Results from continuing operations for the year ended March 31, 2013
For the year ended March 31, 2013, the Company reported consolidated revenue of $544.6 million, compared to $670.7 million during the same period last year. The change in revenue primarily reflects a reduction in demand for heavy civil construction and mine support service activities performed at the Jackpine and Muskeg River mines. Also contributing to the decrease was a reduction of earthworks activity at the Co-op refinery in Saskatchewan, reduced overburden volumes at the Millennium mine and reduced demand for tailings and environmental construction services in the oil sands. The prior year also included earthworks performed at the Blackgold SAGD project. Partially offsetting the decrease in activity at those sites was increased heavy civil construction activity at the Base Plant mine, increased site development activity at both the Joslyn mine and Dover SAGD site and the return of overburden removal activity to normal operating levels at the Horizon mine.
For the year ended March 31, 2013, gross profit increased to $33.9 million, from $32 million last year and gross profit margin increased to 6.2%, compared to 4.8% during the same period last year. The improvement primarily reflects lower equipment maintenance costs and reduced equipment operating lease expense resulting from the refinancing of certain operating leases to capital leases and from the sale of certain operating leased assets to Canadian Natural. Also supporting improved gross profit margins was increased margin on overburden removal activity at the Horizon mine. Partially offsetting the improvement were reduced operations support services revenue and an increase in lower-margin heavy civil construction activity.
For the year ended March 31, 2013, operating loss was $16.0 million, compared to an operating loss of $14.8 million during the year ended March 31, 2012. General and administrative (G&A) expense (excluding stock-based compensation) was $40.5 million for the year ended March 31, 2013, down from $43.6 million in the year ended March 31, 2012. Current year G&A reflects the benefits from business restructuring activities initiated earlier this year, offset by a $2.8 million restructuring charge and a $3.6 million increase in short-term employee incentive costs. Current year short-term incentive costs were $1.8 million higher than in fiscal 2011. Stock-based compensation expense increased $5.9 million over fiscal 2012, resulting from an increase in the Company's share price.
Results from continuing operations for the three months ended March 31, 2013
For the three months ended March 31, 2013, revenue was $130.3 million, $50.8 million lower than in the same period last year. The change primarily reflects a reduction in reclamation, heavy civil, and mine services activities at the Jackpine and Muskeg River mines. Also contributing to the decrease was a reduction in site development activity at the Joslyn mine, the completion of structural steel construction on the Mt. Milligan Copper/Gold project and reduced demand for tailings and environmental services in the oil sands. Prior year revenue also benefited from work performed at the BlackGold SAGD site. Partially offsetting the decrease in activity was increased early works activity at the Quest CCS project and the commencement of mine services activity at the Kearl mine.
For the three months ended March 31, 2013, gross profit was $8.9 million, an increase of $9.8 million compared to the same period last year. Gross margin increased to 6.9% compared to -0.5% for the three months ended March 31, 2012. The improvement in both gross profit and margin reflects the benefit of lower heavy equipment maintenance and operating lease costs. Partially offsetting these improvements was the reduced demand for mine support and construction services across the oil sands.
Most Popular Stories
- 15 Myths That Could Ruin Your Hispanic Ad Campaign
- General Motors Names Mary Barra as First Female CEO
- Cold Dis-comfort: Antarctica Set Record of -135.8
- Slow Week Ahead of December FOMC Meeting
- Uruguay Gets Ready for Legal Marijuana
- Oldaker Takes Center Stage at Entrepreneur Awards
- Obama Delivers Speech at Mandela Memorial: Transcript
- Hispanics Seek to Grow School Board Members
- 'Knockout Game': Myth or Menace?
- Russia Says Nyet to Canada North Pole Claim