Cabo Announces Record 1st Quarter Results
24 December 2011 - 12:01AM
Marketwired Canada
Cabo Drilling Corp. ("Cabo" or the "Company") (TSX VENTURE:CBE) reports results
for its fiscal year 2012 first quarter ended September 30, 2011.
1st QUARTER HIGHLIGHTS
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(CDN $000s, except earnings per Q1 - 2012 Q1 - 2011 FY 2011
share) Sept. 30 Sept. 30 June 30
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Revenue 16,929 10,272 43,420
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Earnings (Loss) Before
Interest, Taxes, Amortization,
Stock Based Compensation and
Other Items (EBITDA) 3,054 1,011 2,646
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Net Earnings (Loss) Before
Taxes 2,263 308 (271)
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Net Earnings (Loss) After Taxes 1,520 198 (840)
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Earnings (Loss) per Share ($)
(Basic and Diluted) Before
Interest, Taxes, Amortization,
Stock-based Compensation and
Other Items (EBITDA) 0.04 0.02 (0.04)
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Earnings (Loss) per Share ($)
(Basic and Diluted) 0.02 0.00 (0.01)
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Cash from Operations(i) 1,471 868 1,402
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Gross Margin % 24.6% 24.0% 22.1%
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Working Capital (deficiency) 8,618 6,413 8,140
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(i)before changes in non-cash working capital items
The Company reports:
-- Record quarterly revenue for the 1st quarter fiscal 2012 of $16.93
million, a 65% improvement compared to $10.27 million in the 1st quarter
fiscal 2011.
-- Record 1st quarter fiscal 2012 earnings before interest, taxes,
amortization, stock-based compensation and other items (EBITDA) of $3.05
million compared to 1st quarter fiscal 2011 EBITDA of $1.01 million,
resulting in 1st quarter fiscal 2012 EBITDA of $0.04 per share and $0.02
per share in the 1st quarter of fiscal 2011.
-- Net before tax income for the 1st quarter of fiscal 2012 of $2.26
million compared to a 1st quarter fiscal 2011 before tax income of
$307,544.
-- Record net after tax earnings for the 1st quarter of fiscal 2012 of
$1.52 million compared to net after tax earnings for the 1st quarter of
fiscal 2011 of $197,544, resulting in 1st quarter fiscal 2012 net after
tax earnings of $0.02 per share compared to net after tax earnings for
1st quarter fiscal 2011 of $0.00 per share.
-- Gross margin percentage for the 1stquarter fiscal 2012 was 24.6%
compared with a gross margin of 24.0% in 1st quarter fiscal 2011 and
19.7% in the 4th quarter of fiscal 2011.
-- Cash from operations, before changes in non-cash working capital items,
was $1.47 million for the 1st quarter fiscal 2012 compared to 1st
quarter fiscal 2011 cash from operations of $868,036.
-- A current asset balance of $29.41 million and working capital of $8.62
million.
-- Total assets of $45.04 million and total liabilities of $22.52 million.
"Cabo Drilling's first quarter revenue for fiscal 2012 is the Company's highest
ever quarterly revenue," stated Mr. Versfelt, Cabo's President & CEO. "Quarterly
revenue for the period ending September 30, 2011 reached $16.93 million, a 65%
increase from the $10.27 million revenue generated in the first quarter of
2011."
"Gross margin increased to 24.6% or $4.16 million during the first quarter,
fiscal 2012, compared to 19.7% in the fourth quarter of fiscal 2011 and 24% in
the first quarter of fiscal 2011," said Mr. Versfelt. "This increase has brought
our gross margin to the level management is expecting to maintain or improve
upon for the balance of 2012."
"EBITDA improved to $3.05 million or $0.04 per share for the quarter ending
September 30, 2011 from $1.01 million in the comparable period of fiscal 2011,"
stated Mr. Versfelt. "Net income after taxes for the first quarter, fiscal 2012,
increased to a Company record of $1.52 million compared to $197,544 for the
first quarter ended September 30, 2011."
"During the first quarter of fiscal 2011, Cabo achieved a number of milestones,"
commented Mr. Versfelt. "Not only did we record our highest quarterly gross
revenue in the history of the Company, but we also achieved our highest net
after tax income and EBITDA in Cabo's history. These milestones are the result
of the dedication of our people and initiatives taken during 2010 and early 2011
to position Cabo to increase its gross margin, increase drill utilization and
return to profitability."
"As the demand for drilling services remains relatively strong, we will continue
to identify growth opportunities in our current markets, as well as identify new
market opportunities," stated John A. Versfelt. "It is imperative that we
continue to invest our capital in equipment and people now, as they are vital to
our ongoing and future success."
First quarter ended September 30, 2011
Cabo Drilling recorded record gross revenues for the three months ending
September 30, 2011 of $16.93 million, compared to $10.27 million in the
comparable three month period in fiscal 2011. Revenues from the Canadian
divisions represented 75% of the revenues for the first quarter of fiscal 2012,
as compared to 74% during the fourth quarter of fiscal 2011.
Direct costs for the three month period ended September 30, 2011 were $12.77
million compared to $7.80 million in the comparable three month period ended
September 30, 2010. Gross margins for the three month period ended September 30,
2011 were 24.6%, compared to 24.0% during the quarter ended September 30, 2010
and 19.7% in the fourth quarter of fiscal 2011. The increased margin during the
first quarter of fiscal 2011 is a result of the improved margins particularly in
the Ontario division, margins that were compromised during the third and fourth
quarters of fiscal 2011.
General and administration costs increased to $1.76 million in the quarter ended
September 30, 2011 compared to $1.46 million incurred in first quarter of fiscal
2011. However, general and administration expenses decreased compared to the
$2.33 million recorded in the fourth quarter of fiscal 2011.
Depreciation of property, plant and equipment for the three months ending
September 30, 2011 increased to $651,969 from $592,608 in the fourth quarter of
fiscal 2011 and $597,779 incurred during the quarter ended September 30, 2010,
as a result of increased capital expenditures in the past six months.
Net income for the first quarter of fiscal 2012 was $1.52 million compared to
net income of $197,544 in the first quarter of fiscal 2011 and a net loss of
$807,284 in the fourth quarter of fiscal 2011.
The Company's cash (cash and cash equivalents) position at September 30, 2011,
is $257,359 compared to $102,723 at June 30, 2011.
Accounts receivable increased by $2.27 million or 21% to $12.86 million at
September 30, 2011 from $10.59 million at June 30, 2011. The increase is
primarily due to increased activity during the first quarter of fiscal 2012.
Property, plant & equipment increased by $785,579 at September 30, 2011 to
$13.78 million from $12.99 million at June 30, 2011. The Company increased
capital equipment by $2.95 million during fiscal 2011, with most of the emphasis
on reverse circulation and helicopter support drills. During the first quarter
of fiscal 2012, the Company acquired one new drill, financed by an equipment
manufacturer, and completed the rebuild of three other drills for long term
contracts.
Cash flow from operations (before changes in non-cash operating working capital
items) increased by $602,948 to $1.47 million during the 1st quarter of fiscal
2012, compared $868,036 in the 1st quarter of fiscal 2011.
The mineral drilling industry is dependent on demand for and supply of precious,
base and strategic metals as well as precious stones. Demand and supply factors
for these commodities can change dramatically up and down, as we have witnessed
in the past, causing dynamic shifts in the supply of drills and drilling
personnel from under supply to over supply. The recent financial stress in
financial credit and equity markets, as well as significant global currency and
economic shifts, have caused substantial uncertainty in the global financial
markets. While this uncertainty has not caused major changes in the non -ferrous
metal markets, the Company remains very vigilante to any substantial market
moves that can impact the demand for its services. Management has initiated
comprehensive cost and spending controls, as well as risk management procedures
throughout the Company. Senior management is focused on careful cash management,
reduction of debt, high customer relations and high employee relations.
About Cabo Drilling Corp. (TSX VENTURE: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; Montreal, Quebec; Kirkland Lake, Ontario; and Springdale,
Newfoundland; as well as Cabo Drilling (Nevada) Inc. of the United States; Cabo
Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling
Panama-Pacifico Corp. of Panama, Republic of Panama doing business as Cabo
Drilling Colombia Corp.; 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, 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).
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.
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