Business
Trican Reports Second Quarter Results for 2020
Calgary, Alberta--(Newsfile Corp. - July 31, 2020) - Trican Well Service Ltd. (TSX: TCW) (" Tr...
About this update from Trican Well Service Ltd.
[{"type":"text","content":"Trican Reports Second Quarter Results for 2020Calgary, Alberta--(Newsfile Corp. - July 31, 2020) - Trican Well Service Ltd. (TSX: TCW) (\"Trican\" or the \"Company\") is pleased to announce its second quarter results for 2020. The following news release should be read in conjunction with Management's Discussion and Analysis (\"MD&A\"), the unaudited interim consolidated financial statements and related notes of Trican for the three and six months ended June 30, 2020, as well as the Annual Information Form for the year ended December 31, 2019. All of these documents are available on SEDAR at www.sedar.com.HIGHLIGHTSThe negative impact of the COVID-19 health pandemic and the commodity price collapse (collectively \"Market Events\"), outlined in our April 6, 2020 news release and in our Q1 2020 MD&A continue to significantly affect the industry and the Company. Trican has adapted quickly to the changing market conditions, and we are confident that our resilient culture will carry the Company through these unprecedented times. Financial position and liquidity:Cash and cash equivalents of $26.4 million (December 31, 2019 - $7.2 million); Positive non-cash working capital of $47.8 million which includes $14.5 million of assets held for sale (December 31, 2019 - $132.6 million which includes $38.1 million of assets held for sale); Long-term loans and borrowings were fully repaid in Q2 2020 as a result of significant accounts receivable collections during Q2 (Long-term loans and borrowings at December 31, 2019 - $46.2 million);Key cost and discretionary spending plan adjustments implemented in late March 2020 helped mitigate cash burn in the seasonally slow second quarter;$5.0 million was recognized in relation to the Canada Emergency Wage Subsidy (\"CEWS\") as part of the federal government of Canada's response to the COVID-19 health pandemic.  If the CEWS was not available, the Corporation would have made more significant personnel reductions to mitigate second quarter negative financial results;Planned capital expenditures have been and will continue to be limited to only necessary sustaining expenditures, estimated at less than 4% of revenue;At June 30, 2020 the outstanding share balance was 264,726,435 which includes the repurchase and cancellation of 6,763,600 shares in 2020 at a weighted average price per s...