The Company announces annual results for the year ended
CONSOLIDATED FINANCIAL HIGHLIGHTS
$Thousands except per share amounts | 2021 | 2020 | Change | % Change | |||
Revenue | 110,088 | 119,664 | (9,576) | (8%) | |||
Operating expenses | 89,835 | 91,855 | (2,020) | (2%) | |||
Operating margin(1) | 20,253 | 27,809 | (7,556) | (27%) | |||
Margin %(1) | 18% | 23% | (5%) | (22%) | |||
(3,461) | 22,860 | (26,321) | (115%) | ||||
Adjusted funds flow from operations(1) | 7,454 | 10,322 | (2,868) | (28%) | |||
Per share | 0.19 | 0.26 | (0.07) | (27%) | |||
Net loss | 20,990 | 93,274 | (72,284) | (77%) | |||
Per share | 0.53 | 2.35 | (1.82) | (77%) | |||
Capital expenditures | 16,416 | 7,593 | 8,823 | 116% | |||
Weighted average shares outstanding | 39,608 | 39,608 | - | 0% | |||
Total assets | 247,574 | 251,521 | (3,947) | (2%) | |||
Total debt | 86,156 | 74,303 | 11,853 | 16% | |||
(1) See "Non-GAAP and Supplementary Financial Measures" near the end of this new release for further detail. |
United States Operations
$ Thousands except per day amounts (CAD) | 2021 | 2020 | Change | % Change | ||
Revenue US | 81,798 | 91,198 | (9,400) | (10%) | ||
Flow through charges | (10,374) | (10,821) | 447 | 4% | ||
Adjusted revenue US(1) | 71,424 | 80,377 | (8,953) | (11%) | ||
Operating and maintenance expenses US | 68,371 | 70,901 | (2,530) | (4%) | ||
Flow through charges | (10,374) | (10,821) | 447 | 4% | ||
Adjusted operating and maintenance expenses US(1) | 57,997 | 60,080 | (2,083) | (3%) | ||
Adjusted operating margin(1) | 13,427 | 20,297 | (6,870) | (34%) | ||
Margin % (1) | 19% | 25% | (6%) | (24%) | ||
Operating days | 2,871 | 2,555 | 316 | 12% | ||
Adjusted revenue per operating day(1) | 24,878 | 31,459 | (6,581) | (21%) | ||
Adjusted operating and maintenance per operating day(1) | 20,201 | 23,515 | (3,314) | (14%) | ||
Adjusted operating margin per operating day(1) | 4,677 | 7,944 | (3,267) | (41%) | ||
Utilization (1) | 46% | 41% | 5% | 12% | ||
Rig count | 16 | 17 | (1) | (6%) | ||
(1) See "Non-GAAP and Supplementary Financial Measures" near the end of this new release for further detail. |
Activity levels in the US over 2021 improved for both AKITA and in industry over the low levels seen in 2020, albeit at a measured pace. Operating days increased 12% to 2,871 in 2021 from 2,555 in 2020. The active rig count for AKITA grew from nine rigs in January of 2021, to 13 rigs by the end of 2021.
Despite the increase in operating days, adjusted revenue decreased to
Adjusted operating and maintenance expenses decreased to
Canadian Operations
$Thousands except per day amounts | 2021 | 2020 | Change | % Change | ||
Revenue | 28,290 | 28,466 | (176) | (1%) | ||
Revenue from joint venture drilling rigs | 15,893 | 5,094 | 10,799 | 212% | ||
Flow through charges | (3,512) | (6,835) | 3,323 | 49% | ||
Adjusted revenue | 40,671 | 26,725 | 13,946 | 52% | ||
Operating and maintenance expenses | 21,489 | 20,954 | 535 | 3% | ||
Operating and maintenance expenses from joint venture drilling rigs | 13,626 | 4,352 | 9,274 | 213% | ||
Flow through charges | (3,512) | (6,835) | 3,323 | 49% | ||
Adjusted operating and maintenance expenses | 31,603 | 18,471 | 13,132 | 71% | ||
Adjusted operating margin(1) | 9,068 | 8,254 | 814 | 10% | ||
Margin %(1) | 22% | 31% | (9%) | (29%) | ||
Operating days | 1,594 | 945 | 649 | 69% | ||
Adjusted revenue per operating day(1) | 25,515 | 28,280 | (2,765) | (10%) | ||
Adjusted operating and maintenance per operating day(1) | 19,826 | 19,546 | 280 | 1% | ||
Adjusted operating margin per operating day(1) | 5,689 | 8,734 | (3,045) | (35%) | ||
Utilization(1) | 22% | 13% | 9% | 69% | ||
Rig count | 20 | 20 | - | 0% | ||
(1) See "Non-GAAP and Supplementary Financial Measures" near the end of this news release for further detail. |
During 2021, AKITA achieved 1,594 operating days in
Canadian adjusted revenue of
Adjusted operating and maintenance expenses are tied to activity levels and increased to
FURTHER INFORMATION
This news release shall be used as preparation for reading the full disclosure documents. AKITA's audited consolidated financial statements and management's discussion and analysis for the year ended
Non-GAAP and Supplementary Financial Measures
Non-GAAP Financial Measures
Adjusted Revenue and Operating and Maintenance Expenses in
Revenue and operating and maintenance expenses in AKITA's Canadian operating segment include revenue and expenses from AKITA's wholly-owned drilling rigs as well as its share of joint venture revenue and expenses. Excluded from the revenue and expenses in AKITA's Canadian operating segment are flow through charges that are billed to operators and repaid to the Company. The volume and timing of the flow through charges can artificially impact the operational per day analysis and as a result management and certain investors may find the comparability between periods is improved when these flow through charges are excluded from revenue per day and operating and maintenance expense per day. The flow through charges do not have any impact on the Company's net earnings as the amounts offset each other.
Adjusted Revenue and Operating and Maintenance Expenses in
Excluded from adjusted revenue and expenses in AKITA's US operating segment are flow through charges that are billed to operators and repaid to the Company. The volume and timing of the flow through charges can artificially impact the operational per day analysis and as a result management and certain investors may find the comparability between periods is improved when these flow through charges are excluded from revenue per day and operating and maintenance expense per day. The flow through charges do not have any impact on the Company's net earnings as the amounts offset each other.
Adjusted Funds Flow from Operations
Adjusted funds flow from operations is not a recognized GAAP measure under IFRS and readers should note that AKITA's method of determining adjusted funds flow from operations may differ from methods used by other companies, and includes cash flow from operating activities before working capital changes, equity income from joint ventures, and income tax amounts paid or recovered during the period. Nonetheless, management and certain investors may find adjusted funds flow from operations to be a useful measurement to evaluate the Company's operating results at year-end and within each year, since the seasonal nature of the business affects the comparability of non-cash working capital changes both between and within periods.
$Thousands | 2021 | 2020 |
Net cash from operating activities | (3,461) | 22,860 |
Income tax recoverable | - | (275) |
Current income tax expense (recovery) | - | 116 |
Interest paid | 3,422 | 5,479 |
Interest expense | (3,553) | (5,637) |
Post-employment benefits paid | 198 | 104 |
Equity income from joint ventures | 1,981 | 650 |
Change in non-cash working capital | 8,867 | (12,975) |
Adjusted funds flow from operations | 7,454 | 10,322 |
Non-GAAP Ratios
"Adjusted funds flow from operations per share" is calculated on the same basis as net loss per class A and class B share basic and diluted, utilizing the basic and diluted weighted average number of class A and class B shares outstanding during the periods presented.
"Adjusted revenue per operating day" may be useful to analysts, investors, other interested parties and management as a measure of pricing strength and is calculated by dividing adjusted revenue by the number of operating days for the period.
"Adjusted operating and maintenance expenses per operating day" may be useful to analysts, investors, other interested parties and management as it demonstrates a degree of cost control and provides a proxy for specific inflation rates incurred by the Company
FORWARD-LOOKING INFORMATION:
Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.
The Company's actual results could differ materially from those anticipated in this forward-looking information as a result of regulatory decisions, competitive factors in the industries in which the Company operates, prevailing economic conditions, and other factors, many of which are beyond the control of the Company.
The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.
Any forward-looking information contained in this news release represents the Company's expectations as of the date hereof, and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.
SOURCE
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