Geodrill Reports Strong Second Quarter 2018 Financial Results
- Marked by Milestone Revenue and Robust Margins -
TORONTO, Aug. 13, 2018 /CNW/ - Geodrill Limited ("Geodrill" or the "Company") (TSX:GEO), a leading West African based drilling company, reported its financial results for the three month and six month periods ended June 30, 2018. All figures are reported in U.S. dollars ($), unless otherwise indicated. Geodrill's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
Highlights for Q2-2018:
- Increased revenue by 21% to $27.3M compared to $22.6M in Q2-2017;
- Generated a gross margin of 47% compared to 42% in Q2-2017;
- Invested $3.5M into CAPEX;
- Drilled 382,418 meters, or 40% more than Q2-2017; and
- Ended the quarter with $7.8M in cash.
Financial Summary
| US$ 000s |
For the three months ended June 30, 2018 |
For the three months ended June 30, 2017 |
For the six months ended June 30, 2018 |
For the six months ended June 30, 2017 |
| Revenue |
27,280 |
22,621 |
51,533 |
41,173 |
| Gross profit |
12,733 |
9,539 |
24,177 |
16,755 |
| Gross profit margin |
47% |
42% |
47% |
41% |
| EBITDA(1)(2) |
7,272 |
5,235 |
13,098 |
8,376 |
| EBITDA margin |
27% |
23% |
25% |
20% |
| Earnings per share - basic |
0.05 |
0.05 |
0.09 |
0.06 |
| Meters drilled |
382,418 |
272,988 |
705,090 |
529,872 |
| Notes: |
|
| (1) |
EBITDA = earnings before interest, taxes, depreciation and amortization |
| (2) |
Please see "Non-IFRS Measures" below for additional discussion |
"This was a milestone quarter marked by the highest quarterly revenue in the history of the company, delivering robust margins. The strong momentum in the first half of the year exemplifies our dedication to providing gold standard customer service and safety via a fleet of high performance rigs that continue to drive our business," said Dave Harper, President and CEO of Geodrill. "This record-setting quarter, coupled with continued investment into our equipment, positions Geodrill to keep pace with the strong drilling activity in West Africa while remaining focused on delivering solid margins."
Geodrill's condensed interim consolidated financial statements and management's discussion & analysis ("MD&A"), for the three and six month periods ended June 30, 2018, are available via Geodrill's website at www.geodrill-gh.com and will be available on SEDAR at www.sedar.com.
Following the release, management of the Company will host a conference call at 10:00 am EDT to discuss the financial results.
You can join the call by dialing 1-888-390-0546 or local 416-764-8688. A live audio webcast of the conference call will also be available through:
https://event.on24.com/wcc/r/1794709/F3B34F783DA06ED45F3590163AF7C06D
Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. An archived replay of the webcast will be available for 7 days. Operator Assisted Toll-Free Dial-In Number: (888) 390 0541 or local 416 764 8677.
About Geodrill Limited
Geodrill has been successful in establishing a leading market position in Ghana, Burkina Faso, Cote d'Ivoire and Mali and also operates in the African copperbelt, Zambia. The Company provides a broad selection of diverse drilling services, including exploration, delineation, underground and grade control drilling, to meet the specific needs of its clients. Geodrill operates a fleet of high performance multi-purpose rigs, which offer the versatility of being able to perform both reverse circulation and diamond core drilling. Geodrill's client mix is made up of majors, intermediates and juniors that are exploring for gold and other minerals. The Company's operational proximity to countries such as Mauritania, Liberia, Sierra Leone, Nigeria and Cameroon positions the Company favourably in its ability to service these markets.
Non-IFRS Measures
EBITDA is defined as Earnings before Interest, Taxes, Depreciation and Amortization and is used as a measure of financial performance. The Company believes EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties to evaluate companies in the industry. However, EBITDA is not a measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. EBITDA should not be viewed in isolation and does not purport to be an alternative to net income or gross profit as an indicator of operating performance or cash flows from operating activities as a measure of liquidity. EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by other publicly traded companies, and EBITDA should not be construed as an alternative to other financial measures determined in accordance with IFRS.
Additionally, EBITDA is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as capital expenditures, contractual commitments, interest payments, tax payments and debt service requirements. Please see the Company's MD&A for the three and six month periods ended June 30, 2018 for the EBITDA reconciliation.
Forward Looking Information
This press release may contain "forward-looking information" which may include, but is not limited to the future financial or operating performance of the Company, its subsidiaries, future growth, results of operations, performance, business prospects and opportunities. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release including, without limitation those described in the Management's Discussion & Analysis for the quarter ended June 30, 2018 and the Company's Annual Information Form dated March 29, 2018 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking statements, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information and forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Geodrill Limited
Joanna Longo, Investor Relations, (416) 238-1414 ext. 233, [email protected]
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