Cabo Announces Annual and Fourth Quarter Results
(Thomson Reuters ONE) - For Immediate Release: October 29, 2009 Telephone: (604) 984-8894 Facsimile: (604) 983-8056 e-mail: ir(at)cabo.caCONTACT: John A. Versfelt, Chairman, President and CEO web site: www.cabo.caCabo Announces Annual and Fourth Quarter ResultsNorth Vancouver, BC - Cabo Drilling Corp. ("Cabo" or the "Company")(TSX-V: CBE) reports results for its fourth quarter and fiscal yearended June 30, 2009.4th QUARTER & ANNUAL HIGHLIGHTS+-------------------------------------------------------------------+| (CDN $000s, except | 3 months | 3 months | | || earnings per share) | ending | ending | | || | June 30-09 | June | FY 2009 | FY2008 || | | 30-08 | | ||------------------------+------------+----------+---------+--------|| Revenue | 6,197 | 14,634 | 41,162 | 58,645 ||------------------------+------------+----------+---------+--------|| Net Earnings (Loss) | | | | || Before Interest, Tax, | (62) | 701 | 3,981 | 6,757 || Amortization, | | | | || Stock-based | | | | || Compensation and Other | | | | || Items (EBITDA) | | | | ||------------------------+------------+----------+---------+--------|| Net Earnings (Loss) | (1,028) | (115) | 408 | 3,951 || Before Taxes | | | | ||------------------------+------------+----------+---------+--------|| Net Earnings (Loss) | (1,192) | 581 | (847) | 3,203 || After Taxes | | | | ||------------------------+------------+----------+---------+--------|| Earnings (Loss) per | | | | || Share ($) Basic Before | | | | || Interest, Tax, | 0.00 | 0.02 | 0.08 | 0.15 || Amortization, | | | | || Stock-based | | | | || Compensation and Other | | | | || Items (EBITDA) | | | | ||------------------------+------------+----------+---------+--------|| Earnings (Loss) per | (0.02) | 0.01 | (0.02) | 0.07 || Share ($) Basic | | | | ||------------------------+------------+----------+---------+--------|| Cash from operations* | (339) | 814 | 2,060 | 5,149 ||------------------------+------------+----------+---------+--------|| Gross Margin % | 29.6% | 20.0% | 26.7% | 23.4% ||------------------------+------------+----------+---------+--------|| Working Capital | 4,588 | 7,239 | 4,588 | 7,239 |+-------------------------------------------------------------------+*before changes in non-cash working capital itemsThe Company reports:§ Revenue of $6.20 million for the 4th quarter of 2009 compared to4th quarter revenue of $14.63 million in fiscal 2008.§ Net 4th quarter 2009 loss before interest, tax, amortization,stock-based compensation and other items of $61,635 and a net loss of$1.19 million after interest, tax, amortization, stock-basedcompensation and other items resulting in a loss of $0.00 per shareand a loss of $0.02 per share, respectively. This compares with the4th quarter 2008 earnings before interest, tax, amortization, andstock-based compensation of $701,078 and net earnings of $581,487after interest, tax, amortization, and stock-based compensationresulting in earnings of $0.02 per share and $0.01 per sharerespectively.§ Net before tax earnings for fiscal 2009 of $407,905 compared to anet before tax earnings for fiscal 2008 of $3.95 million.§ Net after tax loss for the fiscal year 2009 of $846,909 comparedto net after tax earnings for fiscal 2008 of $3.20 million.§ Gross margin percentage for the 4th quarter fiscal 2009 was 29.6%,compared with a gross margin of 20.0% in the 4th quarter of fiscal2008 and 26.7% in fiscal 2009 compared to 23.4% in fiscal 2008.§ Cash from operations, before changes in non-cash working capitalitems, was a decrease of $339,131 for the 4th quarter 2009 and $2.06million for fiscal 2009, compared to 4th quarter 2008 cash fromoperations of $814,615 and $5.15 million for the fiscal year 2008.§ A current asset balance of $16.63 million and working capital of$4.6 million.§ Total assets of $33.19 million and total liabilities of $14.10million."Consistent with our third quarter fiscal 2009, Cabo experienced acontinued decrease in rig utilization during the fourth quarter offiscal 2009," stated John A. Versfelt, Cabo Drilling's President andCEO. "Due to the uncertainty in the economy, clients delayed theirexploration drilling programs. There was significant contraction inthe Canadian and United States market, with a 58% reduction inrevenues in the fourth quarter of fiscal 2009. Fortunately, this wasoffset somewhat by a 56% revenue growth in our internationaldivisions.""We recorded our lowest quarterly revenue, in the fourth quarter offiscal 2009," commented Mr. Versfelt. "We believe this is the bottomof the curve, as we have seen improvements in more signed contractsinto the first and second quarters of fiscal 2010. In addition wehave received larger numbers of bid requests from mining andexploration companies who have increased their exploration budgets,as a result of new financings." "Cabo had a gross margin performance of 29.6% for the 4th quarterfiscal 2009 (20.0% 4th quarter fiscal 2008), our highest gross marginperformance to date, and 26.7% for the fiscal year 2009 (23.4% for2008)," Mr. Versfelt stated. "We have recorded improved gross marginssince the beginning of 2009 and expect this trend to continue, due tooperational efficiencies and an upgraded and modernized drill fleet.Going into 2010 we will remained focus on cost saving measures,continuing reduced support costs, improved performance for each drilland greater utilization of the drills, which will lead to improvedprofitability.""During fiscal 2009, the Company recorded an allowance of $700,000 toreduce inventory to net realizable value," commented Mr. Versfelt.This together with recorded stock based compensation expense of$120,118 in fiscal 2009 negatively affected net income by $820,118.Without recording these accounting adjustments Cabo would have had anet loss after taxes of only $26,791. It is important to note thatCabo can increase the value of inventory to net realized value in thefuture and recapture the $700,000 allowance.""As markets improved Cabo received more bid requests, and gold isleading the way in Canada, as well as Mexico and Central America.Copper and iron ore projects are also requesting bids for drillingservices," stated Mr. Versfelt. "Cabo was able to take advantage ofopportunities to acquire six newer drills at significantly reducedprices on special terms, which has enabled the Company to improve itsfleet during tough times at a greatly reduced price, at the sametime, allowing it to put these drills into production with improvedmargins. Consequently, Cabo Drilling is experiencing and projectinggrowth in drill utilization for the balance of fiscal 2010."Fourth quarter ended June 30, 2009Revenue for the three months ending June 30, 2009 decreased to $6.20million, compared to $14.63 million in the comparable period infiscal 2008 and compared to $6.52 million in the third quarter offiscal 2009. Revenues from the international divisions represented65% of the revenues for fourth quarter of fiscal 2009, as compared to27% during the fourth quarter of fiscal 2008.Net loss for the fourth quarter of fiscal 2009 was $1.19 millioncompared to net earnings of $581,487 in the fourth quarter of fiscal2008 and fiscal 2008 and a net loss of $765,330 in the third quarterof fiscal 2009. Earnings primarily decreased during the quarter dueto the $700,000 allowance for inventory and the $120,118 stock basedcompensation.Year ended June 30, 2009Revenue for the year ending June 30, 2009 decreased $17.48 million or30% to $41.16 million, compared to $58.64 million in fiscal 2008. Theprimary reason for the decrease is due to the contraction of thedrilling market, as a result of the economic downturn. The revenuesfrom the Canadian and United States divisions decreased by 50%, whilethe other divisions increased by 56%. Panama provided most of thegrowth during this period as drill utilization increased 100% to anaverage of six drills per month. Revenues from Spain, Mexico andLiberia decreased from the previous years as several projects wereshut down. During the first year of operation, Albania recorded$912,944 in revenues before the economic downturn. All the Canadiandivisions were negatively affected by the contracted market duringfiscal 2009. The expansion into the international market helped CaboDrilling to weather the downturn in the global markets. Managementexpects international operations to stabilize between 30-40%throughout fiscal 2010 as the market in Canada also improves.Gross margins for the year ended June 30, 2009 were 26.7% compared to23.4% during the fiscal year ending June 30, 2008. The increasedgross margin is a direct result of cost reduction measuresimplemented during fiscal 2009. Management expects gross margins toincrease to between 28-30% range during fiscal 2010 due to improvedcost controls, and upgrades and modernization of the drill fleet.EBITDA (earnings before interest, tax, amortization, stock-basedcompensation and other items) for fiscal 2009 decreased $2.78 millionto $3.98 million ($0.08 per share basic dilution) as compared to$6.76 million ($0.15 per share basic dilution) in fiscal 2008.Net loss for fiscal 2009 was $846,909 compared to net earnings of$3.20 million in fiscal 2008. Earnings decreased during fiscal 2009due to lower revenues, increased amortization and increased incometaxes.For the full version of this news release please go to the Company'swebsite www.cabo.ca or SEDAR www.sedar.ca.About Cabo Drilling Corp. (TSX-V: CBE)Cabo Drilling Corp. is a drilling services company headquartered inNorth Vancouver, British Columbia, Canada. The Company providesmining related and specialty drilling services through its Canadiandivisions in Surrey, British Columbia; Montréal, Quebec; KirklandLake, Ontario; and Springdale, Newfoundland; as well as Cabo Drillingde Mexico S.A. de C.V. of Hermosillo, Mexico; Cabo Drilling (Panama)Corp. of Panama, Republic of Panama; Cabo Drilling Spain S.L. ofSevilla, Spain; Balkan States Drilling SH.P.K. of Tirana, Albania;Cabo Drilling (Ghana) Limited of Accra, Ghana; and Cabo Drilling(International) Inc. The Company's common shares trade on theFrankfurt Exchange under the symbol: DHL and on the TSX VentureExchange under the symbol: CBE.ON BEHALF OF THE BOARD "John A. Versfelt"John A. VersfeltChairman, President and CEOFurther information about the Company can be found on the Cabowebsite (http://www.cabo.ca) and SEDAR (www.sedar.com) or bycontacting Sheri Barton, Corporate Communications at 403-217-5830 orMr. John A. Versfelt, Chairman, President & CEO of the Company at604-984-8894. For general investor relation inquiries you may alsocontact Renmark Financial Communications Inc. Barbara Komorowski:bkomorowski(at)renmarkfinancial.com or Dan Symons:dsymons(at)renmarkfinancial.com at Tel: 514-939-3989 or 416-644-2020. * * * *The TSX Venture Exchange does not accept responsibility for theadequacy or accuracy of this release. This news release may containforward-looking statements including but not limited to commentsregarding the timing and content of upcoming work programs,geological interpretations, potential mineral recovery processes andother business transactions timing. Forward-looking statementsaddress future events and conditions and therefore, involve inherentrisks and uncertainties. Actual results may differ materially fromthose currently anticipated in such statements.This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 29.10.2009 - 10:00 Uhr
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