Trinidad Drilling Ltd. reported unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, revenue was $132,737,000 against $107,650,000 a year ago. Operating income was $48,638,000 against $46,679,000 a year ago, primarily as a result of higher activity levels in Canada and the US, partly offset by lower dayrates in the current period. Adjusted EBITDA was $51,258,000 or $0.21 per diluted share against $44,207,000 or $0.20 per diluted share a year ago, as the impact of higher activity levels and early termination revenue received in the Company's joint venture offset lower dayrates than in the first quarter of 2016. Funds flow was $237,000 against $8,700,000 or $0.04 per basic and diluted share a year ago. Net loss was $11,936,000 or $0.05 per diluted share against income of $11,303,000 or $0.05 per diluted share a year ago, largely as a result of one-time general and administrative costs primarily related to bad debt expense, higher foreign exchange expenses and a smaller gain from investments in joint ventures in the current quarter. These additional costs in the quarter were partly offset by the impact of cost cutting initiatives implemented during the past two years. In addition, earnings per share was impacted by an increase in the number of shares outstanding due to the issuance of 47.5 million shares during the first quarter of 2017. Capital expenditures were $23,172,000 against $20,164,000 a year ago. Cash flow used in operating activities was $27,697,000 against cash flow provided by operating activities of $15,893,000 a year ago. Purchase of property and equipment was $23,172,000 against $20,164,000 a year ago. Loss before income taxes was $24,944,000 compared to income of $768,000 a year ago.

The company expects to spend $175 million in capital expenditures in 2017, with $20 million directed to maintenance capital and $155 million directed to upgrades of existing equipment. Of the total 2017 upgrade capital, approximately 75% will be spent in the US and 25% will be spent in Canada, with rig upgrades expected to be completed throughout the first three quarters of 2017.