Cabo Announces 2nd Quarter Results
VANCOUVER, BC -- (Marketwire) -- 03/02/11 --
Cabo Drilling Corp. /
Cabo Announces 2nd Quarter Results
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Cabo Announces 2nd Quarter Results
North Vancouver, BC - Cabo Drilling Corp. ('Cabo' or the 'Company') (TSX-
V:CBE)
today reported results for its fiscal year 2011 second quarter ended
December
31, 2010.
2nd QUARTER HIGHLIGHTS
--------------------- -------------- ------------ ----------- -----------
|(CDN $000s, except| 3 months | 3 months | 6 months | 6 months |
|earnings per share) | ending | ending | ending | ending |
| | Dec 31/10 | Dec 31/09 | Dec 31/10 | Dec 31/09 |
--------------------- -------------- ------------ ----------- -----------
|Revenue | 10,583| 7,983| 20,856| 14,324|
--------------------- -------------- ------------ ----------- -----------
|Earnings (Loss)| | | | |
|Before Interest,| | | | |
|Taxes, Amortization,| 1,242| 839| 2,253| 1,318|
|Stock Based| | | | |
|Compensation and| | | | |
|Other Items (EBITDA)| | | | |
--------------------- -------------- ------------ ----------- -----------
|Net Earnings (Loss)| 486| (147)| 794| (611)|
|Before Taxes | | | | |
--------------------- -------------- ------------ ----------- -----------
|Net Earnings (Loss)| 393| (150)| 591| (614)|
|After Taxes | | | | |
--------------------- -------------- ------------ ----------- -----------
|Earnings (Loss) per| | | | |
|Share ($) (Basic and| | | | |
|Diluted) Before| 0.02| 0.02| 0.04| 0.02|
|Interest, Taxes,| | | | |
|Amortization, Stock-| | | | |
|based Compensation| | | | |
|and Other Items| | | | |
|(EBITDA) | | | | |
--------------------- -------------- ------------ ----------- -----------
|Earnings (Loss) per| 0.01| (0.01)| 0.01| (0.01)|
|Share ($) (Basic and| | | | |
|Diluted) | | | | |
--------------------- -------------- ------------ ----------- -----------
|Cash from Operations*| 985| 729| 1,853| 1,117|
--------------------- -------------- ------------ ----------- -----------
|Gross Margin % | 26.1%| 28.5%| 25.1%| 28.8%|
--------------------- -------------- ------------ ----------- -----------
|Working Capital | 6,271| 6,076| 6,271| 6,076|
--------------------- -------------- ------------ ----------- -----------
*before changes in non-cash working capital items
The Company reports:
* Increased quarterly revenue for the 2nd quarter fiscal 2011 of
$10.58
million, a 24.6% improvement compared to $7.98 million in the 2nd
quarter
fiscal 2010.
* 2nd quarter fiscal 2011 earnings before interest, taxes,
amortization,
stock-based compensation and other items (EBITDA) of $1.24 million
compared
to 2nd quarter fiscal 2010 earnings before interest, tax,
amortization,
stock based compensation and other items (EBITDA) of $839,383,
resulting in
2nd quarter fiscal 2011 earnings before interest, taxes,
amortization,
stock-based compensation and other items of $0.02 per share and
$0.02 per
share in the 2nd quarter of fiscal 2010.
* Net before tax income for the 2nd quarter of fiscal 2011 of
$486,772
compared to a 2nd quarter fiscal 2010 before tax loss of $147,386.
* Net after tax earnings for the 2nd quarter of fiscal 2011 of
$393,132
compared to a net after tax loss for the 2nd quarter of fiscal
2010 of
$150,093, resulting in 2nd quarter fiscal 2011 net after tax
earnings of
$0.01 per share compared to a net after tax loss for 2nd quarter
fiscal
2010 of $0.01 per share.
* Gross margin percentage for the 2nd quarter fiscal 2011 was 26.1%
compared
with a gross margin of 28.5% in 2nd quarter fiscal 2010 and 24.0%
in the
1st quarter of fiscal 2011.
* Cash from operations, before changes in non-cash working capital
items, was
$985,199 for the 2nd quarter fiscal 2011 compared to 2nd quarter
fiscal
2010 cash from operations of $728,657.
* A current asset balance of $20.41 million and working capital of
$6.3
million.
* Total assets of $35.64 million and total liabilities of $15.87 million.
'Cabo has now recorded three consecutive quarters of increased revenues,'
stated
Mr. Versfelt, Cabo's President & CEO. 'Revenue for the quarter ending
December
31, 2010 increased $2.60 million or 33% to $10.58 million, compared to
$7.98
million in the comparable period in fiscal 2010. Revenues for the
first six
months of fiscal 2011 were $20.86 million, a 46% improvement compared
to the
first six months of fiscal 2010.'
'Gross margin improved from 24.0% in the first quarter of fiscal 2011 to
26.1%
in the second quarter of fiscal 2011,' added Mr. Versfelt.
'Management
expects gross margins in the 25-27% range for the balance of fiscal 2011.'
'Drilling activity and revenues in all regions where Cabo Drilling is
working
has been steady with average utilization at approximately 44% for the
quarter,'
said Mr. Versfelt. 'Management expects utilization to increase to around
60% in
the fourth quarter of fiscal 2011.
'EBITDA improved quarter over quarter to $1.24 million for the second
quarter
ending December 31, 2010 from $839,383 in the second quarter of fiscal
2010 and
from $1.01 million in the first quarter of fiscal 2011,' noted Mr.
Versfelt.
'Both before and after tax earnings of $476,097 and $393,132
respectively for
the second quarter of fiscal 2011 were the highest earnings that the
Company
experienced since the December 31, 2008 quarter.'
Second quarter ended December 31, 2010
Revenue for the quarter ending December 31, 2010 increased $2.60 million or
33%
to $10.58 million, compared to $7.98 million in the comparable period in
fiscal
2010. The primary reason for the increase is the increased activity in
Canada
and the international activity in Colombia, Panama and Albania. All
Canadian
divisions recorded increases in the second quarter of fiscal 2011 as
compared to
the second quarter of fiscal 2010.
The Company recorded a 3% increase in revenues comparing the $10.27
million
recorded in the first quarter of fiscal 2011 to the $10.58 million in the
second
quarter of fiscal 2011.
Cash flow from operations (before changes in non-cash operating working
capital
items) was $985,199 during the 2nd quarter of fiscal 2011, compared
$728,657 in
the 2nd quarter of fiscal 2010.
EBITDA increased to $1.24 million in the second quarter of 2011,
compared to
$839,383 in the same period of the prior year, an increase of $402,211, or
48%,
a result of a increased revenues. EBITDA in the second quarter of fiscal
2011
represents 12% of sales, compared to 11% in the previous comparable
period in
fiscal 2010.
Net income for the second quarter of fiscal 2011 was $393,132 compared to
a net
loss of $150,093 in the second quarter of fiscal 2010 and a net
income of
$197,544 during the first quarter of fiscal 2011.
For the full version of this news release please go to the Company's
website
www.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; 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. For general investor
relation
inquiries you may also contact Renmark Financial Communications Inc.
Barbara
Komorowski: bkomorowski@renmarkfinancial.com or Arash
Shahi:
ashahi@renmarkfinancial.com at Tel: 514-939-3989 or 416-644-2020.
* * * *
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.
--- End of Message ---
Cabo Drilling Corp.
3rd Floor, 120 Lonsdale Avenue North Vancouver BC Canada
Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;
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originality of the information contained therein.
Source: Cabo Drilling Corp. via Thomson Reuters ONE
[HUG#1493672]
CONTACT:
John A. Versfelt
Chairman, President and CEO
web site:www.cabo.ca
Telephone: (604) 984-8894
Facsimile: (604) 983-8056
e-mail: Email Contact