North Vancouver, BC - Cabo Drilling Corp. ("Cabo" or the "Company")
(TSX-V: CBE) reports results for its fourth quarter and fiscal year
ended June 30, 2008.
4th QUARTER & ANNUAL HIGHLIGHTS
+-------------------------------------------------------------------+
| (CDN $000s, except | 3 months | 3 months | | |
| earnings per share) | ending | ending | | |
| | June 30-08 | June | FY2008 | FY2007 |
| | | 30-07 | | |
|-------------------------+------------+----------+--------+--------|
| Revenue | 14,634 | 11,679 | 58,645 | 38,447 |
|-------------------------+------------+----------+--------+--------|
| Net Earnings (Loss) | | | | |
| Before Interest, Tax, | 701 | 1,420 | 6,764 | 3,921 |
| Amortization, | | | | |
| Stock-based | | | | |
| Compensation and Other | | | | |
| Items (EBITDA) | | | | |
|-------------------------+------------+----------+--------+--------|
| Net Earnings (Loss) | (115) | 425 | 3,951 | 1,588 |
| Before Taxes | | | | |
|-------------------------+------------+----------+--------+--------|
| Net Earnings (Loss) | 581 | 162 | 3,203 | 926 |
| After Taxes | | | | |
|-------------------------+------------+----------+--------+--------|
| Earnings (Loss) per | | | | |
| Share ($) Basic Before | | | | |
| Interest, Tax, | 0.02 | 0.04 | 0.15 | 0.11 |
| Amortization, | | | | |
| Stock-based | | | | |
| Compensation and Other | | | | |
| Items (EBITDA) | | | | |
|-------------------------+------------+----------+--------+--------|
| Earnings (Loss) per | 0.01 | 0.00 | 0.07 | 0.03 |
| Share ($) Basic | | | | |
|-------------------------+------------+----------+--------+--------|
| Cash from operations* | 815 | 888 | 5,149 | 2,665 |
|-------------------------+------------+----------+--------+--------|
| Gross Margin % | 20.0% | 26.5% | 23.4% | 24.6% |
|-------------------------+------------+----------+--------+--------|
| Working Capital | 7,280 | 3,272 | 7,280 | 3,272 |
+-------------------------------------------------------------------+
*before changes in non-cash working capital items
"Cabo recorded its highest revenues and net income ever in fiscal
2008," Mr. Versfelt stated. "Record revenues for the fiscal year of
2008 were $58.64 million compared to $38.44 million for the fiscal
year ending 2007, that's a 53% increase. In addition to the revenue
growth internationally, we also had substantial growth at our Ontario
division and continued strong results from our Atlantic division."
"Cabo's expansion in 2007 and 2008 was fuelled by an increased number
of drills in the international market and an increased number of
employees worldwide," stated Mr. Versfelt. "Cabo added eight drills
to the international market during the fiscal year 2008 resulting in
international revenue growth of 19% of consolidated revenues for the
year, compared to 5% in fiscal 2007. This expansion was carried out
evenly between the divisions in Spain, Panama, Mexico and the United
States."
"The Company recorded net income, after taxes, of $3.20 million and
earnings per share of $0.07," Mr. Versfelt said. "We also improved
our EBITDA (earnings before interest, taxes, amortization,
stock-based compensation and other items) by 73% from $3.92 million
in fiscal 2007 to $6.76 million in fiscal 2008. The growth within
Cabo over the last four years has created a solid foundation for the
years ahead."
"Cabo had gross margin performance of 20.0% for the 4th quarter
fiscal 2008 (26.5% 4th quarter fiscal 2007) and 23.4% for the fiscal
year 2008 (24.6% for 2007)," Mr. Versfelt stated. "We recorded gross
margins in excess of 27% internationally, but this was offset by
lower margins earned from our Ontario and Pacific division."
"During the first four months of fiscal 2009, seven more drills were
added to the Company's international fleet, now totaling 24 of 111
drills owned by the Company. With the dramatic downturn in the
financial and commodity markets, the Company does not expect to
increase its fleet, nor make any significant capital expenditures,"
Mr. Versfelt said. "On the other hand, it is likely that our drills
will be moving between divisions, taking advantage of new contracts
in areas that need more drills."
"In order to improve on profitability in an environment of decreasing
demand and volatile commodity prices, we must be relentless on cost
control and reducing our spending, while at the same time maintaining
our experienced workforce, enforcing our high safety standards, and
remaining focused on high employee and customer relations," Mr.
Versfelt stated. "Within in the last year Cabo has employed five
general managers with extensive experience in expanding as well as
retracting markets. This along with the foundation we built over the
last three years will assist us in working through these changing
times."
Year ended June 30, 2008
Revenue for the year ending June 30, 2008 was $58.64 million,
compared to $38.44 million in 2007. This represents a 53% increase in
revenues year over year. The increase can be attributed primarily to
significant growth from our international, Ontario and Atlantic
divisions. Revenues from our international divisions represent 19% of
fiscal 2008 revenues as compared to 5% in fiscal 2007. With an
increase in the number of drills at our international divisions,
management expects international operations to contribute a growing
percentage of the Company's total revenue stream.
Direct costs for the year ended June 30, 2008 were $44.90 million
compared to $28.98 million in fiscal 2007. The increase is a direct
result of higher activity, which resulted in higher revenue in fiscal
2008. Gross margins for the year ended June 30, 2008 were 23.4%
compared to 24.6% during the fiscal year ending June 30, 2007. The
Company recorded gross margins in excess of 27% internationally, but
this was offset by lower margins earned from our Ontario and Pacific
divisions.
General and administrative expenses increased to $7.28 million in
fiscal 2008 as compared to $5.52 million last year. At 12.4% as a
percentage of revenue in fiscal 2008, general and administration
costs have decreased pro-rata year over year from the 14.4% recorded
in fiscal 2007. Increased costs can be attributed to additional
administration personnel in our international operations, higher
travel, higher insurance and professional fees.
EBITDA (earnings before interest, tax, amortization, stock-based
compensation and other items) for fiscal 2008 increased 73% to $6.76
million ($0.15 per share basic dilution) as compared to $3.92 million
($0.11 per share basic dilution) in fiscal 2007. Net income, after
taxes, increased to $3.20 million for the fiscal year ending June 30,
2008 as compared to a net income of $926,498 recorded in fiscal 2007.
To view the Company's complete news release, MD&A, and financial
statements please visit the company's website at www.cabo.ca or SEDAR
(www.sedar.com).
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
de Mexico S.A. de C.V. of Hermosillo, Sonora, Mexico; Cabo Drilling
(Panama) Corp. of Panama, Republic of Panama; and Cabo Drilling Spain
S.L. of Sevilla, Spain. 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 Mr. Garett Greene 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.
Cabo Drilling Corp. was recognized as a TSX Venture 50(TM) company in
2008. TSX Venture 50 is a trademark of TSX Inc. and is used under
license.
CONTACT: John A. Versfelt, Chairman, President and CEO
Telephone: (604) 984-8894
Facsimile: (604) 983-8056
e-mail: ir@cabo.ca
web site: www.cabo.ca
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