Results of Q4 2012 Compared to Q4 2011
-- Revenue increased 8%, Adjusted EBITDA and net earnings declined 9% and 32%, respectively. Lower prices for recovered products impacted Adjusted EBITDA by $5.3 million;-- Revenue and gross profit from Facilities were $122.9 million and $21.7 million, down 1% and 17%, respectively. Active rigs decreased by 28% and meters drilled were down 20%. Cost efficiencies realized in the quarter at our Western Facilities were offset by lower oilfield activity and the impact of lower recovered product prices. Lower sales volumes and increased procurement costs at Ville Ste-Catherine ("VSC") also impacted results year-over-year;-- Onsite revenue and gross profit in the quarter grew 26% and 5%, respectively, to $75.5 million and $17.3 million. Strong demand for our contract and project services was impacted by reduced drilling activity and lower recovered oil prices;-- Adjusted SG&A (SG&A before stock-based compensation and amortization) was flat compared to last year at $19.5 million.
Results of 2012 Compared to 2011
-- Revenue was up 6%, Adjusted EBITDA was down 3% while net earnings increased 28%. Stronger demand for our services was offset by the lower value received for our products of $13.4 million and higher Adjusted SG&A expenses. Lower finance charges, deferred income tax expense and a gain on embedded derivatives contributed to the increase in net earnings;-- Facilities revenue and gross profit were $446.2 million and $100.0 million, down 4% and 6%, respectively. Gains from productivity improvements and increased recovered oil volumes were offset by lower recovered product prices, reduced waste volumes and lower lead sales at VSC as well as lower oilfield activity;-- Onsite revenue and gross profit grew 28% and 19%, respectively, to $280.0 million and $69.7 million. Contributions from our MFT contract and higher project activity more than offset the impact of lower drilling activity and recovered crude oil prices;-- Adjusted SG&A (SG&A before stock-based compensation and amortization) was $74.3 million in 2012, a 9% increase over the prior year 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;-- Return on capital was 13.3% compared to 15.2% in 2011;-- Total Debt to Adjusted EBITDA was 2.41 compared to 2.35 in 2011.
-- Capital expenditures for the three months and year ended December 31, 2012, were $57.4 million and $172.3 million, respectively, ahead of our projected $155.0 million. The increased capital expenditure predominantly relates to equipment for the MFT contract, technical development, U.S. onsite projects and efficiency improvements in Western Facilities. Growth capital expenditures for the quarter and year primarily related to facility and service expansion at our Western Facilities and equipment for contract work in our Heavy Oil business unit;-- Our 2013 capital budget remains at $190 million, a 10% increase over 2012 capital. Growth and maintenance capital expenditures are expected to be $155 million and $35 million, respectively. We expect to spend approximately 40% of the capital budget in the first half of 2013. We may revise the capital budget, from time-to-time, in response to changes in market conditions that materially impact our financial performance and/or investment opportunities. The capital program will be predominantly funded through cash flow from operations and the proceeds from the equity offering completed in the fourth quarter of 2012;-- In the fourth quarter, Newalta completed an equity financing with the issuance of 5.5 million common shares for gross proceeds of $77 million (net proceeds of $74.4 million);-- A dividend of $0.10 per share ($0.40 per share annualized) was declared, payable January 15, 2013 to shareholders of record December 31, 2012.