CALGARY,
April 30, 2014 /CNW/ - AKITA Drilling
Ltd.'s net earnings for the three months ended March 31, 2014 were $10,150,000 ($0.57
per share basic; $0.56 per share
diluted) on revenue of $54,342,000
compared to $12,495,000 ($0.70 per share basic and diluted) on revenue of
$60,761,000 for the corresponding
period in 2013. Funds flow from operations for the quarter
ended March 31, 2014 was $17,665,000 compared to $19,985,000 in the corresponding quarter in
2013.
AKITA achieved a similar number of operating
days in the first quarter of 2014 (2,112 days) compared to the
corresponding quarter in 2013 (2,142 days). However, the
revenue mix between pad rigs and conventional rigs as well as the
absence of construction and standby revenue in the current quarter
resulted in weaker financial performance when compared to the first
quarter of 2013.
The Company continues to maintain a strong
financial position with significant flexibility to capitalize on
opportunities. At March 31,
2014, AKITA had working capital of $34,926,000 as well as a $100,000,000 unused loan facility.
The Company is optimistic about its future
prospects. To that end, AKITA remains on schedule and budget
to complete both its new ultra-deep pad rig and its slant rig that
were each announced in 2013. During the first quarter of
2014, AKITA announced construction of an additional new pad rig for
use in Western Canada.
Additionally, the Company is refitting a recently purchased pad rig
that will become operational later this year. AKITA's
management is confident that these rig additions will complement
the existing rigs in AKITA's fleet as it strives to maintain a
leading role in the Western Canadian resource based drilling
plays.
Selected information from AKITA Drilling Ltd.'s Management's
Discussion and Analysis from the Quarterly Report is as
follows:
Basis of Analysis in this MD&A , Non-Standard and
Additional GAAP Items
The Company reports its joint venture activities in the
financial statements in accordance with International Financial
Reporting Standards ("IFRS"), IFRS 11 "Joint Arrangements".
Under IFRS 11, AKITA is required to report its joint venture
assets, liabilities and financial activities using the equity
method of accounting. However, for purposes of analysis in
this MD&A, the proportionate share of assets, liabilities and
financial activities is included as non-standard GAAP information
("Adjusted") where appropriate. 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.
Operating margin, revenue per operating day, operating and
maintenance expense per operating day and operating margin per
operating day are not recognized measures under IFRS.
Management and certain investors may find operating margin data to
be a useful measurement metric as it provides an indication of the
profitability of the business prior to the influence of
depreciation, overhead expenses, financing costs and income
taxes. Management and certain investors may find "per
operating day" measures for revenue and operating margin indicate
pricing strength while operating and maintenance expense per
operating day demonstrates the 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 rigs between conventional and
pad and singles, doubles and triples can also impact these
results. Readers should also be aware that AKITA includes
standby revenue, construction revenue and construction costs in its
determination of "per operating day" results.
Funds flow from operations is considered as an additional GAAP
measure 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. 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.
Revenue and Operating & Maintenance Expenses
|
|
|
|
|
$Million |
|
|
|
|
Three Months Ended March 31 |
2014 |
2013 |
Change |
% Change |
Revenue per Interim Financial
Statements(1) |
54.3 |
60.8 |
(6.5) |
(11%) |
Proportionate Share of Revenue from Joint
Ventures(2) |
17.5 |
13.3 |
4.2 |
32% |
Adjusted Revenue(2) |
71.8 |
74.1 |
(2.3) |
(3%) |
|
|
|
|
|
$Million |
|
|
|
|
Three Months Ended March 31 |
2014 |
2013 |
Change |
% Change |
Operating & Maintenance Expenses per
Interim Financial Statements(1) |
34.8 |
37.4 |
(2.6) |
(7%) |
Proportionate Share of Operating &
Maintenance Expenses from Joint
Ventures(2) |
10.9 |
7.7 |
3.2 |
41% |
Adjusted Operating & Maintenance Expenses
(2) |
45.7 |
45.1 |
0.6 |
1% |
|
|
|
|
|
|
|
|
|
|
$Million |
|
|
|
|
Three Months Ended March 31 |
2014 |
2013 |
Change |
% Change |
Adjusted Revenue(2) |
71.8 |
74.0 |
(2.2) |
(3%) |
Adjusted Operating & Maintenance
Expenses(2) |
45.7 |
45.1 |
0.6 |
1% |
Adjusted Operating
Margin(1)(2)(3) |
26.1 |
28.9 |
(2.8) |
(10%) |
|
|
|
|
|
$Dollars |
|
|
|
|
Three Months Ended March 31 |
2014 |
2013 |
Change |
% Change |
Adjusted Revenue per Operating
Day(2) |
34,028 |
34,558 |
(530) |
(2%) |
Adjusted Operating & Maintenance Expenses
per Operating Day(2) |
21,619 |
21,072 |
547 |
3% |
Adjusted Operating Margin per Operating
Day(2)(3) |
12,409 |
13,486 |
(1,078) |
(8%) |
(1) |
Revenue, operating & maintenance expenses and adjusted
operating margin include the Company's rig construction for third
parties. AKITA does not disclose its operating margin on rig
construction activity separately for competitive reasons. |
(2) |
Proportionate share of revenue from joint ventures, adjusted
revenue, proportionate share of operating & maintenance
expenses from joint ventures, adjusted operating & maintenance
expenses, adjusted operating margin, adjusted revenue per operating
day, adjusted operating & maintenance expenses per operating
day and adjusted operating margin per operating day are
non-standard accounting measures. See commentary in "Basis of
Analysis in this MD&A, Non-Standard and Additional GAAP
Items". |
(3) |
Adjusted operating margin is the difference between adjusted
revenue and adjusted operating & maintenance expenses. |
During the first quarter of 2014, adjusted revenue decreased to
$71,867,000 from $74,024,000 during the first quarter of
2013. This reduction was the result of four primary
factors:
- the Company had no construction revenue in the first quarter of
2014 whereas AKITA earned revenue from the construction of a rig
sold to one of its current customers in the corresponding quarter
in 2013;
- during the first quarter of 2014, AKITA did not have any
standby revenue unlike during the corresponding period in
2013;
- pad drilling rig activity was 6% lower in the first quarter of
2014 than during the corresponding quarter in 2013; and
- the higher drilling activity for conventional rigs (primarily
triples) in the first quarter of 2014 did not produce the same
revenue as would have been earned by pad drilling rigs.
In addition to the decline in adjusted revenue for the quarter,
adjusted revenue per operating day decreased to $34,028 during the first quarter of 2014 from
$34,558 in the first quarter of
2013. The same factors that influenced the decline in overall
revenue affected the revenue per day calculations.
Adjusted operating and maintenance costs are tied to revenue and
amounted to $45,660,000 ($21,619 per operating day) during the first
quarter of 2014 compared to $45,136,000 ($21,072 per operating day) in the same period of
the prior year.
The adjusted operating margin for the Company decreased to
$26,207,000 in the first quarter of
2014 from $28,888,000 during the
corresponding quarter of 2013. This reduction amounted to an
10% decline. The reduction in standby revenue as well as the
change in rig mix (i.e. a higher percentage of activity was
produced by conventional rigs rather than pad rigs) had an adverse
impact on overall operating margins during the first quarter of
2014.
From time to time, the Company requires customers to make
pre-payments prior to the provision of drilling services. At
March 31, 2014, these prepayments
totalled $169,000 (March 31, 2013 - $482,000).
Depreciation and Amortization Expense
|
|
|
|
|
|
|
|
|
$Million |
|
|
|
|
|
|
|
|
Three Months Ended March 31 |
|
2014 |
|
2013 |
|
Change |
|
% Change |
Depreciation and Amortization
Expense |
|
7.9 |
|
7.5 |
|
0.4 |
|
5% |
The depreciation and amortization expense increase to
$7,863,000 during the first quarter
of 2014 from $7,467,000 in the
corresponding period in 2013 was largely attributable to an
increase in the average cost base for AKITA's most active rigs. In
the first quarter of 2014, drilling rig depreciation accounted for
96% of total depreciation expense (Q1, 2013 - 97%).
While AKITA conducts many 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 the
joint ventures themselves. Therefore, the joint ventures do
not hold any property, plant, or equipment assets directly.
Consequently, the depreciation balance reported above includes
depreciation on assets involved in both wholly owned and joint
ventured activities.
Selling and Administrative Expense
|
|
|
|
|
$Million |
|
|
|
|
Three Months Ended March 31 |
2014 |
2013 |
Change |
% Change |
Selling & Administrative Expense per
Interim Financial Statements |
5.2 |
4.7 |
0.5 |
11% |
Proportionate Share of Selling &
Administrative Expense from Joint Ventures(1) |
0.2 |
0.1 |
0.1 |
100% |
Adjusted Selling & Administrative
Expense(1) |
5.4 |
4.8 |
0.6 |
13% |
(1) |
Proportionate share of selling and administrative expense
from joint ventures and adjusted selling and administrative expense
are non-standard accounting measures. See commentary in
"Basis of Analysis in this MD&A, Non-Standard and Additional
GAAP Items". |
Adjusted selling and administrative expenses were 7.5% of
adjusted revenue in the first quarter of 2014 compared to 6.5% of
adjusted revenue in the first quarter of 2013, largely as a result
of decreased adjusted revenue in 2013. The other major factor
related to salaries and benefits, which accounted for 59% of these
expenses (58% in Q1, 2013).
Other Income
|
|
|
|
|
$Million |
|
|
|
|
Three Months Ended March 31 |
2014 |
2013 |
Change |
% Change |
Interest Income |
0.1 |
0.1 |
(0.0) |
N/A |
Net Other Gains |
0.4 |
0.0 |
0.4 |
N/A |
Total Other Income |
0.5 |
0.1 |
0.4 |
400% |
The Company invests any cash balances in excess of its ongoing
operating requirements in bank guaranteed highly liquid
investments. Interest income decreased to $64,000 in the first three months of 2014 from
$88,000 in the corresponding period
of 2013 as a result of reduced cash and short term deposit
balances. The Company has undertaken significant capital
expenditures related to the construction of new rigs and the
conversion of conventional rigs into pad rigs, thereby reducing
AKITA's cash balances.
Interest expense of $34,000 (2013
- $27,000) has been accrued primarily
to reflect the related future cost of the Company's unfunded
defined benefit pension plan.
In 2014, amounts reported as "Net Other Gains" of $449,000 included $298,000 with respect to unrealized gains related
to forward exchange contracts purchased to provide a hedge for
foreign rig equipment commitments for a rig under construction.
Equity Income from Joint Ventures
|
|
|
|
|
|
|
|
|
$Million |
|
|
|
|
|
|
|
|
Three Months Ended March 31 |
|
2014 |
|
2013 |
|
Change |
|
% Change |
Proportionate Share of Revenue from Joint
Ventures(1) |
|
17.5 |
|
13.3 |
|
4.2 |
|
32% |
Proportionate Share of Operating &
Maintenance Expenses from Joint
Ventures(1) |
|
10.9 |
|
7.7 |
|
3.2 |
|
42% |
Proportionate Share of Selling &
Administrative Expense from Joint Ventures(1) |
|
0.2 |
|
0.1 |
|
0.1 |
|
100% |
Equity Income from Joint Ventures |
|
6.4 |
|
5.5 |
|
0.9 |
|
16% |
(1) |
Proportionate share of revenue from joint ventures,
proportionate share of operating & maintenance expenses from
joint ventures and proportionate share of selling &
administrative expense from joint ventures are non-standard
accounting measures. See commentary in "Basis of Analysis in
this MD&A, Non-Standard and Additional GAAP Items". |
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 analyses of these activities are incorporated
throughout the relevant sections of this MD&A. Joint
venture activities are often located in some of the most
prospective regions in Canada. Two thirds of AKITA's joint
ventures utilize pad drilling rigs.
Income Tax Expense
|
|
|
|
|
|
|
|
|
$Million |
|
|
|
|
|
|
|
|
Three Months Ended March 31 |
|
2014 |
|
2013 |
|
Change |
|
% Change |
Current Tax Expense |
|
3.5 |
|
4.3 |
|
(0.8) |
|
(18%) |
Deferred Tax Expense |
|
(0.2) |
|
(0.1) |
|
(0.1) |
|
(100%) |
Total Income Tax Expense |
|
3.3 |
|
4.2 |
|
(0.9) |
|
(22%) |
Total income tax expense decreased to $3,276,000 in the first quarter of 2014 from
$4,208,000 in the corresponding
period in 2013 due to lower pre-tax earnings.
Net Income, Funds Flow and Net Cash From Operating
Activities
|
|
|
|
|
|
|
|
|
$Million |
|
|
|
|
|
|
|
|
Three Months Ended March 31 |
|
2014 |
|
2013 |
|
Change |
|
% Change |
Net Income |
|
10.2 |
|
12.5 |
|
(2.3) |
|
(18%) |
Funds Flow From
Operations(1) |
|
17.7 |
|
20.0 |
|
(2.3) |
|
(12%) |
(1) |
Funds flow from operations is an additional GAAP measure
under IFRS. See commentary in "Basis of Analysis in this
MD&A, Non-Standard and Additional GAAP Items". |
Net income attributable to shareholders decreased to
$10,150,000 or $0.57 per Class A Non-Voting and Class B Common
Share (basic)($0.56 - diluted) for
the first quarter of 2014 from $12,495,000 or $0.70 per share (basic and diluted) in the first
quarter of 2013. Funds flow from operations decreased to
$17,665,000 in the first quarter of
2014 from $19,985,000 in the
corresponding quarter in 2013. Lower net income and funds
flow from operations that occurred in 2014 were directly
attributable to reductions in operating margins as well as
increased depreciation and selling and administrative expenses.
Fleet and Rig Utilization
AKITA had 38 drilling rigs, including ten that operated under
joint ventures, (34.725 net to AKITA) at the end of the first
quarter of 2014 compared to 39 rigs (35.875 net) in the
corresponding period of 2013.
|
|
|
|
|
|
|
|
|
Three Months Ended March 31 |
|
2014 |
|
2013 |
|
Change |
|
% Change |
Operating Days |
|
2,112 |
|
2,142 |
|
(30) |
|
(1%) |
Utilization Rate |
|
60.2% |
|
61.0% |
|
(0.8) |
|
(1%) |
The Company had one conventional rig included in the above fleet
statistics that was undergoing a conversion into a slant-capable
rig at March 31, 2014. AKITA
also had two new pad rigs under construction and was refitting a
recently purchased pad rig at that date.
Liquidity and Capital Resources
Cash used for capital expenditures totalled $18,064,000 in the first quarter of 2014 (2013 -
$6,044,000). The most
significant expenditure related to ongoing construction of a new
ultra-deep multi-year contracted pad rig which is anticipated to be
completed in the second half of 2014. In addition to this
ultra-deep pad rig, the Company had two additional ongoing major
capital projects during the first quarter of 2014. AKITA is
continuing to convert a conventional rig into a slant capable pad
drilling rig. In addition the Company purchased a pad rig
during the quarter. This addition is currently undergoing
selected refits to allow it to operate in the cold weather climate
in Canada.
At March 31, 2014, AKITA's balance
sheet included working capital (current assets minus current
liabilities) of $34,926,000 compared
to working capital of $41,892,000 at
March 31, 2013 and working capital of
$40,645,000 at December 31, 2013. 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. Non-cash working capital amounted to $29,283,000 at March 31,
2014 compared to $26,647,000
at December 31, 2013.
During the three month period ended March
31, 2014, the Company purchased 27,600 Class A Non-Voting
Shares at an average purchase price of $15.49 pursuant to its normal course issuer
bid. The Company did not purchase any shares pursuant to a
normal course issuer bid during the first quarter of 2013.
During 2013, the Company was awarded a contract to construct and
operate an ultra-deep capacity pad rig on a long-term basis.
During the first quarter of 2014, the Company commenced
construction on a second pad rig. AKITA sourced approximately
$26 Million of materials for these
rigs from non-Canadian suppliers. In order to minimize the
risk of currency translation adjustments, the Company purchased
forward currency contracts totalling $18
Million, of which $16 Million
remained outstanding at March 31,
2014. These contracts expire between the second
quarter of 2014 and the first quarter of 2015.
The Company had nine rigs under multi-year contracts at
March 31, 2014. Of these
contracts, four are anticipated to expire in 2014, two in 2015, one
in 2016, one in 2018 and one in 2019.
During 2011, the Company guaranteed bank loans made to joint
venture partners totalling $2,700,000
for a period of four years. During 2013, the Company
guaranteed bank loans made to joint venture partners totalling
$2,812,000 for a period of four
years. The Company has provided assignments of monies on
deposit totalling $5,950,000 with
respect to these guarantees. AKITA's security from its
partners for these guarantees includes interests in specific rig
assets. The $5,950,000 in
deposits has been classified as restricted cash on the Statement of
Financial Position and is in addition to the $5,643,000 in cash held at March 31, 2014.
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 News Release 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 |
|
|
2014 |
|
2013 |
|
2013 |
Assets |
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,643 |
$ |
8,430 |
$ |
13,998 |
|
Term deposits |
|
|
- |
|
- |
|
5,000 |
|
Accounts receivable |
|
|
49,000 |
|
52,495 |
|
42,342 |
|
Prepaid expenses and other |
|
|
1,539 |
|
939 |
|
365 |
|
|
|
|
56,182 |
|
61,864 |
|
61,705 |
Non-current Assets |
|
|
|
|
|
|
|
Restricted cash |
|
|
5,950 |
|
3,000 |
|
5,950 |
Other long term assets |
|
|
994 |
|
905 |
|
1,017 |
Investment in joint ventures |
|
|
13,754 |
|
7,115 |
|
10,092 |
Property, plant and equipment |
|
|
223,208 |
|
203,562 |
|
212,984 |
Total Assets |
|
$ |
300,088 |
$ |
276,446 |
$ |
291,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
17,487 |
$ |
17,073 |
$ |
18,865 |
|
Deferred revenue |
|
|
169 |
|
482 |
|
334 |
|
Dividends payable |
|
|
1,526 |
|
1,439 |
|
1,439 |
|
Income taxes payable |
|
|
2,074 |
|
978 |
|
422 |
|
|
|
|
21,256 |
|
19,972 |
|
21,060 |
Non-current Liabilities |
|
|
|
|
|
|
|
Deferred revenue |
|
|
- |
|
36 |
|
- |
Financial instruments |
|
|
91 |
|
- |
|
106 |
Deferred income taxes |
|
|
22,538 |
|
18,760 |
|
22,738 |
Pension liability |
|
|
2,650 |
|
2,436 |
|
2,556 |
Total Liabilities |
|
|
46,535 |
|
41,204 |
|
46,460 |
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Class A and Class B shares |
|
|
23,871 |
|
23,611 |
|
23,908 |
Contributed surplus |
|
|
3,253 |
|
3,126 |
|
3,185 |
Accumulated other comprehensive
income |
|
|
88 |
|
(21) |
|
88 |
Retained earnings |
|
|
226,341 |
|
208,526 |
|
218,107 |
Total Equity |
|
|
253,553 |
|
235,242 |
|
245,288 |
Total Liabilities and
Equity |
|
$ |
300,088 |
$ |
276,446 |
$ |
291,748 |
|
|
|
|
AKITA Drilling Ltd. |
|
|
|
Interim Consolidated Statements of
Net Income and Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
Three Months Ended March
31 |
$ Thousands except per share
amounts |
|
|
2014 |
|
2013 |
|
|
|
|
|
|
|
Revenue |
|
$ |
54,342 |
$ |
60,761 |
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
Operating and maintenance |
|
|
|
34,790 |
|
37,444 |
Depreciation and amortization |
|
|
|
7,863 |
|
7,467 |
Selling and administrative |
|
|
|
5,224 |
|
4,659 |
Total costs and expenses |
|
|
47,877 |
|
49,570 |
|
|
|
|
|
|
|
Revenue less costs and
expenses |
|
|
6,465 |
|
11,191 |
|
|
|
|
|
|
|
Equity income from joint
ventures |
|
|
6,481 |
|
5,428 |
|
|
|
|
|
|
|
Other income (losses) |
|
|
|
|
|
Interest income |
|
|
|
64 |
|
88 |
Interest expense |
|
|
|
(34) |
|
(27) |
Gain on sale of assets |
|
|
|
1 |
|
9 |
Net other gains |
|
|
|
449 |
|
14 |
Total other income |
|
|
480 |
|
84 |
|
|
|
|
|
|
|
Income before income taxes |
|
|
13,426 |
|
16,703 |
|
|
|
|
|
|
|
Income taxes |
|
|
3,276 |
|
4,208 |
|
|
|
|
|
|
|
Net income for the period
attributable to shareholders |
|
|
10,150 |
|
12,495 |
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the period
attributable to shareholders |
$ |
10,150 |
$ |
12,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Class A and Class B
Share |
|
|
|
|
|
Basic |
|
|
$ |
0.57 |
$ |
0.70 |
Diluted |
|
|
$ |
0.56 |
$ |
0.70 |
|
|
|
|
|
AKITA Drilling Ltd. |
|
|
|
Interim Consolidated Statements of
Cash Flows |
|
|
|
|
|
|
Unaudited |
|
Three Months Ended
March 31 |
$ Thousands |
|
|
2014 |
|
2013 |
|
|
|
|
|
|
|
Operating Activities |
|
|
|
|
|
Net income and comprehensive
income |
|
$ |
10,150 |
$ |
12,495 |
Non-cash items included in net income
and comprehensive income: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
7,863 |
|
7,467 |
|
Deferred income taxes |
|
|
(200) |
|
(126) |
|
Expense for defined benefit pension plan |
|
|
98 |
|
92 |
|
Stock options charged to expense |
|
|
68 |
|
66 |
|
Gain on sale of assets |
|
|
(1) |
|
(9) |
|
Unrealized foreign currency gain |
|
|
(298) |
|
- |
|
Unrealized gain on financial guarantee
contracts |
|
|
(15) |
|
- |
Funds flow from operations |
|
|
17,665 |
|
19,985 |
Change in non-cash working
capital: |
|
|
|
|
|
|
Accounts receivable |
|
|
(6,658) |
|
7,509 |
|
Prepaid expenses and other |
|
|
(876) |
|
(780) |
|
Income taxes recoverable |
|
|
- |
|
4,487 |
|
Accounts payable and accrued liabilities |
|
|
(5) |
|
(20,814) |
|
Deferred revenue |
|
|
(165) |
|
387 |
|
|
|
|
9,961 |
|
10,774 |
Equity income from joint ventures |
|
|
(6,481) |
|
(5,428) |
Change in long term deferred
revenue |
|
|
- |
|
36 |
Pension benefits paid |
|
|
(4) |
|
(4) |
Interest paid |
|
|
(1) |
|
- |
Income taxes expense - current |
|
|
3,476 |
|
4,334 |
Income taxes paid |
|
|
(1,824) |
|
(3,356) |
Net cash from operating
activities |
|
|
5,127 |
|
6,356 |
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
Capital expenditures |
|
|
(18,064) |
|
(6,044) |
Change in non-cash working capital
related to capital |
|
|
(1,372) |
|
(5,018) |
Net distributions from investment in
joint ventures |
|
|
2,819 |
|
3,138 |
Change in term deposits |
|
|
5,000 |
|
- |
Proceeds on sale of joint venture
interests in rigs and other assets |
|
|
1 |
|
9 |
Net cash used in investing
activities |
|
|
(11,616) |
|
(7,915) |
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
Dividends paid |
|
|
(1,439) |
|
(1,439) |
Proceeds received on exercise of stock
options |
|
|
- |
|
425 |
Repurchase of share capital |
|
|
(427) |
|
- |
Net cash used in financing
activities |
|
|
(1,866) |
|
(1,014) |
|
|
|
|
|
|
|
Decrease in cash and cash
equivalents |
|
|
(8,355) |
|
(2,573) |
Cash and cash equivalents, beginning
of period |
|
|
13,998 |
|
11,003 |
|
|
|
|
|
|
|
Cash and Cash Equivalents, End of
Period |
|
$ |
5,643 |
$ |
8,430 |
SOURCE AKITA Drilling Ltd.