As at December 31, these ratios were as follows:
December 31,(Stated in thousands, except ratios) 2012 2011----------------------------------------------------------------------------Loans and borrowings $694,972 $400,256Shareholders' equity 1,374,812 1,365,389----------------------------------------------------------------------------Total capitalization $2,069,784 $1,765,645----------------------------------------------------------------------------Long-term debt to total capitalization 0.34 0.23----------------------------------------------------------------------------
The Company is subject to various financial and non-financial covenants associated with existing debt facilities. The covenants are monitored on a regular basis and controls are in place to maintain compliance with these covenants. The Company complied with all financial covenants for the year ended December 31, 2012.
NOTE 21 - OPERATING SEGMENTS
The Company operates in Canada and the U.S. along with a number of international regions which include Russia, Algeria, Kazhakstan, Saudi Arabia, Colombia and Australia. Each geographic region has a General Manager that is responsible for the operation and strategy of their region's business. Personnel working within the particular geographic region report to the General Manager; the General Manager reports to the Corporate Executive.
The Company provides a comprehensive array of specialized products, equipment, services and technology to customers through three operating divisions:
-- Canadian Operations provides cementing, fracturing, coiled tubing, nitrogen, geological, and acidizing, reservoir management, industrial cleaning and pipeline, and completion systems and downhole tool services.-- U.S. Operations provides cementing, fracturing, coiled tubing, nitrogen, and acidizing services which are performed on new and existing oil and gas wells.-- International Operations provides cementing, fracturing, coiled tubing, acidizing, completion systems and nitrogen services which are performed on new and existing oil and gas wells.
Information regarding the results of each geographic region is included below. Performance is measured based on revenue and gross profit as included in the internal management reports which are reviewed by the Company's executive management team. Each region's gross profit is used to measure performance as management believes that such information is most relevant in evaluating regional results relative to other entities that operate within the industry.
United(Stated in Canadian States International thousands) Operations Operations Operations Corporate Total--------------------------------------------------------------------------------------------------------------------------------------------------------Year ended December 31, 2012----------------------------------------------------------------------------Revenue $1,139,474 $797,783 $276,143 $- $2,213,400Gross profit/(loss) 286,271 (77,379) 11,363 (24,735) 195,520Finance income - - - (2,212) (2,212)Finance costs - - - 30,497 30,497Tax expense/ (recovery) 46,884 (43,471) 883 528 4,824Depreciation and amortization 53,810 71,683 26,422 922 152,837Assets 910,888 1,109,657 323,134 52,840 2,396,519Goodwill 22,690 - 20,999 - 43,689Property and equipment 534,235 797,841 111,632 14,854 1,458,562Capital expenditures 137,477 258,363 41,666 7,044 444,550--------------------------------------------------------------------------------------------------------------------------------------------------------Year ended December 31, 2011----------------------------------------------------------------------------Revenue $1,282,684 $738,916 $288,047 $- $2,309,647Gross profit/(loss) 448,895 150,311 13,923 (22,667) 590,462Finance income - - - (3,896) (3,896)Finance costs - - - 20,041 20,041Tax expense 93,704 43,997 1,814 16 139,531Depreciation and amortization 47,687 54,274 23,935 680 126,576Assets 911,635 882,391 257,441 165,716 2,217,183Goodwill 22,690 - 21,016 - 43,706Property and equipment 505,781 573,548 88,287 10,794 1,178,410Capital expenditures 183,156 374,768 18,848 1,685 578,457Goodwill expenditures - - 6,551 - 6,551--------------------------------------------------------------------------------------------------------------------------------------------------------
The Corporate division does not represent an operating segment and is included for informational purposes only. Corporate division expenses consist of salary expenses, stock-based compensation and office costs related to corporate employees, as well as public company costs.
Revenue reported above represents revenue generated from external customers. There are no intersegment sales. Revenue from one external customer for the year ended December 31, 2012, amounted individually to greater than 10% of the Company's total revenue. The customer's revenue is exclusively within the U.S. and totals $338.2 million (2011 - $359.7 million).
Contacts:
Trican Well Service Ltd.
Dale Dusterhoft
Chief Executive Officer
(403) 266 - 0202
(403) 237 - 7716 (FAX)
ddusterhoft@trican.ca
Trican Well Service Ltd.
Michael Baldwin
Vice President, Finance & CFO
(403) 266 - 0202
(403) 237 - 7716 (FAX)
mbaldwin@trican.ca
Trican Well Service Ltd.
Gary Summach
Director of Reporting and Investor Relations
(403) 266 - 0202
(403) 237 - 7716 (FAX)
gsummach@trican.ca
Trican Well Service Ltd.
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
www.trican.ca
