Adjusted EBITDA, adjusted EBITDA per share, funds from operations, funds from operations per share, and gross margin are not measures that have any standard meaning prescribed by IFRS and accordingly, may not be comparable to similar measures used by other companies.
During the year ended December 31, 2012, the Company recorded a net loss of $35,064 ($0.10 per common share) compared to a net loss of $26,117 ($0.10 per common share) for the year ended December 31, 2011. During the year ended December 31, 2012, the Company recorded oilfield services revenue of $329,518, gross margin from rig operations of $95,284 and adjusted EBITDA of $62,923, compared to revenue of $187,940, gross margin from rig operations of $63,631 and adjusted EBITDA of $36,707 during the year ended December 31, 2011.
The increases in revenue, adjusted EBITDA and gross margin for 2012 compared to 2011, reflect the increase in rig count and associated revenue days during 2012 compared to 2011. During the second quarter of 2011 the Company acquired Drillfor, a Brazilian drilling and workover company, together with seven drilling rigs and one workover rig. During the third quarter of 2011, the Company completed the acquisition of Caroil, a Paris based drilling and workover company with operations in Colombia and central Africa, and a fleet of fourteen drilling and workover rigs and one rig which was managed for a third party. These two acquisitions increased the Company's original fleet by 22 rigs in 2011, and is the primary reason for the significant increases in revenue, adjusted EBITDA and gross margin for 2012 compared to 2011. For the year ended December 31, 2012, the Company had 9,989 revenue days from rig operations compared to 6,241 revenue days from rig operations during the year ended December 31, 2011. Gross margin percentage of 28.9% for the year ended December 31, 2012 was five percentage points lower than the gross margin percentage of 33.9% for the year ended December 31, 2011, primarily as a result of continuing labour costs associated with the unexpected early termination of contracts associated with four drilling rigs during the second half of 2012. Gross margin in 2012 was offset by general and administrative expenses of $35,915 (2011: $31,533), net finance costs of $28,824 (2011: 19,294), acquisition costs of $452 (2011: $5,044) and depreciation of $30,237 (2011: $19,901). For the year ended December 31, 2012, the Company also recorded current income tax expense of $8,610 (2011: 5,520), deferred income tax recovery of $8,026 (2011: deferred tax expense of $9,644), foreign exchange losses of $2,747 (2011: $123), equity income of $1,790 (2011: $1,311) and property and equipment impairment of $33,320 (2011: Nil). Compared to the year ended December 31, 2011, the increase in general and administrative expense reflects administrative costs associated with consolidating the Drillfor and Caroil operations for a full year in 2012 compared to a partial year in 2011.
During the year ended December 31, 2012, Tuscany spent $35,248 on investing activities, which includes $37,063 of capital expenditures comprised primarily of rig refurbishment activity, offset by proceeds from sale of property and equipment of $588 and a $1,227 reduction in restricted cash. During the year ended December 31, 2012, Tuscany drew an additional $15,000 on its credit facility, drew an additional $10,000 on its revolving line of credit, drew $1,469 on operating lines of credit and received $4,495 of funds from bank overdrafts and spent $8,579 related to amendments of its existing credit facility and the withdrawal of a senior notes offering.
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