MONCTON, NB, April 30 /CNW/ - Landdrill International Inc. (TSX.V:LDI) has released results for the year ended December 31, 2009. The Company reports revenue of $14,957,000 which is a decrease of $9,503,000 (39%) from 2008's comparable amount of $24,460,000. A net loss of $4,487,000 was incurred in 2009, compared to net income of $511,000 in 2008.
The Company's EBITDA was a positive $52,000, however this amount was reduced by significant charges for foreign exchange losses and income tax expense. For 2009s' fiscal year the Company incurred foreign exchange losses in the amount of $1,160,000. These currency losses are mostly as a result of the strengthening of the Canadian dollar relative to the US dollar, creating a loss on the Canadian parent companies' US dollar denominated receivables from their three 'wholly' owned foreign subsidiaries, whose individual currencies did not similarly strengthen against the US dollar. Also during the period the Company expensed $944,000 in future income tax assets. These tax assets still exist, however where there was no certainty of using them in the immediate future, management took a valuation allowance against these assets, which resulted in a reduction to income.
Ron Goguen Sr., the President and CEO of Landdrill said, "Although the results for 2009 were down from the prior year, caused by the global slowdown that negatively impacted the mining industry at the end of 2008 and 2009, revenue from drilling services has significantly increased during 2010. During the first quarter for 2010 the Company's revenues have increased 39% over the prior years' comparable amount. I am confident that this increased level of drilling can be sustained for the rest of the year.
For a more complete review of the Company's year end results, copies of Landdrill's financial statements for the year ended December 31, 2009, along with the management discussion and analysis (MD&A) can be found on SEDAR (www.sedar.com).
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 has 33 drills with full branch operations in Canada, Mexico, Mongolia and Russia.
For detailed information on Landdrill International Inc., or to request a bid submission for your project worldwide, please visit our website at www.landdrill.com.
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.
SOURCE Landdrill International Inc.
For further information: For further information: Ronald Goguen Sr., President and Chief Executive Officer, Landdrill International Inc., (506) 388-8961