Cabo Announces 3rd Quarter Results
VANCOUVER, BC and U.S.A. -- (Marketwire) -- 05/31/11 --
Cabo Drilling Corp. /
Cabo Announces 3rd Quarter Results
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The issuer is solely responsible for the content of this announcement.
May 31, 2011
North Vancouver, BC - Cabo Drilling Corp. ('Cabo' or the 'Company') (TSX-
V:CBE)
today reported results for its fiscal year 2011 third quarter ended
March
31, 2011.
3(rd) QUARTER HIGHLIGHTS
--------------------- ------------- ------------- ------------- ---------
|(CDN $000s, except| 3 months | 3 months | 9 months | 9 months|
|earnings per share) | ending | ending | ending | ending |
| | Mar 31/11 | Mar 31/10 | Mar 31/11 |Mar 31/10|
--------------------- ------------- ------------- ------------- ---------
|Revenue | 9,540| 6,505| 30,395| 20,829|
--------------------- ------------- ------------- ------------- ---------
|Earnings (Loss)| | | | |
|Before Interest,| | | | |
|Taxes, Amortization,| (30)| 153| 2,243| 1,471|
|Stock Based| | | | |
|Compensation and| | | | |
|Other Items (EBITDA)| | | | |
--------------------- ------------- ------------- ------------- ---------
|Net Earnings (Loss)| (801)| (778)| (7)| (1,389)|
|Before Taxes | | | | |
--------------------- ------------- ------------- ------------- ---------
|Net Earnings (Loss)| (624)| (777)| (34)| (1,390)|
|After Taxes | | | | |
--------------------- ------------- ------------- ------------- ---------
|Earnings (Loss) per| | | | |
|Share ($) (Basic and| | | | |
|Diluted) Before| 0.00| 0.00| 0.04| 0.03|
|Interest, Taxes,| | | | |
|Amortization, Stock-| | | | |
|based Compensation| | | | |
|and Other Items| | | | |
|(EBITDA) | | | | |
--------------------- ------------- ------------- ------------- ---------
|Earnings (Loss) per| (0.01)| (0.01)| (0.00)| (0.03)|
|Share ($) (Basic and| | | | |
|Diluted) | | | | |
--------------------- ------------- ------------- ------------- ---------
|Cash from Operations*| 248| 3| 1,606| 1,117|
--------------------- ------------- ------------- ------------- ---------
|Gross Margin % | 18.8%| 25.0%| 23.1%| 27.6%|
--------------------- ------------- ------------- ------------- ---------
|Working Capital | 8,040| 5,744| 8,040| 5,744|
--------------------- ------------- ------------- ------------- ---------
*before changes in non-cash working capital items
The Company reports:
* Increased quarterly revenue for the 3(rd) quarter fiscal 2011 of $9.54
million, a 47% improvement compared to $6.51 million in the 3(rd)
quarter
fiscal 2010.
* 3(rd) quarter fiscal 2011 loss before interest, taxes, amortization,
stock-
based compensation and other items (EBITDA) of $30,039 compared to
3(rd)
quarter fiscal 2010 earnings before interest, tax, amortization, stock
based
compensation and other items (EBITDA) of $153,175, resulting in 3(rd)
quarter fiscal 2011 earnings before interest, taxes, amortization,
stock-
based compensation and other items of $0.00 per share and $0.00 per
share in
the 3(rd) quarter of fiscal 2010.
* Net before tax loss for the 3(rd) quarter of fiscal 2011 of $800,862
compared to a 3(rd) quarter fiscal 2010 before tax loss of $778,377.
* Net after tax loss for the 3(rd) quarter of fiscal 2011 of $624,422
compared
to a net after tax loss for the 3(rd) quarter of fiscal 2010 of
$776,683,
resulting in 3(rd) quarter fiscal 2011 net after tax loss of $0.01 per
share
compared to a net after tax loss for 3(rd) quarter fiscal 2010 of $0.01
per
share.
* Gross margin percentage for the 3(rd )quarter fiscal 2011 was 18.8%
compared
with a gross margin of 25.0% in 3(rd) quarter fiscal 2010 and 26.1% in
the
2(nd) quarter of fiscal 2011.
* Cash from operations, before changes in non-cash working capital items,
was
$(247,589) for the 3(rd) quarter fiscal 2011 compared to 3(rd) quarter
fiscal 2010 cash from operations of $3,456.
* A current asset balance of $39.04 million and working capital of $8.04
million.
* Total assets of $39.04 million and total liabilities of $16.99 million.
'Cabo Drilling's first nine months of fiscal 2011 is on track for the
budgeted
$40 million in gross revenues for fiscal 2011,' stated Mr. Versfelt,
Cabo's
President & CEO. 'Gross revenues of $30.40 million improved 46% compared
to the
first nine months of fiscal 2010. In addition, Cabo has recorded
four
consecutive quarters of increased revenue.'
'Gross margin decreased to 18.8% in the third quarter of fiscal 2011
due to
operational issues at one of the Company's largest multi-drill
contracts and
higher than expected start up costs in the Pacific and Atlantic
divisions,'
added Mr. Versfelt. ' Management expects gross margins in the 24-25%
range for
the balance of fiscal 2011.'
'Drilling activity and revenues in all regions where Cabo Drilling is
working
has been steady, with 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.'
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.
* * * *
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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Source: Cabo Drilling Corp. via Thomson Reuters ONE
[HUG#1520026]
CONTACT:
John A. Versfelt
Chairman, President and CEO
Telephone: (604) 984-8894
Facsimile: (604) 983-8056
e-mail: Email Contact
web site: www.cabo.ca