CALGARY, ALBERTA--(Marketwired - Nov. 5, 2014) - Xtreme Drilling and Coil Services ("Xtreme" or the "Company") (TSX:XDC) announces summary results for the three and nine months ended September 30, 2014. It is anticipated the Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis will be filed on SEDAR on Thursday, November 6, 2014.
Highlights - Q3 2014
- Revenue was $65.9 million in the third quarter of 2014, or an increase of 6% over the previous quarter. The increase in revenue for the quarter was a result of increased operating days in each segment. Overall revenue per operating day decreased to $30.4 thousand from $35.0 thousand in the second quarter. The decrease is primarily attributed to lower mobilization revenue for the rigs deployed to India in the second quarter. The US XSR division offset the decline as revenue per day increased to $58.6 thousand from $58.4 thousand in the second quarter.
- Adjusted EBITDA was $18.3 million for the third quarter, a decrease of 6% from the previous quarter and an increase of 3% over the third quarter of 2013. The decrease from the prior quarter was primarily due to lower revenue related to the deployment of rigs to India as well as startup expenses in the operation. It is anticipated that operating margin will significantly improve in the fourth quarter as the India rigs contribute revenue for the entire quarter and achieve normalized operating expense. In October utilization was 95%, up from 55% in the third quarter.
- The Company significantly increased term contracted days by recently signing four new contracts in the XDR drilling division. The four new contracts added a total of 1,640 operating days with an average increase of 7.8% in pricing. This brings the total contracted days to approximately 5,700 days for the 21 rig XDR fleet and approximately 1,340 days across the seven unit XSR fleet. The total contracted days are currently approximately 7,040 and represent revenue of approximately $225 - $235 million CAD.
- The Company had 2,173 operating days, or 394 more days than the second quarter of 2014. This resulted in a utilization rate of 88% for the fleet of 21 XDR drilling rigs and 7 XSR coiled tubing units.
- The drilling segment achieved utilization of 92% on 1,784 operating days. This is comprised of a 96% utilization rate for both the US XDR fleet and the Canadian XDR fleet and a 55% utilization rate for the India XDR fleet. The two rigs in India began operations in late July and mid-August, respectively, and had 103 operating days for the quarter. The US XDR division had two rigs that were down for a portion of the quarter for major inspections and upgrades.
- For the third quarter, the coil services segment achieved utilization of 73% on 379 operating days. This is comprised of a 98% utilization rate for both Saudi XSR units and a 75% utilization rate for the four operating US XSR units. Included in the total coil services utilization is one idle unit that is targeted for the Middle East market and not actively marketed in the United States.
- Income before taxes was $4.3 million during the third quarter. Tax expense for the quarter included $1.2 million of income taxes based on an estimated effective tax rate of 23.9% and $2.2 million of discrete items, such as withholding taxes, non-income based taxes and other items. Net Income was $853 thousand for the quarter, or $.01 per fully diluted share.
- The Company paid down an additional $3.4 million in debt during the quarter. This brings the total amount of debt paid down to $9.4 million for 2014. Xtreme's $150 million credit facility is denominated in USD and translated to CAD for financial reporting purposes. As such, net debt at quarter end was approximately $105 million USD and $116.8 million when converted to CAD. Xtreme exited the quarter with approximately $37.0 million available on the Company's revolving credit facility and working capital of $39.3 million. Capital expenditures totaled $23.7 million for the quarter and $54.1 million through the first nine months of 2014. Approximately $6.0 million of the year to date capital spend relates to deposits for 2015 capital expenditures. The target full year 2014 capital budget stands at $60.0 million plus the previously funded $13.2 million buyout of a minority partner in Saudi Arabia.
Selected Quarterly Financial Information (unaudited)
Three months ended | Sep 30, 2014 |
Jun 30, 2014 |
Mar 31, 2014 |
Dec 31, 2013 |
||
Revenue | 65,980 | 62,299 | 69,703 | 62,681 | ||
Adjusted EBITDA (see below) | 18,299 | 19,421 | 20,635 | 19,734 | ||
Adjusted EBITDA as a percentage of Revenue | 28 | 31 | 30 | 31 | ||
Adjusted EBITDA per share - basic ($) | 0.22 | 0.24 | 0.25 | 0.24 | ||
Net income (loss) | 853 | (902 | ) | 2,896 | (7,441 | ) |
Net income (loss) per share - basic ($) | 0.01 | (0.01 | ) | 0.04 | (0.09 | ) |
Capital assets | 443,304 | 413,296 | 423,204 | 412,523 | ||
Total assets | 536,713 | 513,651 | 532,116 | 515,720 | ||
Net debt (total debt less cash) | 116,768 | 105,358 | 125,389 | 116,856 | ||
Operating days | 2,173 | 1,779 | 2,130 | 2,141 | ||
Utilization (percentage) - XDR | 92 | 75 | 90 | 93 | ||
Utilization (percentage) - XSR | 73 | 68 | 78 | 76 | ||
Utilization (percentage) - Total | 88 | 73 | 88 | 90 | ||
Weighted average rigs in service | 28.0 | 28.0 | 28.0 | 28.0 | ||
Total rigs, end of quarter | 28 | 28 | 28 | 28 | ||
Sep 30, 2013 |
Jun 30, 2013 |
Mar 31, 2013 |
Dec 31, 2012 |
|||
Revenue | 59,692 | 53,268 | 54,182 | 51,813 | ||
Adjusted EBITDA (see below) | 17,783 | 16,847 | 19,234 | 15,029 | ||
Adjusted EBITDA as a percentage of Revenue | 30 | 32 | 35 | 29 | ||
Adjusted EBITDA per share(1) - basic ($) | 0.22 | 0.21 | 0.24 | 0.19 | ||
Net income (loss) | 3,281 | 239 | 4,487 | 4,579 | ||
Net income (loss) per share - basic ($) | 0.04 | 0.00 | 0.06 | 0.06 | ||
Capital assets | 416,887 | 431,294 | 417,431 | 415,354 | ||
Total assets | 504,728 | 520,326 | 508,823 | 506,551 | ||
Net debt (total debt less cash) | 110,326 | 127,977 | 130,014 | 141,841 | ||
Operating days | 2,062 | 1,911 | 1,949 | 1,891 | ||
Utilization (percentage) - XDR | 90 | 85 | 89 | 85 | ||
Utilization (percentage) - XSR | 76 | 65 | 60 | 58 | ||
Utilization (percentage) - Total | 87 | 81 | 83 | 80 | ||
Weighted average rigs in service | 28.0 | 28.0 | 28.0 | 26.8 | ||
Total rigs, end of quarter | 28 | 28 | 28 | 28 |
Excerpt from Management's Discussion and Analysis
For the three and nine months ended September 30, 2014
Outlook
Xtreme continues to see strong demand for horizontal drilling and coil services across its core United States operating areas of the Eagle Ford, Bakken and Niobrara as well as internationally in Saudi Arabia and India. This sentiment has been reinforced recently by several large service companies that highlighted the market for horizontal drilling and completions continues to increase as horizontal length, frac stages and service intensity are all expanding.
In an environment of falling oil prices, Xtreme is cautiously optimistic and well positioned if a softening in service activity does occur. This is based on Management's belief that service companies with the best combination of new technology, high quality customers and exposure to the highest return resource plays will maintain utilization and pricing. In a lower oil price environment operators are likely to allocate their capital dollars to core areas and reduce activity in lower quality areas. Xtreme currently operates in basins that are widely believed to be among the highest rate of return basins in North America. In addition, the largest customers in both the XDR and XSR segments are among the top three operators in each basin or have investment grade credit ratings. These customers represented 54% of total revenue for the third quarter and 73% of total backlogged days. Early indication from these clients suggests that activity levels will likely remain flat to marginally higher over the next four quarters.
XDR Drilling Segment
In the XDR division the strong demand sentiment has been reinforced by four new term XDR drilling contracts signed in the last 30 days for XDR 500 rigs operating in the Niobrara and Bakken. On average, the pricing increased by 7.8% with an average duration of 14 months per contract. Xtreme has three additional rigs that are up for renewal in the first quarter of 2015 and anticipates increased pricing on these rigs as well. As of October 31, 2014, the 16 rig US XDR division has approximately 4,800 days in term days contracted with an approximate revenue value of $130 - $140 million CAD.
The XDR drilling fleet includes 21 AC electric rigs that are comprised of 13 XDR 400/500 rigs, four XDR 300 rigs and four XDR 200 rigs. The XDR 400/500 rigs are ideal for the horizontal drilling market as they are AC electric and have a drilling depth capacity in excess of 18,000'. These 13 rigs now represent 82% of the 5,700 total contracted days for the XDR fleet and 66% of the 7,040 total days that Xtreme currently has under long term take or pay contracts.
The much discussed bifurcation in the drilling market has been both from a technology and efficiency perspective as well as drilling depth capacity. As such, Xtreme has aggressively analyzed new opportunities for the XDR 200 and 300 fleet of rigs; both of which have slightly lower drilling depth capacities. The first opportunity to redeploy this class of rig was in the middle of 2014. During the second and third quarters two XDR 300 rigs were modified and mobilized to India on a long term contract at significantly higher rates than could be achieved in the US or Canadian markets. Operations in India began in the third quarter and the operation had a strong October with utilization of 95% on both of the rigs. The Company anticipates that margins will continue to improve in the fourth quarter as activity levels increase and no additional startup costs are anticipated.
Xtreme continues to actively market two XDR 300 rigs and one XDR 200 rig in the United States as well as three XDR 200 rigs in Canada. These six rigs are the most susceptible rigs in the fleet to a slowdown in E&P spending due to their shallower drilling depth capacity. Management believes these rigs will continue to work; however, it will likely be at lower utilization levels. A key focus will be to optimize the performance and financial return of these rigs.
XSR Coil Services Segment
The trend of longer lateral wells continued in the third quarter for the XSR coil service segment. Demand and pricing remained strong in the Eagle Ford as revenue averaged more than $53,000 USD per operating day. Discussions with customers indicate that activity levels and pricing should remain strong in spite of the recent dip in oil prices.
Operators now recognize the value of large diameter coiled tubing and, as such, the numbers of units with 2 3/8" coil or larger has increased in South Texas. Although new large diameter units have entered the market, management continues to believe that Xtreme holds a clear competitive advantage. All of the current XSR units are fully AC electric with proprietary programmable logic controls and 2 5/8" coiled tubing that can reach up to 22,500' in horizontal wells. No other coiled tubing service provider in the market can provide this type of package to oil and gas operators. In addition, Xtreme has more than two and half years of operating experience in the Eagle Ford with large diameter coiled tubing and has performed more than 300 jobs and 23 million run in feet with prolonged success. The ability to perform routine to complex coiled tubing operations at any depth or well profile continues to set Xtreme apart from other service providers.
The eight unit XSR new build program is progressing very well. The first unit will be delivered in November with the second unit in December. The remaining six units are on schedule to be delivered quarterly through mid-2016. The Company has the flexibility to increase or decrease the new build program depending on market conditions. The total build time is approximately six months from start to field delivery of each unit.
In addition to delivering the units on time, it is estimated that the cost of each unit will be below the initial forecast of $8.5 million. This represents a capital savings and ultimately improves the financial return profile of each unit. As part of the new build process, the Company began staffing and training for the new XSR units in the third quarter. This modestly impacted operating margins in the XSR segment and is anticipated to continue through the next four quarters.
In Saudi Arabia, the two XSR units on the coiled tubing drilling project recently set a record for most lateral footage drilled in a month. This is another impressive technical accomplishment on this four year project. The current contract has 21 months remaining per unit with an additional 12 month customer option. Based on the success of the project, Xtreme continues to place a high priority on adding additional units in Saudi Arabia.
Third Quarter Results and Conference Call
The Company will conduct an investor conference call on Thursday, November 6, 2014 at 10:00 am MT, 11:00 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.
+1 800-446-4472 (North America Toll‐Free) or +1 416-340-2220 (Alternate)
Webcast Link: www.gowebcasting.com/5926
An audio replay of the call will be available until Thursday, November 13, 2014. To access the replay, call +1 800‐408‐3053 or +1 905‐694‐9451 and enter pass code 2387478.
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, 2014, 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 crude oil and natural gas 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 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.
In preparing this news release, management considered the following risk factors: fluctuations in crude oil and natural gas prices, supply and demand; fluctuation in foreign currency exchange and interest rates; financial stability of Xtreme's customers; current and future applications for Xtreme's proprietary technology; competition from other drilling contractors; regulatory and economic conditions in regions where Xtreme operates; environmental constraints; changes to government legislation; international trade barriers or restrictions; and, where appropriate, global political and military events.
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
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 (XDR) and Coil Services (XSR) under contracts with oil and natural gas exploration and production companies and integrated oilfield service providers in Canada, the United States, Saudi Arabia and India. For more information about the Company, please visit www.xtremecoil.com.
Xtreme Drilling and Coil Services Corp. |
Interim Consolidated Statements of Financial Position |
(in thousands of Canadian dollars) |
(unaudited) |
Sep 30, 2014 |
Dec 31, 2013 |
||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 9,628 | 12,220 | |||
Accounts receivable | 54,624 | 60,084 | |||
Other receivables | 253 | 1,306 | |||
Prepaid expenses and other | 2,403 | 2,491 | |||
Income tax recoverable | - | 462 | |||
Inventory | 10,839 | 8,181 | |||
77,747 | 84,744 | ||||
Non-current assets | |||||
Deferred tax asset | 11,973 | 14,536 | |||
Property and equipment | 443,304 | 412,523 | |||
Intangible assets | 3,689 | 3,917 | |||
Total Assets | 536,713 | 515,720 | |||
Liabilities and Equity | |||||
Current liabilities | |||||
Accounts payable and accrued liabilities | 41,939 | 28,051 | |||
Income tax payable | 789 | - | |||
Fair value of non-controlling interest liability | - | 12,763 | |||
Current portion of provision | 1,680 | - | |||
Current portion of long-term debt | - | 669 | |||
44,408 | 41,483 | ||||
Long-term liabilities | |||||
Fair value of non-controlling interest liability | - | 1,596 | |||
Long-term debt | 126,396 | 128,407 | |||
Total Liabilities | 170,804 | 171,486 | |||
Shareholders' equity | |||||
Share capital | 331,169 | 328,416 | |||
Share option reserve | 13,728 | 12,419 | |||
Accumulated deficit | (10,229 | ) | (12,697 | ) | |
Foreign currency translation reserve | 31,241 | 15,143 | |||
365,909 | 343,281 | ||||
Non-controlling interest | - | 953 | |||
Total Shareholders' Equity | 365,909 | 344,234 | |||
Total Liabilities and Shareholders' Equity | 536,713 | 515,720 | |||
Xtreme Drilling and Coil Services Corp. |
Interim Consolidated Statements of Income |
For the three and nine months ended September 30, 2014 and 2013 |
(in thousands of Canadian dollars, except share and per share data) |
(unaudited) |
Three months ended | Nine months ended | ||||||
Sep 30, 2014 |
Sep 30, 2013 |
Sep 30, 2014 |
Sep 30, 2013 |
||||
Revenue | 65,980 | 59,692 | 197,982 | 167,142 | |||
Expenses | |||||||
Operating expenses | 44,102 | 39,285 | 127,552 | 105,242 | |||
General and administrative expenses | 3,579 | 2,552 | 12,075 | 7,964 | |||
Impairment of accounts receivable | - | 72 | - | 72 | |||
Change in fair value of non-controlling interest liability | - | (656 | ) | - | (894 | ) | |
Depreciation of property and equipment | 11,524 | 12,740 | 38,082 | 30,381 | |||
Amortization of intangibles | 76 | 76 | 228 | 228 | |||
Stock-based compensation | 799 | 536 | 2,186 | 966 | |||
Foreign exchange loss (gain) | 124 | (1,676 | ) | 199 | 3,469 | ||
Loss (gain) on disposal of equipment | 421 | (26 | ) | 4,324 | 5 | ||
Other expenses | 6 | 23 | 18 | 80 | |||
Interest expense | 1,052 | 1,495 | 3,344 | 5,278 | |||
Income before tax for the period | 4,297 | 5,271 | 9,974 | 14,351 | |||
Tax expense | |||||||
Current | 2,402 | 1,451 | 4,905 | 3,063 | |||
Deferred | 1,042 | 539 | 2,222 | 3,280 | |||
Total tax expense | 3,444 | 1,990 | 7,127 | 6,343 | |||
Net income for the period | 853 | 3,281 | 2,847 | 8,008 | |||
Net income attributable to | |||||||
Owners of the parent | 853 | 3,199 | 2,847 | 7,166 | |||
Non-controlling interest | - | 82 | - | 842 | |||
853 | 3,281 | 2,847 | 8,008 | ||||
Net income per common share attributable to equity owners of the parent | |||||||
- basic | 0.01 | 0.04 | 0.03 | 0.10 | |||
- diluted | 0.01 | 0.04 | 0.03 | 0.10 | |||
Weighted average number of common shares | |||||||
- basic | 81,755,211 | 80,870,535 | 81,513,030 | 80,817,347 | |||
- diluted | 82,627,732 | 81,578,440 | 82,443,110 | 81,240,432 | |||
Xtreme Drilling and Coil Services Corp. |
Interim Consolidated Statements of Comprehensive Income (Loss) |
For the three and nine months ended September 30, 2014 and 2013 |
(in thousands of Canadian dollars) |
(unaudited) |
Three months ended | Nine months ended | ||||||
Sep 30, 2014 |
Sep 30, 2013 |
Sep 30, 2014 |
Sep 30, 2013 |
||||
Net income for the period | 853 | 3,281 | 2,847 | 8,008 | |||
Other comprehensive income (loss) | |||||||
Items that may be subsequently reclassified to profit or loss | |||||||
Unrealized gain (loss) on translating financial statements of foreign operations | 15,527 | (8,480 | ) | 16,098 | 13,602 | ||
Dividends declared to non-controlling interest partner | - | - | (1,332 | ) | - | ||
Comprehensive income (loss) for the period | 16,380 | (5,199 | ) | 17,613 | 21,610 | ||
Xtreme Drilling and Coil Services Corp. |
Interim Consolidated Statements of Changes in Equity |
For the nine months ended September 30, 2014 and 2013 |
(in thousands of Canadian dollars) |
(unaudited) |
Equity attributable to the owners of the parent | ||||||||||||||||
Share capital |
Share option reserve |
Accumulated deficit |
Foreign currency translation reserve |
Total | Non- controlling interest |
Total Shareholders' Equity |
||||||||||
Balance at Jan 1, 2013 | 327,197 | 11,572 | (12,370 | ) | (11,314 | ) | 315,085 | 2,922 | 318,007 | |||||||
Net income for the year | - | - | 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 | 637 | (281 | ) | - | - | 356 | - | 356 | ||||||||
Total transactions with owners | 918 | 686 | - | - | 1,604 | - | 1,604 | |||||||||
Balance at Sep 30, 2013 | 328,115 | 12,258 | (5,204 | ) | 1,993 | 337,162 | 4,059 | 341,221 | ||||||||
Balance at Jan 1, 2014 | 328,416 | 12,419 | (12,697 | ) | 15,143 | 343,281 | 953 | 344,234 | ||||||||
Net income for the year | - | - | 2,847 | - | 2,847 | - | 2,847 | |||||||||
Other comprehensive income | ||||||||||||||||
Currency translation differences | - | - | - | 16,098 | 16,098 | - | 16,098 | |||||||||
Dividends declared to non-controlling interest partner | - | - | - | - | - | (1,332 | ) | (1,332 | ) | |||||||
Settlement for the purchase of non-controlling interest partner | - | - | (379 | ) | - | (379 | ) | 379 | - | |||||||
Total comprehensive income | - | - | 2,468 | 16,098 | 18,566 | (953 | ) | 17,613 | ||||||||
Employee share option scheme: | ||||||||||||||||
Value of employee services | 889 | 2,198 | - | - | 3,087 | - | 3,087 | |||||||||
Proceeds from shares issued | 1,864 | (889 | ) | - | - | 975 | - | 975 | ||||||||
Total transactions with owners | 2,753 | 1,309 | - | - | 4,062 | - | 4,062 | |||||||||
Balance at Sep 30, 2014 | 331,169 | 13,728 | (10,229 | ) | 31,241 | 365,909 | - | 365,909 | ||||||||
Xtreme Drilling and Coil Services Corp. |
Interim Consolidated Statements of Cash Flows |
For the nine months ended September 30, 2014 and 2013 |
(in thousands of Canadian dollars) |
(unaudited) |
2014 | 2013 | ||||
Cash flow provided by: | |||||
Operating activities | |||||
Net income for the period | 2,847 | 8,008 | |||
Items not affecting cash: | |||||
Depreciation and amortization | 38,310 | 30,609 | |||
Stock-based compensation | 2,186 | 966 | |||
Loss on disposal of equipment | 4,324 | 5 | |||
Provision for doubtful accounts | (110 | ) | - | ||
Change in fair value of non-controlling interest liability | - | (894 | ) | ||
Interest expense | 3,344 | 5,120 | |||
Amortization of debt issuance costs | 338 | 143 | |||
Foreign exchange loss | 199 | 3,469 | |||
Current tax expense | 4,905 | 3,063 | |||
Deferred tax expense | 2,222 | 3,280 | |||
Interest paid | (2,438 | ) | (5,874 | ) | |
Taxes paid | (2,495 | ) | - | ||
Changes in items of working capital | 11,995 | 6,334 | |||
Net cash generated from operating activities | 65,627 | 54,301 | |||
Financing activities | |||||
Proceeds from exercise of stock options | 1,864 | 650 | |||
Repayment of long-term debt | (9,366 | ) | (23,398 | ) | |
Repayment of operating facility | - | (7,834 | ) | ||
Debt issuance cost | (96 | ) | (22 | ) | |
Net cash used in financing activities | (7,598 | ) | (30,604 | ) | |
Investing activities | |||||
Proceeds from sale of equipment | 1,067 | 569 | |||
Capital expenditures | (54,106 | ) | (19,169 | ) | |
Buyout of non-controlling interest partner | (13,263 | ) | - | ||
Changes in items of working capital relating to capital items | 8,380 | 1,654 | |||
Net cash used in investing activities | (57,922 | ) | (16,946 | ) | |
Effect of exchange rate changes on cash and cash equivalents | (2,699 | ) | (1,655 | ) | |
(Decrease) Increase in cash and cash equivalents | (2,592 | ) | 5,096 | ||
Cash and cash equivalents - beginning of period | 12,220 | 5,921 | |||
Cash and cash equivalents - end of period | 9,628 | 11,017 | |||
Xtreme Drilling and Coil Services Corp. |
Reconciliation of Adjusted EBITDA |
For the three and nine months ended September 30, 2014 and 2013 |
(in thousands of Canadian dollars, except per share data) |
(unaudited) |
Three months ended | Nine months ended | ||||
Sep 30, 2014 |
Sep 30, 2013 |
Sep 30, 2014 |
Sep 30, 2013 |
||
Net income | 853 | 3,281 | 2,847 | 8,008 | |
Tax expense | 3,444 | 1,990 | 7,127 | 6,343 | |
Interest expense | 1,052 | 1,495 | 3,344 | 5,278 | |
Amortization of intangibles | 76 | 76 | 228 | 228 | |
Depreciation of property and equipment | 11,524 | 12,740 | 38,082 | 30,381 | |
EBITDA | 16,949 | 19,582 | 51,628 | 50,238 | |
Three months ended | Nine months ended | ||||
Sep 30, 2014 |
Sep 30, 2013 |
Sep 30, 2014 |
Sep 30, 2013 |
||
EBITDA | 16,949 | 19,582 | 51,628 | 50,238 | |
Adjustments for non-cash items | 1,350 | (1,799 | ) | 6,727 | 3,636 |
Adjusted EBITDA | 18,299 | 17,783 | 58,355 | 53,864 | |
Adjusted EBITDA per share ($) | 0.22 | 0.22 | 0.72 | 0.67 | |
Net income per share ($) | 0.01 | 0.04 | 0.03 | 0.10 | |
Three months ended | Nine months ended | |||||
Sep 30, 2014 |
Sep 30, 2013 |
Sep 30, 2014 |
Sep 30, 2013 |
|||
Stock-based compensation | 799 | 536 | 2,186 | 966 | ||
Loss (gain) on disposal of equipment | 421 | (26 | ) | 4,324 | 5 | |
Foreign exchange loss (gain) | 124 | (1,676 | ) | 199 | 3,469 | |
Change in fair value of non-controlling interest liability | - | (656 | ) | - | (894 | ) |
Other expense | 6 | 23 | 18 | 80 | ||
Total adjustments for non-cash items | 1,350 | (1,799 | ) | 6,727 | 3,626 |
Contact Information:
Matt Porter
Chief Financial Officer
+1 281 994 4604
ir@xtremecoil.com
www.xtremecoil.com