SOURCE: Cabo Drilling Corp.

November 30, 2010 09:14 ET

Cabo Announces 1st Quarter Results

VANCOUVER BC, U.S.A.--(Marketwire - November 30, 2010) -

Cabo Drilling Corp. / Cabo Announces 1st Quarter Results Processed and transmitted by Thomson Reuters. The issuer is solely responsible for the content of this announcement.

November 30, 2010


North Vancouver, BC - Cabo Drilling Corp. ("Cabo" or the "Company") (TSX- V:CBE) today reported results for its fiscal year 2011 first quarter ended September 30, 2010.

1(st) QUARTER HIGHLIGHTS


|(CDN $000s, except earnings per share)      |Q1 - 2011|Q1  - 2010|FY 2010|
|                                            |         |          |       |
|                                            |Sept. 30 | Sept. 30 |June 30|

|Revenue                                     |   10,272|     6,340| 28,986|

|Earnings (Loss) Before Interest, Taxes, Amortization,
 Stock Based Compensation and Other Items
 (EBITDA)                                    |    1,011|       482|  1,546|

|Net Earnings (Loss) Before Taxes            |      308|     (463)|(2,208)|

|Net Earnings (Loss) After Taxes             |      198|     (463)|(1,496)|
|Earnings (Loss) per Share ($) (Basic and
 Diluted) Before Interest, Taxes, Amortization,
 Stock-based Compensation and Other Items
 (EBITDA)                                    |     0.02|      0.01|   0.03|
|Earnings (Loss) per Share ($) (Basic and
 Diluted)                                    |     0.00|    (0.01)| (0.03)|
|Cash from Operations*                       |      868|       388|  1,057|

|Gross Margin %                              |    24.0%|     29.1%|  25.3%|
|Working Capital (deficiency)                |    6,413|     4,706|  5,744|

   *before changes in non-cash working capital items

The Company reports:

§ Quarterly revenue for the 1(st) quarter fiscal 2011 of $10.27 million, a 62% improvement compared to $6.34 million in the 1(st) quarter fiscal 2010.

§ 1(st) quarter fiscal 2011 earnings before interest, taxes, amortization, stock-based compensation and other items of $1.01 million compared to 1(st) quarter fiscal 2010 earnings before interest, tax, amortization, stock based compensation and other items (EBITDA) of $482,152, resulting in 1(st) quarter fiscal 2011 earnings before interest, taxes, amortization, stock- based compensation and other items of $0.02 per share and $0.01 per share in the 1(st) quarter of fiscal 2010.

§ Net before tax income for the 1(st) quarter of fiscal 2011 of $307,544 compared to a 1(st) quarter fiscal 2010 before tax loss of $463,495.

§ Net after tax earnings for the 1(st) quarter of fiscal 2011 of $197,544 compared to a net after tax loss for the 1(st) quarter of fiscal 2010 of $463,495, resulting in 1(st) quarter fiscal 2011 net after tax earnings of $0.00 per share compared to a net after tax loss for 1(st) quarter fiscal 2010 of $0.01 per share.

§ Gross margin percentage for the 1(st )quarter fiscal 2011 was 24.0% compared with a gross margin of 29.1% in 1(st) quarter fiscal 2010 and 19.4% in the 4(th) quarter of fiscal 2010.

§ Cash from operations, before changes in non-cash working capital items, was $868,036 for the 1(st) quarter fiscal 2011 compared to 1(st) quarter fiscal 2010 cash from operations of $388,239.

§ A current asset balance of $20.66 million and working capital of $6.4 million.

§ Total assets of $35.01 million and total liabilities of $16.04 million.



"Cabo Drilling's first quarter for fiscal 2011 is on track for the $40 million in gross revenues that the Company is budgeting for the fiscal year," said Mr. Versfelt, Cabo's President & CEO. "Gross revenues of $10.27 million improved 62% compared to the first quarter of fiscal 2010 and 26% compared to the fourth quarter of fiscal 2010. Drilling activity and revenues in all regions where Cabo Drilling is working has improved, with utilization at approximately 50% for the quarter."

"Gross margin improved from 19.4% in the fourth quarter of fiscal 2010 to 24.0% in the first quarter of fiscal 2011" stated Mr. Versfelt. "This increase is within 1% of what management is expecting for the year."

"The Company recorded earnings of $197,544 during the 1(st) quarter of fiscal 2011 or $0.00 earnings per share compared to a loss of $463,495 or $0.01 per share in the 1(st) quarter of fiscal 2010," noted John A. Versfelt. "EBITDA improved dramatically quarter over quarter to $1.01 million for the first quarter ending September 30, 2010 from $75,136 in the previous quarter and from $482,152 in the first quarter of fiscal 2010. Both before and after tax earnings of $307,544 and $197,544 for the first quarter of fiscal 2011 were the highest earnings that the Company experienced since the December 31, 2008 quarter."



First quarter ended September 30, 2011



Revenue for the quarter ending September 30, 2010 increased $3.93 million or 62% to $10.27 million, compared to $6.34 million comparable period in fiscal 2010. The primary reason for the increase is the increased activity in Canada and the international activity in Colombia and Albania. The Pacific and the Atlantic divisions represent the majority of the increase in activity in the first quarter of fiscal 2011 as compared to the first quarter of fiscal 2010.



The Company also experienced a 26% increase in revenues comparing the $8.16 million recorded in the fourth quarter of fiscal 2010 to the $10.27 million in the first quarter of fiscal 2011. This increase is directly related to increased revenues in the Pacific and Atlantic divisions and in Columbia. Management expects international operations from its bases in Panama and Albania to achieve approximately 25-30% of revenues in fiscal 2011.



Cash flow from operations (before changes in non-cash operating working capital items) was $868,036 during the 1(st) quarter of fiscal 2011, compared $388,239 in the 1(st) quarter of fiscal 2010.



Net income for the first quarter of fiscal 2011 was $197,544 compared to a net loss of $463,495 in the first quarter of fiscal 2010 and a net loss of $106,120 during the fourth quarter of fiscal 2010.



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; Cabo Drilling Spain S.L. of Sevilla, Spain; 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.



[HUG#1466812]



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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

Contact Information

  • Contact:
    John A. Versfelt, Chairman, President and CEO

    Telephone: (604) 984-8894

    Facsimilie: (604) 983-8056

    e-mail: Email Contact

    web site: www.cabo.ca