MONCTON, NB, Nov. 30 /CNW/ - Landdrill International Inc. (TSX.V:LDI) has released results for their third quarter ended September 30, 2009. The Company reports revenue of $5,130,000, which is a decrease of $2,148,000 (30%) from 2008's comparable amount of $7,278,000. A net loss of $652,000 was incurred in 2009, compared to net income of $220,000 in 2008.
On a year to date basis the Company has revenues of $12,458,000, which is a decrease of $4,522,000 (27%) over the comparable period's amount of $16,980,000. The net loss of $2,345,000 was a decrease from the comparable period's net income $528,000.
During the third quarter the Company reports positive earnings before income taxes, amortization and depreciation ("EBITDA") of $730,000 which was comparable to the prior years' amount of $967,000. However this EBITDA amount was then reduced for non-cash foreign currency losses of $712,000 for the three months ended September 30, 2009. These currency losses occur 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.
Ron Goguen Sr., the President and CEO of Landdrill said, "The financial results for the third quarter were expected to be down from the prior period as a direct result of the expected decrease in revenues. The net earnings were also negatively affected by the foreign exchange losses on loans made to the Companies three foreign subsidiaries. The 30% decrease in the quarters revenues while significant, is favourable in comparison to most of our competitors as the 2009 slowdown in global exploration spending has caused the demand for drilling to fall in excess of this 30% amount. We can report that at this time the Company is seeing an increased interest in drilling opportunities in all four branches, however most of this interest is for the 2010 year. Management is optimistic that there will be increased drilling opportunities in the very near term and that the Company will be able to secure a significant increase in the number of contracts for next year's drilling season."
For a more complete review of the Company's second quarter results, copies of Landdrill's financial statements for the three months and nine months ended September 30, 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 now has 31 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.
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