Calfrac Well Services Ltd. (“Calfrac” or
“the Company”) (TSX: CFW) announces its financial and
operating results for the three months ended March 31, 2023. The
following press release should be read in conjunction with the
management’s discussion and analysis and interim consolidated
financial statements and notes thereto as at March 31, 2023.
Readers should also refer to the “Forward-looking statements” legal
advisory and the section regarding “Non-GAAP Measures” at the end
of this press release. All financial amounts and measures are
expressed in Canadian dollars unless otherwise indicated.
Additional information about Calfrac is available on the SEDAR
website at www.sedar.com, including the Company’s Annual
Information Form for the year ended December 31, 2022.
CEO’S MESSAGECalfrac built upon
the significant momentum generated in the second half of 2022 by
continuing to leverage its execution in the field to produce solid
year-over-year growth in net income and free cash flow during the
first quarter of 2023. The Company generated Adjusted EBITDA from
continuing operations of $83.8 million and consolidated cash flow
from operations of $40.9 million during the first quarter of
2023, despite an increase of $36.2 million in consolidated
working capital resulting from seasonal cash requirements in North
America. Calfrac exited the quarter with net debt to Adjusted
EBITDA of 1.16x as compared to 1.48x at year-end and the Company
anticipates that its leverage will continue to decrease
significantly throughout the remainder of the year. Calfrac is
currently in the final stages of deploying seven repowered Tier IV
dynamic gas blending (“DGB”) units and two new Tier IV DGB units
into its current fracturing fleets in North America. Calfrac has
also committed to the conversion of an additional 50 Tier II
fracturing pumps from its North American operations into Tier IV
DGB units as a part of the Company’s multi-year fracturing fleet
modernization plan. These units are all expected to be deployed by
the end of the first quarter of 2024. Calfrac expects continued
robust activity in North America and Argentina will drive improved
profitability and free cash flow growth in 2023. Any excess free
cash flow will be dedicated to further debt repayment and, in turn,
provide a strong return for shareholders.
Calfrac’s Chief Executive Officer, Pat Powell
commented: “Calfrac executed on its brand promise and generated
strong financial results during the first quarter, and we are
excited to build upon this momentum throughout the remainder of the
year and continue to make progress on our strategic
priorities.”
SELECT FINANCIAL HIGHLIGHTS – CONTINUING
OPERATIONS
|
Three Months Ended Mar. 31, |
|
2023 |
2022 |
|
Change |
(C$000s, except per share amounts) |
($) |
($) |
|
(%) |
(unaudited) |
|
|
|
|
Revenue |
493,323 |
294,524 |
|
67 |
Adjusted EBITDA(1) |
83,794 |
22,764 |
|
268 |
Consolidated cash flows
provided by operating activities |
40,894 |
15,753 |
|
160 |
Capital expenditures |
34,474 |
12,145 |
|
184 |
Net income (loss) |
36,313 |
(18,030 |
) |
NM |
Per share – basic |
0.45 |
(0.47 |
) |
NM |
Per share – diluted |
0.41 |
(0.47 |
) |
NM |
As at |
March 31, |
December 31, |
Change |
|
2023 |
2022 |
|
(C$000s) |
($) |
($) |
(%) |
(unaudited) |
|
|
|
Cash and cash equivalents |
23,169 |
8,498 |
173 |
Working capital, end of
period |
232,370 |
183,580 |
27 |
Total debt, end of period |
339,471 |
329,186 |
3 |
(1) Refer to “Non-GAAP Measures” on page 6 for
further information.
During the quarter, the Company:
- began reporting
the financial and operating performance for the United States and
Canada under a single North America division as part of its
strategy to streamline its operations and reporting structure;
- generated
revenue of $493.3 million, an increase of 67 percent from the first
quarter in 2022 resulting primarily from improved pricing and
activity in North America and better pricing in Argentina;
- reported
Adjusted EBITDA of $83.8 million versus $22.8 million in the first
quarter of 2022;
- reported net
income from continuing operations of $36.3 million or $0.41 per
share diluted compared to a net loss of $18.0 million or $0.47 per
share diluted during the first quarter in 2022;
- reported
period-end working capital of $232.4 million versus $183.6 million
at December 31, 2022; and
- incurred
capital expenditures of $34.5 million, which included approximately
$17.3 million related to the Company’s fracturing fleet
modernization program.
FINANCIAL OVERVIEW – CONTINUING
OPERATIONSTHREE MONTHS ENDED
MARCH 31, 2023 VERSUS
2022
NORTH AMERICA
|
Three Months Ended Mar. 31, |
|
2023 |
2022 |
Change |
(C$000s, except operational and exchange rate information) |
|
|
|
(unaudited) |
|
Revised (1) |
|
Revenue |
413,047 |
239,945 |
72 |
Adjusted EBITDA(1) |
76,487 |
21,416 |
257 |
Adjusted EBITDA (%) |
18.5 |
8.9 |
108 |
Fracturing revenue per job
($) |
43,237 |
29,699 |
46 |
Number of fracturing jobs |
9,223 |
7,690 |
20 |
Active pumping horsepower, end
of period (000s) |
1,017 |
797 |
28 |
Active coiled tubing units,
end of period (#) |
6 |
8 |
— |
US$/C$
average exchange rate(2) |
1.3526 |
1.2663 |
7 |
(1) Prior period amounts revised due to
changes in segment reporting.(2) Refer to “Non-GAAP Measures” on
page 6 for further information.(3) Source: Bank of Canada.
OUTLOOKAlthough adverse weather
impacted Calfrac’s operations in North America earlier this year,
the Company’s commitment to safe and high quality operations
resulted in the generation of its highest first-quarter Adjusted
EBITDA margin since 2012. Calfrac’s focus on operational excellence
during the first quarter set Company records for both stages
completed in a day and sand pumped during a month. While the rate
of input cost inflation has abated since last year, the Company
continues to closely manage its field expenses to maximize
operating margins and overall financial returns.
One of the Company’s most effective tools for
maximizing shareholder returns is by leveraging its large operating
scale to transfer equipment between districts and capitalize on
seasonality factors as well as any dislocation in commodity prices.
Calfrac expects consistent utilization and pricing for its 15 large
fracturing fleets and six coiled tubing units in North America
throughout 2023 as operators seek out high performing service
companies to execute their development plans.
Calfrac is in the process of deploying its new
Tier IV DGB equipment and anticipates capitalizing on enhanced
demand from customers for this type of engine technology as it
assists them in reaching their Environmental, Social and Governance
(“ESG”) targets. Despite the recent volatility in commodity
prices, the Company believes that the North American pressure
pumping market can remain resilient given limited industry net
capacity additions.
THREE MONTHS ENDED MAR. 31, 2023 COMPARED TO THREE
MONTHS ENDED MAR. 31, 2022
REVENUERevenue from Calfrac’s
North American operations increased significantly to $413.0 million
during the first quarter of 2023 from $239.9 million in the
comparable quarter of 2022. The 72 percent increase in revenue can
be attributed to a combination of a 46 percent increase in revenue
per job period-over-period, combined with a 20 percent increase in
the number of fracturing jobs completed. The higher revenue per job
was the result of improved pricing for its services as the Company
passed through higher input costs to its customers while also
achieving net pricing gains beginning in the second quarter in
2022, combined with the impact of job mix. The increase in job
count was mainly due to the Company operating 15 fleets during the
quarter with more consistent utilization compared to an average of
10 operating fleets in the comparable quarter in 2022. The Company
activated a 5th fleet in Canada in January with consistent
utilization throughout the quarter. Despite the improved
utilization relative to the comparable quarter, the first quarter
in 2023 was impacted by severe weather conditions, resulting in the
loss of approximately 6 operating days per fleet operating in the
United States. Coiled tubing revenue also increased by 35 percent
as compared to the first quarter in 2022 due to increased
utilization and a larger number of crewed fleets operating in
Canada.
ADJUSTED EBITDAThe Company’s
operations in North America generated Adjusted EBITDA of $76.5
million during the first quarter of 2023 compared to $21.4 million
in the same period in 2022. This increase in Adjusted EBITDA was
largely driven by strong net pricing gains and a dedicated focus on
cost control which supported significant margin expansion relative
to the comparable quarter in 2022. The Company was able to achieve
an Adjusted EBITDA margin of 19 percent compared to 9 percent in
the comparable quarter in 2022 through strong pricing and
utilization for all of its active fleets, including an incremental
15th fleet that was activated at the beginning of the quarter.
ARGENTINA
|
Three Months Ended Mar. 31, |
|
2023 |
2022 |
Change |
(C$000s, except operational and exchange rate information) |
|
|
|
(unaudited) |
|
|
|
Revenue |
80,276 |
54,579 |
47 |
Adjusted EBITDA(1) |
11,540 |
5,789 |
99 |
Adjusted EBITDA (%) |
14.4 |
10.6 |
36 |
Fracturing revenue per job
($) |
88,174 |
56,907 |
55 |
Number of fracturing jobs |
555 |
532 |
4 |
Active pumping horsepower, end
of period (000s) |
139 |
139 |
— |
US$/C$
average exchange rate(2) |
1.3526 |
1.2663 |
7 |
(1) Refer to “Non-GAAP Measures” on page 6 for
further information.(2) Source: Bank of Canada.
OUTLOOKCalfrac’s Argentina
division anticipates higher profitability through increased
utilization and job mix with dedicated contract work across all
service lines in the Vaca Muerta shale play and the conventional
basins of southern Argentina to generate improved year-over-year
financial performance.
THREE MONTHS ENDED MAR. 31, 2023
COMPARED TO THREE MONTHS ENDED MAR. 31, 2022
REVENUECalfrac’s Argentinean
operations generated revenue of $80.3 million during the first
quarter of 2023 compared to $54.6 million in the comparable quarter
in 2022 primarily due to higher fracturing and coiled tubing
revenue. Fracturing revenue increased due to a combination of
larger job sizes and higher pricing, as the Company entered into a
new contract at the beginning of the third quarter of 2022 at
pricing levels that covered higher costs caused by inflationary
pressures during the quarter. The Company also completed 4 percent
more jobs than the comparable period in 2022 with the majority of
the increase attributed to its operations in southern Argentina.
Activity in the Company’s cementing operations increased by 20
percent offset partially by a 10 percent decrease in revenue per
job due to job mix. The number of coiled tubing jobs decreased by
11 percent while revenue per job improved by 54 percent primarily
due to job mix and higher pricing due to inflation.
ADJUSTED EBITDAThe Company’s
operations in Argentina generated Adjusted EBITDA of $11.5 million
during the first quarter of 2023 compared to $5.8 million in the
comparable quarter of 2022, while the Company’s Adjusted EBITDA
margins as a percentage of revenue also improved to 14 percent from
11 percent. The Company entered into a new contract for its large
fracturing fleet servicing the Vaca Muerta play at the beginning of
the third quarter of 2022 with higher utilization and improved
pricing which resulted in higher Adjusted EBITDA margins relative
to the comparable period in 2022.
CAPITAL EXPENDITURES
|
Three Months Ended Mar. 31, |
|
2023 |
2022 |
Change |
(C$000s) |
($) |
|
|
North America |
33,748 |
10,956 |
208 |
|
Argentina |
726 |
1,189 |
(39 |
) |
Continuing Operations |
34,474 |
12,145 |
184 |
|
Capital expenditures were $34.5 million for the
quarter ended March 31, 2023. Calfrac’s Board of Directors
have approved a 2023 capital budget of approximately $155.0
million, which excludes expenditures related to fluid end
components as these have been recorded as maintenance expenses
beginning in January 2023 for all continuing reporting segments.
This change in accounting estimate was based on new information
surrounding the useful life of these components.
OTHER DEVELOPMENTS
As part of Calfrac’s strategy to streamline and
simplify its operational and administrative structure, the Company
has decided to evaluate and report the financial and operating
performance for the United States and Canada under a single North
America division beginning with the interim financial statements
and management's discussion and analysis for the three months
ending March 31, 2023.
SUMMARY OF QUARTERLY RESULTS – CONTINUING
OPERATIONS
Three Months Ended |
Jun. 30, |
|
Sep. 30, |
|
Dec. 31, |
|
Mar. 31, |
|
Jun. 30, |
|
Sep. 30, |
|
Dec. 31, |
|
Mar. 31, |
|
2021 |
|
2021 |
|
2021 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|
2023 |
(C$000s, except per share and operating data) |
($) |
|
($) |
|
($) |
|
($) |
|
($) |
|
($) |
|
($) |
|
($) |
(unaudited) |
Revised (1) |
|
Revised (1) |
|
Revised (1) |
|
Revised (1) |
|
Revised (1) |
|
Revised (1) |
|
|
|
|
Financial |
|
|
|
|
|
|
|
|
|
|
Revenue |
173,769 |
|
262,865 |
|
229,661 |
|
294,524 |
|
318,511 |
|
438,338 |
|
447,847 |
|
493,323 |
Adjusted EBITDA(2) |
550 |
|
30,925 |
|
8,382 |
|
22,763 |
|
48,992 |
|
86,032 |
|
75,954 |
|
83,794 |
Net income (loss) |
(35,516 |
) |
(7,055 |
) |
(29,132 |
) |
(18,030 |
) |
(6,776 |
) |
45,352 |
|
14,757 |
|
36,313 |
Per share – basic |
(0.95 |
) |
(0.19 |
) |
(0.77 |
) |
(0.47 |
) |
(0.18 |
) |
1.15 |
|
0.27 |
|
0.45 |
Per share – diluted |
(0.95 |
) |
(0.19 |
) |
(0.77 |
) |
(0.47 |
) |
(0.18 |
) |
0.60 |
|
0.17 |
|
0.41 |
Capital
expenditures |
17,166 |
|
24,133 |
|
14,868 |
|
12,145 |
|
15,241 |
|
24,745 |
|
35,810 |
|
34,474 |
(1) Adjusted EBITDA reflects a change in
definition and excludes realized foreign exchange gains and
losses.(2) Refer to “Non-GAAP Measures” on page 6 for further
information.
NON-GAAP MEASURESCertain
supplementary measures presented in this press
release, including Adjusted EBITDA, Adjusted EBITDA Margin and
the ratio of net debt to Adjusted EBITDA, do not have any
standardized meaning under IFRS and, because IFRS have been
incorporated as Canadian generally accepted accounting principles
(GAAP), these supplementary measures are also non-GAAP measures.
These measures have been described and presented in order to
provide shareholders and potential investors with additional
information regarding the Company’s financial results, liquidity
and ability to generate funds to finance its operations. These
measures may not be comparable to similar measures presented by
other entities, and are explained below.
Adjusted EBITDA is defined in the Company’s
credit agreement for covenant purposes as net income or loss for
the period adjusted for interest, income taxes, depreciation and
amortization, foreign exchange losses (gains), non-cash stock-based
compensation, and gains and losses that are extraordinary or
non-recurring. Adjusted EBITDA is presented because it is used
in the calculation of the Company’s bank covenants. Adjusted EBITDA
Margin is the ratio of Adjusted EBITDA to revenue for the period
expressed as a percentage. Adjusted EBITDA for the period was
calculated as follows:
Three Months Ended March 31, |
2023 |
|
2022 |
|
(C$000s) |
|
|
(unaudited) |
|
Revised |
|
Net income (loss) from continuing operations |
36,313 |
|
(18,030 |
) |
Add back (deduct): |
|
|
Depreciation |
30,162 |
|
29,954 |
|
Foreign exchange losses |
1,486 |
|
3,837 |
|
(Gain) loss on disposal of property, plant and equipment |
(537 |
) |
1,038 |
|
Litigation settlement |
(6,805 |
) |
— |
|
Restructuring charges |
1,333 |
|
701 |
|
Stock-based compensation |
544 |
|
1,034 |
|
Interest |
8,174 |
|
9,816 |
|
Income taxes |
13,124 |
|
(5,586 |
) |
Adjusted EBITDA(1) |
83,794 |
|
22,764 |
|
(1) For bank covenant purposes, EBITDA includes
$4.6 million income from discontinued operations for the three
months ended March 31, 2023 (three months ended March 31, 2022 –
$0.4 loss) and the deduction of an additional $2.9 million of lease
payments for the three months ended March 31, 2023 (three months
ended March 31, 2022 – $2.4 million) that would have been recorded
as operating expenses prior to the adoption of IFRS 16.
The definition and calculation of the ratio of
net debt to Adjusted EBITDA for the year ended December 31, 2022,
is disclosed in Note 15 to the Company’s year-end consolidated
financial statements. The definition and calculation of this ratio
for the twelve months ended March 31, 2023, is disclosed in Note 10
to the Company’s interim financial statements for the corresponding
period.
ADVISORIESFORWARD-LOOKING
STATEMENTS
This press release contains forward-looking
statements within the meaning of applicable securities laws. The
use of any of the words “seek”, “anticipate”, “plan”, “continue”,
“estimate”, “expect”, “may”, “will”, “project”, “predict”,
“potential”, “targeting”, “intend”, “could”, “might”, “should”,
“believe”, “forecast” or similar words suggesting future outcomes,
are forward-looking statements.
In particular, forward-looking statements in
this press release include, but are not limited to, statements with
respect to activity, demand, utilization and outlook for the
Company’s operating divisions in North America and Argentina; the
supply and demand fundamentals of the pressure pumping industry;
input costs, margin and service pricing trends and strategies;
operating and financing strategies, performance, priorities,
metrics and estimates, such as the Company’s strategic priorities
to maximize free cash flow, repay debt and capital investment
plans, including the Company's fleet modernization plan and timing
thereof; the Company’s Russian division, including the planned sale
of the Russian division; the Company’s debt, liquidity and
financial position; the Company’s service quality and the Company’s
intentions and expectations with respect to the foregoing.
These statements are derived from certain
assumptions and analyses made by the Company based on its
experience and perception of historical trends, current conditions,
expected future developments and other factors that it believes are
appropriate in the circumstances, including, but not limited to,
the economic and political environment in which the Company
operates, including the current state of the pressure pumping
market upcycle; the Company’s expectations for its customers’
capital budgets and geographical areas of focus; the effect of
unconventional oil and gas projects have had on supply and demand
fundamentals for oil and natural gas; the effect of environmental,
social and governance factors on customer and investor preferences
and capital deployment; the effect of the military conflict in the
Ukraine and related international sanctions and counter-sanctions
and restrictions by Russia on the Company’s ownership and planned
sale of the Russian division; industry equipment levels including
the number of active fracturing fleets marketed by the Company’s
competitors and the timing of deployment of the Company’s fleet
upgrades; the Company’s existing contracts and the status of
current negotiations with key customers and suppliers; the
continued effectiveness of cost reduction measures instituted by
the Company; and the likelihood that the current tax and regulatory
regime will remain substantially unchanged.
Forward-looking statements are subject to a
number of known and unknown risks and uncertainties that could
cause actual results to differ materially from the Company’s
expectations. Such risk factors include but are not limited to: (A)
industry risks, including but not limited to, global economic
conditions and the level of exploration, development and production
for oil and natural gas in North America and Argentina; excess
equipment levels; impacts of conservation measures and
technological advances on the demand for the Company’s services;
hazards inherent in the industry; the ongoing impacts of the
COVID-19 pandemic; the actions of activist shareholders and the
increasing reluctance of institutional investors to invest in the
industry in which the Company operates; and an intensely
competitive oilfield services industry; (B) business operations
risks, including but not limited to, fleet reinvestment risk,
including the ability of the Company to finance the capital
necessary for equipment upgrades to support its operational needs
while meeting government and customer requirements and preferences;
difficulty retaining, replacing or adding personnel; failure to
improve and adapt equipment, proprietary fluid chemistries and
other products and services; reliance on equipment suppliers and
fabricators for timely delivery and quality of equipment; a
concentrated customer base; seasonal volatility and climate change;
cybersecurity risks, and activism; (C) financial risks, including
but not limited to, price escalation and availability of raw
materials, diesel fuel and component parts; restrictions on the
Company’s access to capital, including the impacts of covenants
under the Company’s lending documents; direct and indirect exposure
to volatile credit markets; fluctuations in currency exchange rates
and increased inflation; actual results which are materially
different from management estimates and assumptions; insufficient
internal controls; and possible impacts on the Company’s access to
capital and common share price given a significant number of common
shares are controlled by two directors of the Company; (D)
geopolitical risks, including but not limited to, foreign
operations exposure, including risks relating to unsettled
political conditions, war, including the ongoing Russia and Ukraine
conflict and any expansion of that conflict, foreign exchange rates
and controls, and international trade and regulatory controls and
sanctions; the impacts of a delay of sale or failure to sell the
Company's discontinued operations in Russia, including failure to
receive any applicable regulatory approvals and reputational risks;
foreign legal actions and unknown consequences of such actions; and
risk associated with compliance with applicable law; (E) legal and
regulatory risks, including but not limited to, federal, provincial
and state legislative and regulatory initiatives; health, safety
and environmental laws and regulations; and legal and
administrative proceedings; and (F) environmental, social and
governance risks, including but not limited to, failure to
effectively and timely address the energy transition; legal and
regulatory initiatives to limit greenhouse gas emissions; and the
direct and indirect costs of various existing and proposed climate
change regulations. Further information about these and other risks
and uncertainties are set forth in the Company’s most recently
filed Annual Information Form under the heading “Risk Factors”
which is available on the SEDAR website at www.sedar.com under
Company’s profile.
Consequently, all of the forward-looking
statements made in this press release are qualified by these
cautionary statements and there can be no assurance that actual
results or developments anticipated by the Company will be
realized, or that they will have the expected consequences or
effects on the Company or its business or operations. These
statements speak only as of the respective date of this press
release or the document by reference herein. The Company assumes no
obligation to update publicly any such forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required pursuant to applicable securities laws.
BUSINESS RISKSThe business of
Calfrac is subject to certain risks and uncertainties. Prior to
making any investment decision regarding Calfrac, investors should
carefully consider, among other things, the risk factors set forth
in the Company’s most recently filed Annual Information Form under
the heading “Risk Factors” which is available on the SEDAR website
at www.sedar.com under Company’s profile. Copies of the Annual
Information Form may also be obtained on request without charge
from Calfrac at Suite 500, 407 - 8th Avenue S.W., Calgary, Alberta,
Canada, T2P 1E5, or at www.calfrac.com.
ADDITIONAL INFORMATIONCalfrac's
common shares and warrants are publicly traded on the Toronto Stock
Exchange under the trading symbols "CFW" and “CFW.WT”,
respectively.
Calfrac provides specialized oilfield services
to exploration and production companies designed to increase the
production of hydrocarbons from wells with continuing operations
focused throughout western Canada, the United States and Argentina.
During the first quarter of 2022, management committed to a plan to
sell the Company’s Russian division, resulting in the associated
assets and liabilities being classified as held for sale and
presented in the Company’s financial statements as discontinued
operations. The results of the Company’s discontinued operations
are excluded from the discussion and figures presented above unless
otherwise noted. See Note 4 to the Company’s audited consolidated
financial statements for the year ended December 31, 2022 for
additional information on the Company’s discontinued
operations.
Further information regarding Calfrac Well
Services Ltd., including the most recently filed Annual Information
Form, can be accessed on the Company’s website at www.calfrac.com
or under the Company’s public filings found at www.sedar.com.
FIRST QUARTER CONFERENCE
CALLCalfrac will be conducting a conference call for
interested analysts, brokers, investors and news media
representatives to review its 2023 first-quarter results at 10:00
a.m. (Mountain Time) on Tuesday, May 9, 2023. To participate in the
conference call please register at the URL link below. Once
registered, you will receive a dial-in number and a unique PIN,
which will allow you to ask questions.
https://register.vevent.com/register/BI0bfddac1c9204201b77258241d16eb6e
The call will also be webcast and can be
accessed through the link below. A replay of the webcast call will
also be available on Calfrac’s website for at least 90 days.
https://edge.media-server.com/mmc/p/nhyoz7sj
CONSOLIDATED BALANCE SHEETS
|
March 31, |
|
December 31, |
|
|
2023 |
|
2022 |
|
(C$000s) (unaudited) |
($) |
|
($) |
|
ASSETS |
|
|
|
|
Current assets |
|
|
Cash and cash equivalents |
23,169 |
|
8,498 |
|
Accounts receivable |
314,040 |
|
238,769 |
|
Inventories |
107,286 |
|
108,866 |
|
Prepaid expenses and deposits |
15,540 |
|
12,297 |
|
|
460,035 |
|
368,430 |
|
Assets classified as held for sale |
54,945 |
|
45,940 |
|
|
514,980 |
|
414,370 |
|
Non-current assets |
|
|
Property, plant and equipment |
550,097 |
|
543,475 |
|
Right-of-use assets |
22,333 |
|
22,908 |
|
Deferred income tax assets |
9,187 |
|
15,000 |
|
|
581,617 |
|
581,383 |
|
Total assets |
1,096,597 |
|
995,753 |
|
LIABILITIES AND EQUITY |
|
|
Current liabilities |
|
|
Accounts payable and accrued liabilities |
210,138 |
|
171,603 |
|
Income taxes payable |
5,553 |
|
964 |
|
Current portion of long-term debt |
2,553 |
|
2,534 |
|
Current portion of lease obligations |
9,421 |
|
9,749 |
|
|
227,665 |
|
184,850 |
|
Liabilities directly associated with assets classified as held for
sale |
27,880 |
|
18,852 |
|
|
255,545 |
|
203,702 |
|
Non-current liabilities |
|
|
Long-term debt |
339,471 |
|
329,186 |
|
Lease obligations |
13,416 |
|
13,443 |
|
Deferred income tax liabilities |
29,339 |
|
26,450 |
|
|
382,226 |
|
369,079 |
|
Total liabilities |
637,771 |
|
572,781 |
|
Capital stock |
865,716 |
|
865,059 |
|
Conversion rights on
convertible notes |
212 |
|
212 |
|
Contributed surplus |
70,602 |
|
70,141 |
|
Warrants |
36,238 |
|
36,558 |
|
Accumulated deficit |
(542,207 |
) |
(580,544 |
) |
Accumulated other comprehensive income |
28,265 |
|
31,546 |
|
Total equity |
458,826 |
|
422,972 |
|
Total liabilities and equity |
1,096,597 |
|
995,753 |
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
|
(C$000s, except per share data) (unaudited) |
($) |
|
($) |
|
|
|
|
Revenue |
493,323 |
|
294,524 |
|
Cost of
sales |
425,636 |
|
290,824 |
|
Gross profit |
67,687 |
|
3,700 |
|
Expenses |
|
|
Selling, general and administrative |
9,127 |
|
12,625 |
|
Foreign exchange losses |
1,486 |
|
3,837 |
|
(Gain) loss on disposal of property, plant and equipment |
(537 |
) |
1,038 |
|
Interest |
8,174 |
|
9,816 |
|
|
18,250 |
|
27,316 |
|
Income (loss) before income tax |
49,437 |
|
(23,616 |
) |
Income tax expense (recovery) |
|
|
Current |
4,398 |
|
44 |
|
Deferred |
8,726 |
|
(5,630 |
) |
|
13,124 |
|
(5,586 |
) |
Net income (loss) from continuing operations |
36,313 |
|
(18,030 |
) |
Net
income (loss) from discontinued operations |
2,024 |
|
(3,508 |
) |
Net income (loss) for the period |
38,337 |
|
(21,538 |
) |
|
|
|
Earnings (loss) per share –
basic |
|
|
Continuing operations |
0.45 |
|
(0.47 |
) |
Discontinued operations |
0.03 |
|
(0.09 |
) |
|
0.47 |
|
(0.56 |
) |
|
|
|
Earnings (loss) per share –
diluted |
|
|
Continuing operations |
0.41 |
|
(0.47 |
) |
Discontinued operations |
0.02 |
|
(0.09 |
) |
|
0.43 |
|
(0.56 |
) |
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months Ended March 31, |
|
|
2023 |
|
2022 |
|
(C$000s) (unaudited) |
($) |
|
($) |
|
CASH FLOWS PROVIDED BY
(USED IN) |
|
|
OPERATING
ACTIVITIES |
|
|
Net income (loss) for the period |
38,337 |
|
(21,538 |
) |
Adjusted for the following: |
|
|
Depreciation |
30,162 |
|
30,153 |
|
Stock-based compensation |
544 |
|
1,034 |
|
Unrealized foreign exchange (gains) losses |
(292 |
) |
4,173 |
|
(Gain) loss on disposal of property, plant and equipment |
(538 |
) |
1,037 |
|
Impairment of inventory |
1,100 |
|
— |
|
Impairment of other assets |
1,151 |
|
— |
|
Interest |
8,143 |
|
9,816 |
|
Interest paid |
(10,243 |
) |
(12,463 |
) |
Deferred income taxes |
8,726 |
|
(5,630 |
) |
Changes in items of working capital |
(36,196 |
) |
9,171 |
|
Cash flows provided by operating activities |
40,894 |
|
15,753 |
|
FINANCING ACTIVITIES |
|
|
Bridge loan proceeds |
— |
|
15,000 |
|
Issuance of long-term debt, net of debt issuance costs |
33,233 |
|
8,431 |
|
Long-term debt repayments |
(25,000 |
) |
— |
|
Lease obligation principal repayments |
(2,604 |
) |
(2,083 |
) |
Proceeds on issuance of common shares from the exercise of warrants
and stock options |
254 |
|
704 |
|
Cash flows provided by financing activities |
5,883 |
|
22,052 |
|
INVESTING ACTIVITIES |
|
|
Purchase of property, plant and equipment |
(35,397 |
) |
(16,104 |
) |
Proceeds on disposal of property, plant and equipment |
199 |
|
303 |
|
Proceeds on disposal of right-of-use assets |
516 |
|
304 |
|
Cash flows used in investing activities |
(34,682 |
) |
(15,497 |
) |
Effect of exchange rate changes on cash and cash equivalents |
(2,807 |
) |
(7,020 |
) |
Increase in cash and cash equivalents |
9,288 |
|
15,288 |
|
Cash
and cash equivalents (bank overdraft), beginning of period |
18,393 |
|
(1,351 |
) |
Cash and cash equivalents, end of period |
27,681 |
|
13,937 |
|
Included in the cash and cash equivalents per the balance
sheet |
23,169 |
|
|
Included in the assets held
for sale/discontinued operations |
4,512 |
|
|
For further information, please contact:Pat
Powell, Chief Executive OfficerMike Olinek, Chief Financial
Officer
Telephone:
403-266-6000
www.calfrac.com
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