First Q results"The first quarter of fiscal 2010 reversed the trend of three consecutive quarters of reduced revenues compared to the previous quarter, giving us renewed optimism that the Company has experienced the bottom of the cycle. The Company has drills operating in all regions at this time," stated John A. Versfelt, Cabo's President & CEO. "Drill utilization has increased in all divisions with new signed contracts in Atlantic, Pacific, Mexico and Europe divisions and a more substantial increase in the Ontario division."
"General and administration costs have decreased in the first quarter of fiscal 2010 by 24% compared to the first quarter of fiscal 2009 and 17% compared to the fourth quarter of fiscal 2009," noted Mr. Versfelt. "This is a result of the salary and wage reductions, restructuring, and improved control costs. Management expects additional efficiencies through the use of technology, and expects general and administration expenses in the range of $5.2 million to $5.6 million for the fiscal year 2010."
"Gross margins remained consistent for the first quarter of fiscal 2010 at 29.1% compared to 29.6% in the fourth quarter of fiscal 2009 and improved from the 26.0% recorded in the 1st quarter of fiscal 2009," stated John A. Versfelt. "The Company is experiencing improved cost controls, reduced unit costs, more efficient purchasing, wage reductions and better supervision. All these changes have resulted in the gross margin averaging 29% for the previous two quarters."
"The Company recorded a net loss of $463,495 during the 1st quarter of fiscal 2010 or
.01 loss per share compared $1.09 million or
.02 earnings per share in the 1st quarter of fiscal 2009," noted John A. Versfelt. "EBITDA decreased to $482,152 during the first quarter of fiscal 2010, compared to $2.50 million in the previous corresponding period."
"As stated at the end of fiscal 2009, the Company is receiving more bid requests. Gold is leading the way in Canada, as well as in Mexico and Central America," said Mr. Versfelt. "Copper and iron ore projects are also requesting bids for drilling services. Consequently, Cabo Drilling is experiencing and projecting growth in drill utilization for the balance of fiscal 2010."
First quarter ended September 30, 2009
Revenue for the quarter ending September 30, 2009 decreased $10.28 million or 62% to $6.34 million, compared to $16.62 million in the first quarter of fiscal 2009; however it improved from $6.20 million recorded in the fourth quarter fiscal 2009. The primary reason for the decrease is due to the contraction of the drilling market that began in the Fall of 2008 as a result of the economic downturn.
Net loss for the first quarter of fiscal 2010 was $463,495 compared to net earnings of $1.09 million in the first quarter of fiscal 2009.