For the three-month period ended March 31, 2013, reportable segment profit before tax was $1.6 million, a decrease of 19 percent compared to $2.0 million in the corresponding 2012-period. Lower profitability has resulted primarily from slow activity in Colombia and a general increase in infrastructure costs for all international regions.
Investing Activities
Net cash used in investing activities for the three-month period ended March 31, 2013 was $14.1 million as compared to $22.7 million in 2012. The Corporation made an additional $0.2 million investment in the joint venture company RigManager International Inc. in the form of preferred shares, and added $9.9 million in capital equipment in the first quarter of 2013 as compared to $14.3 million in the 2012-quarter. The capital equipment amounts are net of proceeds from the involuntary disposal of drilling equipment in well bores of $3.6 million and $3.3 million, respectively. The quarterly 2013 expenditures included:
-- $4.7 million in down hole performance drilling motors;-- $4.4 million in measurement while drilling ("MWD") systems and spare components;-- $2.4 million in non-magnetic drill collars and jars;-- $1.7 million in other assets, and;-- $0.3 million in machinery and equipment for global service centers.The capital expenditure program undertaken in the year was financed from a combination of cash flow from operations, long-term debt and working capital.
The change in non-cash working capital balances of $4.0 million (use of cash) for the three-month period ended March 31, 2013, relates to $2.0 million of net change in the Corporation's trade payables that are associated with the acquisition of capital assets and $2.0 million of progress billings associated with an operations center under construction that is currently being held for sale. This compares to $7.6 million (use of cash) for the three-month period ended March 31, 2012.
During the first quarter of 2013, PHX Energy's job capacity increased by 2 concurrent jobs to 212 through the addition of 2 RWD systems. As at March 31, 2013, the Corporation's MWD fleet consisted of 133 P-360 positive pulse MWD systems, 65 E-360 EM MWD systems, and 14 RWD systems. Of these, 101 MWD systems were deployed in Canada, 81 in the US, 15 in Russia, 6 in Albania, 4 in Peru, and 5 in Colombia.
At March 31, 2013, the Corporation had on order an additional 3 RWD systems, all of which are expected to be delivered by the end of the second quarter and an additional 6 P-360 positive pulse MWD systems to be delivered in the second half of the year. As a result, by the end of 2013 the Corporation expects to have a fleet of 221 MWD systems, which would be comprised of 139 P-360 positive pulse MWD systems, 65 E-360 EM MWD systems and 17 RWD systems.
Financing Activities
The Corporation reported cash flows from financing activities of $2.7 million in the three-month period ended March 31, 2013 as compared to $14.4 million in the 2012 period. In the 2013-quarter:
-- the Corporation paid dividends of $5.1 million to shareholders, or $0.18 per share;-- through its option and DRIP program the Corporation received cash proceeds of $1.1 million from exercised options and reinvested dividends to acquire 129,477 common shares of the Corporation; and-- the Corporation received aggregate net proceeds of $6.8 million from its operating facility and US facility to finance its capital expenditure program.
