Geodrill reports 2015 third quarter financial results

TORONTO, Nov. 9, 2015 /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 nine month periods ended September 30, 2015. 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$ 000s

(except earnings per share, meters drilled and percentages)

For the three

months ended

September 30,
2015

For the three

months ended

September 30,
2014

For the nine
months ended
September 30,
2015

For the nine
months ended
September 30,
2014

Revenue

10,184

10,767

35,573

25,891

Gross profit

2,489

2,976

11,070

4,421

Gross profit margin

24%

28%

31%

17%

Loss per share - basic

(0.04)

(0.02)

(0.03)

(0.13)

EBITDA(1)(2)

1,516

2,004

8,017

1,763

EBITDA margin

15%

19%

23%

7%

Meters drilled

195,909

148,025

530,126

311,662


Notes


(1)

EBITDA = earnings before interest, taxes, depreciation and amortization

(2)

Please see "Non-IFRS Measures" below for additional discussion

 

"This quarter we continued to demonstrate resilient margins, reporting our sixth consecutive quarter of positive gross profit and positive EBITDA. Over the past year, we have strengthened our presence in West Africa with newly secured multi-rig, long-term contracts. We believe the strong demand for our rigs has been driven by our customers recognizing the value and efficiency we have created with our operations and high performance rigs," said Dave Harper, President and CEO of Geodrill. "Despite continued uncertainty in the mining service sector, we believe our strong rig performance and newly secured contracts with senior miners, provides leverage for Geodrill when the market recovers."

Geodrill's condensed interim consolidated financial statements and management's discussion & analysis ("MD&A"), for the three and nine month periods ended September 30, 2015, 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://event.on24.com/r.htm?e=1062006&s=1&k=47059E563B1F3882B20B6D599F2ED678

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 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 nine month periods ended September 30, 2015 for the EBITDA reconciliation.

About Geodrill Limited

Geodrill has been successful in establishing a leading market position in Ghana and Burkina Faso and also operates in other West African jurisdictions including Cote d'Ivoire and Mali. The Company provides a broad selection of diverse drilling services, both exploration and delineation, 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 current client mix is comprised of juniors, intermediates and majors 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. 

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 September 30, 2015 and the Company's Annual Information Form dated March 31, 2015 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, Terre Partners, (416) 238-1414 ext 233, jlongo@terrepartners.com


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