The acquisition of i-TEC and joint business agreement with Geotomo reflect Trican's continued commitment to provide innovative technological solutions to our customers.
Senior Management Changes
Effective January 31, 2013, Michael Kelly has resigned from Trican to pursue other opportunities. Michael joined Trican in 1997 as the CFO and remained in that position until March 2009. He then became the Senior Vice President of Business Development and in June 2012 transferred to Russia as Senior Vice President, Russia and the Middle East. In January 2012, Michael was appointed our Senior Vice President, EAME & CIS, where he managed our operations in Russia, Kazakhstan, Algeria and the Middle East. Michael had a large influence on the direction of Trican and was part of the corporate executive group that saw the company grow from a Canadian operation with a few hundred employees to one with close to 6,000 employees worldwide in nine operating countries. We wish Michael the best in his future endeavors and thank him for his many years of service to Trican.
We are pleased to announce that David Jones, Vice President of Business Development, will assume the duties of Michael Kelly and will become the new Vice President, EAME & CIS. David will continue to oversee our Business Development group until a successor has been named.
MANAGEMENT'S DISCUSSION AND ANALYSISCOMPARATIVE QUARTERLY INCOME STATEMENTS ($ thousands, unaudited)---------------------------------------------------------------------------- Quarter- Over-Three months ended % of % of Quarter % December 31, 2012 Revenue 2011 Revenue Change Change----------------------------------------------------------------------------Revenue 485,865 100% 694,214 100.0% (208,349) (30%)Expenses Materials and operating 422,999 87.1% 473,693 68.2% (50,694) (10.7%) General and administrative 27,743 5.7% 23,226 3.3% 4,517 19.5%----------------------------------------------------------------------------Operating income(i) 35,123 7.2% 197,295 28.4% (162,172) (82.2%) Finance costs 8,373 1.7% 6,557 0.9% 1,816 27.7% Depreciation and amortization 41,564 8.6% 36,443 5.2% 5,121 14.1% Foreign exchange gain (3,467) (0.7%) (3,975) -0.6% 508 (12.8%) Other income (560) (0.1%) (1,405) -0.2% 845 (60.1%)----------------------------------------------------------------------------Income (loss) before income taxes (10,787) (2.2%) 159,675 23.0% (170,462) (106.8%)Income tax expense (recovery) (2,957) (0.6%) 44,805 6.5% (47,762) (106.6%)----------------------------------------------------------------------------Net Income (loss) (7,830) (1.6%) 114,870 16.5% (122,700) (106.8%)--------------------------------------------------------------------------------------------------------------------------------------------------------(i) see first page of this report
CANADIAN OPERATIONS----------------------------------------------------------------------------($ thousands, except revenue per job, unaudited) Dec. 31, % of Dec. 31, % of Sept. 30, % ofThree months ended, 2012 Revenue 2011 Revenue 2012 Revenue----------------------------------------------------------------------------Revenue 244,237 417,021 321,948Expenses Materials and operating 187,313 76.7% 246,363 59.1% 215,022 66.8% General and administrative 5,897 2.4% 5,898 1.4% 7,095 2.2% --------- --------- --------- Total expenses 193,212 79.1% 252,261 60.5% 222,117 69.0%Operating income(i) 51,025 20.9% 164,760 39.5% 99,831 31.0%Number of jobs 5,572 7,108 6,368Revenue per job 43,545 58,296 50,140--------------------------------------------------------------------------------------------------------------------------------------------------------(i) see first page of this reportSales Mix----------------------------------------------------------------------------Three months ended, Dec. 31, Dec. 31, Sept. 30,(unaudited) 2012 2011 2012----------------------------------------------------------------------------% of Total RevenueFracturing 61% 68% 68%Cementing 21% 16% 17%Nitrogen 6% 8% 6%Coiled Tubing 5% 4% 4%Acidizing 3% 2% 3%Other 4% 2% 2%----------------------------------------------------------------------------Total 100% 100% 100%--------------------------------------------------------------------------------------------------------------------------------------------------------
