Orbit Garant Drilling Inc. reports third quarter 2009 financial results



    VAL-D'OR, QC, May 13 /CNW/ - Orbit Garant Drilling Inc. (TSX: OGD) today
announced its financial results for the third quarter of fiscal 2009, ended
March 31, 2009. All dollar amounts are in Canadian currency unless otherwise
stated. Percentage calculations are based on numbers in the financial
statements and may not correspond to rounded figures presented in this
release.

    
    Highlights
    -------------------------------------------------------------------------
                                3 months    3 months    9 months    9 months
                                   ended       ended       ended       ended
                                March 31,   March 31,   March 31,   March 31,
                                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    Amounts in C$000 except
     earnings per share &
     metres drilled
    -------------------------------------------------------------------------
    Revenue                      $27,695     $22,071     $76,917     $57,503
    -------------------------------------------------------------------------
    Gross Profit                   9,196       7,516      25,366      20,080
    -------------------------------------------------------------------------
    Gross Margin                   33.2%       34.1%         33%       34.9%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Normalized EBITDA              7,345       6,464      20,197      17,039
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Net Earnings                   3,210       2,824       9,072       7,960
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Net earnings per common
     share
      - Basic                      $0.10       $0.11       $0.28       $0.32
    -------------------------------------------------------------------------
      - Diluted                    $0.10       $0.11       $0.28       $0.31
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total Metres Drilled         298,341     220,116     812,554     632,614
    -------------------------------------------------------------------------
    

    "We are delighted with our financial results the third quarter of 2009,"
said Eric Alexandre, President and Chief Operating Officer of Orbit Garant.
"This strong performance, in a weak economic environment, is a direct
reflection of our excellent long-term relationships with major and
well-financed intermediate companies, in addition to our exposure to the gold
industry. Going into the fourth quarter, we continue to manage our business
conservatively, reflecting the realities of today's mining industry."

    Third Quarter Results

    Orbit Garant reporting record gross revenue and metres drilled for the
third quarter of fiscal 2009, ended March 31, 2009. Metres drilled rose 35.5%
to over 298,000 while the Company generated total revenues of $27.7 million,
an increase of $5.6 million, or 25.5%, compared to the third quarter of fiscal
2008.
    Drilling Canada revenue was $27.4 million compared to $18.5 million for
the corresponding period last year, representing an increase of 48.2%. This
strong increase is in large part attributable to the specialized drilling
contracts initiated earlier in the year, as well as the acquisition of
Forage+.
    Drilling International revenue was $0.3 million, down by $1.1 million
from the same period in fiscal 2008 due to lower activity.
    Manufacturing Canada revenue was minimal, compared with $2.2 million in
the third quarter of fiscal 2008. Third party demand for drills has
experienced a slowdown resulting from the current economic decline. Through
its subsidiary Soudure Royale Concept, Orbit Garant maintains the capacity to
build new drills, and also utilizes Soudure Royale Concept to build supplies
and support equipment.
    The gross margin for the third quarter ended March 31, 2009 was 33.2%
compared with 34.1% in the corresponding period in the previous year. The
decline is a result of a number of factors, primarily including lower activity
in the Drilling International and Manufacturing divisions.
    Total gross profit in the third quarter of 2009 was $9.2 million compared
to $7.5 million in the comparable fiscal 2008 period, representing an increase
of 22.4%.
    General and administrative expenses totaled $1.7 million during Q3 of
fiscal 2009, compared to $1.4 million in Q3 of fiscal 2008, an increase
attributable to additional administrative expenses incurred to sustain growth
and new costs related to operating as a public company.
    Consolidated normalized EBITDA in Q3 of fiscal 2009 was $7.3 million
compared to $6.4 million in Q3 of fiscal 2008, representing an increase of
13.6%.
    Income tax recorded totaled $1.6 million in the most recent quarter
compared to $1.2 million in the comparable 2008 period.
    Net earnings for the quarter totaled $3.2 million compared to $2.8
million in the comparable period last year, representing $0.10 per common
share ($0.10 per share diluted) in the Q3 2009 quarter compared to $0.11 per
common share ($0.11 per share diluted) in Q3 fiscal 2008.

    Nine Months ended March 31, 2009

    Gross revenue and metres drilled for the nine months ended March 31, 2009
were also at a record level. Metres drilled rose 28.4% to over 812,000 while
the Company generated total revenues of $76.9 million, an increase of $19.4
million, or 33.8%, from $57.5 million in the comparable period a year earlier.
    Gross margin for the first nine months of the fiscal year was 33.0%
compared to 34.9% for the corresponding period last year. This decrease is
correlated with the decrease in International Drilling activity and demand in
the Manufacturing division.
    Overall gross profit for the first nine months of the fiscal year was
$25.4 million, an increase of $5.3 million from $20.1 million in the
comparable nine-month period last year.
    Net earnings for the nine-month period ended March 31, 2009 were $9.1
million or $0.28 per share ($0.28 per share diluted) compared to $8.0 million
or $0.32 per share ($0.31 per share diluted) in the first nine months of
fiscal 2008.
    "In spite of the current economic environment, demand has remained
stable, with 85% of our drills deployed," added Mr. Alexandre. "We have
maintained our focus on the Company's proven business strategy and continue to
demonstrate a proactive approach, improving operational efficiencies to ensure
Orbit Garant is well positioned for the next market upswing."
    Orbit Garant completed its Initial Public Offering (IPO) on June 26,
2008. The company was created through the combination of Quebec-based drilling
services providers Orbit and Garant on January 31, 2007 and the acquisition of
Drift Exploration Drilling Inc. on April 16, 2007. Full Financial Statements
and Management's Discussion and Analysis are available on the Company website
at www.orbitgarant.com and at www.sedar.com.

    Conference Call

    A conference call for analysts and interested listeners will be held
Thursday, May 14, 2009 at 1:00 p.m. (ET). The call-in numbers for participants
are 416-644-3424 and 800-594-3615. A live audio feed of the call will also be
available on the Internet at:
    http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2644620
    A replay of the call will be available from 3:00 p.m. (ET) on Thursday,
May 14, 2009 until 11:59 p.m. on Thursday May 21, 2009. To access the replay,
call 416 640 1917 or 877 289 8525 enter pass code number 21304913, and then
press the pound (No. sign) key. The replay can also be accessed over the
Internet at the above address.

    About Orbit Garant

    Orbit Garant is one of the largest Canadian-based drilling companies,
providing both underground and surface drilling services in Canada and
internationally, operating with 134 drills and more than 500 employees. Orbit
Garant provides services to major, intermediate and junior mining companies,
through each stage of mining exploration, development and production.

    Forward-looking information

    This press release may contain forward-looking statements (within the
meaning of applicable securities laws) relating to business of Orbit Garant
Drilling Inc. (the "Company") and the environment in which it operates.
Forward-looking statements are identified by words such as "believe",
"anticipate", "expect", "intend", "plan", "will", "may" and other similar
expressions. These statements are based on the Company's expectations,
estimates, forecasts and projections. They are not guarantees of future
performance and involve risks and uncertainties that are difficult to control
or predict. These risks and uncertainties are discussed in the Company's
regulatory filings available at www.sedar.com. There can be no assurance that
forward-looking statements will prove to be accurate as actual outcomes and
results may differ materially from those expressed in these forward-looking
statements. Readers, therefore, should not place undue reliance on any such
forward-looking statements. Further, a forward-looking statement speaks only
as of the date on which such statement is made. The Company undertakes no
obligation to publicly update any such statement or to reflect new information
or the occurrence of future events or circumstances.





For further information:

For further information: Eric Alexandre, President and Chief Operating
Officer, (819) 824-2707 Ext. 233; Derek Henderson, Investor Relations, (416)
447-4740 Ext. 232


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