Cabo Announces Annual and Fourth Quarter Results
(Thomson Reuters ONE) -
Cabo Drilling Corp. /
Cabo Announces Annual and Fourth Quarter Results
Processed and transmitted by Thomson Reuters.
The issuer is solely responsible for the content of this announcement.
For Immediate Release: November 2, 2010
Telephone: (604) 984-8894
Facsimile:
(604) 983-8056
e-mail:ir(at)cabo.ca
web site: www.cabo.ca
CONTACT: John A. Versfelt, Chairman, President and CEO
North Vancouver, BC - Cabo Drilling Corp. ("Cabo" or the "Company") (TSX-V: CBE)
reports results for its fourth quarter and fiscal year ended June 30, 2010.
4th QUARTER & ANNUAL HIGHLIGHTS
+-------------------------+------------------+------------------+-------+------+
|(CDN $000s, except| 3 months ending | 3 months ending | | |
|earnings per share) | June 30-10 | June 30-09 | | |
| | | |FY 2010|FY2009|
+-------------------------+------------------+------------------+-------+------+
|Revenue | 8,158| 6,197| 28,986|41,162|
+-------------------------+------------------+------------------+-------+------+
|Net Earnings (Loss)| 75| (62)| 1,546| 3,981|
|Before Interest, Tax,| | | | |
|Amortization, Stock-| | | | |
|based Compensation and| | | | |
|Other Items (EBITDA) | | | | |
+-------------------------+------------------+------------------+-------+------+
|Net Earnings (Loss)| (819)| (1,028)|(2,208)| 408|
|Before Taxes | | | | |
+-------------------------+------------------+------------------+-------+------+
|Net Earnings (Loss) After| (107)| (1,192)|(1,496)| (847)|
|Taxes | | | | |
+-------------------------+------------------+------------------+-------+------+
|Earnings (Loss) per Share| 0.00| 0.00| 0.03| 0.08|
|($) Basic Before| | | | |
|Interest, Tax,| | | | |
|Amortization, Stock-based| | | | |
|Compensation and Other| | | | |
|Items (EBITDA) | | | | |
+-------------------------+------------------+------------------+-------+------+
|Earnings (Loss) per Share| 0.00| (0.02)| (0.02)|(0.02)|
|($) Basic | | | | |
+-------------------------+------------------+------------------+-------+------+
|Cash from operations* | (60)| (339)| 1,057| 2,060|
+-------------------------+------------------+------------------+-------+------+
|Gross Margin % | 19.4%| 28.4%| 25.3%| 26.7%|
+-------------------------+------------------+------------------+-------+------+
|Working Capital | 5,744| 4,578| 5,744| 4,578|
+-------------------------+------------------+------------------+-------+------+
*before changes in non-cash working capital items
The Company reports:
* Revenue of $8.16 million for the 4th quarter of 2010 compared to 4th quarter
revenue of $6.20 million in fiscal 2009 and revenue of $28.99 million in
fiscal 2010 compared to $41.16 million in fiscal 2009.
* Net after tax loss for the fiscal year 2010 of $1.50 million compared to a
net after tax loss for fiscal 2009 of $846,909.
* Gross margin percentage for the 4th quarter fiscal 2010 was 19.4%, compared
with a gross margin of 28.4% in the 4th quarter of fiscal 2009 and 25.3% in
fiscal 2010 compared to 26.7% in fiscal 2009.
* Cash from operations, before changes in non-cash working capital items, for
the 4th quarter 2010 was ($60,015) and $1.06 million for fiscal 2010,
compared to 4th quarter 2009 cash from operations of ($339,131) and $2.06
million for the fiscal year 2009.
* A current asset balance of $19.20 million and working capital of $5.74
million.
* Total assets of $33.99 million and total liabilities of $15.25 million.
"During the fourth quarter of fiscal 2010, we experienced an increase in demand
for our drilling services. Revenue for the three months ending June 30, 2010
increased to $8.16 million, compared to $6.20 million in the comparable period
in fiscal 2009 and compared to $6.51 million in the third quarter of fiscal
2010. Revenues from the Canadian divisions represented 74% of the revenues for
the fourth quarter of fiscal 2010, as compared to 35% during the fourth quarter
of fiscal 2009," stated John Versfelt, President and CEO of Cabo. "Revenue for
the year ending June 30, 2010 decreased $12.17 million or 30% to $28.99 million,
compared to $41.16 million in fiscal 2009; however $28.44 million of fiscal
2009's gross revenue was earned in the first half of the year prior to December
31, 2008. The primary reasons for the decrease in fiscal 2010 revenue are, the
reduced international activity, as our contracts in Spain and Albania were
completed in the third quarter of fiscal 2009, lower drill utilization in Panama
during fiscal 2010 compared to fiscal 2009, and continued low demand in Mexico.
These factors resulted in a 57% decrease in international revenues. All Canadian
divisions were negatively affected by the contracted drilling services market
until the fourth quarter of fiscal 2010."
"Cabo had a gross margin performance of 19.4% for the 4th quarter fiscal 2010
(28.4% 4th quarter fiscal 2009), a significant decrease from the same period in
the previous year and a significant decrease from our 3rd quarter fiscal 2010
results of 25.0%. The decrease in gross margin is a direct result of increased
activity preparing for the improved Summer and Fall drilling activities and
increased costs incurred shutting down the Mexico operation," Mr. Versfelt
stated. "At 25.3% our 2010 fiscal year end gross margin performance is in line
with our 2009 performance of 26.7%. The Company is experiencing increased wage
pressure for field personnel as overall drilling services demand increases. This
will put increased downward pressure on gross margins. However management
expects gross margins to remain in the 25% range during fiscal 2011."
"2010 was a challenging year, during which the Company experienced losses in
four divisions. The Cabo Drilling Mexico division, which experienced losses over
$600,000, was shut down and all equipment was returned to Canada. Comprehensive
management changes were also made in the Cabo Drilling Pacific division, where
similar losses were recorded. The Company's geotechnical drilling division in
Montreal experienced high losses during the general contracting downturn in all
of 2009 to mid-2010. We are now experiencing around 75% to 80% drill
utilization in that sector; however, a decision with respect to continuation of
the Montreal division will be made at the end of 2010," commented Mr. Versfelt.
"On the bright side, Cabo's expansion into Colombia, through our base in
Panama, is profitable and our Cabo Drilling Albania branch, where Cabo has
consolidated its Europe operations, and recorded a loss in fiscal 2010, is now
profitably and expanding with new surface and underground drilling contracts.
Overall, Cabo Drilling Management expects average drill utilization in fiscal
2011 to exceed 50%, with gross margins at 25% plus. General and administration
expenses should remain in the $5.6 to $5.8 million range and, with average
amortization levels decreased to 10%, Cabo Drilling is budgeting gross revenues
of approximately $40 million and a return to after tax profits."
"Overall, while the demand for drilling services is continuing to improve from
its late start in May/June, 2010, we believe that the more mature junior,
intermediate and senior mineral exploration and mining companies have prudently
held back on spending a significant portion of the approximate $16.66 billion in
financings raised, per Metals Economics Group (MEG)'s, MEG Industry Monitor,
reports, in 2009," said Mr. Versfelt. "Consequently, there have only been
nominal increases in contract per meter and hourly drilling services rates
across the industry, barely enough to keep pace with field personnel wage and
bonus increases."
Fourth quarter ended June 30, 2010
Revenue for the three months ending June 30, 2010 increased to $8.16 million,
compared to $6.20 million in the comparable period in fiscal 2009 and compared
to $6.51 million in the third quarter of fiscal 2010. Revenues from the Canadian
divisions represented 74% of the revenues for the fourth quarter of fiscal
2010, as compared to 35% during the fourth quarter of fiscal 2009.
Net loss for the fourth quarter of fiscal 2010 was $107,119 compared to a net
loss of $1.19 million in the fourth quarter of fiscal 2009.
Year ended June 30, 2010
Revenue for the year ending June 30, 2010 decreased $12.17 million or 30% to
$28.99 million, compared to $41.16 million in fiscal 2009. The primary reason
for the decrease is due to the reduced international activity, as our contracts
in Spain and Albania were completed in the third quarter of fiscal 2009, reduced
drill utilization in Panama during fiscal 2010 compared to fiscal 2009 and low
demand in Mexico. This resulted in a 57% decrease in international revenues. All
the Canadian divisions were also negatively affected by the contracted drilling
services market until the fourth quarter of fiscal 2010 when revenues improved
to $8.16 million.
Gross margins for the year ended June 30, 2010 were 25.3% compared to 26.7%
during the fiscal year ending June 30, 2009. The decreased gross margin is a
direct result of increased activity in preparation for the improved 2010 Summer
and Fall drilling activities and the costs of closing down the Mexico
operations. The Company incurred costs in preparation for projects awarded that
began in June through to August, 2010.
EBITDA (earnings before interest, tax, amortization, stock-based compensation
and other items) for fiscal 2010 decreased $2.43 million to $1.55 million ($0.03
per share basic dilution) as compared to $3.98 million ($0.08 per share basic
dilution) in fiscal 2009.
Net loss for fiscal 2010 was $1.50 million compared to a net loss of $846,909 in
fiscal 2009. Losses increased during fiscal 2010 due to lower revenues and
increased amortization, but were partially offset by the future tax recovery.
For the full version of this news release please go to the Company's
websitewww.cabo.ca or SEDAR www.sedar.ca.
About Cabo Drilling Corp. (TSX-V: CBE)
Cabo Drilling Corp. is a drilling services company headquartered in North
Vancouver, British Columbia, Canada. The Company provides mining related and
specialty drilling services through its Canadian divisions in Surrey, British
Columbia; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale,
Newfoundland; as well as Cabo Drilling (Panama) Corp. of Panama, Republic of
Panama; Cabo Drilling Spain S.L. of Sevilla, Spain; Balkan States Drilling
SH.P.K. of Tirana, Albania; and Cabo Drilling (International) Inc. The
Company's common shares trade on the Frankfurt Exchange under the symbol: DHL
and on the TSX Venture Exchange under the symbol: CBE.
ON BEHALF OF THE BOARD
"John A. Versfelt"
John A. Versfelt
Chairman, President and CEO
Further information about the Company can be found on the Cabo website
(http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting Sheri Barton,
Corporate Communications at 403-217-5830 or Mr. John A. Versfelt, Chairman,
President & CEO of the Company at 604-984-8894.
* * * *
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release. This news release may contain forward-looking
statements including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations, potential mineral
recovery processes and other business transactions timing. Forward-looking
statements address future events and conditions and therefore, involve inherent
risks and uncertainties. Actual results may differ materially from those
currently anticipated in such statements.
[HUG#1458105]
--- End of Message ---
Cabo Drilling Corp.
3rd Floor, 120 Lonsdale Avenue North Vancouver BC Canada
Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Cabo Drilling Corp. via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 02.11.2010 - 14:01 Uhr
Sprache: Deutsch
News-ID 48313
Anzahl Zeichen: 15049
contact information:
Town:
Vancouver BC
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 192 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Cabo Announces Annual and Fourth Quarter Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Cabo Drilling Corp. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
