CALGARY, ALBERTA--(Marketwired - Nov. 5, 2013) - Xtreme Drilling and Coil Services ("Xtreme" or the "Company") (TSX:XDC) announces summary results for the three and nine months ended September 30, 2013. It is anticipated that filing will take place on SEDAR of the Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis on Wednesday, November 6, 2013.
Highlights - Q3 2013
- Adjusted EBITDA was $17.8 million for the third quarter. This was an increase of $1 million, or 6%, over the previous quarter. The growth in Adjusted EBITDA in the quarter was driven by increased activity in Canada as well as higher operating margins in both the US and Saudi Arabian XSR business. These gains were offset by a decrease of $1.6 million in the US XDR operating margin for the third quarter due to higher repair and maintenance costs and weather-related matters in Colorado.
- Revenue was $59.7 million in the quarter which is an increase of 12%, or $6.4 million, over the second quarter. The increase in revenue for the quarter was a function of 151 additional operating days. In addition, revenue per operating day increased by $1,074 to $28,949. The increase in revenue per day was driven primarily by the XSR business. The US XSR division increased revenue per day by $2,700, or 5.6%, and the Saudi Arabian operation increased revenue by $5,000 per day in the third quarter.
- The Company had 2,062 operating days in the third quarter of 2013. This resulted in a utilization rate of 83% for the fleet of 21 XDR drilling rigs and 7 XSR coiled tubing units.
- Net income of $3.3 million, less amount attributable to non-controlling interest of $0.08 million, for net income attributable to the owners of the parent of $3.2 million for the third quarter of 2013, or $.04 per fully diluted share.
- The Company continued to allocate free cash flow to pay down debt in the quarter. Total debt at quarter end was $121.3 million which is down from $137 million at the end of the second quarter. Net debt (total debt less cash) at quarter end was $110.3 million and represents the lowest level since the fourth quarter of 2011. Xtreme exited the quarter with working capital of $9.5 million and a funded debt to Adjusted EBITDA ratio of 1.74, which is well under the credit facility covenant level of 3.00. Capital expenditures totaled $6.6 million for the third quarter.
- In Saudi Arabia the Company received a contract extension of six months through March of 2014 on one of the two XSR units in operation. The second unit is working under a three year contract that was renewed in July of 2013. The Company continues to negotiate the purchase of the 20% interest in the Saudi Arabian joint venture from the local partner. It is anticipated that more clarity around consideration and structure will be available before the end of the fourth quarter.
- The Company has agreed in principal to a new credit facility led by Wells Fargo Energy. It will be structured as a three year revolving facility with $150 million in capacity and a $25 million accordion feature. It is expected to close by December of 2013.
- During the third quarter, the Company modified the classification of the Non-Controlled Interest ("NCI") in the Saudi Arabian joint venture. It was determined after review of the accounting standard that the Company should re-classify the NCI from equity to liability. This is based on the requirement to account for the fair value of the put option held by the Saudi Arabia joint venture partner as per the shareholder agreement dated March 12, 2010. As a result, the Company reflected the liability effective January 1, 2012, restating the previous periods in the third quarter financials. At September 30, 2013, the liability of the option is approximately $11.9 million.
Selected Quarterly Financial Information (unaudited)
| Three months ended | Sep 30, 2013 |
Jun 30, 2013 |
Mar 31, 2013 |
Dec 31, 2012 |
||||
| Revenue | 59,692 | 53,268 | 54,182 | 51,852 | ||||
| Adjusted EBITDA (1) | 17,783 | 16,847 | 19,234 | 15,029 | ||||
| Adjusted EBITDA as a percentage of Revenue | 30 | 32 | 35 | 29 | ||||
| Adjusted EBITDA per share (1) - basic ($) | 0.22 | 0.21 | 0.24 | 0.19 | ||||
| Net income | 3,283 | 240 | 4,487 | 3,827 | ||||
| Net income per share - basic ($) | 0.04 | 0.00 | 0.06 | 0.05 | ||||
| Capital assets | 416,887 | 431,294 | 417,431 | 415,354 | ||||
| Total assets | 504,728 | 520,326 | 508,823 | 506,551 | ||||
| Net debt(2) | 110,326 | 127,977 | 130,014 | 141,841 | ||||
| Operating days (1) | 2,062 | 1,911 | 1,949 | 1,891 | ||||
| Utilization (percentage) - XDR | 89 | 85 | 89 | 85 | ||||
| Utilization (percentage)- XSR | 61 | 53 | 49 | 47 | ||||
| Utilization (percentage) - Total | 83 | 78 | 80 | 77 | ||||
| Weighted average rigs in service | 28.0 | 28.0 | 28.0 | 26.8 | ||||
| Total rigs, end of quarter | 28 | 28 | 28 | 28 | ||||
| Sep 30, 2012 |
Jun 30, 2012 |
Mar 31, 2012 |
Dec 31, 2011 |
|||||
| Revenue | 48,948 | 40,180 | 38,446 | 32,552 | ||||
| Adjusted EBITDA (1) | 4,459 | 7,695 | 7,909 | 4,626 | ||||
| Adjusted EBITDA as a percentage of Revenue | 9 | 19 | 21 | 14 | ||||
| Adjusted EBITDA per share (1) - basic ($) | 0.07 | 0.12 | 0.12 | 0.10 | ||||
| Net (loss) income | (2,935 | ) | (2,059 | ) | 1,689 | (1,025 | ) | |
| Net (loss) income per share - basic ($) | (0.04 | ) | (0.03 | ) | 0.03 | (0.02 | ) | |
| Capital assets | 425,364 | 425,397 | 379,710 | 348,148 | ||||
| Total assets | 511,318 | 512,254 | 464,453 | 424,921 | ||||
| Net debt(2) | 119,759 | 144,039 | 109,546 | 75,563 | ||||
| Operating days (1) | 1,742 | 1,494 | 1,423 | 1,246 | ||||
| Utilization (percentage) - XDR | 86 | 74 | 84 | 73 | ||||
| Utilization (percentage)- XSR | 36 | 57 | 56 | 97 | ||||
| Utilization (percentage) - Total | 74 | 70 | 79 | 75 | ||||
| Weighted average rigs in service | 26.0 | 23.4 | 19.8 | 18.0 | ||||
| Total rigs, end of quarter | 28 | 27 | 18 | 18 |
| (1) | Adjusted EBITDA. See Reconciliation of adjusted EBITDA below |
| (2) | Total debt less cash |
Excerpt from Management's Discussion and Analysis
For the three and nine months ended September 30, 2013
Outlook
Xtreme has made significant progress over the course of 2013. The Company significantly improved financial performance as Adjusted EBITDA margins have increased to 32%, from 22% in 2012, and net debt levels have decreased by $31.6 million, to $110.3 million, from December 31, 2012. Additionally, the Company has established a consistent operating history as the longest reach coil provider in the Eagle Ford, with a fourth new build unit preparing to begin operations. As the Company moves into 2014 management is committed to continue the momentum of 2013 and focus on increasing shareholder value.
In the third quarter, the drilling services segment was negatively impacted in the United States by substantial rain and flooding in Colorado. The Company had nine XDR rigs operating in Colorado for September. During the quarter, repair and maintenance expenses were up by $950 per operating day, or $1.4 million, due to the associated equipment failures, additional maintenance on a previously stacked rig and modifications to a XDR 300 rig that switched customers. These expenses along with increased inventory consumption decreased operating margin in the US by $1.6 million as compared to the second quarter. The Company believes that the majority of the weather related costs occurred in the third quarter and operating expenses should trend lower toward historical averages in the fourth quarter.
All 18 US XDR rigs are currently contracted and the Company estimates that utilization in the US drilling division will be in the 92% to 95% range for the fourth quarter, slightly better than the 91% in the third quarter. Including the three Canadian XDR rigs the drilling segment achieved an 89% utilization rate in the third quarter. Based on current activity levels utilization on the 21 rig XDR fleet should be in the 90% to 93% range for the fourth quarter.
At this time the Company has three XDR 300 and two XDR 500 rigs that come up for renewal in the US within 75 days. Management is currently exploring several opportunities both domestically and internationally for the two XDR 300 rigs that roll off contract. One of the most appealing is the emerging Las Animas play in Eastern Colorado. Currently, the Company has one rig deployed in this play with the potential for additional rigs in the future. The XDR 300 rigs are unique options in the depth category of this play. Typically rigs in the 8,000 to 12,000 foot total measured depth category are inefficient legacy rigs. It is rare for an operator to have an option for a rig with the combination of AC technology, top drive, high horse-power mud pumps and a skidding system all in a rig that moves in minimal loads. The prospects remain good for the XDR 500 series rigs as they come off of contract in the Bakken and Niobrara. For 2014, Xtreme expects to have approximately 3,300 operating days under term contracts.
The coil services segment had another strong quarter. Operating margins were up by almost $1.3 million from the second quarter. This is based on improvement of performance and pricing. The coil services segment had record revenue of $16.1 million or 27% of total Company revenue for the third quarter.
In the US XSR division operating margin increased by 44% from the previous quarter on 45 additional operating days. Fourth quarter activity levels have been strong which is encouraging as this period is typically less active. Customer acceptance has dramatically increased over the course of 2013. In 2014 there is the potential for term contracts in the US business which should improve revenue transparency in a business that historically has operated from job to job.
Conference Call Details
The Company will conduct a conference call on Wednesday, November 6 at 9:00 am MST, 10:00 am CT. Tom Wood, Chief Executive Officer, will host the conference call with participation from Matt Porter, Chief Financial Officer, and will answer questions from analysts and investors.
To participate in the conference call, please dial in as follows approximately ten minutes before the start time in your time zone, or click on the webcast link below.
| +1 866-226-1798 (North America Toll‐Free) or +1 416‐340-2220 (Alternate) |
| Webcast link: www.gowebcasting.com/4945 |
An audio replay of the call will be available until Tuesday, November 13, 2013. To access the replay, call +1 800‐408‐3053 or +1 905‐694‐9451 and enter pass code 4828220.
Reader Advisory
This news release, or documents incorporated herein, contains forward-looking statements ("FLS"). More particularly, this news release contains statements that may relate to contracting, marketing, financing, construction, modifications, deployment, operation, utilization of drilling rigs in the Company's current and future fleet, and any potential outcome relating to claims and litigation. Further, the FLS herein may relate to trade credit insurance carried by the Company to mitigate receivables collection risk. Although Xtreme believes expectations reflected in these FLS are reasonable, readers should not place undue reliance on them because Xtreme can give no assurance they will prove to be correct. There are many factors that could cause FLS not to be correct, including risks and uncertainties inherent in the Company's business.
These statements are based on certain factors and assumptions including, but not limited to: the assessment of current and projected future operations; ongoing and future strategic business alliances, negotiations and opportunities to enter new, extend or complete existing contracts; the availability and cost of financing; foreign currency exchange rates; timing and magnitude of capital expenditures; expenses and other variables affecting rig operation, modification and construction; the ability and commitment of vendors to provide rig component equipment, services and supplies, including labor, in a cost-effective and timely manner; the issuance of applied-for patents; changes in tax rates; and government regulations. Although Xtreme considers the assumptions used to prepare this news release reasonable, based on information available to management as of November 5, 2013, ultimately the assumptions may prove to be incorrect.
Forward-looking statements are also subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from management's current expectations. These factors include, but are not limited to: the cyclical nature of drilling market demand, foreign currency exchange rates, and commodity prices; access to credit and to equity markets; the availability of qualified personnel; vendor-provided rig components; and, competition for customers.
Management's assumptions considered the following: compliance with the terms of the Company's current and proposed new credit facility; ongoing access to key supplies and components required to continue operating and maintaining equipment, including fuel; continued successful performance of drilling and related equipment; expectations regarding gross margin; recruitment and retention of qualified personnel; continuation or extension of existing long-term or multi-well contracts; revenue expectations related to shorter-term drilling opportunities; willingness and ability of customers to remit amounts owing to Xtreme in accordance with normal industry practices; and management of accounts receivable in direct relation to revenue generation.
Financial outlook information contained in this news release about prospective results of operations, financial position or cash provided by operating activities is based on assumptions about future events, including economic conditions and proposed courses of action, and on management's assessment of relevant information currently available. Readers are cautioned such financial outlook information contained in this news release is not appropriate for purposes other than for which it is disclosed here. Readers should not place undue importance on FLS and should not rely on this information as of any other date. Except as required pursuant to applicable securities laws, Xtreme disclaims any intention, and assumes no obligation, to update publicly or revise FLS to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such FLS or otherwise.
About Xtreme Drilling and Coil Services
Xtreme Drilling and Coil Services Corp. ("XDC" on the Toronto Stock Exchange) designs, builds, and operates a fleet of high specification drilling rigs and coiled tubing well service units featuring leading-edge proprietary technology including AC high capacity coil injectors, deep re-entry drilling capability, modular transportation systems and continuous integration of in-house advances in methodologies.
Currently Xtreme operates two service lines: Drilling Services and Coil Services under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada, the United States and Saudi Arabia. For more information about the Company, please visit www.xtremecoil.com.
| Xtreme Drilling and Coil Services Corp. | |||||||
| Condensed Interim Consolidated Statements of Financial Position | |||||||
| (in thousands of Canadian dollars) | |||||||
| (unaudited) | |||||||
| Sep 30, 2013 |
Dec 31, 2012 |
Jan 1, 2012 |
|||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | 11,017 | 5,921 | 6,873 | ||||
| Accounts receivable | 46,940 | 44,878 | 46,653 | ||||
| Other receivables | 4,361 | 2,975 | 1,636 | ||||
| Prepaid expenses and other | 2,646 | 2,047 | 2,114 | ||||
| Assets held for sale | - | 9,308 | - | ||||
| Income tax recoverable | 60 | 368 | 928 | ||||
| Inventory | 7,083 | 6,474 | 6,470 | ||||
| 72,107 | 71,971 | 64,674 | |||||
| Non-current assets | |||||||
| Deferred tax asset | 11,742 | 15,006 | 7,576 | ||||
| Property and equipment | 416,887 | 415,354 | 348,148 | ||||
| Intangible assets | 3,992 | 4,220 | 4,523 | ||||
| Total Assets | 504,728 | 506,551 | 424,921 | ||||
| Liabilities and Equity | |||||||
| Current liabilities | |||||||
| Bank indebtedness | - | 7,834 | - | ||||
| Accounts payable and accrued liabilities | 30,180 | 27,904 | 26,902 | ||||
| Financial liability on non-controlling interest | 11,984 | - | - | ||||
| Current portion of long-term debt | 20,405 | 14,201 | 500 | ||||
| 62,569 | 49,939 | 27,402 | |||||
| Long-term liabilities | |||||||
| Financial liability on non-controlling interest | - | 12,878 | 13,707 | ||||
| Long-term debt | 100,938 | 125,727 | 81,936 | ||||
| Total Liabilities | 163,507 | 188,546 | 123,045 | ||||
| Shareholder's equity | |||||||
| Share capital (Note 9) | 328,115 | 327,197 | 310,296 | ||||
| Share option reserve | 12,258 | 11,572 | 10,338 | ||||
| Accumulated deficit | (5,204 | ) | (12,370 | ) | (12,212 | ) | |
| Foreign currency translation reserve | 1,993 | (11,314 | ) | (8,209 | ) | ||
| 337,162 | 315,085 | 300,213 | |||||
| Non-controlling interest | 4,059 | 2,922 | 1,663 | ||||
| Total Liabilities and Equity | 504,728 | 506,551 | 424,921 | ||||
| Xtreme Drilling and Coil Services Corp. |
| Condensed Interim Consolidated Statements of Income (Loss) |
| For the three and nine months ended September 30, 2013 and 2012 |
| (in thousands of Canadian dollars, except share and per share data) |
| (unaudited) |
| Three months ended | Nine months ended | ||||||||
| Sep 30, 2013 |
Sep 30, 2012 |
Sep 30, 2013 |
Sep 30, 2012 |
||||||
| Revenue | 59,692 | 48,948 | 167,142 | 127,574 | |||||
| Expenses | |||||||||
| Operating expenses | 39,285 | 36,442 | 105,242 | 93,369 | |||||
| General and administrative expenses | 2,552 | 1,813 | 7,964 | 7,909 | |||||
| Impairment of accounts receivable | 72 | 6,235 | 72 | 6,235 | |||||
| Change in fair value of financial instrument | (656 | ) | (885 | ) | (894 | ) | (1,851 | ) | |
| Depreciation of property and equipment | 12,740 | 6,616 | 30,381 | 17,215 | |||||
| Amortization of intangibles | 76 | 76 | 228 | 228 | |||||
| Stock-based compensation | 536 | 141 | 966 | 1,172 | |||||
| Foreign exchange (gain) loss | (1,676 | ) | (3,103 | ) | 3,469 | (2,727 | ) | ||
| (Gain) loss on sale of equipment | (26 | ) | 135 | 5 | 143 | ||||
| Loss on damage of property and equipment | - | 538 | - | 538 | |||||
| Other expenses | 23 | 42 | 80 | 128 | |||||
| Interest expense | 1,495 | 2,512 | 5,278 | 5,511 | |||||
| Income (loss) before tax for the period | 5,271 | (1,614 | ) | 14,351 | (296 | ) | |||
| Tax expense | |||||||||
| Current | 1,451 | 991 | 3,063 | 2,774 | |||||
| Deferred | 539 | 330 | 3,280 | 237 | |||||
| Total tax expense | 1,990 | 1,321 | 6,343 | 3,011 | |||||
| Net income (loss) for the period | 3,281 | (2,935 | ) | 8,008 | (3,307 | ) | |||
| Net income (loss) attributable to | |||||||||
| Owners of the parent | 3,199 | (3,260 | ) | 7,166 | (4,320 | ) | |||
| Non-controlling interest | 82 | 325 | 842 | 1,013 | |||||
| 3,281 | (2,935 | ) | 8,008 | (3,307 | ) | ||||
| Net income (loss) per common share attributable to equity owners of the parent | |||||||||
| - basic | 0.04 | (0.05 | ) | 0.09 | (0.07 | ) | |||
| - diluted | 0.04 | (0.05 | ) | 0.09 | (0.07 | ) | |||
| Weighted average number of common shares | |||||||||
| - basic | 80,790,315 | 66,114,690 | 80,790,315 | 65,867,322 | |||||
| - diluted | 81,578,440 | 66,114,690 | 81,240,432 | 65,986,823 | |||||
| Xtreme Drilling and Coil Services Corp. |
| Condensed Interim Consolidated Statements of Comprehensive (Loss) Income |
| For the three and nine months ended September 30, 2013 and 2012 |
| (in thousands of Canadian dollars) |
| (unaudited) |
| Three months ended | Nine months ended | ||||||||
| Sep 30, 2013 |
Sep 30, 2012 |
Sep 30, 2013 |
Sep 30, 2012 |
||||||
| Net income (loss) for the period | 3,281 | (2,935 | ) | 8,008 | (3,307 | ) | |||
| Other comprehensive (loss) income | |||||||||
| Items that may be reclassified subsequently to net income | |||||||||
| Unrealized (loss) gain on translating financial statements of foreign operations | (8,480 | ) | (7,045 | ) | 13,602 | (5,842 | ) | ||
| Comprehensive (loss) income for the period | (5,199 | ) | (9,980 | ) | 21,610 | (9,149 | ) | ||
| Comprehensive (loss) income for the period attributable to: | |||||||||
| Owners of the parent | (5,046 | ) | (10,020 | ) | 20,474 | (9,893 | ) | ||
| Non-controlling interest | (153 | ) | 40 | 1,136 | 744 | ||||
| Comprehensive (loss) income for the period | (5,199 | ) | (9,980 | ) | 21,610 | (9,149 | ) | ||
| Xtreme Drilling and Coil Services Corp. |
| Condensed Interim Consolidated Statements of Changes in Equity |
| For the nine months ended September 30, 2013 and 2012 |
| (in thousands of Canadian dollars) |
| (unaudited) |
| Share capital |
Share option reserve |
Accumulated deficit |
Foreign currency translation reserve |
Equity attributable to the owners of the parent |
Non- controlling interest |
Total shareholders' equity |
||||||||
| Balance at January 1, 2012 | 310,296 | 10,338 | (4,325 | ) | (8,209 | ) | 308,100 | 7,483 | 315,583 | |||||
| Impact of restatement of financial liability | - | - | (7,887 | ) | (7,887 | ) | (5,820 | ) | (13,707 | ) | ||||
| 310,296 | 10,338 | (12,212 | ) | (8,209 | ) | 300,213 | 1,663 | 301,876 | ||||||
| Net (loss) income for the period | - | - | (4,320 | ) | - | (4,320 | ) | 1,013 | (3,307 | ) | ||||
| Other comprehensive income | ||||||||||||||
| Currency translation differences | - | - | - | (5,574 | ) | (5,574 | ) | (268 | ) | (5,842 | ) | |||
| Total comprehensive (loss) income | - | - | (4,320 | ) | (5,574 | ) | (9,894 | ) | 745 | (9,149 | ) | |||
| Employee shareoption scheme: | ||||||||||||||
| Value of employees services | 105 | 1,267 | - | - | 1,372 | - | 1,372 | |||||||
| Proceeds from shares issued | 16,833 | (105 | ) | - | - | 16,728 | - | 16,728 | ||||||
| Total transactions with owners | 16,938 | 1,162 | - | - | 18,100 | - | 18,100 | |||||||
| Balance at September 30, 2012 | 327,234 | 11,500 | (16,532 | ) | (13,783 | ) | 308,149 | 2,408 | 310,827 | |||||
| Balance at January 1, 2013 | 327,197 | 11,572 | (5,312 | ) | (11,314 | ) | 322,143 | 8,742 | 330,885 | |||||
| Impact of restatement of financial liability | - | - | (7,058 | ) | (7,058 | ) | (5,820 | ) | (12,878 | ) | ||||
| 327,197 | 11,572 | (12,370 | ) | (11,314 | ) | 315,085 | 2,922 | 318,007 | ||||||
| Net income for the period | - | - | 7,166 | - | 7,166 | 842 | 8,008 | |||||||
| Other comprehensive income | ||||||||||||||
| Currency translation differences | - | - | - | 13,307 | 13,307 | 295 | 13,602 | |||||||
| Total comprehensive income | - | - | 7,166 | 13,307 | 20,473 | 1,137 | 21,610 | |||||||
| Employee share option scheme: | ||||||||||||||
| Value of employee services | 281 | 967 | - | - | 1,248 | - | 1,248 | |||||||
| Proceeds from shares | ||||||||||||||
| Issued, net of issue costs | 637 | (281 | ) | - | - | 356 | - | 356 | ||||||
| Total transactions with owners | 918 | 686 | - | - | 1,604 | - | 1,604 | |||||||
| Balance at September 30, 2013 | 328,115 | 12,258 | (5,204 | ) | 1,993 | 337,162 | 4,059 | 341,221 |
| Xtreme Drilling and Coil Services Corp. |
| Condensed Interim Consolidated Statements of Cash Flows |
| For the nine months ended September 30, 2013 and 2012 |
| (in thousands of Canadian dollars) |
| (unaudited) |
| 2013 | 2012 | ||||
| Cash flow provided by: | |||||
| Operating activities | |||||
| Net income (loss) for the period | 8,008 | (3,307 | ) | ||
| Items not affecting cash: | |||||
| Depreciation and amortization | 30,609 | 17,442 | |||
| Stock-based compensation | 966 | 1,172 | |||
| Loss on sale of equipment | 5 | 143 | |||
| Change in fair value of financial instrument | (896 | ) | (1,851 | ) | |
| Impairment of accounts receivable | 72 | 6,235 | |||
| Interest expense | 5,120 | 4,632 | |||
| Amortization of debt issuance costs | 143 | 879 | |||
| Loss on damage of property and equipment | - | 538 | |||
| Unrealized foreign exchange loss (gain) | 3,469 | (2,727 | ) | ||
| Current tax expense | 3,063 | 2,774 | |||
| Deferred tax expense | 3,280 | 237 | |||
| Interest paid | (5,874 | ) | (4,258 | ) | |
| Changes in items of working capital | 7,988 | 17,389 | |||
| Net cash generated from operating activities | 55,953 | 39,298 | |||
| Financing activities | |||||
| Proceeds from shares issued | - | 16,367 | |||
| Proceeds from exercise of stock options | 650 | 255 | |||
| Proceeds from long-term debt | - | 65,133 | |||
| Repayment of long-term debt | (23,398 | ) | (5,213 | ) | |
| Repayment of operating facility | (7,834 | ) | - | ||
| Debt issuance cost | (22 | ) | (1,004 | ) | |
| Net cash (used in) generated from financing activities | (30,604 | ) | 75,538 | ||
| Investing activities | |||||
| Proceeds from sale of equipment | 569 | 673 | |||
| Capital expenditures | (19,169 | ) | (103,080 | ) | |
| Net cash used in investing activities | (18,600 | ) | (102,407 | ) | |
| Effect of exchange rate changes on cash and cash equivalents | (1,653 | ) | (640 | ) | |
| Increase in cash and cash equivalents | 5,096 | 11,789 | |||
| Cash and cash equivalents - beginning of period | 5,921 | 6,873 | |||
| Cash and cash equivalents - end of period | 11,017 | 18,662 | |||
| Xtreme Drilling and Coil Services Corp. |
| Reconciliation of EBITDA and Adjusted EBITDA |
| For the three and nine months ended September 30, 2013 and 2012 |
| (in thousands of Canadian dollars, except per share data) |
| (unaudited) |
| Three months ended | Nine months ended | ||||||||
| Sep 30, 2013 |
Sep 30, 2012 |
Sep 30, 2013 |
Sep 30, 2012 |
||||||
| Net income (loss) | 3,281 | (2,935 | ) | 8,008 | (3,307 | ) | |||
| Tax expense | 1,990 | 1,321 | 6,343 | 3,011 | |||||
| Interest expense | 1,495 | 2,512 | 5,278 | 5,511 | |||||
| Amortization of intangibles | 76 | 76 | 228 | 228 | |||||
| Depreciation of property and equipment | 12,740 | 6,616 | 30,381 | 17,215 | |||||
| EBITDA | 19,582 | 7,590 | 50,238 | 22,658 | |||||
| Three months ended | Nine months ended | ||||||||
| Sep 30, 2013 |
Sep 30, 2012 |
Sep 30, 2013 |
Sep 30, 2012 |
||||||
| EBITDA | 19,582 | 7,590 | 50,238 | 22,658 | |||||
| Adjustments for non-cash and one-time gains and losses | (1,799 | ) | (3,131 | ) | 3,626 | (2,597 | ) | ||
| Adjusted EBITDA | 17,783 | 4,459 | 53,864 | 20,061 | |||||
| Adjusted EBITDA per share ($) | 0.22 | 0.07 | 0.67 | 0.30 | |||||
| Net income (loss) per share ($) | 0.04 | (0.04 | ) | 0.10 | (0.05 | ) | |||
| Adjusted EBITDA attributable to: | |||||||||
| Owners of the parent | 17,686 | 4,063 | 52,596 | 18,766 | |||||
| Non-controlling interest | 97 | 396 | 1,268 | 1,295 | |||||
| 17,783 | 4,459 | 53,864 | 20,061 | ||||||
| Three months ended | Nine months ended | ||||||||
| Sep 30, 2013 |
Sep 30, 2012 |
Sep 30, 2013 |
Sep 30, 2012 |
||||||
| Stock-based compensation | 536 | 141 | 966 | 1,172 | |||||
| (Gain) loss on sale of equipment | (26 | ) | 135 | 5 | 143 | ||||
| Foreign exchange (gain) loss | (1,676 | ) | (3,103 | ) | 3,469 | (2,727 | ) | ||
| Change in fair value of financial instrument | (656 | ) | (885 | ) | (894 | ) | (1,851 | ) | |
| Loss on damage of property and equipment | - | 538 | - | 538 | |||||
| Other expense | 23 | 42 | 80 | 128 | |||||
| (1,799 | ) | (3,132 | ) | 3.626 | (2,597 | ) | |||
Contact Information:
Matt Porter
Chief Financial Officer
+1 281 994 4600
ir@xtremecoil.com
www.xtremecoil.com