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Over the past two years, Essential has improved its fleet through the acquisition of Technicoil, the purchase of new equipment, the disposal of under-utilized equipment and ongoing maintenance of its existing fleet. Spending has focused primarily on expanding the depth capacity and service capabilities of the well servicing operations.
ESSENTIAL ENERGY SERVICES LTD.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION(Unaudited) As at As at March 31 December 31(Thousands) 2013 2012----------------------------------------------------------------------------AssetsCurrent Trade and other accounts receivable $ 101,822 $ 71,835 Inventories 21,461 20,699 Prepayments 2,648 3,306---------------------------------------------------------------------------- 125,931 95,840----------------------------------------------------------------------------Non-current Property and equipment 212,215 211,304 Intangible assets 34,990 36,555 Goodwill 55,014 55,014---------------------------------------------------------------------------- 302,219 302,873Assets held for sale 8,151 8,140----------------------------------------------------------------------------Total assets $ 436,301 $ 406,853--------------------------------------------------------------------------------------------------------------------------------------------------------LiabilitiesCurrent Bank indebtedness $ 4,403 $ 1,835 Trade and other payables 39,616 32,354 Dividends payable 3,102 3,100 Income taxes payable 2,100 305---------------------------------------------------------------------------- 49,221 37,594Non-current Long-term debt 35,603 35,563 Deferred tax liabilities 31,726 29,560---------------------------------------------------------------------------- 67,329 65,123Liabilities held for sale 1,458 1,731----------------------------------------------------------------------------Total liabilities 118,008 104,448----------------------------------------------------------------------------Equity Share capital 258,886 258,772 Retained earnings 53,801 38,276 Other reserves 5,642 5,363---------------------------------------------------------------------------- Equity attributable to shareholders of Essential 318,329 302,411Non-controlling interest (36) (6)----------------------------------------------------------------------------Total equity 318,293 302,405----------------------------------------------------------------------------Total liabilities and equity $ 436,301 $ 406,853--------------------------------------------------------------------------------------------------------------------------------------------------------ESSENTIAL ENERGY SERVICES LTD.CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME(Unaudited) For the three months ended March 31(Thousands, except per share amounts) 2013 2012----------------------------------------------------------------------------Revenue $ 120,519 $ 118,182Operating expenses 82,687 81,442----------------------------------------------------------------------------Gross margin 37,832 36,740General and administrative expenses 4,406 3,985---------------------------------------------------------------------------- 33,426 32,755Depreciation and amortization 7,044 7,079Share-based compensation 343 491Other income (133) (1,243)----------------------------------------------------------------------------Operating profit from continuing operations 26,172 26,428Finance costs 376 632----------------------------------------------------------------------------Net income before income tax from continuing operations 25,796 25,796Current income tax expense 4,425 3,716Deferred income tax expense 2,166 2,257----------------------------------------------------------------------------Total income tax expense 6,591 5,973----------------------------------------------------------------------------Net income from continuing operations 19,205 19,823--------------------------------------------------------------------------------------------------------------------------------------------------------Net loss from discontinued operations, net of tax (607) (1,093)----------------------------------------------------------------------------Net income 18,598 18,730--------------------------------------------------------------------------------------------------------------------------------------------------------Unrealized foreign exchange gain (loss) on discontinued operations (31) 1,009----------------------------------------------------------------------------Other comprehensive income (loss) from discontinued operations (31) 1,009--------------------------------------------------------------------------------------------------------------------------------------------------------Comprehensive income 18,567 19,739--------------------------------------------------------------------------------------------------------------------------------------------------------Net income (loss) attributable to: Shareholders of Essential $ 18,627 $ 18,893 Non-controlling interest (29) (163)---------------------------------------------------------------------------- $ 18,598 $ 18,730--------------------------------------------------------------------------------------------------------------------------------------------------------Comprehensive income (loss) attributable to: Shareholders of Essential $ 18,597 $ 19,758 Non-controlling interest (30) (19)---------------------------------------------------------------------------- $ 18,567 $ 19,739--------------------------------------------------------------------------------------------------------------------------------------------------------Net income per share from continuing operations Basic and diluted, attributable to shareholders of Essential $ 0.15 $ 0.16Net income per share Basic and diluted, attributable to shareholders of Essential $ 0.15 $ 0.15Comprehensive income per share Basic and diluted, attributable to shareholders of Essential $ 0.15 $ 0.16--------------------------------------------------------------------------------------------------------------------------------------------------------ESSENTIAL ENERGY SERVICES LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) For the three months ended March 31(Thousands) 2013 2012----------------------------------------------------------------------------Operating activities:Net income from continuing operations $ 19,205 $ 19,823Non-cash adjustments to reconcile net income for the year to operating cash flow: Depreciation and amortization 7,044 7,079 Deferred income tax expense 2,166 2,257 Share-based compensation 343 491 Provision (recovery) for impairment of trade accounts receivable 250 (342) Finance costs 376 632 Gain on disposal of assets (106) (880)----------------------------------------------------------------------------Operating cash flow before changes in working capital 29,278 29,060Change in non-cash operating working capital: Trade and other accounts receivable before provision (31,159) (7,825) Inventories (762) (2,200) Prepayments 658 288 Trade and other accounts payable 7,262 (6,485) Current taxes payable 1,795 (1,620)----------------------------------------------------------------------------Net cash provided by operating activities from continuing operations 7,072 11,218----------------------------------------------------------------------------Investing activities: Purchase of property and equipment & intangibles (6,824) (10,190) Proceeds on disposal of equipment 540 7,318----------------------------------------------------------------------------Net cash used in investing activities from continuing operations (6,284) (2,872)----------------------------------------------------------------------------Financing activities: Increase (decrease) in long-term debt 40 (5,575) Proceeds on exercise of share options 88 445 Common shares repurchase (8) - Dividends paid (3,100) - Finance costs (376) (632)----------------------------------------------------------------------------Net cash used in financing activities from continuing operations (3,356) (5,762)----------------------------------------------------------------------------Net increase (decrease) in cash (2,568) 2,584Net decrease in cash, discontinued operations - (987)Cash, beginning balance, discontinued operations - 1,268Bank indebtedness, beginning of the period (1,835) (1,105)----------------------------------------------------------------------------Cash (bank indebtedness), end of the period $ (4,403) $ 1,760--------------------------------------------------------------------------------------------------------------------------------------------------------Supplemental cash flow informationCash taxes paid $ 2,630 $ 5,336--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Non-IFRS Measures
