MONCTON, NB, May 29 /CNW/ - Landdrill International Inc. (TSX.V:LDI) has
released results for their first quarter ended March 31, 2009. The Company
reports revenue of $4,262,000, which is a decrease of $163,000 (4%) from
2008's comparable amount of $4,425,000. A net loss of $630,000 was incurred in
2009, compared to net income of $245,000 in 2008. From an operational
standpoint the Company maintained consistent results and reports operating
income of $422,000 in 2009 as compared to $489,000 in 2008.
Ron Goguen Sr., the President and CEO of Landdrill said, "The results
from the first quarter are consistent with management's original expectations
as the first quarter results are normally affected by seasonality factors in
three of the Company's four branches. Since the end of the first quarter the
contract starts have been much slower then originally anticipated, however
recent indicators show that the second half of the year should be much
improved from the first half, but still below management's forecasted levels
for the 2009 year. As a result of this slowdown, the Company is making
significant cost cuts. Wage related cuts are expected to reduce expenses by
$1.0 million over a 12 month period. With these layoffs being effective in
late May, the cost reductions will be realized in June and will be fully in
place by the end of July. The total savings from these cuts and other changes
from management's original plans will result in approximately $703,000 in
reductions to 2009's budgeted general and administrative expenses. The
majority of this reduction to expenses would come from layoffs while there
would also be reductions to discretionary administrative expenses.
Furthermore, should this slowdown to the mining industry continue to adversely
affect the Company's ability to generate sufficient revenues, management will
initiate other action as required."
For a more complete review of the Company's first quarter results, copies
of Landdrill's financial statements for the three months ended March 31, 2009,
along with the management discussion and analysis (MD&A) can be found on SEDAR
Landdrill is a growth oriented international drilling company with a
focus on the metals and minerals industry. The Company continues to explore
opportunities for growth in key markets, either through establishment of new
branch offices or through acquisitions as opportunities arise. The Company now
has 31 drills with operations in Canada, Mexico, Russia and Mongolia.
For detailed information on Landdrill International Inc., or to request a
bid submission for your project worldwide, please visit our website at
Caution Concerning Forward Looking Statements
This press release includes certain statements that would be deemed
"forward-looking statements". These statements are "forward-looking" because
they are based on current expectations, estimates and assumptions about the
markets the Company operates in, the world economic climate as it relates to
the mining industry, the Canadian economic environment and the Company's
ability to attract and retain customers and to manage its assets and costs.
Actual results could differ materially from expectations if known or
unknown risks affect the business, or if estimates or assumptions turn out to
be inaccurate. The Company does not guarantee any forward-looking statement
will materialize and, therefore, investors are cautioned not to place reliance
on these forward looking statements. The Company disclaims any intention to
update or revise any statement of forward-looking information whether as a
result of new information, future events or otherwise.
On behalf of the Board of Directors,
Ronald Goguen Sr.
President and Chief Executive Officer
Landdrill International Inc.
(506) 388 - 8961
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
For further information:
For further information: Ronald Goguen Sr., President and Chief
Executive Officer, Landdrill International Inc., (506) 388-8961