AKITA prioritizes debt reduction and announces second quarter results

CALGARY, July 31, 2019

CALGARY, July 31, 2019 /CNW/ - AKITA's Board of Directors has elected to suspend the Company's dividends on its Class A Non-Voting and Class B Common Shares in light of the Company's desire to pay down its debt.

The Company's debt repayment plan includes the suspension of dividends as well as a continuing focus on cost cutting and other monetization and cash generating strategies.  

During the second quarter of 2019 AKITA achieved 1,008 operating days in the US, compared to only 136 operating days in the US over the same period in 2018.  In Canada, however, results were much weaker than in the prior year as operating days decreased by 50% to 274 days in 2019 compared to 548 in 2018.  This translated to a consolidated net loss for the three months ended June 30, 2019 of $5,067,000 (or $0.13 per share) compared to a net loss of $2,959,000 (or $0.16 per share) for the corresponding period in 2018.

In the second quarter of 2019, AKITA's fleet of 17 rigs in the US generated the majority of the Company's revenue, 79% up from 19% in the same period of 2018. Despite a reduction in activity in the US for the industry and AKITA between the first quarter of 2019 and the second quarter of 2019, demand and activity in the US remain far stronger than in Canada.

Karl Ruud, AKITA's President and Chief Executive Officer stated: "Given the current market conditions in Canada, and softening in the US, Akita's highest priority is debt reduction through continuing our focus on cost controls and integration benefits. This discipline will leave Akita ideally positioned to take advantage of growth opportunities."

CONSOLIDATED FINANCIAL HIGHLIGHTS