MONCTON, NB,
June 5, 2013 /CNW/ - Major Drilling
Group International Inc. (TSX: MDI) today reported results for the
year and fourth quarter ended April 30,
2013.
Highlights
|
In millions of Canadian dollars
(except earnings per share) |
Q4-13 |
Q4-12 |
Fiscal
2013 |
Fiscal
2012 |
Revenue |
$135.5 |
$237.2 |
$695.9 |
$797.4 |
Gross profit |
43.1 |
78.5 |
220.3 |
251.1 |
|
As percentage of revenue |
31.8% |
33.1% |
31.7% |
31.5% |
EBITDA(1) |
23.5 |
57.0 |
142.8 |
174.4 |
|
As percentage of revenue |
17.3% |
24.0% |
20.5% |
21.9% |
Net earnings |
2.2 |
30.7 |
52.1 |
89.7 |
Earnings per share - Basic |
$0.03 |
$0.39 |
$0.66 |
$1.18 |
(1) |
Earnings before
interest, taxes, depreciation and amortization, excluding
restructuring charges, goodwill and intangible impairment and gain
on reversal of contingent consideration (see "non-GAAP financial
measures")
|
- Excluding restructuring charges, impairment charges and gain on
reversal of contingent consideration, earnings before taxes for the
quarter were $10.1 million.
- Major Drilling posted quarterly
revenue of $135.5 million, down 43%
from the $237.2 million record for
the same quarter last year.
- Gross margin percentage for the quarter was 31.8%, compared to
33.1% for the corresponding period last year.
- The Company posted a restructuring charge of $5.4 million accounting for retrenchment costs,
scale down of operations, and write down of assets, and also posted
a goodwill and intangible impairment charge of $3.3 million during the quarter, offset by a gain
on reversal of contingent consideration of $2.0 million. Combined, these charges
represent a negative impact to fourth quarter 2013 earnings before
taxes of $6.8 million.
- Net earnings (including restructuring and impairment charge)
were $2.2 million or $0.03 per share for the quarter, compared to
earnings of $30.7 million or 0.39 per
share for the prior year quarter.
- Our total net cash position (net of debt) improved by
$8.6 million in the quarter to
$38.7 million. For the year,
the Company improved its net cash position by $52 million as compared to last year.
"In February, due to the uncertainty around
economic matters impacting the mining market, some customers
delayed or cancelled their exploration drilling plans. In a
number of jurisdictions, uncertainty as to the policies of host
governments or issues of land tenure also had an impact on this
quarter's results. These factors, combined with the fact that
sources of funding for junior mining companies remain limited, have
led to significantly decreased activity in certain regions.
As a result, fourth quarter revenue was significantly impacted as
compared to the record revenue that the Company realized in the
same period last year. Lower levels of demand have
significantly increased competitive pressures and will likely
continue to have an impact for the rest of calendar 2013.
Despite lower pricing levels, we maintained good margin performance
thanks to the improved productivity of our crews, and despite
current conditions, we are pleased that Major Drilling was able to improve its net cash
position by $8.6 million as well as
show a profit before tax of $10.1
million for the quarter, excluding restructuring charges,
impairment charges and gain on reversal of contingent
consideration," said Francis
McGuire, President and CEO of Major
Drilling.
"In light of the slowdown in activity, we have
undertaken a review and restructuring of certain operations. During
the quarter, we implemented reductions of salaried employees as we
target a reduction of 20% in our general and administrative costs
from our peak level incurred in the first quarter of this year. As
part of this, we decided to significantly scale down our Tanzanian
operation and our U.S. environmental division. The costs
relating to these initiatives have been recorded as part of the
$5.4 million restructuring
charge. Due to the continuing governmental budgetary
constraints in the U.S. affecting its environmental division, we
also recorded a goodwill and intangible impairment charge of
$3.3 million, but also recorded a
gain from reversal of contingent consideration of $2.0 million, related to the acquisition costs of
the environmental business, which will no longer be paid.
Finally, as part of these actions, senior management's salaries and
directors' fees are being reduced."
"The Company continues to have a variable cost
structure whereby most of its direct costs, including field staff,
go up or down with contract revenue and a large part of the
Company's other expenses relates to variable incentive compensation
based on the Company's profitability. Despite the difficult
environment, we expect operations to generate positive cash flow in
fiscal 2014. The Company will continue to focus on cash management
by limiting capital expenditures, by reducing inventory and by
closely monitoring costs."
"At the same time, the Company's financial
strength allows it to continue to invest in safety, to maintain its
equipment in excellent condition, and to retain skilled employees,
all of which are essential to react quickly when the industry
recovers. The Company remains in an excellent financial
position, remaining debt-free, net of cash, during the
quarter. Total cash level, net of long-term debt, stood at
$38.7 million at quarter-end.
Capital expenditures for the quarter were $9.5 million as we purchased 14 rigs, while
retiring 39 rigs through our modernization program. At this
point, we anticipate continuing to invest at this pace as we see
opportunities to expand our capacity in specialized drilling and to
expand in other parts of the world, such as Brazil. This will also allow us to
continue our strategy of maintaining a sustainable dividend
policy."
"The current economic environment will continue
to significantly impact drilling in the short to medium-term,
particularly on gold projects where the Company has a significant
presence, and the Company is experiencing further delays and
cancellations as compared to the quarter just completed.
Also, lower levels of demand have increased competitive pressures,
which may impact pricing going forward. The impact of lower
pricing should be partially offset by the increased productivity of
our experienced drilling crews."
"Over time, we expect many of the supply issues
that face most commodities to come back into focus and that even
with moderate growth in the world economy, the need to explore and
develop mines will increase. We believe that the need to
develop resources in areas that are increasingly difficult to
access will continue to increase over time, which should increase
demand for specialized drilling," said Mr. McGuire.
Fourth quarter ended April 30, 2013
Total revenue for the quarter was $135.5 million, down 43% from the $237.2 million record in the same quarter last
year. Due to the uncertainty around economic matters impacting the
mining market, some customers delayed or cancelled their
exploration drilling plans, which impacted the quarter's results
compared to last year. In a number of jurisdictions,
uncertainty as to the policies of host governments or issues of
land tenure also had an impact on quarter results. Also, many
junior customers have scaled back or suspended drilling activities
as compared to last year.
Revenue for the quarter from Canada-U.S.
drilling operations decreased by 42% to $61.8 million compared to the same period last
year. Both countries were affected by delays and the
cancellation of projects.
South and Central American revenue was down 41%
to $43.5 million for the quarter,
compared to the prior year quarter. All of the countries in this
region, particularly Mexico,
Chile and Argentina, were affected by a reduction in
work by juniors and the cancellation or reduction of projects.
Australian, Asian and African operations
reported revenue of $30.2 million,
down 47% from the same period last year. Australia, where projects have been cancelled
due to high costs being incurred by mining companies and new mining
taxes, was impacted the most. The Company also saw decreases
in other regions including Mongolia, which is affected by political
uncertainty.
The overall gross margin percentage for the
quarter was 31.8% compared to 33.1% for the same period last
year. Reduced pricing due to increased competitive pressures
and delays impacted margins, however the Company has been able to
recapture some of this loss through productivity gains and cost
cutting.
General and administrative costs were
$15.3 million for the quarter
compared to $16.0 million in the same
period last year. With the decrease in activity, the Company
has reduced its general and administrative costs, in part related
to the integration of the Bradley operations. At the same
time, the Company is opening new branches in Brazil and Calgary. During the quarter, the Company
implemented reductions of salaried employees and restructured
certain branches as it targets a reduction of 20% in general and
administrative costs from the peak levels incurred in the first
quarter of this year.
Other expenses for the quarter were $0.4 million, down from the $4.0 million reported in the prior year
quarter. This quarter's amount consists of incentive
compensation expenses and bad debt provisions, offset by a gain on
reversal of contingent consideration of $2.0
million, whereas other expenses for the same quarter last
year were mainly composed of incentive compensation expenses given
the Company's profitability in that quarter.
The Company recorded a restructuring charge of
$5.4 million consisting primarily of
scale down costs of its U.S. environmental division and its
Tanzanian operations, as well as retrenchment costs following staff
reduction initiatives implemented during the quarter across the
Company.
Due to the continuing governmental budgetary
constraints in the U.S. affecting its environmental division, the
Company recorded a goodwill and intangible impairment charge of
$3.3 million.
Non-GAAP Financial Measures
In this news release, the Company uses the
following non-GAAP financial measures: EBITDA and EBITDA as a
percentage of revenue. The Company believes these non-GAAP
financial measures provide useful information to both management
and investors in measuring the financial performance of the
Company. These measures do not have a standardized meaning
prescribed by GAAP and therefore they may not be comparable to
similarly titled measures presented by other publicly traded
companies, and should not be construed as an alternative to other
financial measures determined in accordance with GAAP.
Forward-Looking Statements
Some of the statements contained in this press
release may be forward-looking statements, such as, but not limited
to, those relating to worldwide demand for gold and base metals and
overall commodity prices, the level of activity in the minerals and
metals industry and the demand for the Company's services, the
Canadian and international economic environments, the Company's
ability to attract and retain customers and to manage its assets
and operating costs, sources of funding for its clients,
particularly for junior mining companies, competitive pressures,
currency movements, which can affect the Company's revenue in
Canadian dollars, the geographic distribution of the Company's
operations, the impact of operational changes, changes in
jurisdictions in which the Company operates (including changes in
regulation), failure by counterparties to fulfill contractual
obligations, and other factors as may be set forth, as well as
objectives or goals, and including words to the effect that the
Company or management expects a stated condition to exist or occur.
Since forward-looking statements address future events and
conditions, by their very nature, they involve inherent risks and
uncertainties. Actual results in each case could differ materially
from those currently anticipated in such statements by reason of
factors such as, but not limited to, the factors set out in the
discussion on pages 16 to 18 of the 2012 Annual Report entitled
"General Risks and Uncertainties", and such other documents as
available on SEDAR at www.sedar.com. All such factors should be
considered carefully when making decisions with respect to the
Company. The Company does not undertake to update any
forward-looking statements, including those statements that are
incorporated by reference herein, whether written or oral, that may
be made from time to time by or on its behalf, except in accordance
with applicable securities laws.
Based in Moncton, New
Brunswick, Major Drilling Group International Inc. is one of
the world's largest metals and minerals contract drilling service
companies. To support its customers' mining operations, mineral
exploration and environmental activities, Major Drilling maintains operations on every
continent.
Financial statements are attached.
Major Drilling
will provide a simultaneous webcast of its quarterly conference
call on Thursday, June 6, 2013 at
9:00 AM (EDT). To access
the webcast please go to the investors/webcast section of
Major Drilling's website at
www.majordrilling.com and click the attached link, or go
directly to the CNW Group website at www.newswire.ca
for directions. Participants will require Windows
MediaPlayer, which can be downloaded prior to accessing the
call. Please note that this is listen-only mode.
Major Drilling
Group International Inc. |
Condensed
Consolidated Statements of Operations |
(in thousands of
Canadian dollars, except per share information) |
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
|
April 30 |
|
April 30 |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL REVENUE |
|
$ |
135,537 |
|
$ |
237,238 |
|
$ |
695,928 |
|
$ |
797,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECT COSTS |
|
|
92,450 |
|
|
158,786 |
|
|
475,589 |
|
|
546,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
43,087 |
|
|
78,452 |
|
|
220,339 |
|
|
251,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
15,318 |
|
|
16,024 |
|
|
63,827 |
|
|
57,980 |
|
Other expenses |
|
|
411 |
|
|
4,019 |
|
|
10,585 |
|
|
16,055 |
|
Loss on disposal of property, plant and
equipment |
|
|
1,232 |
|
|
54 |
|
|
2,452 |
|
|
1,370 |
|
Foreign exchange loss (gain) |
|
|
699 |
|
|
1,338 |
|
|
(1,311) |
|
|
1,319 |
|
Finance costs |
|
|
346 |
|
|
707 |
|
|
2,316 |
|
|
3,367 |
|
Depreciation of property, plant and equipment |
|
|
12,575 |
|
|
11,587 |
|
|
49,997 |
|
|
39,975 |
|
Amortization of intangible assets |
|
|
412 |
|
|
1,054 |
|
|
2,840 |
|
|
2,629 |
|
Impairment of goodwill and intangible assets |
|
|
3,324 |
|
|
- |
|
|
3,324 |
|
|
- |
|
Restructuring charge |
|
|
5,440 |
|
|
- |
|
|
5,440 |
|
|
- |
|
|
|
39,757 |
|
|
34,783 |
|
|
139,470 |
|
|
122,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE INCOME TAX |
|
|
3,330 |
|
|
43,669 |
|
|
80,869 |
|
|
128,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX - PROVISION
(RECOVERY) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
3,590 |
|
|
11,215 |
|
|
32,077 |
|
|
24,592 |
|
Deferred |
|
|
(2,434) |
|
|
1,723 |
|
|
(3,318) |
|
|
14,090 |
|
|
|
1,156 |
|
|
12,938 |
|
|
28,759 |
|
|
38,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
|
$ |
2,174 |
|
$ |
30,731 |
|
$ |
52,110 |
|
$ |
89,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.03 |
|
$ |
0.39 |
|
$ |
0.66 |
|
$ |
1.18 |
Diluted |
|
$ |
0.03 |
|
$ |
0.38 |
|
$ |
0.65 |
|
$ |
1.16 |
Major Drilling
Group International Inc. |
Condensed
Consolidated Statements of Comprehensive Earnings |
(in thousands of
Canadian dollars) |
|
|
|
|
|
|
Three months
ended |
|
Twelve months
ended |
|
|
April 30 |
|
April 30 |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
|
$ |
2,174 |
|
$ |
30,731 |
|
$ |
52,110 |
|
$ |
89,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) on foreign currency
translations (net of tax) |
|
|
4,362 |
|
|
(7,989) |
|
|
11,803 |
|
|
1,871 |
|
Unrealized gain (loss) on interest swap (net of
tax) |
|
|
47 |
|
|
240 |
|
|
(81) |
|
|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
EARNINGS |
|
$ |
6,583 |
|
$ |
22,982 |
|
$ |
63,832 |
|
$ |
91,741 |
Major Drilling Group
International Inc. |
Condensed Consolidated
Statements of Changes in Equity |
For the twelve months ended
April 30, 2012 and 2013 |
(in thousands of Canadian
dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital |
|
Reserves |
|
Share-based
payments reserve |
|
Retained
earnings |
|
Foreign currency
translation reserve |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AS AT MAY 1, 2011 |
|
$ |
150,642 |
|
$ |
- |
|
$ |
10,280 |
|
$170,425 |
|
$ |
(3,662) |
|
$327,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of stock options |
|
|
2,932 |
|
|
- |
|
|
(909) |
|
- |
|
|
- |
|
2,023 |
|
Share issue (net of issue costs) |
|
|
77,189 |
|
|
- |
|
|
- |
|
- |
|
|
- |
|
77,189 |
|
Share-based payments reserve |
|
|
- |
|
|
- |
|
|
2,426 |
|
- |
|
|
- |
|
2,426 |
|
Dividends |
|
|
- |
|
|
- |
|
|
- |
|
(13,365) |
|
|
- |
|
(13,365) |
|
|
|
230,763 |
|
|
- |
|
|
11,797 |
|
157,060 |
|
|
(3,662) |
|
395,958 |
Comprehensive earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
- |
|
|
- |
|
|
- |
|
89,749 |
|
|
- |
|
89,749 |
|
Unrealized gains on foreign currency translations |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
|
1,871 |
|
1,871 |
|
Unrealized gain on interest swap |
|
|
- |
|
|
121 |
|
|
- |
|
- |
|
|
- |
|
121 |
Total comprehensive
earnings |
|
|
- |
|
|
121 |
|
|
- |
|
89,749 |
|
|
1,871 |
|
91,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AS AT APRIL 30,
2012 |
|
$ |
230,763 |
|
$ |
121 |
|
$ |
11,797 |
|
$246,809 |
|
$ |
(1,791) |
|
$487,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AS AT MAY 1, 2012 |
|
$ |
230,763 |
|
$ |
121 |
|
$ |
11,797 |
|
$246,809 |
|
$ |
(1,791) |
|
$487,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of stock options |
|
|
222 |
|
|
- |
|
|
(114) |
|
- |
|
|
- |
|
108 |
|
Share-based payments reserve |
|
|
- |
|
|
- |
|
|
2,521 |
|
- |
|
|
- |
|
2,521 |
|
Dividends |
|
|
- |
|
|
- |
|
|
- |
|
(15,831) |
|
|
- |
|
(15,831) |
|
|
|
230,985 |
|
|
121 |
|
|
14,204 |
|
230,978 |
|
|
(1,791) |
|
474,497 |
Comprehensive earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
- |
|
|
- |
|
|
- |
|
52,110 |
|
|
- |
|
52,110 |
|
Unrealized gains on foreign currency translations |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
|
11,803 |
|
11,803 |
|
Unrealized loss on interest swap |
|
|
- |
|
|
(81) |
|
|
- |
|
- |
|
|
- |
|
(81) |
Total comprehensive
earnings |
|
|
- |
|
|
(81) |
|
|
- |
|
52,110 |
|
|
11,803 |
|
63,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AS AT APRIL 30,
2013 |
|
$ |
230,985 |
|
$ |
40 |
|
$ |
14,204 |
|
$283,088 |
|
$ |
10,012 |
|
$538,329 |
Major Drilling Group
International Inc. |
Condensed Consolidated
Statements of Cash Flows |
(in thousands of Canadian
dollars) |
|
|
|
|
|
|
|
|
Three months ended |
|
Twelve months ended |
|
|
April 30 |
|
April 30 |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income tax |
|
$ |
3,330 |
|
$ |
43,669 |
|
$ |
80,869 |
|
$ |
128,431 |
Operating items not involving
cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
12,987 |
|
|
12,641 |
|
|
52,837 |
|
|
42,604 |
|
Loss on disposal of property, plant and
equipment |
|
|
1,232 |
|
|
54 |
|
|
2,452 |
|
|
1,370 |
|
Share-based payments reserve |
|
|
444 |
|
|
660 |
|
|
2,521 |
|
|
2,426 |
|
Impairment of goodwill and intangible assets |
|
|
3,324 |
|
|
- |
|
|
3,324 |
|
|
- |
|
Restructuring charge |
|
|
1,425 |
|
|
- |
|
|
1,425 |
|
|
- |
Finance costs recognized in earnings
before income tax |
|
|
346 |
|
|
707 |
|
|
2,316 |
|
|
3,367 |
|
|
|
23,088 |
|
|
57,731 |
|
|
145,744 |
|
|
178,198 |
Changes in non-cash operating working
capital items |
|
|
5,305 |
|
|
(28,158) |
|
|
30,456 |
|
|
(32,787) |
Finance costs paid |
|
|
(345) |
|
|
(708) |
|
|
(2,306) |
|
|
(3,432) |
Income taxes paid |
|
|
(11,081) |
|
|
(11,262) |
|
|
(36,962) |
|
|
(27,502) |
Cash flow from operating
activities |
|
|
16,967 |
|
|
17,603 |
|
|
136,932 |
|
|
114,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of long-term debt |
|
|
(1,716) |
|
|
(1,573) |
|
|
(9,296) |
|
|
(17,390) |
Proceeds from long-term debt |
|
|
- |
|
|
- |
|
|
- |
|
|
25,000 |
Repayment of short-term debt |
|
|
- |
|
|
(7,847) |
|
|
- |
|
|
(12,988) |
Issuance of common shares |
|
|
108 |
|
|
1,073 |
|
|
108 |
|
|
79,212 |
Dividends paid |
|
|
- |
|
|
- |
|
|
(15,038) |
|
|
(11,525) |
Cash flow (used in) from financing
activities |
|
|
(1,608) |
|
|
(8,347) |
|
|
(24,226) |
|
|
62,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Business acquisitions (net of cash
acquired) |
|
|
- |
|
|
(1,825) |
|
|
(1,698) |
|
|
(76,304) |
Acquisition of property, plant and
equipment (net of direct financing) |
|
|
(9,487) |
|
|
(21,097) |
|
|
(69,005) |
|
|
(81,129) |
Proceeds from disposal of property,
plant and equipment |
|
|
884 |
|
|
517 |
|
|
3,409 |
|
|
2,228 |
Cash flow used in investing
activities |
|
|
(8,603) |
|
|
(22,405) |
|
|
(67,294) |
|
|
(155,205) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes |
|
|
72 |
|
|
269 |
|
|
(338) |
|
|
(559) |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN
CASH |
|
|
6,828 |
|
|
(12,880) |
|
|
45,074 |
|
|
21,022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH, BEGINNING OF THE
PERIOD |
|
|
75,483 |
|
|
50,117 |
|
|
37,237 |
|
|
16,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH, END OF THE PERIOD |
|
$ |
82,311 |
|
$ |
37,237 |
|
$ |
82,311 |
|
$ |
37,237 |
Major Drilling Group
International Inc. |
Condensed Consolidated Balance
Sheets |
As at April 30, 2013 and
2012 |
(in thousands of Canadian
dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
Cash |
|
$ |
82,311 |
|
$ |
37,237 |
|
Trade and other receivables |
|
|
98,079 |
|
|
159,770 |
|
Income tax receivable |
|
|
10,013 |
|
|
3,314 |
|
Inventories |
|
|
88,118 |
|
|
95,905 |
|
Prepaid expenses |
|
|
6,119 |
|
|
7,476 |
|
|
|
284,640 |
|
|
303,702 |
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT |
|
|
339,971 |
|
|
318,171 |
|
|
|
|
|
|
|
DEFERRED INCOME TAX ASSETS |
|
|
5,601 |
|
|
2,859 |
|
|
|
|
|
|
|
GOODWILL |
|
|
52,736 |
|
|
54,946 |
|
|
|
|
|
|
|
INTANGIBLE ASSETS |
|
|
3,279 |
|
|
6,295 |
|
|
|
|
|
|
|
|
|
$ |
686,227 |
|
$ |
685,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
Trade and other payables |
|
$ |
73,315 |
|
$ |
115,805 |
|
Income tax payable |
|
|
5,020 |
|
|
3,142 |
|
Current portion of long-term debt |
|
|
9,097 |
|
|
8,712 |
|
|
|
87,432 |
|
|
127,659 |
|
|
|
|
|
|
|
CONTINGENT CONSIDERATION |
|
|
231 |
|
|
2,760 |
|
|
|
|
|
|
|
LONG-TERM DEBT |
|
|
34,497 |
|
|
42,274 |
|
|
|
|
|
|
|
DEFERRED INCOME TAX
LIABILITIES |
|
|
25,738 |
|
|
25,581 |
|
|
|
147,898 |
|
|
198,274 |
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Share capital |
|
|
230,985 |
|
|
230,763 |
|
Reserves |
|
|
40 |
|
|
121 |
|
Share-based payments reserve |
|
|
14,204 |
|
|
11,797 |
|
Retained earnings |
|
|
283,088 |
|
|
246,809 |
|
Foreign currency translation reserve |
|
|
10,012 |
|
|
(1,791) |
|
|
|
538,329 |
|
|
487,699 |
|
|
|
|
|
|
|
|
|
$ |
686,227 |
|
$ |
685,973 |
MAJOR DRILLING GROUP INTERNATIONAL INC.
SELECTED FINANCIAL INFORMATION
FOR THE THREE AND TWELVE MONTHS ENDED APRIL 30, 2013 AND 2012
(in thousands of Canadian dollars)
SEGMENTED INFORMATION
The Company's operations are divided into three
geographic segments corresponding to its management structure,
Canada - U.S., South and
Central America, and Australia, Asia and Africa. The services provided in each of the
reportable segments are essentially the same. The accounting
policies of the segments are the same as those described in Note 4
presented in the Notes to Consolidated Financial Statements for the
year ended April 30, 2013. Management
evaluates performance based on earnings from operations in these
three geographic segments before finance costs and income
tax. Data relating to each of the Company's reportable
segments is presented as follows:
|
|
Three months ended |
|
Twelve months
ended |
|
|
April 30 |
|
April 30 |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada - U.S. |
|
$ |
61,827 |
|
$ |
106,653 |
|
$ |
317,091 |
|
$ |
322,047 |
|
South and Central America |
|
|
43,489 |
|
|
73,311 |
|
|
203,233 |
|
|
251,833 |
|
Australia, Asia and Africa |
|
|
30,221 |
|
|
57,274 |
|
|
175,604 |
|
|
223,552 |
|
|
$ |
135,537 |
|
$ |
237,238 |
|
$ |
695,928 |
|
$ |
797,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada - U.S. |
|
$ |
2,874 |
|
$ |
23,375 |
|
$ |
47,020 |
|
$ |
57,629 |
|
South and Central America |
|
|
7,629 |
|
|
19,061 |
|
|
36,114 |
|
|
55,790 |
|
Australia, Asia and Africa |
|
|
(5,112) |
|
|
6,553 |
|
|
12,945 |
|
|
36,365 |
|
|
|
5,391 |
|
|
48,989 |
|
|
96,079 |
|
|
149,784 |
Eliminations |
|
|
(13) |
|
|
(235) |
|
|
(987) |
|
|
(939) |
|
|
|
5,378 |
|
|
48,754 |
|
|
95,092 |
|
|
148,845 |
Finance costs |
|
|
346 |
|
|
707 |
|
|
2,316 |
|
|
3,367 |
General corporate expenses * |
|
|
1,702 |
|
|
4,378 |
|
|
11,907 |
|
|
17,047 |
Income tax |
|
|
1,156 |
|
|
12,938 |
|
|
28,759 |
|
|
38,682 |
Net earnings |
|
$ |
2,174 |
|
$ |
30,731 |
|
$ |
52,110 |
|
$ |
89,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
General corporate expenses include
expenses for corporate offices, stock options and certain
un-allocated costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada - U.S. |
|
$ |
5,849 |
|
$ |
5,448 |
|
$ |
22,713 |
|
$ |
17,813 |
|
South and Central America |
|
|
2,928 |
|
|
2,406 |
|
|
11,493 |
|
|
9,877 |
|
Australia, Asia and Africa |
|
|
4,003 |
|
|
3,428 |
|
|
15,522 |
|
|
11,672 |
|
Unallocated and corporate assets |
|
|
207 |
|
|
1,359 |
|
|
3,109 |
|
|
3,242 |
|
|
$ |
12,987 |
|
$ |
12,641 |
|
$ |
52,837 |
|
$ |
42,604 |
SOURCE MAJOR DRILLING GROUP INTERNATIONAL INC.