/NOT FOR DISSEMINATION IN
Dollars in 000's except per share amounts.
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities laws. For a full disclosure of forward-looking statements and the risks to which they are subject, see "Forward-Looking Statements" later in this news release. This news release contains references to Adjusted gross margin (gross margin plus non-cash items of depreciation and share-based compensation), Adjusted gross margin % (adjusted gross margin divided by revenues) and Adjusted EBITDA (earnings before finance costs, unrealized foreign exchange on intercompany balances, taxes, depreciation, non-recurring costs (including acquisition and restructuring costs and non-cash provision for bad debts), write-down of equipment, write-down of inventory and share-based compensation). These terms do not have standardized meanings prescribed under International Financial Reporting Standards (IFRS) and may not be comparable to similar measures used by other companies, see "Non-GAAP Measures" later in this news release.
FINANCIAL HIGHLIGHTS
Dollars in 000's except per share amounts
Three months ended | Six months ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Revenues | $ | 27,652 | $ | 7,322 | $ | 62,037 | $ | 18,687 |
Adjusted gross margin % (1) | 19 % | -6 % | 24 % | 11 % | ||||
Adjusted EBITDAS (1) | $ | 2,865 | $ | (2,477) | $ | 9,838 | $ | (1,540) |
Cash flow - operating activities | $ | 4,511 | $ | (1,892) | $ | 2,753 | $ | (2,300) |
Income (loss) from operating activities | $ | (1,885) | $ | (5,483) | $ | 526 | $ | (7,643) |
Basic per share | $ | (0.01) | $ | (0.10) | $ | - | $ | (0.15) |
Net income (loss) | $ | (2,824) | $ | (5,846) | $ | (581) | $ | (7,932) |
Basic per share | $ | (0.02) | $ | (0.11) | $ | (0.01) | $ | (0.15) |
Equipment additions - cash basis | $ | 6,218 | $ | 737 | $ | 9,522 | $ | 1,328 |
Weighted average shares outstanding | ||||||||
Basic (000s) | 129,200 | 54,935 | 110,353 | 52,547 | ||||
Diluted (000s) | 131,898 | 55,721 | 112,969 | 52,873 | ||||
2022 | 2021 | |||||||
Working capital | $ | 21,342 | $ | 14,117 | ||||
Total assets | $ | 123,373 | $ | 75,423 | ||||
Loans and borrowings, current and long-term | $ | 9,170 | $ | 6,035 | ||||
Shareholders' equity | $ | 82,190 | $ | 42,504 |
(1) Refer to "NON-GAAP MEASUREMENTS" |
2022 Q2 KEY TAKEAWAYS
- Revenue increased by
$20,330 in 2022 Q2 compared to 2021 Q2, representing growth of 278%; - Adjusted EBITDAS increased to
$2,865 in 2022 Q2 from negative ($2,477 ) in 2021 Q2, an improvement of$5,342 ; - 2022 Q2 had a loss of (
$2,824 ) compared to a loss of ($5,846 ) in 2021 Q2, representing meaningful improvement amidst the normal seasonality of Canadian Q2 low activity; - Canadian market share tallied over 15% in 2022 Q2 vs. approximately 7% one year ago and was the highest level for a second quarter in many years;
- The Company completed one of the first bought deals in the Canadian energy business since 2017, raising gross proceeds of over
$26,000 via a syndicate of Canadian investment dealers; - The Company purchased 91% of LEXA Drilling Technologies and added highly regarded members of the management team with the proven technical expertise and track record of
Axel Schmidt as SVP Engineering and Technology and a wealth of industry specific financial knowledge and experience withChad Robinson , who subsequently accepted the role of Chief Financial Officer in the third quarter; - Expanded into a strategic gas market in the
Montney and added a complementary customer base with the completion of our fifth acquisition, Compass Directional, in the quarter; and - Subsequent to 2022 Q2, the Company acquired
Altitude Energy Partners for approximately$128,000 CAD . With a presence in most major basins in the US and a 7% market share, the acquisition of Altitude significantly expands the Company's US footprint and establishes it as one of the larger providers of directional services inNorth America with an enhanced management and sales team.
Comments from President & CEO
The second quarter of 2022 was an exciting time for the company as the benefits of our consolidation strategy continue to bear fruit with improved results and the completion of two additional key acquisitions. Cathedral posted the best top line in a second quarter since 2019 and the highest level of adjusted EBITDAS since the second quarter of 2014. The power of the Company's consolidation strategy is now showing itself in quarterly results, a trend we expect to continue as Cathedral gains a full quarter from Compass in Q3 and almost a full quarter from Altitude. On a pro forma basis, the inclusion of six acquisitions materially increases the EBITDA and free cash flow profile of Cathedral and positions the Company with a larger market profile which is more appealing to a broader audience of investors.
In order to ensure we are positioned to offer the most-competitive technology possible, we completed the purchase of LEXA Drilling Technologies, our first acquisition in the quarter, and fourth in twelve months. LEXA brings to the company a team of highly-capable people led by
Adding a complementary customer base and expanding our footprint in the highly-strategic
Post Q2-2022, Cathedral completed its sixth and largest acquisition in twelve months with the purchase of
The management team of Cathedral believes that balance sheet strength is paramount, which is why the emphasis over the next several quarters will be to bring net debt levels down markedly. Operating cash flows are expected to exceed capital spending needs by a considerable margin such that improvements in leverage ratios will be quickly noticeable. The Company also continues to execute on its 2022 capital plan and strategically invest in areas that bring value to our customers and our business such as the addition of four rotary steerable systems for the Canadian market. With our combined strategy of growth through consolidation, differentiation through technology, and a fervent focus on operational excellence, the Company expects the culmination of those efforts will generate high levels of free cash flow, a strong balance sheet, and a robust Company into the future.
Finally, I want to take this opportunity to thank the many employees from Cathedral who have made these results and acquisitions happen and welcome our new partners from LEXA, Compass and Altitude. We will be much stronger with your contributions going forward.
The purchase price allocation related to the acquisition is preliminary and may be subject to adjustments, which may be material, pending completion of final valuations. In a business combination, it generally takes time to obtain the information necessary to measure fair values of assets acquired and liabilities assumed. Changes in the provisional measurements of assets and liabilities acquired may be recorded as part of the purchase price allocation as new information is obtained, until the final measurements are determined no later than 12 months after the acquisition date. The Company is still in the process of identifying the assets acquired and liabilities assumed and assessing the fair value allocations relating to the inventory and intangible and capital assets acquired. Fair value is estimated using the latest available information as at the date of the financial statements. As a result, these preliminary allocations may change.
On
Cathedral paid
While the purchase and sale agreement was structured as an asset sale, the Company has accounted for this transaction as a business combination. The amounts below are based on management's preliminary estimates of fair value at the time of preparation of these financial statements based on the best available information. Amendments may be made to these amounts as the values subject to estimation are finalized. The Company has allocated the purchase price as:
- Inventory
$3,283 - Right of use asset
$1,579 ; and - Equipment
$17,609 .
To date, the Company has expensed
For the period of
On
In exchange for 90.98% of the shares of LEXA, its technology and products in development, Cathedral issued 1,612,891 common shares, which will be subject to a four-month hold period. The shares were valued at
The Company has accounted for this transaction as a business combination. The amounts below are based on management's preliminary estimates of fair value at the time of preparation of these financial statements based on the best available information. Amendments may be made to these amounts as the values subject to estimation are finalized. The Company has allocated the purchase price as:
- Cash
$70 ; - Net working capital
$180 ; - Deferred tax liability (
$109 ); - Intangibles
$1,052 ; and - Non-controlling interest (
$177 )
The deferred tax liability was subsequently offset by the benefit of unrecorded tax attributes.
To date, the Company has not expensed any costs related to the Transaction.
A director of Cathedral, Mr.
As part of the transaction, Mr.
Prior to the acquisition, Cathedral was the only revenue source for LEXA so there are no revenues or operating profit before depreciation and interest to report.
On
As part of the Transaction, Cathedral has retained key Compass personnel under employment contracts to ensure a seamless customer service experience, successful integration and long-term alignment with Cathedral's strategy.
Cathedral paid
While the purchase and sale agreement was structured as an asset sale, the Company has accounted for this transaction as a business combination. The amounts below are based on management's preliminary estimates of fair value at the time of preparation of these financial statements based on the best available information. Amendments may be made to these amounts as the values subject to estimation are finalized. The Company has allocated the purchase price as:
- Inventory
$444 - Right of use asset
$316 ; - Deferred tax liability (
$647 ); and - Equipment
$8,518 .
The deferred tax liability was subsequently offset by the benefit of unrecorded tax attributes.
To date, the Company has expensed
Additionally, 1,389,664 shares were issued on an escrow arrangement and are subject to contractual restrictions over four years with ¼ of the shares vesting each year on the anniversary of the purchase. These shares are registered to Cathedral's 100% owned subsidiary, 2438155
As the acquired assets were integrated into Cathedral's existing directional drilling operations it is impracticable to breakout the revenue and profit or loss of the acquired assets since the acquisition.
On
Altitude is a privately-held,
Following the completion of the acquisition, the Company plans to continue to use the Altitude name and brand in the US. Further, the Altitude management team and its people will lead and operate Cathedral's existing US directional drilling business. Mr.
In connection with this transaction, the Company amended its banking agreement with
On
RESULTS OF OPERATIONS – THREE MONTHS ENDED
Revenues | 2022 | 2021 |
$ 13,091 | $ 3,207 | |
14,561 | 4,115 | |
Total | $ 27,652 | $ 7,322 |
Revenues 2022 Q2 revenues were
Canadian revenues (excluding motor rental revenues) increased to
Based on publicly disclosed Canadian drilling and directional drilling days, Cathedral's market share for 2022 Q2 was 15.4% compared to 7.3% in 2021 Q2. Day rates increased due to an overall increases in day rates along with client mix changes.
The average active land rig count for the
Motor rentals increased in both
Gross margin and adjusted gross margin Gross margin for 2022 Q2 was 2% compared to (45%) in 2021 Q2. Adjusted gross margin (see Non-GAAP Measurements) for 2022 Q2 was
Adjusted gross margin, as a percentage of revenue, increased due to lower field labour, repairs, rentals and a reduction in fixed costs as percentage of revenue.
Depreciation of equipment allocated to cost of sales increased to
Selling, general and administrative ("SG&A") expenses SG&A expenses were
Technology group expenses Technology group expenses were
Gain (loss) on disposal of equipment During 2022 Q2, the Company had a gain on disposal of equipment of
Finance costs Finance costs consisting of interest expenses on loans and borrowings and bank charges were
Finance costs lease liability Lease liability interest decreased slightly to
Acquisition and restructuring costs Acquisition and restructuring costs were
Foreign exchange The Company had a foreign exchange loss of (
Income tax Income tax expense is booked based upon expected annualized rates using the statutory rates of 23% for
RESULTS OF OPERATIONS – SIX MONTHS ENDED
Revenues | 2022 | 2021 |
$ 38,490 | $ 11,308 | |
23,547 | 7,379 | |
Total | $ 62,037 | $ 18,687 |
Revenues 2022 revenues were
Canadian revenues (excluding motor rental revenues) increased to
Based on publicly disclosed Canadian drilling and directional drilling days, Cathedral's market share for 2022 was 18.2% compared to 9.3% in 2021. Day rates increased due to certain ancillary revenues along with overall increases in day rates and changes in client mix.
The average active land rig count for the
Motor rentals increased in both
Gross margin and adjusted gross margin Gross margin for 2022 was 10% compared to (20%) in 2021. Adjusted gross margin (see Non-GAAP Measurements) for 2022 was
Adjusted gross margin, as a percentage of revenue, increased due to lower field labour, repairs and a reduction in fixed costs as percentage of revenue, partially offset by increases in rentals.
Depreciation of equipment allocated to cost of sales increased to
Selling, general and administrative ("SG&A") expenses SG&A expenses were
Technology group expenses Technology group expenses were
Gain (loss) on disposal of equipment During 2022, the Company had a gain on disposal of equipment of
Finance costs Finance costs consisting of interest expenses on loans and borrowings and bank charges were
Finance costs lease liability Lease liability interest decreased slightly to
Acquisition and restructuring costs Acquisition and restructuring costs were
Foreign exchange The Company had a foreign exchange loss of (
Income tax Income tax expense is booked based upon expected annualized rates using the statutory rates of 23% for both
Overview On an annualized basis, the Company's principal source of liquidity is cash generated from operations and proceeds from equipment lost-in-hole. In addition, the Company has the ability to fund liquidity requirements through its credit facility and the issuance of debt and/or equity. Cash flow - operations in 2022 was a source of cash of
Working capital At
Contractual obligations In the normal course of business, the Company incurs contractual obligations and those obligations are disclosed in the Company's annual financial statements for the year ended
As at
The Company has issued the following six letters of credit ("LOC"):
- three securing rent payments on property leases and renew annually with the landlords. Two LOCs total
$700 CAD for the first ten years of the lease and then reduce to$500 for the last five years of the leases. The third LOC is currently for$630 USD and increases annually based upon annual changes in rent; - two securing the Company's corporate credit cards in the amounts of
$75 CAD and$175 USD ; and - one in lieu of cash deposit for utilities in the amounts of
$55 CAD .
Share capital At
In 2022 Q1, the Company issued 380,000 stock options to staff with an exercise price of
During the six months ended
Six months ended | |
Equipment additions: | |
Motors | $ 2,825 |
MWD | 6,671 |
Other | 26 |
Total cash additions | $ 9,522 |
The additions of
The Company's estimated 2022 gross capital plan consists of legacy capital plans that is unchanged at
Financial markets are currently trying to assess the extent of any US and global recession as well as any resulting impact on oil and natural gas demand. Over the summer, there has been ample volatility in various commodity markets, but oil and natural gas prices have proved stubbornly resistant to any material fall-off. Years of underinvestment in the global oil business combined with the pull-back in spending on the natural gas side via Covid-19 shut-downs have created a situation of considerable undersupply of both critically important commodities in the global economy. The war in
Notwithstanding the considerable uncertainties in global oil and gas markets, the E&P spending backdrop in
Current Canadian rig count forecasts range from an average of 155-175 rigs working in 2022 (up roughly 30% y/y) moving to an average of 195-210 rigs working in 2023 (up another 10-15%). On the
On the corporate side, Cathedral plans to introduce its own rotary steerable offering into the Canadian marketplace as a direct competitor to the incumbent provider.
FORWARD LOOKING STATEMENTS
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this news release contains forward-looking statements relating to, among other things: subsequent events; the emphasis over the next several quarters will be to bring net debt levels down markedly; operating cash flows are expected to exceed capital spending needs by a considerable margin such that improvements in leverage ratios will be quickly noticeable; the Company expects the culmination of those efforts will generate high levels of free cash flow, a strong balance sheet, and a robust Company into the future; heading into the fall and winter, the supply situation is growing increasingly troublesome and major economies in
The Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to the Company, including information obtained from third party industry analysts and other third party sources. In some instances, material assumptions and material factors are presented elsewhere in this MD&A in connection with the forward-looking statements. You are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to:
- the performance of Cathedral's business
- impact of economic and social trends;
- oil and natural gas commodity prices and production levels;
- the ongoing impact of the global health crisis and COVID-19;
- capital expenditure programs and other expenditures by Cathedral and its customers;
- the ability of Cathedral to retain and hire qualified personnel;
- the ability of Cathedral to obtain parts, consumables, equipment, technology, and supplies in a timely manner to carry out its activities;
- the ability of Cathedral to maintain good working relationships with key suppliers;
- the ability of Cathedral to retain customers, market its services successfully to existing and new customers and reliance on major customers;
- risks associated with technology development and intellectual property rights;
- obsolesce of Cathedral's equipment and/or technology;
- the ability of Cathedral to maintain safety performance;
- the ability of Cathedral to obtain adequate and timely financing on acceptable terms;
- the ability of Cathedral to comply with the terms and conditions of its credit facility;
- the ability to obtain sufficient insurance coverage to mitigate operational risks;
- currency exchange and interest rates;
- risks associated with future foreign operations;
- the ability of Cathedral to integrate its transactions and the benefits of any acquisitions, dispositions and business development efforts;
- environmental risks;
- business risks resulting from weather, disasters and related to information technology;
- changes under governmental regulatory regimes and tax, environmental, climate and other laws in
Canada and theU.S. ; and - competitive risks.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in this MD&A and in the Company's Annual Information Form under the heading "Risk Factors". Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
All forward-looking statements contained in this MD&A are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in the Company's current Annual Information Form that has been filed with Canadian provincial securities commissions and is available on www.sedar.com.
NON-GAAP MEASUREMENTS
Cathedral uses certain performance measures throughout this document that are not defined under GAAP. Management believes that these measures provide supplemental financial information that is useful in the evaluation of Cathedral's operations and are commonly used by other oilfield companies. Investors should be cautioned, however, that these measures should not be construed as alternatives to measures determined in accordance with GAAP as an indicator of Cathedral's performance. Cathedral's method of calculating these measures may differ from that of other organizations, and accordingly, may not be comparable.
The specific measures being referred to include the following:
i) "Adjusted gross margin" - calculated as gross margin plus non-cash items (depreciation and share-based compensation); is considered a primary indicator of operating performance (see tabular calculation);
ii) "Adjusted gross margin %" - calculated as adjusted gross margin divided by revenues; is considered a primary indicator of operating performance (see tabular calculation);
iii) "Adjusted EBITDAS" - defined as earnings before finance costs, unrealized foreign exchange on intercompany balances, taxes, depreciation, non-recurring costs (including acquisition and restructuring costs and non-cash provision for bad debts), write-down of equipment, write-down of inventory and share-based compensation; is considered an indicator of the Company's ability to generate funds flow from operations prior to consideration of how activities are financed, how the results are taxed and non-cash expenses (see tabular calculation);
The following tables provide reconciliations from GAAP measurements to non-GAAP measurements referred to in this MD&A:
Adjusted gross margin
Three months ended | Six months ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Gross margin | $ | 574 | $ | (3,279) | $ | 6,104 | $ | (3,746) |
Add non-cash items included in cost of sales: | ||||||||
Depreciation | 4,622 | 2,825 | 8,911 | 5,712 | ||||
Share-based compensation | 49 | 26 | 92 | 34 | ||||
Adjusted gross margin | $ | 5,245 | $ | (428) | $ | 15,107 | $ | 2,000 |
Adjusted gross margin % | 19 % | -6 % | 24 % | 11 % |
Adjusted EBITDAS
Three months ended | Six months ended | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Income (loss) before income taxes | $ | (3,580) | $ | (5,846) | $ | (1,337) | $ | (7,932) |
Add: | ||||||||
Depreciation included in cost of sales | 4,622 | 2,825 | 8,911 | 5,712 | ||||
Depreciation included in selling, general and administrative expenses | 124 | 133 | 248 | 267 | ||||
Share-based compensation included in cost of sales | 49 | 26 | 92 | 34 | ||||
Share-based compensation included in selling, general and administrative expenses | 83 | 28 | 174 | 49 | ||||
Finance costs | 295 | 106 | 524 | 189 | ||||
Finance costs lease liabilities | 195 | 201 | 384 | 410 | ||||
Subtotal | 1,788 | (2,527) | 8,996 | (1,271) | ||||
Unrealized foreign exchange (gain) loss on intercompany balances | 758 | (478) | 463 | (922) | ||||
Non-recurring expenses | 319 | 528 | 379 | 653 | ||||
Total Adjusted EBITDAS | $ | 2,865 | $ | (2,477) | $ | 9,838 | $ | (1,540) |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Dollars in '000s
(Unaudited)
June 30 | December 31 | |||
2022 | 2021 | |||
Assets | ||||
Current assets: | ||||
Cash | $ | 11,312 | $ | 2,898 |
Trade receivables | 23,845 | 15,609 | ||
Prepaid expenses | 968 | 1,438 | ||
Inventories | 12,731 | 8,423 | ||
Current tax recoveries | 170 | - | ||
Total current assets | 49,026 | 28,368 | ||
Equipment | 61,074 | 35,044 | ||
Intangible assets | 2,167 | 1,491 | ||
Right of use asset | 11,106 | 10,520 | ||
Total non-current assets | 74,347 | 47,055 | ||
Total assets | $ | 123,373 | $ | 75,423 |
Liabilities and Shareholders' Equity | ||||
Current liabilities: | ||||
Trade and other payables | $ | 15,567 | $ | 11,069 |
Current taxes payable | - | 55 | ||
Loans and borrowings, current | 9,170 | 1,000 | ||
Lease liabilities, current | 2,947 | 2,127 | ||
Total current liabilities | 27,684 | 14,251 | ||
Loans and borrowings | - | 5,035 | ||
Lease liabilities, long-term | 13,499 | 13,633 | ||
Total non-current liabilities | 13,499 | 18,668 | ||
Total liabilities | 41,183 | 32,919 | ||
Shareholders' equity: | ||||
Share capital | 136,046 | 98,918 | ||
(959) | - | |||
Contributed surplus | 15,087 | 11,793 | ||
Accumulated other comprehensive income | 9,638 | 9,011 | ||
Deficit | (77,799) | (77,218) | ||
Non-controlling interest | 177 | - | ||
Total shareholders' equity | 82,190 | 42,504 | ||
Total liabilities and shareholders' equity | $ | 123,373 | $ | 75,423 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Three and six months ended
Dollars in '000s except per share amounts
(Unaudited)
Three months ended June 30 | Six months ended June 30 | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Revenues | $ | 27,652 | $ | 7,322 | $ | 62,037 | $ | 18,687 |
Cost of sales: | ||||||||
Direct costs | (22,407) | (7,750) | (46,930) | (16,687) | ||||
Depreciation | (4,622) | (2,825) | (8,911) | (5,712) | ||||
Share-based compensation | (49) | (26) | (92) | (34) | ||||
Total cost of sales | (27,078) | (10,601) | (55,933) | (22,433) | ||||
Gross margin | 574 | (3,279) | 6,104 | (3,746) | ||||
Selling, general and administrative expenses: | ||||||||
Direct costs | (3,319) | (1,937) | (6,826) | (3,475) | ||||
Depreciation | (124) | (133) | (248) | (267) | ||||
Share-based compensation | (83) | (28) | (174) | (49) | ||||
Total selling, general and administrative expenses | (3,526) | (2,098) | (7,248) | (3,791) | ||||
Technology group expenses | (231) | (162) | (450) | (350) | ||||
Gain on disposal of equipment | 1,298 | 56 | 2,120 | 244 | ||||
Income (loss) from operating activities | (1,885) | (5,483) | 526 | (7,643) | ||||
Finance costs | (295) | (106) | (524) | (189) | ||||
Finance costs lease liabilities | (195) | (201) | (384) | (410) | ||||
Acquisition and restructuring costs | (332) | (528) | (392) | (608) | ||||
Foreign exchange gain (loss) | (873) | 472 | (563) | 918 | ||||
Loss before income taxes | (3,580) | (5,846) | (1,337) | (7,932) | ||||
Deferred tax recovery | 756 | - | 756 | - | ||||
Loss | (2,824) | (5,846) | (581) | (7,932) | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation differences for foreign operations | 983 | (476) | 627 | (929) | ||||
Total comprehensive income (loss) | $ | (1,841) | $ | (6,322) | $ | 46 | $ | (8,861) |
Loss per share | ||||||||
Basic | $ | (0.02) | $ | (0.11) | $ | (0.01) | $ | (0.15) |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Three and six months ended
Dollars in '000s
(Unaudited)
Three months ended June 30 | Six months ended June 30 | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Cash provided by (used in): | ||||||||
Operating activities: | ||||||||
Loss | $ | (2,824) | $ | (5,846) | $ | (581) | $ | (7,932) |
Items not involving cash | ||||||||
Income tax provision | (756) | - | (756) | - | ||||
Depreciation | 4,746 | 2,958 | 9,159 | 5,979 | ||||
Share-based compensation | 132 | 54 | 266 | 83 | ||||
Gain on disposal of equipment | (1,298) | (56) | (2,120) | (244) | ||||
Finance costs | 295 | 106 | 524 | 189 | ||||
Finance costs lease liability | 195 | 201 | 384 | 410 | ||||
Unrealized foreign exchange (gain) loss on intercompany balances | 758 | (478) | 463 | (922) | ||||
Cash flow - continuing operations | 1,248 | (3,061) | 7,339 | (2,437) | ||||
Changes in non-cash operating working capital | 3,243 | 1,212 | (4,614) | 180 | ||||
Income taxes paid | 20 | (43) | 28 | (43) | ||||
Cash flow - operating activities | 4,511 | (1,892) | 2,753 | (2,300) | ||||
Investing activities: | ||||||||
Equipment additions in normal course | (6,218) | (737) | (9,522) | (1,328) | ||||
Cash paid on acquisitions | (4,000) | - | (22,160) | - | ||||
Proceeds on disposal of equipment | 3,091 | 77 | 4,324 | 298 | ||||
Cash acquired on acquisition | 70 | 70 | - | |||||
Changes in non-cash investing working capital | 1,046 | 271 | 841 | (118) | ||||
Cash flow - investing activities | (6,011) | (389) | (26,447) | (1,148) | ||||
Financing activities: | ||||||||
Proceeds on share issue | 24,686 | 3,163 | 31,160 | 3,393 | ||||
Advances on loans and borrowings | - | 1,586 | 19,859 | 3,659 | ||||
Repayments on loans and borrowings | (10,779) | (1,915) | (16,723) | (1,915) | ||||
Repayments of lease liabilities | (733) | (585) | (1,336) | (1,165) | ||||
Interest paid | (490) | (307) | (908) | (599) | ||||
Payment on settlements | - | (37) | - | (75) | ||||
Cash flow - financing activities | 12,684 | 1,905 | 32,052 | 3,298 | ||||
Effect of exchange rate on changes on cash | 87 | (15) | 56 | (29) | ||||
Change in cash | 11,271 | (391) | 8,414 | (179) | ||||
Cash, beginning of period | 41 | 1,246 | 2,898 | 1,034 | ||||
Cash, end of period | $ | 11,312 | $ | 855 | $ | 11,312 | $ | 855 |
SOURCE
© Canada Newswire, source