CALGARY, AB, May 6, 2024 /CNW/ - AKITA Drilling Ltd. (TSX:AKT) AKITA Drilling Ltd. ("AKITA" or the "Company") announces results for the three months ended March 31, 2024. The Company achieved net income of $2,627,000 and EBITDA[1] of $12,519,000 in the first quarter of 2024. This compares to net income of $9,523,000 and EBITDA of $17,390,000 in the first quarter of 2023. The slowed demand for drilling services in the US was the key driver of lower results for the Company in the first quarter of 2024. Additionally, the Company received $2,000,000 in employee retention credits from the IRS in the first quarter of 2023, which did not reoccur in 2024. This slow down in the US was partially offset by an increase in the adjusted operating margin from Canada, which increased by 23% in the first quarter of 2024 when compared to the first quarter of 2023. Net cash from operations increased to $6,948,000 for the three months ended March 31, 2024, compared to a loss of $414,000 in the same period of 2023, due to working capital remaining relatively flat since December 31, 2023, compared to a significant increase during the same period of the prior year. Funds flow from operations, which is not affected by changes in non-cash working capital, decreased by 26% due to the results in the US. Capital expenditures increased to $3,935,000 in the first quarter of 2024, up from $2,504,000 in the first quarter of 2023. In both quarters capital expenditures related to routine items. Debt decreased to $69,619,000 at the end of the first quarter of 2024 from $91,212,000 at March 31, 2023. Colin Dease, AKITA's President and Chief Executive Officer stated: "We are optimistic for the second half of the year with the increased tidewater access capacity imminent in Canada for both crude oil and natural gas.  The US market is facing headwinds due to weakened natural gas prices and operator consolidation, however, we are seeing signs of a recovery beginning in the third quarter." _________________________ 1  See "Non-GAAP and Supplementary Financial Measures" near the end of this release for further detail. CONSOLIDATED FINANCIAL HIGHLIGHTS For the Three Months Ended March 31, ($ thousands except per share amounts) 2024 2023 Change  % Change Revenue 46,304 65,000 (18,696) (29 %) Operating and maintenance expenses 33,511 45,426 (11,915) (26 %) Operating margin 12,793 19,574 (6,781) (35 %) Margin % 28 % 30 % (2 %) (7 %) Net cash from (used in) operating activities 6,948 (414) 7,362 1778 % Adjusted funds flow from operations(1) 11,260 15,159 (3,899) (26 %)   Per share 0.28 0.38 (0.10) (26 %) Adjusted EBITDA1 12,519 17,390 (4,871) (28 %) Net income (loss) 2,627 9,523 (6,896) (72 %)   Per share 0.07 0.24 (0.17) (71 %) Capital expenditures 3,935 2,504 1,431 57 % Weighted average shares outstanding 39,716 39,650 66 0 %