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(1) Represents the total crude oil recovered and sold for our account.
(2) Bow River Hardisty is an industry benchmark for heavy crude oil.
Recovered Crude - Heavy Oil (in 000 bbl): http://media3.marketwire.com/docs/213nal_graphs.pdf
CORPORATE AND OTHER
Three months ended Year ended December 31, December 31,($000s) 2012 2011 % change 2012 2011 % change----------------------------------------------------------------------------Selling, general and administrative expenses ("SG&A") 28,489 25,187 13 100,031 87,232 15Less: Stock-based compensation 5,425 3,162 72 12,258 7,679 60 Amortization 3,526 2,824 25 13,485 11,280 20----------------------------------------------------------------------------Adjusted SG&A 19,538 19,201 2 74,288 68,273 9 Adjusted SG&A as a % of revenue 9.8% 10.4% (6) 10.2% 10.0% 2----------------------------------------------------------------------------IFRS requires that amortization of corporate assets be included in SG&A expenses. The above table removes stock-based compensation and amortization from SG&A to provide improved transparency with respect to the comparison of our results.
For Q4 2012, Adjusted SG&A was flat to prior year. For the year, Adjusted SG&A increased due to investments in people and people development to support our growth in 2013. Adjusted SG&A remains in line with our expectation of 10% of annual revenue. Stock-based compensation expense increased for both the quarter and year. It fluctuates based on the effects of vesting, volatility in our share price and dividend rate changes. Approximately 55% of stock-based compensation expense is estimated to be settled with equity, with the balance to be settled in cash.
Three months ended Year ended December 31, December 31,($000s) 2012 2011 % change 2012 2011 % change----------------------------------------------------------------------------Research and development 480 439 9 2,358 2,337 1 Research and development as a % of revenue 0.2% 0.2% - 0.3% 0.3% -----------------------------------------------------------------------------
Research and development expenses are related to our Technical Development group. They search globally and evaluate new technologies for commercial application at our Facilities and on our customer sites. There is a steady stream of new technologies moving through our Technical Development pipeline; from identification and evaluation to the development phase. Our objective is to deliver two new commercial processes every year.
Three months ended Year ended December 31, December 31,($000s) 2012 2011 % change 2012 2011 % change----------------------------------------------------------------------------Bank fees and interest 228 703 (68) 4,336 4,200 3Debenture interest, accretion of issue costs, and other(1) 4,996 7,268 (31) 19,978 21,853 (9)----------------------------------------------------------------------------Finance charges before unwinding of the discount(2) 5,224 7,971 (34) 24,314 26,053 (7)Unwinding of the discount(3) 616 534 15 2,482 2,138 16----------------------------------------------------------------------------Finance charges 5,840 8,505 (31) 26,796 28,191 (5)----------------------------------------------------------------------------Non-cash gain on embedded derivatives(4) (602) - - (13,439) - -----------------------------------------------------------------------------Net Finance charges 5,238 8,505 (38) 13,357 28,191 (53)----------------------------------------------------------------------------
