Cabo Drilling Corp. ("Cabo" or the "Company") (TSX VENTURE:CBE)(FRANKFURT:DHL)
reports the results for its fiscal year 2014 first quarter ended September 30,
2013.


1st QUARTER HIGHLIGHTS 



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                                             Q1 - 2014  Q1 - 2013   FY 2013 
                                                 Sept.      Sept.      June 
(CDN $000s, except earnings per share)           30/13      30/12     30/13 
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Revenue                                          6,648     13,843    42,534 
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Earnings Before Interest, Taxes,                                            
 Amortization, Stock Based Compensation and                                 
 Other Items (EBITDA)                               55      1,829     3,956 
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Net Income (loss) Before Taxes                    (876)       769        29 
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Net Income (loss) After Taxes                     (817)       560      (565)
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Income per Share ($) (Basic and Diluted)                                    
 Before Interest, Taxes, Amortization,                                      
 Stock-based Compensation and Other Items                                   
 (EBITDA)                                         0.00       0.02      0.05 
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Income (loss) Per Share (Weighted Average)       (0.01)      0.01     (0.01)
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Cash from Operations(i)                            735      1,354     2,606 
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Gross Margin (IFRS) %                             13.2%      21.3%     19.3%
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Gross Margin % Adjusted(ii)                       22.5%      26.0%     25.1%
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Total Assets                                    35,535     40,503    37,552 
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Total Liabilities                               12,912     16,365    13,833 
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Working Capital (deficiency)                    12,644     13,831    13,454 
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(i)before changes in non-cash working capital items                         
(ii)gross margin adjusted to exclude amortization expense                   



The Company reports:



--  Quarterly revenue for the first quarter fiscal 2014 of $6.65 million, a
    52% decrease compared to $13.84 million in the 1st quarter fiscal 2013. 
--  1st quarter fiscal 2014 earnings before interest, taxes, amortization,
    stock-based compensation and other items (EBITDA) of $54,974 compared to
    1st quarter fiscal 2013 earnings before interest, tax, amortization,
    stock based compensation and other items (EBITDA) of $1.83 million,
    resulting in 1st quarter fiscal 2014 earnings before interest, taxes,
    amortization, stock-based compensation and other items of $0.00 per
    share, compared to $0.02 per share in the 1st quarter of fiscal 2013. 
--  Net before tax loss for the 1st quarter of fiscal 2014 of $876,488
    compared to net before tax income for the 1st quarter fiscal 2013 of
    $768,965. 
--  Net after tax loss for the 1st quarter of fiscal 2014 of $816,619
    compared to net after tax earnings for the 1st quarter of fiscal 2013 of
    $559,737, resulting in a 1st quarter fiscal 2014 net after tax loss of
    $0.01 per share compared to net after tax earnings for 1st quarter
    fiscal 2013 of $0.01 per share. 
--  Gross margin percentage for the 1stquarter fiscal 2014 was 13.2%, with
    amortization included in direct costs, compared with a gross margin of
    21.3% in 1st quarter fiscal 2013 and 16.0% in the 4th quarter of fiscal
    2013. 
--  Cash from operations was $735,060 for the 1st quarter fiscal 2014
    compared to 1st quarter fiscal 2013 cash from operations of $1.35
    million. 
--  A current asset balance of $21.1 million and working capital of $12.6
    million. 



"Cabo Drilling generated gross revenues of $6.65 million during the first
quarter of fiscal 2014," stated Mr. Versfelt, Cabo Drilling's President and CEO.
"This represents a 52% decrease compared to the $13.84 million in the comparable
period in fiscal 2013."


"Gross margin, adjusted to include amortization, was 13.2% or $875,244 in first
quarter of fiscal 2014, as compared to 21.3% in the first quarter of fiscal
2013," reported Mr. Versfelt. "In accordance with IFRS, depreciation expenses of
$624,445 are included in direct costs as compared to $631,003 in the first
quarter of fiscal 2013. Adjusted gross margin, when amortization expense is
excluded, is 22.5% in first quarter of fiscal 2014, as compared to 26% in the
first quarter of fiscal 2013.


"The Company recorded a loss of $816,619 during the first quarter of fiscal
2014, or a $0.01 loss per share, compared to earnings of $559,737 or $0.01 per
share in the first quarter of fiscal 2013," noted Mr. Versfelt. "EBITDA for the
first quarter of fiscal 2014 was $54,974, compared to $1.83 million in the first
quarter of fiscal 2013."


"Cabo Drilling's working capital decreased to $12.64 million during the first
quarter of fiscal 2014, from $13.45 million at the June 30, 2103," commented Mr
Versfelt. "Total liabilities decreased by $921,017 during the first three months
of fiscal 2014 to $12.74 million at September 30, 2013."


"During the first quarter, approximately 43% of revenues came from gold related
projects, 45% from copper, 4% from iron and the remaining 6% from other base
metals," stated Mr. Versfelt.


First quarter ended September 30, 2013

Revenue for the quarter ending September 30, 2013, decreased $7.20 million, or
52%, to $6.65 million, compared to $13.84 million in first three months of
fiscal 2013. The primary reason for the decrease is due to reduced demand for
drilling in North America, as a result of projects being scaled back, delayed or
terminated. Latin America division revenues increased by 17% with slightly
higher drilling and ground servicing activities utilization in Panama, offset by
the decreased activity in Colombia. The Canadian and USA divisions recorded a
significant decrease in revenues of 69% to $3.49 million in the first three
months of fiscal 2014, as compared to $11.16 million in the comparable period in
fiscal 2013. 


Revenues from surface drilling services decreased 49%, from $8.73 million in the
first quarter of fiscal 2013 to $4.46 million in the first three months of
fiscal 2014, largely due to the early completion or termination of drilling
projects with major mining clients in Canada and Colombia. Revenues from reverse
circulation programs decreased by 57% to $928,497; however, activity in iron ore
formations showed little change. Underground drilling decreased by 57% in the
first quarter of fiscal 2014 to $1.16 million, as compared to $1.16 million in
the comparable period in fiscal 2013. 


Direct costs for the quarter ended September 30, 2013, were $5.77 million
compared to $10.90 million in the quarter ending September 30, 2012, as adjusted
to include depreciation in accordance with IFRS. The decrease is a direct result
of the decreased activity in fiscal 2014. Gross margins, under IFRS reporting,
for the quarter ended September 30, 2013, were 13.2% compared to 21.3% during
the quarter ending September 30, 2012. The lower margins are primarily a result
of two projects terminating earlier than expected, resulting in lower margins
for those projects. 


In accordance with IFRS, depreciation expense of property, plant and equipment
of $624,205 is included in direct costs for the quarter ending September 30,
2013, as compared to $655,113 in the first quarter of fiscal 2013. 


General and administrative expenses decreased by $222,276 from $1.76 million for
the first three months of fiscal 2013 to $1.54 million in the first three months
of fiscal 2014. Included in the first quarter of fiscal 2014 is $56,730 in stock
based compensation, compared to nil stock based compensation in the comparable
fiscal 2013 period. General and administration costs have decreased by 18% in
comparable periods, when excluding the stock based compensation costs. The
decrease is a result of lower salary and travel costs. 


Net loss for the first quarter of fiscal 2014 is $816,619 compared to a net
income of $559,737 in the first three months of fiscal 2013. This is a direct
result of the decreased activity in the global drilling market. 


The Company's cash (cash and cash equivalents) position at September 30, 2013 is
$362,714 compared to $134,248 at June 30, 2013. 


Marketable securities decreased $228,098 from $1.11 million at June 30, 2013, to
$882,248 at September 30, 2013. Marketable securities consist primarily of 1.50
million shares in Standard Gold Inc. and 4.31 million shares of International
Millennium Mining Corp. We have adjusted the value of our holdings at September
30, 2013, as recorded in the comprehensive income statement. At September 30,
2013, the balance of $882,248 consists of shares in public corporations.


Accounts receivable decreased by $1.21 million to $6.27 million at September 30,
2013, from $7.48 million at June 30, 2013. The decrease is primarily due to
reduced activity during fiscal 2014. 


Property, plant & equipment decreased to $11.63 million at September 30, 2013
from $12.28 million at June 30, 2013, a decrease of $650,885 during the first
three months of fiscal 2014, primarily resulting from equipment depreciation,
with minimal capital expenditures in the quarter. 


Cash flow from operations (before changes in non-cash operating working capital
items) was $735,060 during the first quarter of fiscal 2014, compared $1.35
million in the first quarter of fiscal 2013. 


As has been stated in the past, the drilling services business is always
challenging. In times of high demand for drilling services, like 2011 and the
first half of 2012, revenues were high, but good drill crews were difficult to
recruit and retain at cost effective prices, plus productivity was compromised
and safety and environmental concerns escalated, resulting in higher costs. In
slower times, like today, revenues decrease, but drilling crews are better and
more experienced, and costs per meter are reduced as well. There is no easy
formula for managing a drilling company, but good old fashioned business
practices, like quality customer relations, high respect for employees and
quality human relations, superb safety procedures and practices, careful
attention to the protection of the environment and community relations, continue
to be critical for Cabo Drilling's management team. These practices, plus
effective cost controls and management of equipment and drilling practices, and
services invoiced to the customer at a fair price and in an honest manner, will
enhance a drilling company's ability to grow profitably.


About Cabo Drilling Corp. (TSX VENTURE:CBE)

Cabo Drilling Corp. is a drilling services company headquartered in New
Westminster, British Columbia, Canada. The Company provides mining specialty
drilling services through its Canadian divisions in Surrey, British Columbia;
Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling
(America) Inc. of the United States; Cabo Drilling (Panama) Corp. of Panama,
Republic of Panama; Cabo Drilling (Colombia) Corp. of Colombia; 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 Drilling website
(http://www.cabo.ca) and SEDAR (www.sedar.com).


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Cabo Drilling Corp.
John A. Versfelt
Chairman, President and CEO
604-527-4201
(604) 527-9126 (FAX)


Cabo Drilling Corp.
Sheri Barton
Corporate Communications
403-217-5830
(604) 527-9126 (FAX)
ir@cabo.ca
www.cabo.ca

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