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## Net Income, Funds Flow and Net Cash from Operating Activities 

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(1) Funds flow from operations is an additional GAAP measure under IFRS. See commentary in “Basis of Analysis in this MD&A, Non-Standard and Additional GAAP Items”. 

Net income attributable to shareholders decreased to $26,515,000 or $1.48 (basic) per Class A Non-Voting and Class B Common share ($1.47 - diluted) for 2013 from $28,755,000 or $1.60 per share (basic and diluted) in 2012. Funds flow from operations decreased to $57,619,000 in 2013 from $59,412,000 in 2012. 

The net income decline in 2013 compared to 2012 was attributable to higher depreciation expense as a result of an increase in the number of pad drilling rigs in AKITA’s fleet as well as having reduced “other income”, particularly as it related to gains on sales of non-core or obsolete assets. 

By contrast to net income, the $1,793,000 reduction in funds flow in 2013 compared to 2012 resulted from a significant decline in the portion of income taxes that are deferred to future periods, which was affected by reduced capital expenditures compared to 2012. 

The following table reconciles funds flow from operations and net cash from operating activities: 

<img src='content_image/274184.jpg'>

(1) Funds flow from operations is an additional GAAP measure under IFRS. See commentary in “Basis of Analysis in this MD&A, Non-Standard and Additional GAAP Items”. 

## Fleet and Utilization 

The following table summarizes rig changes that occurred in 2013: 

## Fleet Changes during 2013 

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Utilization rates are a key statistic for the drilling industry since they measure revenue volume and influence pricing. During 2013, AKITA achieved 6,073 operating days, which corresponded to a utilization rate of 43.4% compared to an industry average utilization rate of 40.3% during the same period. During the comparative 

