MONCTON, NB,
June 5, 2014 /CNW/ - Major Drilling
Group International Inc. (TSX: MDI) today reported results for the
year and fourth quarter ended April 30,
2014.
Highlights
|
In millions of Canadian dollars
(except earnings per share) |
Q4-14 |
Q4-13 |
Fiscal
2014 |
Fiscal
2013 |
Revenue |
$82.6 |
$135.5 |
$354.9 |
$695.9 |
Gross profit |
21.5 |
43.1 |
104.4 |
220.3 |
|
As
percentage of revenue |
26.0% |
31.8% |
29.4% |
31.7% |
EBITDA(1) |
8.4 |
23.5 |
44.4 |
142.8 |
|
As
percentage of revenue |
10.2% |
17.3% |
12.5% |
20.5% |
Net (loss) earnings |
(24.9) |
2.2 |
(55.3) |
52.1 |
(Loss) earnings per share - Basic |
($0.31) |
$0.03 |
($0.70) |
$0.66 |
(1) |
Earnings before interest, taxes, depreciation and amortization,
excluding restructuring charges, goodwill and intangible impairment
and gain on reversal of contingent consideration (see "non-GAAP
financial measures")
|
- Net cash position (net of debt) improved by $12.9 million in the quarter to $46.5 million.
- Quarterly revenue was $82.6
million, down 39% from the $135.5
million recorded for the same quarter last year.
- Gross margin percentage for the quarter was 26.0%, compared to
31.8% for the corresponding period last year.
- During the quarter, the Company posted a restructuring charge
of $17.2 million, $9.7 million of which is non-cash, related to the
closure of its Australian operations and other staff reduction
initiatives implemented during the quarter across the Company.
- During the quarter, the Company posted a goodwill impairment
charge of $2.3 million relating to
its Mozambique operations.
- Net loss was $24.9 million or
$0.31 per share for the quarter,
compared to earnings of $2.2 million
or 0.03 per share for the prior year quarter.
"Market conditions continue to be extremely
difficult. Despite this, we are pleased to have met our goal
of generating cash while still paying our dividend and investing in
our fleet when appropriate. Senior mining companies are still
very cautious with their investment in exploration and have been
focusing on expanding their production at existing mines. In a
number of jurisdictions, uncertainty as to the policies of host
governments or issues of land tenure are causing customers to hold
back on investments. This is making it difficult to predict
what might happen in those markets. These and other factors
have led to significantly decreased activity in the
industry. Lower levels of demand have significantly affected
pricing, which is reflected in our lower gross margins," said
Francis McGuire, President and CEO
of Major Drilling. "In many
cases, pricing levels are at the lowest that they have been in 15
years."
"Despite the difficult environment, we have one
of the most solid balance sheets in our industry with $74.2 million in cash and total debt of
$27.7 million at the end of the
quarter. This combined for a net cash position of
$46.5 million. Even in this difficult
quarter, the Company increased its net cash balance during the
quarter by $12.9 million after
spending $5.2 million in capital
expenditures for the quarter, through the purchase of two rigs and
support equipment. We also retired 11 older mineral rigs,"
observed Mr. McGuire.
"During the quarter, we made the difficult
decision to close down our operations in Australia and as such, took a charge of
$16.8 million. The Company
recorded $9.7 million in a non-cash
write-down of assets as well as net cash charges of $7.1 million in Australia for severance, moving costs and
lease termination. Those cash costs should be more than
offset by the sale of some Australian assets. Also, during
the quarter, the Company incurred additional restructuring charges
of $0.4 million relating to severance
as it continues to reduce costs across the organization."
"Given current market conditions, the Company
recognized a goodwill impairment of $2.3
million related to its Mozambique operations, primarily due to
reduced cash flow expections in the near term.The goodwill
write-off is non-cash in nature and does not affect liquidity or
cash flows from operating activities."
"The Company will continue to focus on cash
generation by limiting capital expenditures as necessary, by
reducing inventory and by closely managing costs. By focusing
on cash management, our goal is to sustain our dividend. The
Company continues to have a variable cost structure whereby most of
its direct costs, including field staff, go up or down with
contract revenue and a large part of the Company's other expenses
relates to variable incentive compensation based on the Company's
profitability."
"Due to the uncertainty around economic matters
impacting the mining market, it is very difficult to predict
customer behavior over the next twelve months. Although we
have seen a pick up in financing activity for mining related
projects, senior customers are still very cautious about investing
in future projects. We are in a unique position to react
quickly when the industry begins to recover as the Company's
financial strength has allowed it to invest in safety and to
maintain its equipment in excellent condition. However, we
have a growing concern that quality people are permanently leaving
the industry, and during a recovery, shortages of qualified labour
will once again become a critical issue."
Fourth quarter ended April 30,
2014
Total revenue for the quarter was $82.6 million, down 39% from the $135.5 million recorded in the same quarter last
year. Due to the uncertainty around economic matters impacting the
mining market, some customers delayed or cancelled their
exploration drilling plans, which impacted the quarter's results
compared to last year. In a number of jurisdictions,
uncertainty as to the policies of host governments or issues of
land tenure also had an impact on quarter results.
Revenue for the quarter from Canada-U.S.
drilling operations decreased by 25% to $46.5 million compared to the same period last
year. All of the decrease came from Canada as our U.S. operation was able to
maintain its activity at the same levels as the corresponding
quarter last year.
South and Central American revenue was down 64%
to $15.7 million for the quarter,
compared to the prior year quarter. All of the countries in this
region, particularly Mexico,
Chile and Argentina, were affected by a reduction in
work by juniors due to the cancellation or reduction of
projects.
Australian, Asian and African operations
reported revenue of $20.5 million,
down 32% from the same period last year. Mongolia and Mozambique were the most affected in the
region. In Mongolia, mining
investment has significantly slowed down due to political
uncertainty. In Mozambique,
the cancellation of one large project had a significant impact on
that operation. In Australia, revenue was down to $2 million during the quarter from $4 million last year.
The overall gross margin percentage for the
quarter was 26.0% compared to 31.8% for the same period last
year. Reduced pricing due to increased competitive pressures
and delays impacted margins.
General and administrative costs were
$12.7 million for the quarter
compared to $15.3 million in the same
period last year. With the decrease in activity, the Company
has reduced its general and administrative costs across the
operation.
The Company recorded a restructuring charge of
$17.2 million consisting primarily of
a non-cash write-down of assets of $9.7
million in Australia,
$7.1 million of close-down costs in
Australia relating to severance,
lease termination and moving costs, and $0.4
million in additional restructuring charges as it continues
to reduce costs across the organization.
Also, during the quarter, the Company recognized
a goodwill impairment charge of $2.3
million related to its Mozambique operations, primarily due to
reduced cash flow expections in the near term. The goodwill
write-off is non-cash in nature and does not affect liquidity or
cash flows from operating activities.
Non-GAAP Financial Measure
In this news release, the Company uses the
non-GAAP financial measure, EBITDA excluding restructuring charges,
goodwill and intangible impairment and gain on reversal of
contingent consideration. The Company believes this non-GAAP
financial measure provides useful information to both management
and investors in measuring the financial performance of the
Company. This measure does not have a standardized meaning
prescribed by GAAP and therefore it may not be comparable to
similarly titled measures presented by other publicly traded
companies, and should not be construed as an alternative to other
financial measures determined in accordance with GAAP.
Forward-Looking Statements
Some of the statements contained in this press
release may be forward-looking statements, such as, but not limited
to, those relating to worldwide demand for gold and base metals and
overall commodity prices, the level of activity in the minerals and
metals industry and the demand for the Company's services, the
Canadian and international economic environments, the Company's
ability to attract and retain customers and to manage its assets
and operating costs, sources of funding for its clients,
particularly for junior mining companies, competitive pressures,
currency movements, which can affect the Company's revenue in
Canadian dollars, the geographic distribution of the Company's
operations, the impact of operational changes, changes in
jurisdictions in which the Company operates (including changes in
regulation), failure by counterparties to fulfill contractual
obligations, and other factors as may be set forth, as well as
objectives or goals, and including words to the effect that the
Company or management expects a stated condition to exist or occur.
Since forward-looking statements address future events and
conditions, by their very nature, they involve inherent risks and
uncertainties. Actual results in each case could differ materially
from those currently anticipated in such statements by reason of
factors such as, but not limited to, the factors set out in the
discussion on pages 16 to 18 of the 2013 Annual Report entitled
"General Risks and Uncertainties", and such other documents as
available on SEDAR at www.sedar.com. All such factors should be
considered carefully when making decisions with respect to the
Company. The Company does not undertake to update any
forward-looking statements, including those statements that are
incorporated by reference herein, whether written or oral, that may
be made from time to time by or on its behalf, except in accordance
with applicable securities laws.
Based in Moncton, New
Brunswick, Major Drilling Group International Inc. is one of
the world's largest metals and minerals contract drilling service
companies. To support its customers' varied exploration drilling
requirements, Major Drilling
maintains field operations and offices in Canada, the United
States, South and Central
America, Australia,
Asia, and Africa.
Financial statements are attached.
Major Drilling
will provide a simultaneous webcast of its quarterly conference
call on Friday, June 6, 2014 at
9:00 AM (EDT). To access
the webcast please go to the investors/webcast section of
Major Drilling's website at
www.majordrilling.com and click the attached link, or go
directly to the CNW Group website at www.newswire.ca
for directions. Participants will require Windows
MediaPlayer, which can be downloaded prior to accessing the
call. Please note that this is listen only mode.
Major Drilling
Group International Inc. |
Condensed
Consolidated Statements of Operations |
(in thousands of
Canadian dollars, except per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Twelve months
ended |
|
April 30 |
|
April 30 |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL REVENUE |
|
$ |
82,637 |
|
$ |
135,537 |
|
$ |
354,946 |
|
$ |
695,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECT COSTS |
|
|
61,113 |
|
|
92,450 |
|
|
250,519 |
|
|
475,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
21,524 |
|
|
43,087 |
|
|
104,427 |
|
|
220,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
12,701 |
|
|
15,318 |
|
|
50,087 |
|
|
63,827 |
|
Other expenses |
|
|
905 |
|
|
411 |
|
|
3,624 |
|
|
10,585 |
|
Loss on disposal of property, plant
and equipment |
|
|
358 |
|
|
1,232 |
|
|
1,617 |
|
|
2,452 |
|
Loss on short-term investments |
|
|
61 |
|
|
- |
|
|
368 |
|
|
- |
|
Foreign exchange (gain) loss |
|
|
(918) |
|
|
699 |
|
|
4,377 |
|
|
(1,311) |
|
Finance costs |
|
|
266 |
|
|
346 |
|
|
1,002 |
|
|
2,316 |
|
Depreciation of property, plant and
equipment |
|
|
13,085 |
|
|
12,575 |
|
|
51,947 |
|
|
49,997 |
|
Amortization of intangible
assets |
|
|
332 |
|
|
412 |
|
|
1,359 |
|
|
2,840 |
|
Impairment of goodwill and intangible
assets |
|
|
2,269 |
|
|
3,324 |
|
|
14,326 |
|
|
3,324 |
|
Restructuring charge |
|
|
17,234 |
|
|
5,440 |
|
|
20,454 |
|
|
5,440 |
|
|
|
46,293 |
|
|
39,757 |
|
|
149,161 |
|
|
139,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS BEFORE
INCOME TAX |
|
|
(24,769) |
|
|
3,330 |
|
|
(44,734) |
|
|
80,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX - PROVISION
(RECOVERY) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
3,488 |
|
|
3,590 |
|
|
12,849 |
|
|
32,077 |
|
Deferred |
|
|
(3,322) |
|
|
(2,434) |
|
|
(2,273) |
|
|
(3,318) |
|
|
|
166 |
|
|
1,156 |
|
|
10,576 |
|
|
28,759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
EARNINGS |
|
$ |
(24,935) |
|
$ |
2,174 |
|
$ |
(55,310) |
|
$ |
52,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER
SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
(0.31) |
|
$ |
0.03 |
|
$ |
(0.70) |
|
$ |
0.66 |
Diluted |
|
|
$ |
(0.31) |
|
$ |
0.03 |
|
$ |
(0.70) |
|
$ |
0.65 |
Major Drilling Group International Inc. |
Condensed
Consolidated Statements of Comprehensive (Loss)
Earnings |
(in thousands of
Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Twelve months
ended |
|
April 30 |
|
April 30 |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
EARNINGS |
$ |
(24,935) |
|
$ |
2,174 |
|
$ |
(55,310) |
|
$ |
52,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified subsequently to profit or loss |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized (loss) gains on foreign
currency translations (net of tax) |
|
(6,230) |
|
|
4,409 |
|
|
15,428 |
|
|
11,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE (LOSS)
EARNINGS |
$ |
(31,165) |
|
$ |
6,583 |
|
$ |
(39,882) |
|
$ |
63,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Major Drilling Group International Inc. |
Condensed
Consolidated Statements of Changes in Equity |
For the twelve
months ended April 30, 2013 and 2014 |
(in thousands of
Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based |
|
Retained |
|
Foreign
currency |
|
|
|
|
|
Share capital |
|
payments reserve |
|
earnings |
|
translation reserve |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AS AT MAY 1,
2012 |
|
$ |
230,763 |
|
$ |
11,797 |
|
$ |
246,809 |
|
$ |
(1,670) |
|
$ |
487,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercise of stock options |
|
|
222 |
|
|
(114) |
|
|
- |
|
|
- |
|
|
108 |
|
Share-based payments
reserve |
|
|
- |
|
|
2,521 |
|
|
- |
|
|
- |
|
|
2,521 |
|
Dividends |
|
|
- |
|
|
- |
|
|
(15,831) |
|
|
- |
|
|
(15,831) |
|
|
|
|
230,985 |
|
|
14,204 |
|
|
230,978 |
|
|
(1,670) |
|
|
474,497 |
Comprehensive
earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
- |
|
|
- |
|
|
52,110 |
|
|
- |
|
|
52,110 |
|
Unrealized gains on foreign currency translations |
|
|
- |
|
|
- |
|
|
- |
|
|
11,722 |
|
|
11,722 |
Total comprehensive
earnings |
|
|
- |
|
|
- |
|
|
52,110 |
|
|
11,722 |
|
|
63,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AS AT APRIL
30, 2013 |
|
$ |
230,985 |
|
$ |
14,204 |
|
$ |
283,088 |
|
$ |
10,052 |
|
$ |
538,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AS AT MAY 1,
2013 |
|
$ |
230,985 |
|
$ |
14,204 |
|
$ |
283,088 |
|
$ |
10,052 |
|
$ |
538,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based payments reserve |
|
|
- |
|
|
1,733 |
|
|
- |
|
|
- |
|
|
1,733 |
|
Dividends |
|
|
- |
|
|
- |
|
|
(15,833) |
|
|
- |
|
|
(15,833) |
|
|
|
|
230,985 |
|
|
15,937 |
|
|
267,255 |
|
|
10,052 |
|
|
524,229 |
Comprehensive
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
- |
|
|
- |
|
|
(55,310) |
|
|
- |
|
|
(55,310) |
|
Unrealized gains on foreign currency translations |
|
|
- |
|
|
- |
|
|
- |
|
|
15,428 |
|
|
15,428 |
Total comprehensive
loss |
|
|
- |
|
|
- |
|
|
(55,310) |
|
|
15,428 |
|
|
(39,882) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AS AT APRIL
30, 2014 |
|
$ |
230,985 |
|
$ |
15,937 |
|
$ |
211,945 |
|
$ |
25,480 |
|
$ |
484,347 |
Major Drilling Group International Inc. |
Condensed
Consolidated Statements of Cash Flows |
(in thousands of
Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Twelve months
ended |
|
April 30 |
|
April 30 |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
(Loss) earnings before
income tax |
$ |
(24,769) |
|
$ |
3,330 |
|
$ |
(44,734) |
|
$ |
80,869 |
Operating items not
involving cash |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
13,417 |
|
|
12,987 |
|
|
53,306 |
|
|
52,837 |
|
Loss on disposal of property, plant
and equipment |
|
358 |
|
|
1,232 |
|
|
1,617 |
|
|
2,452 |
|
Loss on short-term investments |
|
61 |
|
|
- |
|
|
368 |
|
|
- |
|
Share-based payments reserve |
|
361 |
|
|
444 |
|
|
1,733 |
|
|
2,521 |
|
Impairment of goodwill and intangible
assets |
|
2,269 |
|
|
3,324 |
|
|
14,326 |
|
|
3,324 |
|
Restructuring charge |
|
9,716 |
|
|
1,425 |
|
|
10,381 |
|
|
1,425 |
Finance costs recognized
in (loss) earnings before income tax |
|
266 |
|
|
346 |
|
|
1,002 |
|
|
2,316 |
|
|
|
1,679 |
|
|
23,088 |
|
|
37,999 |
|
|
145,744 |
Changes in non-cash
operating working capital items |
|
18,535 |
|
|
5,305 |
|
|
20,532 |
|
|
30,456 |
Finance costs paid |
|
(261) |
|
|
(345) |
|
|
(983) |
|
|
(2,306) |
Income taxes paid |
|
(4,742) |
|
|
(11,081) |
|
|
(16,624) |
|
|
(36,962) |
Cash flow from operating
activities |
|
15,211 |
|
|
16,967 |
|
|
40,924 |
|
|
136,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Increase in demand
loan |
|
- |
|
|
- |
|
|
4,066 |
|
|
- |
Repayment of long-term
debt |
|
(1,740) |
|
|
(1,716) |
|
|
(20,457) |
|
|
(9,296) |
Issuance of common
shares |
|
- |
|
|
108 |
|
|
- |
|
|
108 |
Dividends paid |
|
- |
|
|
- |
|
|
(15,832) |
|
|
(15,038) |
Cash flow used in
financing activities |
|
(1,740) |
|
|
(1,608) |
|
|
(32,223) |
|
|
(24,226) |
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Payment of consideration
for previous business acquisition |
|
- |
|
|
- |
|
|
(205) |
|
|
(1,698) |
Acquisition of short-term
investments |
|
- |
|
|
- |
|
|
(3,587) |
|
|
- |
Proceeds from disposal of
short-term investments |
|
3,074 |
|
|
- |
|
|
3,074 |
|
|
- |
Acquisition of property,
plant and equipment (net of direct financing) |
|
(5,190) |
|
|
(9,487) |
|
|
(22,626) |
|
|
(69,005) |
Proceeds from disposal of
property, plant and equipment |
|
1,990 |
|
|
884 |
|
|
5,375 |
|
|
3,409 |
Cash flow used in
investing activities |
|
(126) |
|
|
(8,603) |
|
|
(17,969) |
|
|
(67,294) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes |
|
(1,512) |
|
|
72 |
|
|
1,201 |
|
|
(338) |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN
CASH |
|
11,833 |
|
|
6,828 |
|
|
(8,067) |
|
|
45,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH, BEGINNING OF THE
PERIOD |
|
62,411 |
|
|
75,483 |
|
|
82,311 |
|
|
37,237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH, END OF THE
PERIOD |
$ |
74,244 |
|
$ |
82,311 |
|
$ |
74,244 |
|
$ |
82,311 |
Major Drilling Group International Inc. |
Condensed
Consolidated Balance Sheets |
As at April 30,
2014 and 2013 |
(in thousands of
Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
2013 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS |
|
|
|
|
Cash |
$ |
74,244 |
|
$ |
82,311 |
|
Trade and other receivables |
|
66,211 |
|
|
98,079 |
|
Income tax receivable |
|
12,179 |
|
|
10,013 |
|
Inventories |
|
81,308 |
|
|
88,118 |
|
Prepaid expenses |
|
4,690 |
|
|
6,119 |
|
|
|
238,632 |
|
|
284,640 |
|
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT |
|
307,288 |
|
|
339,971 |
|
|
|
|
|
|
|
DEFERRED INCOME TAX
ASSETS |
|
5,825 |
|
|
5,601 |
|
|
|
|
|
|
|
GOODWILL |
|
38,056 |
|
|
52,736 |
|
|
|
|
|
|
INTANGIBLE
ASSETS |
|
1,923 |
|
|
3,279 |
|
|
|
|
|
|
|
|
$ |
591,724 |
|
$ |
686,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
|
|
Demand loan |
$ |
3,909 |
|
$ |
- |
|
Trade and other payables |
|
52,155 |
|
|
73,546 |
|
Income tax payable |
|
3,416 |
|
|
5,020 |
|
Current portion of long-term
debt |
|
9,655 |
|
|
9,097 |
|
|
|
69,135 |
|
|
87,663 |
|
|
|
|
|
|
|
LONG-TERM
DEBT |
|
14,187 |
|
|
34,497 |
|
|
|
|
|
|
|
DEFERRED INCOME TAX
LIABILITIES |
|
24,055 |
|
|
25,738 |
|
|
|
107,377 |
|
|
147,898 |
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
Share capital |
|
230,985 |
|
|
230,985 |
|
Share-based payments reserve |
|
15,937 |
|
|
14,204 |
|
Retained earnings |
|
211,945 |
|
|
283,088 |
|
Foreign currency translation
reserve |
|
25,480 |
|
|
10,052 |
|
|
|
484,347 |
|
|
538,329 |
|
|
|
|
|
|
|
|
|
$ |
591,724 |
|
$ |
686,227 |
MAJOR DRILLING GROUP INTERNATIONAL INC.
SELECTED FINANCIAL INFORMATION
FOR THE THREE AND TWELVE MONTHS ENDED APRIL 30, 2014 AND 2013
(in thousands of Canadian dollars)
SEGMENTED INFORMATION
The Company's operations are divided into three
geographic segments corresponding to its management structure,
Canada - U.S., South and
Central America, and Australia, Asia and Africa. The services provided in each of the
reportable segments are essentially the same. The accounting
policies of the segments are the same as those described in Note 4
presented in the Notes to Consolidated Financial Statements for the
year ended April 30, 2014. Management
evaluates performance based on earnings from operations in these
three geographic segments before finance costs and income
tax. Data relating to each of the Company's reportable
segments is presented as follows:
|
|
|
Q4
2014 |
|
|
Q4
2013 |
|
|
YTD
2014 |
|
|
YTD
2013 |
Revenue |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
Canada - U.S. |
|
$ |
46,462 |
|
$ |
61,827 |
|
$ |
175,882 |
|
$ |
317,091 |
|
South and Central America |
|
|
15,688 |
|
|
43,489 |
|
|
73,583 |
|
|
203,233 |
|
Australia, Asia and Africa |
|
|
20,487 |
|
|
30,221 |
|
|
105,481 |
|
|
175,604 |
|
|
$ |
82,637 |
|
$ |
135,537 |
|
$ |
354,946 |
|
$ |
695,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings from
operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada - U.S.* |
|
$ |
2,070 |
|
$ |
2,874 |
|
$ |
9,315 |
|
$ |
47,020 |
|
South and Central America** |
|
|
(2,821) |
|
|
7,629 |
|
|
(25,125) |
|
|
36,114 |
|
Australia, Asia and Africa*** |
|
|
(21,539) |
|
|
(5,112) |
|
|
(19,776) |
|
|
12,945 |
|
|
|
(22,290) |
|
|
5,391 |
|
|
(35,586) |
|
|
96,079 |
Eliminations |
|
|
(135) |
|
|
(13) |
|
|
(554) |
|
|
(987) |
|
|
|
(22,425) |
|
|
5,378 |
|
|
(36,140) |
|
|
95,092 |
Finance costs |
|
|
266 |
|
|
346 |
|
|
1,002 |
|
|
2,316 |
General and corporate
expenses **** |
|
|
2,078 |
|
|
1,702 |
|
|
7,592 |
|
|
11,907 |
Income tax |
|
|
166 |
|
|
1,156 |
|
|
10,576 |
|
|
28,759 |
Net (loss)
earnings |
|
$ |
(24,935) |
|
$ |
2,174 |
|
$ |
(55,310) |
|
$ |
52,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada - U.S. |
|
$ |
5,730 |
|
$ |
5,849 |
|
$ |
22,928 |
|
$ |
22,713 |
|
South and Central America |
|
|
3,149 |
|
|
2,928 |
|
|
12,072 |
|
|
11,493 |
|
Australia, Asia and Africa |
|
|
4,015 |
|
|
4,003 |
|
|
16,161 |
|
|
15,522 |
|
Unallocated and corporate assets |
|
|
523 |
|
|
207 |
|
|
2,145 |
|
|
3,109 |
|
|
$ |
13,417 |
|
$ |
12,987 |
|
$ |
53,306 |
|
$ |
52,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Canada - U.S.
includes goodwill and intangible asset impairment charges for the
previous quarter and year of $3,324 as well as restructuring
charges for the current quarter of $123 (2013 - $1,860), the
current year of $503 (2013 - $1,860).
** South and Central America includes goodwill and intangible
asset impairment charges in the current year of $12,057 as well as
restructuring charges in the current quarter of $201 (2013 - $115),
the current year of $1,665 (2013 - $115).
*** Australia, Asia and Africa includes goodwill and intangible
asset impairment charges in the current quarter and year of $2,269
(2013 - nil) as well as restructuring charges in the current
quarter of $16,910 (2013 - $3,465), the current year of $18,286
(2013 - $3,465).
**** General and corporate expenses include expenses for corporate
offices, stock options and certain unallocated costs. |
SOURCE MAJOR DRILLING GROUP INTERNATIONAL INC.