CALGARY, April 28 /CNW/ - AKITA Drilling Ltd.'s net earnings for the three months ended March 31, 2009 were $3,908,000 or $0.21 per share on revenue of $41,696,000. Comparative figures for 2008 were earnings of $7,647,000 or $0.42 per share on revenue of $47,382,000. Funds flow from continuing operations for the period was $12,051,000 compared to $14,274,000 in 2008.
Weak market conditions continued into the first quarter of 2009, resulting in the lowest rig utilization for a first quarter in AKITA's history. Operating statistics for the first three months of 2009 and 2008 are as follows:
Number of
Number of Rigs Wells Operating
Gross Net Drilled Days
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Canada 2009 38 35.725 156 1,472
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2008 38 34.575 280 2,001
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United States 2009 3 1.5 4 201
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2008 3 1.5 1 58
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Total 2009 41 37.225 160 1,673
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2008 41 36.075 281 2,059
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On April 4, 2009, the Company's management and employees were recognized for their achievement in safety by being awarded a CAODC Safety Leadership Award at the Annual CAODC Safety Banquet. This was the ninth time in the past ten years that AKITA's safety performance has been recognized by the industry.
There are no obvious signs of an imminent improvement in drilling activity for the balance of this year. The Company is well positioned financially and has a broad range of first-class equipment and personnel to meet our customer requirements once drilling conditions improve. Management has placed an emphasis on ensuring its actions remain the most appropriate to maintain the Company's mandate of being the best drilling contractor in the markets that it serves.
Selected financial information for the Company is as follows:
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Consolidated Balance Sheets
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Unaudited March 31 December 31
($000's) 2009 2008 2008
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Assets
Current assets
Cash and cash equivalents $ 46,347 $ 39,841 $ 42,168
Accounts receivable 45,608 40,450 41,534
Income taxes recoverable 29 - -
Other 1,842 1,550 1,123
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93,826 81,841 84,825
Restricted cash 5,000 5,000 5,000
Capital assets 153,794 147,575 153,044
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$ 252,620 $ 234,416 $ 242,869
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Liabilities
Current liabilities
Accounts payable and accrued
liabilities $ 22,071 $ 15,902 $ 20,061
Deferred revenue 3,777 1,741 -
Dividends payable 1,276 1,279 1,276
Income taxes payable - 1,147 399
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27,124 20,069 21,736
Future income taxes 20,384 16,200 18,818
Pension liability 3,872 3,674 3,854
Class A and Class B Shareholders'
Equity
Class A and Class B shares 23,327 23,369 23,312
Contributed surplus 2,271 1,177 2,271
Accumulated other comprehensive income 132 - -
Retained earnings 175,510 169,927 172,878
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201,240 194,473 198,461
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$ 252,620 $ 234,416 $ 242,869
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Consolidated Statements of Earnings and Retained Earnings
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Unaudited Three Months
($000's except per share amounts) Ended March 31
2009 2008
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Revenue $ 41,696 $ 47,382
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Costs and expenses
Operating and maintenance 25,150 27,315
Depreciation 6,580 5,484
Selling and administrative 4,396 4,267
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Revenue less costs and expenses 5,570 10,316
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Other income
Interest income 215 477
Gain on sale of joint venture interests
in rigs and other assets 21 17
Gain on foreign currency translation 2 67
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238 561
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Earnings before income taxes 5,808 10,877
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Income taxes
Current 334 2,202
Future 1,566 1,145
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1,900 3,347
Earnings from continuing operations 3,908 7,530
Discontinued operations, net of tax - 117
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Net Earnings 3,908 7,647
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Retained earnings, beginning of period 172,878 163,559
Dividends declared (1,276) (1,279)
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Retained Earnings, End of Period $ 175,510 $ 169,927
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Earnings per Class A and Class B Share
Basic $ 0.21 $ 0.42
Diluted $ 0.21 $ 0.42
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Consolidated Statements of Cash Flows
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Unaudited Three Months
($000's) Ended March 31
2009 2008
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Operating Activities
Earnings from continuing operations $ 3,908 $ 7,530
Non-cash items included in earnings
Depreciation 6,580 5,484
Future income taxes 1,566 1,145
Expense for defined benefit pension plan 18 65
Stock options charged to expense - 67
Gain on sale of joint venture interests
in rigs and other assets (21) (17)
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Funds flow from continuing operations 12,051 14,274
Cash provided from discontinued operations - 184
Change in non-cash working capital (793) (15,783)
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11,258 (1,325)
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Investing Activities
Capital expenditures (7,358) (554)
Proceeds on sale of joint venture interests
in rigs and other assets 49 24
Change in non-cash working capital 1,359 (191)
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(5,950) (721)
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Financing Activities
Dividends paid (1,276) (1,279)
Proceeds received on exercise of stock options 15 -
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(1,261) (1,279)
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Foreign currency translation 132 -
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Increase (Decrease) in Cash 4,179 (3,325)
Cash position, beginning of period 42,168 43,166
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Cash Position, End of Period $ 46,347 $ 39,841
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Interest paid during the period $ 7 $ 8
Income taxes paid during the period $ 761 $ 1,985
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Consolidated Statements of Comprehensive Income
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Unaudited Three Months
($000's) Ended March 31
2009 2008
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Net Earnings $ 3,908 $ 7,647
Other comprehensive income
Foreign currency translation adjustment 132 -
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Comprehensive Income $ 4,040 $ 7,647
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