Cabo Drilling Corp.

May 31, 2011 09:19 ET

Cabo Announces 3rd Quarter Results

VANCOUVER, BC and U.S.A.--(Marketwire - May 31, 2011) -

Cabo Drilling Corp. / Cabo Announces 3rd Quarter Results . Processed and transmitted by Thomson Reuters ONE. 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.





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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

[HUG#1520026]

Contact Information

  • 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