Geodrill announces 2014 second quarter financial results

TORONTO, Aug. 11, 2014 /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, 2014. 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").

Financial Highlights

US$ 000's
(except earnings per share)
For the six
months ended
June 30, 2014
For the six
months ended
June 30, 2013
For the three
months ended
June 30, 2014
For the three
months ended
June 30, 2013
Revenue 15,124 29,622 9,679 14,590
Gross profit 1,445 14,397 1,734 8,005
Gross profit margin 10% 49% 18% 55%
(Loss)/earnings per share - basic (0.11) 0.10 (0.04) 0.07
EBITDA(1)(2) (241) 10,698 859 6,428
EBITDA margin (2%) 36% 9% 44%
Meters drilled 163,637 321,871 111,698 145,277

Notes:
  (1)     EBITDA = earnings before interest, taxes, depreciation and amortization.
  (2)     Please see "Non-IFRS Measures" below for additional discussion.

"This is the second consecutive quarter we have increased our revenue in what continues to be a challenging drilling market. This quarter, we also generated a positive gross profit, reversing the trend of the past three quarters," said Dave Harper, President and CEO of Geodrill Ltd. "We believe our performance this quarter has been the result of an overall increase in drilling activity in West Africa and continued customer demand for our high performance rigs."

Geodrill's interim unaudited financial statements and management's discussion & analysis ("MD&A"), for the three-month and six-month periods ended June 30, 2014, 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 1-888-231-8191 or 647-427-7450. A live audio webcast of the conference call will also be available through:

http://www.newswire.ca/en/webcast/detail/1389612/1541820

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 90 days. Operator Assisted Toll-Free Dial-In Number: (888) 231-8192.

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 it 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-month and six-month periods ended June 30, 2014 for the EBITDA reconciliation.

About Geodrill Limited
Geodrill Limited is a leading West African based drilling company operating in Ghana, Burkina Faso, Ivory Coast, Niger, Guinea, Mali and currently expanding into the African Copperbelt, specifically  Zambia and Democratic Republic of Congo ("DRC").   Geodrill provides exploration and development drilling services to major, intermediate and junior mining companies with exploration and development operations. The Company specializes in providing reverse circulation, diamond core and air-core drilling services using a modern fleet of drill rigs. The Company plans to grow organically and build its current client base while continuing to assess expansion opportunities throughout West Africa and other African jurisdictions.

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, 2014 and the Company's Annual Information Form dated March 31, 2014 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

For further information:

Joanna Longo
Investor Relations
(416) 238-1414 ext 233
jlongo@geodrill-gh.com