Business
Trican Reports First Quarter Results for 2020
Calgary, Alberta--(Newsfile Corp. - May 14, 2020) - Trican Well Service Ltd. (TSX: TCW) (" Tri...
About this update from Trican Well Service Ltd.
[{"type":"text","content":"Trican Reports First Quarter Results for 2020Calgary, Alberta--(Newsfile Corp. - May 14, 2020) - Trican Well Service Ltd. (TSX: TCW) (\"Trican\" or the \"Company\") is pleased to announce its first quarter results for 2020. The following news release should be read in conjunction with Management's Discussion and Analysis, the unaudited interim consolidated financial statements and related notes of Trican for the three months ended March 31, 2020, as well as the Annual Information Form for the year ended December 31, 2019. All of the above documents are available on SEDAR at www.sedar.com.HIGHLIGHTSConsolidated revenue from continuing operations for Q1 2020 was $191.8 million, a $45.8 million decrease compared to Q1 2019. Adjusted EBITDA1 for Q1 2020 would have been $24.8 million (13% adjusted EBITDA margin), excluding the effect of $10.6 million for an impairment of trade receivables and $4.7 million severance costs. Both expenditures were primarily a result of COVID-19 and oil production increases by OPEC in March (collectively \"Market Events\"). Adjusted EBITDA1 for Q1 2020 was $9.5 million, which includes $4.0 million in expenses for stainless steel fluid ends. Q1 2019 adjusted EBITDA was $26.4 million, which includes $1.7 million of severance costs and $1.6 million in expenses for stainless steel fluid ends.Approximately $157 million of impairment and other expenses primarily resulting from Market Events were the major contributor to the Q1 2020 net loss of $155.0 million (Q1 2019 - net loss of $6.6 million). The Q1 2020 net loss was affected by $141.1 million of impairment of non-financial assets, $10.6 million of impairment of trade receivables, and $4.7 million of severance expenditures. These expenses were primarily a result of the Market Events that occurred late in the first quarter. The sale of surplus assets and the Fluid management business in Q1 2020 generated $14.5 million (Q1 2019 - $4.5 million) in proceeds which strengthened our financial position and allowed for continued investment in our core business and Normal Course Issuer Bid (\"NCIB\") program. Operating cash flow during the quarter of $13.4 million (Q1 2019: $3.2 million)Financial position and liquidity at March 31, 2020:Cash and cash equivalents of $28.3 million (December 31, 2019 - $7.2 million). Positive non-cash working capital of $107.4 million w...