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## Revenue and Operating & Maintenance Expenses 

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(1) Revenue, operating & maintenance expenses and adjusted operating margin include the Company’s rig construction for third parties. AKITA does not disclose its operating margin on rig construction activity separately for competitive reasons. 

(2) Proportionate share of revenue from joint ventures, adjusted revenue, proportionate share of operating & maintenance expenses from joint ventures, adjusted operating & maintenance expenses, adjusted operating margin, adjusted revenue per operating day, adjusted operating & maintenance expenses per operating day and adjusted operating margin per operating day are non-standard accounting measures. See commentary in “Basis of Analysis in this MD&A, Non-Standard and Additional GAAP Items”. 

(3) Adjusted operating margin is the difference between adjusted revenue and adjusted operating & maintenance expenses. 

Adjusted revenue of $216,374,000 in 2013 was 10% lower than the 2012 adjusted revenue of $241,232,000 largely as a result of weaker demand for the Company’s conventional triple and double sized rigs. This drop in demand for conventional rigs was partially offset by continuing strong demand for the Company’s pad rigs throughout 2013. In addition to contract drilling, annual results were also affected by a reduction in rig construction revenue from $17,940,000 in 2012 to $1,074,000 in 2013 as the Company’s rig construction project was completed in the first quarter of 2013 and the rig was sold to a third party. During 2013, average revenue per operating day decreased marginally to $35,629 per day compared to $35,844 in 2012 as the loss of construction revenue noted above (which was factored into these “per operating day” statistics) was generally offset by the shift in rig mix to a higher proportion of pad rigs. Such rigs typically obtain higher day rates than conventional rigs. 

