AKITA Drilling Ltd. Announces First Quarter Results



    CALGARY, April 28 /CNW/ - AKITA Drilling Ltd.'s net earnings for the
three months ended March 31, 2009 were $3,908,000 or $0.21 per share on
revenue of $41,696,000. Comparative figures for 2008 were earnings of
$7,647,000 or $0.42 per share on revenue of $47,382,000. Funds flow from
continuing operations for the period was $12,051,000 compared to $14,274,000
in 2008.
    Weak market conditions continued into the first quarter of 2009,
resulting in the lowest rig utilization for a first quarter in AKITA's
history. Operating statistics for the first three months of 2009 and 2008 are
as follows:

    
                                                       Number of
                                     Number of Rigs        Wells   Operating
                                    Gross       Net      Drilled      Days
    -------------------------------------------------------------------------
    Canada              2009          38      35.725         156       1,472
                       ------------------------------------------------------
                        2008          38      34.575         280       2,001
    -------------------------------------------------------------------------
    United States       2009           3         1.5           4         201
                       ------------------------------------------------------
                        2008           3         1.5           1          58
    -------------------------------------------------------------------------
    Total               2009          41      37.225         160       1,673
                       ------------------------------------------------------
                        2008          41      36.075         281       2,059
    -------------------------------------------------------------------------
    

    On April 4, 2009, the Company's management and employees were recognized
for their achievement in safety by being awarded a CAODC Safety Leadership
Award at the Annual CAODC Safety Banquet. This was the ninth time in the past
ten years that AKITA's safety performance has been recognized by the industry.
    There are no obvious signs of an imminent improvement in drilling
activity for the balance of this year. The Company is well positioned
financially and has a broad range of first-class equipment and personnel to
meet our customer requirements once drilling conditions improve. Management
has placed an emphasis on ensuring its actions remain the most appropriate to
maintain the Company's mandate of being the best drilling contractor in the
markets that it serves.
    Selected financial information for the Company is as follows:

    
    -------------------------------------------------------------------------
    Consolidated Balance Sheets
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Unaudited                                      March 31       December 31
    ($000's)                                   2009       2008        2008
    -------------------------------------------------------------------------
    Assets
    Current assets
      Cash and cash equivalents            $  46,347   $  39,841   $  42,168
      Accounts receivable                     45,608      40,450      41,534
      Income taxes recoverable                    29           -           -
      Other                                    1,842       1,550       1,123
                                           ----------------------------------
                                              93,826      81,841      84,825

    Restricted cash                            5,000       5,000       5,000
    Capital assets                           153,794     147,575     153,044
                                           ----------------------------------
                                           $ 252,620   $ 234,416   $ 242,869
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current liabilities
      Accounts payable and accrued
       liabilities                         $  22,071   $  15,902   $  20,061
      Deferred revenue                         3,777       1,741           -
      Dividends payable                        1,276       1,279       1,276
      Income taxes payable                         -       1,147         399
                                           ----------------------------------
                                              27,124      20,069      21,736
    Future income taxes                       20,384      16,200      18,818
    Pension liability                          3,872       3,674       3,854

    Class A and Class B Shareholders'
     Equity
    Class A and Class B shares                23,327      23,369      23,312
    Contributed surplus                        2,271       1,177       2,271
    Accumulated other comprehensive income       132           -           -
    Retained earnings                        175,510     169,927     172,878
                                           ----------------------------------

                                             201,240     194,473     198,461
                                           ----------------------------------
                                           $ 252,620   $ 234,416   $ 242,869
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Consolidated Statements of Earnings and Retained Earnings
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Unaudited                                                 Three Months
    ($000's except per share amounts)                        Ended March 31
                                                            2009        2008
    -------------------------------------------------------------------------
    Revenue                                            $  41,696   $  47,382
                                                      -----------------------
    Costs and expenses
      Operating and maintenance                           25,150      27,315
      Depreciation                                         6,580       5,484
      Selling and administrative                           4,396       4,267
                                                      -----------------------
    Revenue less costs and expenses                        5,570      10,316
                                                      -----------------------

    Other income
      Interest income                                        215         477
      Gain on sale of joint venture interests
       in rigs and other assets                               21          17
      Gain on foreign currency translation                     2          67
                                                      -----------------------
                                                             238         561
                                                      -----------------------
    Earnings before income taxes                           5,808      10,877
                                                      -----------------------

    Income taxes
      Current                                                334       2,202
      Future                                               1,566       1,145
                                                      -----------------------
                                                           1,900       3,347

    Earnings from continuing operations                    3,908       7,530
    Discontinued operations, net of tax                        -         117

                                                      -----------------------
    Net Earnings                                           3,908       7,647
                                                      -----------------------

    Retained earnings, beginning of period               172,878     163,559
    Dividends declared                                    (1,276)     (1,279)

                                                      -----------------------
    Retained Earnings, End of Period                   $ 175,510   $ 169,927
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Earnings per Class A and Class B Share
      Basic                                            $    0.21   $    0.42
      Diluted                                          $    0.21   $    0.42
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Consolidated Statements of Cash Flows
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Unaudited                                                 Three Months
    ($000's)                                                 Ended March 31
                                                            2009        2008
    -------------------------------------------------------------------------
    Operating Activities
    Earnings from continuing operations                $   3,908   $   7,530
    Non-cash items included in earnings
      Depreciation                                         6,580       5,484
      Future income taxes                                  1,566       1,145
      Expense for defined benefit pension plan                18          65
      Stock options charged to expense                         -          67
      Gain on sale of joint venture interests
       in rigs and other assets                              (21)        (17)
                                                      -----------------------
    Funds flow from continuing operations                 12,051      14,274
    Cash provided from discontinued operations                 -         184
    Change in non-cash working capital                      (793)    (15,783)
                                                      -----------------------
                                                          11,258      (1,325)
                                                      -----------------------

    Investing Activities
    Capital expenditures                                  (7,358)       (554)
    Proceeds on sale of joint venture interests
     in rigs and other assets                                 49          24
    Change in non-cash working capital                     1,359        (191)
                                                      -----------------------
                                                          (5,950)       (721)
                                                      -----------------------

    Financing Activities
    Dividends paid                                        (1,276)     (1,279)
    Proceeds received on exercise of stock options            15           -
                                                      -----------------------
                                                          (1,261)     (1,279)
                                                      -----------------------
    Foreign currency translation                             132           -
                                                      -----------------------
    Increase (Decrease) in Cash                            4,179      (3,325)
     Cash position, beginning of period                   42,168      43,166

                                                      -----------------------
    Cash Position, End of Period                       $  46,347   $  39,841
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Interest paid during the period                    $       7   $       8
    Income taxes paid during the period                $     761   $   1,985
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Consolidated Statements of Comprehensive Income
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Unaudited                                                 Three Months
    ($000's)                                                 Ended March 31
                                                            2009        2008
    -------------------------------------------------------------------------

    Net Earnings                                       $   3,908   $   7,647

    Other comprehensive income
      Foreign currency translation adjustment                132           -
                                                      -----------------------
    Comprehensive Income                               $   4,040   $   7,647
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00002868E




For further information:

For further information: Mr. Murray Roth, Vice President Finance, (403)
292-7950, Website: http://www.akita-drilling.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890