Major Drilling Reports First Quarter Results and Declares Dividend
MONCTON, NB, Sept. 9, 2013 /CNW/ – Major Drilling Group International
Inc. (TSX: MDI) today reported results for its first quarter of fiscal
year 2014, ended July 31, 2013.
In millions of Canadian dollars Q1-14 Q1-13 (except earnings per share) Revenue $108.2 $237.6 Gross profit 35.1 81.3 As percentage of sales 32.5% 34.2% EBITDA(1) 19.6 60.1 As percentage of revenue 18.1% 25.3% Net earnings 1.5 31.9 Earnings per share 0.02 0.40
(1) Earnings before interest, taxes, depreciation and amortization, excluding restructuring charges (see "non-gaap financial measure")
-- Earnings before taxes for the quarter, excluding restructuring charges, were $5.8 million. -- Cash on hand at quarter-end was $61.1 million while total debt was $30.6 million, for a net cash position of $30.5 million. -- Major Drilling posted quarterly revenue of $108.2 million, down 54% from the $237.6 million recorded for the same quarter last year. -- Gross margin percentage for the quarter was 32.5%, compared to 34.2% for the corresponding period last year. -- General and Administrative costs are down 25% from the same quarter last year and 15% from the previous quarter three months ago. -- Net earnings (including a restructuring charge of $2.0 million) were $1.5 million or $0.02 per share for the quarter, compared to net earnings of $31.9 million or $0.40 per share for the same quarter last year. -- Given the Company's financial strength, the Board of Directors has declared a semi-annual dividend of $0.10 per share to be paid on November 1, 2013.
“With the uncertainty around economic matters impacting the mining
market, we continued to see some customers delaying or cancelling their
exploration drilling plans. In a number of jurisdictions, uncertainty
as to the policies of host governments or issues of land tenure also
continues to have an impact on activity levels. These factors, combined
with the fact that sources of funding for junior mining companies
remain limited, have led to decreased activity in all regions. Lower
levels of demand have significantly increased competitive pressures and
will likely continue to have an impact for the rest of calendar 2013.
Despite lower pricing levels, we maintained good margin performance
thanks to the improved productivity of our crews and to the
cost-cutting measures that we have implemented. However, going forward,
further reductions in pricing will be more difficult to offset by gains
in productivity,” said Francis McGuire, President and CEO of Major
“The Company continues to have a variable cost structure whereby most of
its direct costs, including field staff, go up or down with contract
revenue and a large part of the Company’s other expenses relate to
variable incentive compensation based on the Company’s profitability.
In fact, in the last twelve months, staffing is down by 45% or 2,300
positions. During the quarter, we incurred additional restructuring
costs of $2.0 million relating to a further reduction of staff. Also,
senior management’s salaries and directors’ fees were reduced during
the quarter. At the same time, the Company’s financial strength allows
it to continue to invest in safety, to maintain its equipment in
excellent condition, and to retain skilled employees, all of which are
essential to react quickly when the industry recovers.”
“Despite the difficult environment, we expect operations to generate
positive cash flow in fiscal 2014. Major Drilling remains in excellent
financial position with $61.1 million in cash and total debt of $30.6
million at the end of the quarter, for a net cash position of $30.5
million. During the quarter, our net cash decreased by $8.2 million as
we paid our semi-annual dividend of $7.9 million and also paid last
year’s annual employee profit-share of $6.4 million, which varies
year-to-year. The Company will continue to focus on cash management by
limiting capital expenditures, by reducing inventory and by closely
monitoring costs. Capital expenditures for the quarter were $5.2
million as we purchased three rigs and support equipment, while
retiring seven rigs. During the quarter, the Company also paid down
$11.2 million of its revolving bank loan in order to reduce its finance
“The current economic environment will continue to significantly impact
drilling in the short to medium-term, particularly on gold projects
where the Company has a significant presence. Also, lower levels of
demand have increased competitive pressures, which will impact pricing
going forward. With the number of projects being either delayed or
cancelled around the world, we believe that in the medium-term, most
commodities could face an imbalance between supply and demand, and that
the need to develop resources in areas that are increasingly difficult
to access will increase, which should increase demand for specialized
drilling,” said Mr. McGuire.
“Given the Company’s financial strength, the Board of Directors has
declared a semi-annual dividend of $0.10 per common share, which will
be paid on November 1, 2013 to shareholders of record as of October 10,
2013. This dividend is designated as an “eligible dividend” for
Canadian tax purposes.”
First quarter ended July 31, 2013
Total revenue for the quarter was $108.2 million, down 54% from the
record revenue of $237.6 million recorded in the same quarter last
year. Uncertainty around economic matters impacting the mining market
caused some customers to delay or cancel their exploration drilling
plans, which impacted the quarter’s results compared to last year. In a
number of jurisdictions, uncertainty as to the policies of host
governments or issues of land tenure also had an impact on quarter
results. Also, many junior customers have scaled back or suspended
drilling activities as compared to last year.
Revenue for the quarter from Canada-U.S. drilling operations decreased
by 53% to $53.4 million compared to the same period last year. Although
Canadian revenue was down 43% compared to the same quarter last year,
U.S. operations were more affected, in part due to the scale down of
its environmental division.
South and Central American revenue was down 69% to $21.7 million for the
quarter, compared to the same quarter last year. All of the countries
in this region, particularly Mexico, Chile and Argentina, were affected
by a reduction in work by juniors and the cancellation or reduction of
projects. Additionally, in Colombia, geopolitical factors have slowed
exploration efforts of many mining companies.
Australian, Asian and African operations reported revenue of $33.1
million, down 40% from the same period last year. Three main factors
affected the region’s revenue: 1) Australia, where projects have been
cancelled due to high costs being incurred by mining companies and new
mining taxes, 2) Mongolia, which is affected by political uncertainty
around mining laws, and 3) Tanzania, where the Company is closing its
The overall gross margin percentage for the quarter was 32.5%, down from
34.2% for the same period last year, but still a historically strong
margin. Reduced pricing due to increased competitive pressures and
delays impacted margins, however the Company has been able to recapture
some of this loss through productivity gains and cost cutting.
General and administrative costs were down 25% from last year at $13.0
million for the quarter compared to $17.3 million in the same period
last year. With the decrease in activity, the Company has reduced its
general and administrative costs by implementing reductions of salaried
employees, restructuring certain branches, and reducing management
Other expenses for the quarter were $1.1 million, down from $5.3 million
in the same quarter last year, due primarily to lower incentive
compensation expenses given the Company’s decreased profitability.
During the quarter, the Company incurred a loss on exchange of $1.2
million compared to a gain on exchange of $1.4 million last year. This
year’s loss on exchange was primarily due to monetary items in Chile,
Australia and Argentina where currencies had significant variances
during the quarter.
The Company recorded a restructuring charge of $2.0 million consisting
primarily of retrenchment costs following additional staff reduction
initiatives implemented during the quarter across the Company.
The Annual and Special Meeting of the shareholders of Major Drilling
Group International Inc. will be held at The TMX Broadcast Centre,
Gallery, The Exchange Tower, 130 King St. W., Toronto, Ontario, on
Wednesday, September 11, 2013 at 3:00 pm EDT. This will be followed by
a shareholder engagement meeting, where Directors of the Company will
be available to address any shareholder issues. The meeting will be
held by teleconference at 647-427-7450 (please mention Major Drilling -
Shareholder Engagement Session) and in person at Global Prime Office,
130 King St. W., Suite 1800, at 4:15 pm EDT. If you plan on attending
in person, please RSVP to Chantal Melanson at email@example.com or call 506-857-8636.
Non-GAAP Financial Measure
In this news release, the Company uses the non-GAAP financial measure,
EBITDA. The Company believes this non-GAAP financial measure provides
useful information to both management and investors in measuring the
financial performance of the Company. This measure does not have a
standardized meaning prescribed by GAAP and therefore it may not be
comparable to similarly titled measures presented by other publicly
traded companies, and should not be construed as an alternative to
other financial measures determined in accordance with GAAP.
Some of the statements contained in this press release may be
forward-looking statements, such as, but not limited to, those relating
to worldwide demand for gold and base metals and overall commodity
prices, the level of activity in the minerals and metals industry and
the demand for the Company’s services, the Canadian and international
economic environments, the Company’s ability to attract and retain
customers and to manage its assets and operating costs, sources of
funding for its clients, particularly for junior mining companies,
competitive pressures, currency movements, which can affect the
Company’s revenue in Canadian dollars, the geographic distribution of
the Company’s operations, the impact of operational changes, changes in
jurisdictions in which the Company operates (including changes in
regulation), failure by counterparties to fulfill contractual
obligations, and other factors as may be set forth, as well as
objectives or goals, and including words to the effect that the Company
or management expects a stated condition to exist or occur. Since
forward-looking statements address future events and conditions, by
their very nature, they involve inherent risks and uncertainties.
Actual results in each case could differ materially from those
currently anticipated in such statements by reason of factors such as,
but not limited to, the factors set out in the discussion on pages 16
to 18 of the 2013 Annual Report entitled “General Risks and
Uncertainties”, and such other documents as available on SEDAR at www.sedar.com. All such factors should be considered carefully when making decisions
with respect to the Company. The Company does not undertake to update
any forward-looking statements, including those statements that are
incorporated by reference herein, whether written or oral, that may be
made from time to time by or on its behalf, except in accordance with
applicable securities laws.
Based in Moncton, New Brunswick, Major Drilling Group International Inc.
is one of the world’s largest metals and minerals contract drilling
service companies. To support its customers’ varied exploration
drilling requirements, Major Drilling maintains field operations and
offices in Canada, the United States, South and Central America,
Australia, Asia, and Africa.
Financial statements are attached.
Major Drilling will provide a simultaneous webcast of its quarterly
conference call on Tuesday, September 10, 2013 at 9:00 AM (EDT). To access the webcast please go to the investors/webcast section of
Major Drilling’s website at www.majordrilling.com and click the attached link, or go directly to the CNW Group website at
www.newswire.ca for directions. Participants will require Windows MediaPlayer, which
can be downloaded prior to accessing the call. Please note that this is
listen only mode.
Major Drilling Group International Inc. Interim Condensed Consolidated Statements of Operations (in thousands of Canadian dollars, except per share information) (unaudited) Three months ended July 31 2013 2012 TOTAL REVENUE $ 108,211 $ 237,565 DIRECT COSTS 73,089 156,287 GROSS PROFIT 35,122 81,278 OPERATING EXPENSES General and administrative 13,047 17,299 Other expenses 1,065 5,270 Loss on disposal of property, plant and equipment 170 8 Foreign exchange loss (gain) 1,224 (1,369) Finance costs 314 738 Depreciation of property, plant and equipment 13,175 12,122 Amortization of intangible assets 342 1,065 Restructuring charge (note 10) 2,034 - 31,371 35,133 EARNINGS BEFORE INCOME TAX 3,751 46,145 INCOME TAX - PROVISION (RECOVERY) (note 7) Current 3,791 13,509 Deferred (1,562) 761 2,229 14,270 NET EARNINGS $ 1,522 $ 31,875 EARNINGS PER SHARE (note 8) Basic $ 0.02 $ 0.40 Diluted $ 0.02 $ 0.40
Major Drilling Group International Inc. Interim Condensed Consolidated Statements of Comprehensive Earnings (in thousands of Canadian dollars) (unaudited) Three months ended July 31 2013 2012 NET EARNINGS $ 1,522 $ 31,875 OTHER COMPREHENSIVE (LOSS) EARNINGS Items that may be reclassified subsequently to profit or loss Unrealized (losses) gains on foreign currency translations (net of tax) (5,029) 7,651 Unrealized loss on interest rate swap (net of tax) (68) (144) COMPREHENSIVE (LOSS) EARNINGS $ (3,575) $ 39,382
Major Drilling Group International Inc. Interim Condensed Consolidated Statements of Changes in Equity For the three months ended July 31, 2012 and 2013 (in thousands of Canadian dollars) (unaudited) Foreign Share-based currency Share payments Retained translation capital Reserves reserve earnings reserve Total BALANCE AS AT MAY 1, 2012 $ 230,763 $ 121 $ 11,797 $ 246,809 $ (1,791) $ 487,699 Share-based payments reserve (93) - 860 - - 767 230,670 121 12,657 246,809 (1,791) 488,466 Comprehensive earnings: Net earnings - - - 31,875 - 31,875 Unrealized gains on foreign currency translations - - - - 7,651 7,651 Unrealized loss on interest rate swap - (144) - - - (144) Total comprehensive earnings - (144) - 31,875 7, 651 39,382 BALANCE AS AT JULY 31, 2012 $ 230,670 $ (23) $ 12,657 $ 278,684 $ 5,860 $ 527,848 BALANCE AS AT MAY 1, 2013 $ 230,985 $ 40 $ 14,204 $ 283,088 $ 10,012 $ 538,329 Share-based payments reserve - - 530 - - 530 230,985 40 14,734 283,088 10,012 538,859 Comprehensive loss: Net earnings - - - 1,522 - 1,522 Unrealized loss on foreign currency translations - - - - (5,029) (5,029) Unrealized loss on interest rate swap - (68) - - - (68) Total comprehensive loss - (68) - 1,522 (5,029) (3,575) BALANCE AS AT JULY 31, 2013 $ 230,985 $ (28) $ 14,734 $ 284,610 $ 4,983 $ 535,284
Major Drilling Group International Inc. Interim Condensed Consolidated Statements of Cash Flows (in thousands of Canadian dollars) (unaudited) Three months ended July 31 2013 2012 OPERATING ACTIVITIES Earnings before income tax $ 3,751 $ 46,145 Operating items not involving cash Depreciation and amortization 13,517 13,187 Loss on disposal of property, plant and equipment 170 8 Share-based payments reserve 530 767 Restructuring charge 665 - Finance costs recognized in earnings before income tax 314 738 18,947 60,845 Changes in non-cash operating working capital items (9,576) (19,695) Finance costs paid (310) (735) Income taxes paid (6,351) (7,889) Cash flow from operating activities 2,710 32,526 FINANCING ACTIVITIES Repayment of long-term debt (13,066) (1,564) Dividends paid (7,916) (7,123) Cash flow used in financing activities (20,982) (8,687) INVESTING ACTIVITIES Payment of consideration for previous business acquisition (205) (813) Acquisition of property, plant and equipment (note 6) (5,204) (23,401) Proceeds from disposal of property, plant and equipment 1,816 268 Cash flow used in investing activities (3,593) (23,946) Effect of exchange rate changes 613 (395) DECREASE IN CASH (21,252) (502) CASH, BEGINNING OF THE PERIOD 82,311 37,237 CASH, END OF THE PERIOD $ 61,059 $ 36,735
Major Drilling Group International Inc. Interim Condensed Consolidated Balance Sheets As at July 31, 2013 and April 30, 2013 (in thousands of Canadian dollars) (unaudited) July 31, 2013 April 30, 2013 ASSETS CURRENT ASSETS Cash $ 61,059 $ 82,311 Trade and other receivables 84,572 98,079 Income tax receivable 10,711 10,013 Inventories 83,674 88,118 Prepaid expenses 10,380 6,119 250,396 284,640 PROPERTY, PLANT AND EQUIPMENT 325,832 339,971 DEFERRED INCOME TAX ASSETS 6,358 5,601 GOODWILL 51,878 52,736 INTANGIBLE ASSETS 2,938 3,279 $ 637,402 $ 686,227 LIABILITIES CURRENT LIABILITIES Trade and other payables $ 42,602 $ 73,315 Income tax payable 3,275 5,020 Current portion of long-term debt 8,991 9,097 54,868 87,432 CONTINGENT CONSIDERATION 150 231 LONG-TERM DEBT 21,604 34,497 DEFERRED INCOME TAX LIABILITIES 25,496 25,738 102,118 147,898 SHAREHOLDERS' EQUITY Share capital 230,985 230,985 Reserves (28) 40 Share-based payments reserve 14,734 14,204 Retained earnings 284,610 283,088 Foreign currency translation reserve 4,983 10,012 535 284 538,329 $ 637,402 $ 686,227
MAJOR DRILLING GROUP INTERNATIONAL INC.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED JULY 31, 2013 AND 2012 (UNAUDITED)
(in thousands of Canadian dollars, except per share information)
1. NATURE OF ACTIVITIES
Major Drilling Group International Inc. (“the Company”) is incorporated
under the Canada Business Corporations Act and has its head office at
111 St. George Street, Suite 100, Moncton, NB, Canada. The Company’s
common shares are listed on the Toronto Stock Exchange (“TSX”). The
principal source of revenue consists of contract drilling for companies
primarily involved in mining and mineral exploration. The Company has
operations in Canada, the United States, South and Central America,
Australia, Asia and Africa.
2. BASIS OF PRESENTATION
Statement of compliance
These Interim Condensed Consolidated Financial Statements have been
prepared in accordance with IAS 34 Interim Financial Reporting (“IAS
34″) as issued by the International Accounting Standards Board (“IASB”)
and using the accounting policies as outlined in the Company’s annual
Consolidated Financial Statements for the year ended April 30, 2013.
Basis of consolidation
These Interim Condensed Consolidated Financial Statements incorporate
the financial statements of the Company and entities controlled by the
Company. Control is achieved where the Company has the power to govern
the financial and operating policies of an investee entity so as to
obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the period
are included in the Consolidated Statement of Operations from the
effective date of acquisition or up to the effective date of disposal,
Intra-group transactions, balances, income and expenses are eliminated
on consolidation, where appropriate.
Basis of preparation
These Interim Condensed Consolidated Financial Statements have been
prepared based on the historical cost basis except for certain
financial instruments that are measured at fair value, using the same
accounting policies and methods of computation as presented in the
Company’s annual Consolidated Financial Statements for the year ended
April 30, 2013, with the exception of the impact of certain amendments
to accounting standards or new interpretations issued by the IASB,
which were applicable for fiscal years beginning on or after January 1,
2013. The adoption of these amendments and standards has not had a
material impact on the accounting policies, methods of computation or
presentation applied by the Company.
3. FUTURE ACCOUNTING CHANGES
The Company has not applied the following new and revised IASB standards
that have been issued but are not yet effective:
IFRS 9 (as amended in 2010) Financial Instruments IAS 32 (amended) Financial Instruments: Presentation IAS 36 Impairment of Assets IAS 39 Financial Instruments: Recognition and Measurement
The adoption of the above standards is not expected to have a
significant impact on the Company’s Consolidated Financial Statements.
4. KEY SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL ACCOUNTING JUDGMENTS
The preparation of financial statements in conformity with International
Financial Reporting Standards (“IFRS”) requires management to make
judgments, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognized in the period
in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the
revision affects both current and future periods. Significant areas
requiring the use of management estimates relate to the useful lives of
property, plant and equipment for amortization purposes, property,
plant and equipment and inventory valuation, determination of income
and other taxes, assumptions used in compilation of share-based
payments, fair value of assets acquired and liabilities assumed in
business acquisitions, amounts recorded as accrued liabilities, and
impairment testing of goodwill and intangible assets.
The Company applied judgment in determining the functional currency of
the Company and its subsidiaries, the determination of cash generating
units (“CGUs”), the degree of componentization of property, plant and
equipment, and the recognition of provisions and accrued liabilities.
5. SEASONALITY OF OPERATIONS
The third quarter (November to January) is normally the Company’s
weakest quarter due to the shutdown of mining and exploration
activities, often for extended periods over the holiday season,
particularly in South and Central America.
6. PROPERTY PLANT & EQUIPMENT
Capital expenditures for the three months ended July 31, 2013 were
$5,204 (2012 – $23,401). The Company did not obtain direct financing in
7. INCOME TAXES
The income tax expense for the period can be reconciled to accounting
profit as follows:
2014 Q1 2013 Q1 Earnings before income tax $ 3,751 $ 46,145 Statutory Canadian corporate income tax rate 28% 29% Expected income tax expense based on statutory rate $ 1,050 $ 13,382 Non-recognition of tax benefits related to losses 76 315 Other foreign taxes paid 125 355 Rate variances in foreign jurisdictions 454 119 Other 524 99 $ 2,229 $ 14,270
The Company periodically assesses its liabilities and contingencies for
all tax years open to audit based upon the latest information
available. For those matters where it is probable that an adjustment
will be made, the Company records its best estimate of these tax
liabilities, including related interest charges. Inherent uncertainties
exist in estimates of tax contingencies due to changes in tax laws.
While management believes they have adequately provided for the
probable outcome of these matters, future results may include favorable
or unfavorable adjustments to these estimated tax liabilities in the
period the assessments are made, or resolved, or when the statutes of
8. EARNINGS PER SHARE
All of the Company’s earnings are attributable to common shares
therefore net earnings are used in determining earnings per share.
2014 Q1 2013 Q1 Net earnings for the period $ 1,522 $ 31,875 Weighted average shares outstanding - basic (000's) 79,161 79,147 Net effect of dilutive securities: Stock options (000's) 31 637 Weighted average number of shares - diluted (000's) 79,192 79,784 Earnings per share: Basic $ 0.02 $ 0.40 Diluted $ 0.02 $ 0.40
The calculation of the diluted earnings per share for the three months
ended July 31, 2013 excludes the effect of 2,815,212 options as they
were anti-dilutive. There were no anti-dilutive options for the three
months ended July 31, 2012.
The total number of shares outstanding on July 31, 2013 was 79,161,378.
9. SEGMENTED INFORMATION
The Company’s operations are divided into three geographic segments
corresponding to its management structure, Canada – U.S., South and
Central America, and Australia, Asia and Africa. The services provided
in each of the reportable segments are essentially the same. The
accounting policies of the segments are the same as those described in
the Company’s annual Consolidated Financial Statements for the year
ended April 30, 2013. Management evaluates performance based on
earnings from operations in these three geographic segments before
finance costs, general corporate expenses and income taxes. Data
relating to each of the Company’s reportable segments is presented as
2014 Q1 2013 Q1 Revenue Canada - U.S. $ 53,367 $ 112,837 South and Central America 21,738 69,413 Australia, Asia and Africa 33,106 55,315 $ 108,211 $ 237,565 Earnings from operations Canada - U.S. $ 7,363 $ 25,426 South and Central America (2,087) 16,583 Australia, Asia and Africa 1,447 8,928 6,723 50,937 Eliminations (152) (228) 6,571 50,709 Finance costs 314 738 General corporate expenses* 2,506 3,826 Income tax 2,229 14,270 Net earnings $ 1,522 $ 31,875
*General and corporate expenses include expenses for corporate offices
and stock options. Amounts presented in the previous period under
general corporate expenses have been allocated to other segments
consistent with current year presentation.
Canada – U.S. includes revenue for the period ended July 31, 2013 of
$38,345 (July 31, 2012 – $67,025) for Canadian operations.
2014 Q1 2013 Q1 Depreciation and amortization Canada - U.S. $ 5,809 $ 5,480 South and Central America 3,014 3,212 Australia, Asia and Africa 4,123 4,027 Unallocated corporate assets 571 468 Total depreciation and amortization $ 13,517 $ 13,187 July 31, 2013 April 30, 2013 Identifiable assets Canada - U.S. $ 239,435 $ 243,027 South and Central America 211,222 224,878 Australia, Asia and Africa 158,122 165,318 608,779 633,223 Eliminations (38) (38) Unallocated and corporate assets 28,661 53,042 $ 637,402 $ 686,227
Canada – U.S. includes property, plant and equipment at July 31, 2013 of
$93,718 (April 30, 2013 – $97,110) for Canadian operations.
10. RESTRUCTURING CHARGE
Restructuring charge of $2,034 consists of employee severance charges
relating to the restructuring plan implemented in some of the Company’s
operations in the previous quarter and continued in the current
11. FINANCIAL INSTRUMENTS
There are no significant changes to financial instruments compared to
the Company’s annual Consolidated Financial Statements for the year
ended April 30, 2013 except for the following:
The carrying values of cash, trade and other receivables, demand credit
facility and trade and other payables approximate their fair value due
to the relatively short period to maturity of the instruments. The
following table shows carrying values of long-term debt and contingent
consideration, which approximates their fair values, as most debts
carry variable interest rates and the remaining fixed rate debts have
been acquired recently and their carrying value continues to reflect
fair value. The fair value of the interest rate swap included in
long-term debt is measured using quoted interest rates.
July 31, 2013 April 30, 2013 Contingent consideration $ 150 $ 231 Long-term debt 30,595 43,594
As at July 31, 2013, 85.1% of the Company’s trade receivables were aged
as current (April 30, 2013 – 86.0%) and 3.8% of the trade receivables were impaired (April 30, 2013 – 3.1%).
The movement in the allowance for impairment of trade receivables during
the three month periods were as follows:
July 31, 2013 July 31, 2012 Opening balance $ 2,790 $ 2,236 Increase in impairment allowance 203 38 Foreign exchange translation differences (41) 25 Ending balance $ 2,952 $ 2,299
Foreign currency risk
The carrying amounts of net monetary assets that: (i) are denominated in
currencies other than the functional currency of the respective Company
subsidiary; (ii) cause foreign exchange rate exposure; and (iii) may
include intercompany balances with other subsidiaries, is USD $1,777 as
of July 31, 2013.
If the Canadian dollar moved by plus or minus 10% at July 31, 2013, the
unrealized foreign exchange gain or loss recognized in net earnings
would move by approximately $178.
The following table details contractual maturities for the Company’s
Non-derivative financial liabilities:
1 year 2-3 years 4-5 years thereafter Total Trade and other payables $ 42,602 $ - $ - $ - $ 42,602 Contingent consideration 150 - - - 150 Long-term debt 9,016 15,510 2,958 3,083 30,567 $ 51,768 $ 15,510 $ 2,958 $ 3,083 $ 73,319 Derivative financial liabilities: 1 year 2-3 years 4-5 years thereafter Total Interest rate $ $ $ $ swap $ (25) 51 2 - 28
SOURCE MAJOR DRILLING GROUP INTERNATIONAL INC.