$ |
(0.11) |
$ |
(0.28) | |
|
AKITA Drilling Ltd. | ||||||||||||||
|
Interim Consolidated Statements of Changes in Shareholders' Equity | ||||||||||||||
|
Unaudited |
||||||||||||||
|
$ Thousands |
Attributable to the Shareholders of the Company |
|||||||||||||
|
Total |
Accumulated |
|||||||||||||
|
Class A |
Class B |
Class A and |
Other |
|||||||||||
|
Non-Voting |
Common |
Class B |
Contributed |
Comprehensive |
Retained |
Total | ||||||||
|
Shares |
Shares |
Shares |
Surplus |
Loss |
Earnings |
Equity | ||||||||
|
BALANCE AT DECEMBER 31, 2016 |
$ |
22,505 |
$ |
1,366 |
$ |
23,871 |
$ |
4,285 |
$ |
(366) |
$ |
191,856 |
$ |
219,646 |
|
Net loss for the period |
- |
- |
- |
- |
- |
(4,975) |
(4,975) | |||||||
|
Stock options charged to expense |
- |
- |
- |
61 |
- |
- |
61 | |||||||
|
Dividends |
- |
- |
- |
- |
- |
(1,525) |
(1,525) | |||||||
|
BALANCE AT MARCH 31, 2017 |
$ |
22,505 |
$ |
1,366 |
$ |
23,871 |
$ |
4,346 |
$ |
(366) |
$ |
185,356 |
$ |
213,207 |
|
Net loss for the period |
- |
- |
- |
- |
- |
(34,202) |
(34,202) | |||||||
|
Remeasurement of pension liability |
- |
- |
- |
- |
(129) |
- |
(129) | |||||||
|
Stock options charged to expense |
- |
- |
- |
154 |
- |
- |
154 | |||||||
|
Dividends |
- |
- |
- |
- |
- |
(4,575) |
(4,575) | |||||||
|
BALANCE AT DECEMBER 31, 2017 |
$ |
22,505 |
$ |
1,366 |
$ |
23,871 |
$ |
4,500 |
$ |
(495) |
$ |
146,579 |
$ |
174,455 |
|
January 1, 2018 increase in expected credit loss resulting from the implementation of IFRS 9 |
- |
- |
- |
(179) |
(179) | |||||||||
|
Net loss for the period |
- |
- |
- |
- |
- |
(1,912) |
(1,912) | |||||||
|
Foreign currency translation adjustment |
- |
- |
- |
20 |
- |
20 | ||||||||
|
Stock options charged to expense |
- |
- |
- |
45 |
- |
- |
45 | |||||||
|
Dividends |
- |
- |
- |
- |
- |
(1,525) |
(1,525) | |||||||
|
BALANCE AT MARCH 31, 2018 |
$ |
22,505 |
$ |
1,366 |
$ |
23,871 |
$ |
4,545 |
$ |
(475) |
$ |
142,963 |
$ |
170,904 |
|
AKITA Drilling Ltd. | |||||
|
Interim Consolidated Statements of Cash Flows | |||||
|
Unaudited |
Three Months Ended March 31 | ||||
|
$ Thousands |
2018 |
2017 | |||
|
OPERATING ACTIVITIES |
|||||
|
Net loss and comprehensive loss |
$ |
(1,912) |
$ |
(4,975) | |
|
Non-cash items included in net loss and comprehensive loss: |
|||||
|
Depreciation and amortization |
5,927 |
6,736 | |||
|
Deferred income tax expense (recovery) |
339 |
(29) | |||
|
Defined benefit pension plan expense |
118 |
113 | |||
|
Stock options and deferred share units expense |
52 |
65 | |||
|
Gain on sale of assets |
- |
(76) | |||
|
Unrealized gain on financial guarantee contracts |
(5) |
(10) | |||
|
Funds flow from operations |
4,519 |
1,824 | |||
|
Change in non-cash working capital |
379 |
5,679 | |||
|
Equity income from joint ventures |
(2,015) |
(2,062) | |||
|
Post-employment benefits |
(23) |
(24) | |||
|
Interest paid |
(41) |
(1) | |||
|
Income tax recovery - current |
- |
(2,017) | |||
|
Net Cash from Operating Activities |
2,819 |
3,399 | |||
|
INVESTING ACTIVITIES |
|||||
|
Capital expenditures |
(1,685) |
(4,587) | |||
|
Change in non-cash working capital related to capital |
(3,213) |
(2,485) | |||
|
Net distributions from investments in joint ventures |
1,105 |
1,061 | |||
|
Change in cash restricted for loan guarantees |
367 |
356 | |||
|
Proceeds on sale of assets |
- |
80 | |||
|
Net Cash used in Investing Activities |
(3,426) |
(5,575) | |||
|
FINANCING ACTIVITIES |
|||||
|
Change in operating loan facility |
6,500 |
- | |||
|
Dividends paid |
(1,525) |
(1,525) | |||
|
Loan commitment fee paid |
- |
(50) | |||
|
Net Cash from (used in) Financing Activities |
4,975 |
(1,575) | |||
|
FOREIGN CURRENCY TRANSLATION |
20 |
- | |||
|
Increase (decrease) in cash and cash equivalents |
4,388 |
(3,751) | |||
|
Cash and cash equivalents, beginning of period |
560 |
14,250 | |||
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
4,948 |
$ |
10,499 | |
SOURCE AKITA Drilling Ltd.
For further information: Darcy Reynolds, Vice President, Finance and Chief Financial Officer, (403) 292-7530