MONCTON, NB, May 28, 2012 /CNW/ - Landdrill International Inc. (TSXV: LDI) ("Landdrill" or the "Company") has released results for their first quarter ended March 31, 2012. The Company reports revenues of $14.4 million, which is an increase from 2011's comparable amount of $14.0 million. The Company had had net loss of $1.1 million for the quarter, as compared to net earnings of $948,000 for 2011's comparable period.
Ron Goguen Sr., the President and CEO of Landdrill said, "As was reported with our year end results, the Company has been experiencing the negative effects of a challenging labour market for experienced drillers. As a result, job performance has been below expectations and this has negatively effecting gross margins and consequently the financial results. During 2011, the Mexican branch more than tripled its revenues and this large increase to its operations and labour pool resulted in poor gross margins for the short term. However I am very pleased to report that during 2012, the Mexican branch has significantly improved performance and their gross margins have increased from 2011's 17% to 27% for the first quarter of 2012. Furthermore we expect this branch to continue to make improvements for the rest of the year. Similar to what occurred in Mexico during 2011, the significant growth to operations has negatively affected the Canadian branch during both the fourth quarter of 2011 and early into the current year. As was done with Mexico during 2011, management is concentrating their current efforts to assist the Canadian branches' adjustment to this higher level of operations. We are confident that this branch will return to its historically strong gross margins by the end of 2012."
Management plans to make themselves available to investors and analysts by hosting a conference call on Monday May 28, 2012, at 11:00 AM EST. The call-in numbers are:
Local and International - +1 647 427-7450
North America - +1 888 231-8191
Participant Replay Numbers are as follows (available from Monday May 28, 2012 at 2:00 PM EST to Monday June 4, 2012 at 11:59 PM EST)
Local and International - +1 416 849-0833
North America - +1 855 859-2056
Access Code: 84737780#
For a review of the Company's latest filed financial results, copies of Landdrill's financial statements 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 48 drills with full branch operations in Canada, Mexico and Mongolia.
Landdrill is a forward looking company that has drilled in Canada, Mexico and Asia. Our people have drilled at altitudes over 15,000 feet and in temperatures ranging from -50 degrees Celsius to +50 degrees Celsius.
We view all our customers as partners in every venture because we know that their success ensures our future!
We offer customized drilling programs to meet your every need and we always look forward to our next challenge.
For detailed information on Landdrill International Inc., or to request a bid submission for your project, please visit our website at www.landdrill.com.
This press release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of Landdrill International 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. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all terms of the contracts will be fulfilled in their entirety, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include commodity prices, availability of personnel, materials and equipment, actual performance of equipment and processes relative to specifications and expectations, unanticipated environmental impacts and continued availability of capital and financing and general economic, market or business conditions. 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, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information:
President and Chief Executive Officer
Landdrill International Inc.
(506) 388 - 8961