Forward-looking information and financial outlook are based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect. Trican's actual results may differ materially from those expressed or implied and therefore such forward-looking information and financial outlook should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services.
Forward-looking information and financial outlook is subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. The foregoing important factors are not exhaustive. In addition, actual results could differ materially from those anticipated in forward-looking information and financial outlook provided herein as a result of the risk factors set forth under the section entitled "Risks Factors" in our Annual Information Form dated March 22, 2012. Readers are also referred to the risk factors and assumptions described in other documents filed by the Company from time to time with securities regulatory authorities.
Additional information regarding Trican including Trican's most recent annual information form is available under Trican's profile on SEDAR (www.sedar.com).
CONSOLIDATED STATEMENT OF FINANCIAL POSITION December 31, December 31,(Stated in thousands) 2012 2011--------------------------------------------------------------------------------------------------------------------------------------------------------ASSETSCurrent assets Cash and cash equivalents $113,506 $125,855 Trade and other receivables 437,038 607,672 Current tax assets 647 1,553 Inventory 211,794 173,515 Prepaid expenses 33,002 31,996---------------------------------------------------------------------------- 795,987 940,591Property and equipment 1,458,562 1,178,410Intangible assets 10,081 14,662Deferred tax assets 76,302 33,369Other assets 11,898 6,445Goodwill 43,689 43,706---------------------------------------------------------------------------- $2,396,519 2,217,183--------------------------------------------------------------------------------------------------------------------------------------------------------LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities Bank loans (note 3) $9,119 $- Trade and other payables 228,788 287,689 Contingent consideration (note 2) 2,860 2,867 Current tax liabilities 7,853 3,363 Current portion of long-term debt (note 3) - 25,425---------------------------------------------------------------------------- 248,620 319,344Loans and borrowings (note 3) 694,972 400,256Deferred tax liabilities 77,012 132,031Shareholders' equity Share capital (note 4) 527,860 529,062 Contributed surplus 55,352 45,894 Accumulated other comprehensive income (24,100) (22,805) Retained earnings 815,700 813,238----------------------------------------------------------------------------Total equity attributable to equity holders of the Company 1,374,812 1,365,389Non-controlling interest 1,103 163---------------------------------------------------------------------------- $2,396,519 $2,217,183--------------------------------------------------------------------------------------------------------------------------------------------------------Contractual obligations (note 19)Contingencies (note 22)Subsequent event (note 25)See accompanying notes to the consolidated financial statements.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME(Stated in Three Months Three Months Twelve Months Twelve Months thousands, except Ended Dec 31, Ended Dec 31, Ended Dec 31, Ended Dec 31, per share amounts) 2012 2011 2012 2011----------------------------------------------------------------------------Revenue $485,865 $694,214 $2,213,400 $2,309,647Cost of sales 463,378 507,964 2,017,880 1,719,185----------------------------------------------------------------------------Gross profit 22,487 186,250 195,520 590,462Administrative expenses 28,928 25,398 108,289 102,514Other income (10) 167 375 (2,089)----------------------------------------------------------------------------Results from operating activities (6,431) 160,685 86,856 490,037Finance income (550) (1,572) (2,212) (3,896)Finance costs 8,374 6,557 30,497 20,041Foreign exchange loss/(gain) (3,468) (3,975) 408 (4,275)----------------------------------------------------------------------------Profit/(loss) before income tax (10,787) 159,675 58,163 478,167Income tax expense/(recovery) (note 6) (2,957) 44,805 4,824 139,531----------------------------------------------------------------------------Profit/(loss) for the period ($7,830) 114,870 53,339 338,636----------------------------------------------------------------------------Other comprehensive income/(loss) Unrealized loss/(gain) on hedging instruments 207 (3,011) (898) 1,358 Foreign currency translation differences (10,311) 10,886 2,193 2,219----------------------------------------------------------------------------Total comprehensive income for the period $2,274 $106,995 $52,044 $335,059--------------------------------------------------------------------------------------------------------------------------------------------------------Profit / (loss) attributable to:Owners of the Company (7,741) 114,921 53,674 338,707Non-controlling interest (89) (51) (335) (71)----------------------------------------------------------------------------Profit/(loss) for the period $(7,830) $114,870 $53,339 $338,636----------------------------------------------------------------------------Total comprehensive income/(loss) attributable to:Owners of the Company 2,363 107,111 52,379 335,175Non- Controlling interest (89) (116) (335) (116)----------------------------------------------------------------------------Total comprehensive income/(loss) for the period $2,274 $106,995 $52,044 $335,059--------------------------------------------------------------------------------------------------------------------------------------------------------Earnings/(loss) per share (note 5)---------------------------------------------------------------------------- Basic ($0.05) $0.78 $0.37 $2.32 Diluted ($0.05) $0.78 $0.37 $2.30----------------------------------------------------------------------------Weighted average shares outstanding - basic 146,450 146,762 146,620 145,805Weighted average shares outstanding - diluted 146,450 147,466 146,690 147,085--------------------------------------------------------------------------------------------------------------------------------------------------------See accompanying notes to the consolidated financial statements.CONSOLIDATED STATEMENT OF CASH FLOWS Three Months Three Months Twelve Months Twelve Months(Stated in Ended Dec 31, Ended Dec 31, Ended Dec 31, Ended Dec 31, thousands) 2012 2011 2012 2011----------------------------------------------------------------------------Cash Provided By/ (Used In):Operations Profit/(loss) for the period ($7,830) $114,870 $53,339 $338,636 Charges to income not involving cash: Depreciation and amortization 41,564 36,443 152,837 126,576 Amortization of debt issuance costs 208 202 813 375 Stock-based compensation 2,455 3,003 9,689 12,378 (Gain)Loss on disposal of property and equipment 352 678 2,423 (369) Net Finance Costs 7,824 4,985 28,285 16,145 Unrealized foreign exchange gain/(loss) (4,863) (2,273) (50) (3,157) Income tax expense/ (recovery) (2,957) 44,805 4,824 139,531---------------------------------------------------------------------------- 36,753 202,713 252,160 630,115 Change in inventories 6,704 (16,395) (39,471) (67,225) Change in trade and other receivables 96,141 (6,278) 167,427 (232,628) Change in prepayments 10,444 (1,899) (1,463) (21,995) Change in trade and other payables (70,701) (1,407) (67,688) 72,061----------------------------------------------------------------------------Cash generated from operating activities 79,341 176,733 310,965 380,328 Interest paid (8,373) (12,795) (24,278) (17,454) Income tax paid (42,697) (15,610) (100,312) (54,784)---------------------------------------------------------------------------- 28,271 148,329 186,375 308,090Investing Interest received 250 389 1,163 1,851 Purchase of property and equipment (58,688) (162,812) (444,550) (578,457) Proceeds from the sale of property and equipment 1,848 61 3,325 2,489 Payments received on loan to an unrelated third party (250) 1,750 (24) 6,175 Business acquisitions - - - (9,372)---------------------------------------------------------------------------- (56,840) (160,612) (440,086) (577,314)Financing Net proceeds from issuance of share capital - 942 1,289 33,065 Repurchase and cancellation of shares under NCIB - - (10,011) - Issuance of loans and borrowings, net of financing fees 243,634 - 304,756 294,118 Repayment of loans and borrowings (157,688) (1,706) - - Repayment of long- term debt 0 - (25,425) - Dividend paid 0 - (29,300) (14,517)---------------------------------------------------------------------------- 85,946 (764) 241,309 312,666Effect of exchange rate changes on cash 796 (60) 51 1,355----------------------------------------------------------------------------Increase / (decrease) in cash and cash equivalents 58,173 (13,108) (12,349) 44,797Cash and cash equivalents, beginning of period 55,333 138,963 125,855 81,058----------------------------------------------------------------------------Cash and cash equivalents, end of period $113,506 $125,855 $113,506 $125,855--------------------------------------------------------------------------------------------------------------------------------------------------------See accompanying notes to the consolidated financial statements.
