Business
Foraco International Reports Q2 2013
Better quarter. Adapting to the current market reality Q2 Revenue down 30% YoY at US$ 74...
About this update from Foraco International Sa
[{"type":"text","content":"\n\n\nBetter quarter. Adapting to the current market reality \nQ2 Revenue down 30% YoY at US$ 74.6 million with a net loss of US$ 1.1\n million\n\n\nTORONTO AND MARSEILLE, FR, Aug. 6, 2013 /CNW/ - Foraco International SA\n (TSX:FAR) (the \"Company\" or \"Foraco\"), a leading global provider of\n mineral drilling services, today reported unaudited financial results\n for its second quarter 2013. All figures are reported in US Dollars\n (US$), unless otherwise indicated.\n\n\nThree months Q2 2013 Highlights \n\n\nRevenue \n\n\n\nQ2 2013 revenue amounted to US$ 74.6 million compared to US$ 106.6\n million in Q2 2012, a decrease of 30%.  Excluding the impact of\n acquisitions performed during fiscal year 2012, revenue decreased by\n 48% due to the continued low level of exploration activities of mining\n companies in all regions which has significantly impacted  activity\n since Q4 2012.\n\n\n\nProfitability\n\n\n\nQ2 2013 gross profit including depreciation within cost of sales was US$\n (0.9) million compared to US$ 26.7 million in Q2 2012.\n\n\n\n\nThe contraction of activity recorded in all regions resulted in an under\n absorption of fixed operational cost of US$7.2 million.\n\n\n\n\nThe Company incurred US$ 7.4 million of non-recurring costs including\n redundancy costs amounting to US$ 4.1 with additional one-off costs of\n US$ 3.3 million, mainly in South America.\n\n\n\n\nTotal headcount was reduced by 22% from 2,835 employees as at end of Q1\n 2013 to 2,219 employees as at end of Q2 2013.\n\n\n\n\nSG&A was reduced from US$ 9.0 million in Q1 to US$ 8.3 million in Q2\n with a 15% reduction in Headcount.\n\n\n\n\nIn accordance with IFRS an additional operating profit of US$ 9.6\n million was recorded in Q2 2013 to reflect the reassessed value of the\n second tranche payable to Servitec minority shareholders.\n\n\n\n\nQ2 2013 EBIT amounted to US$ 0.5 million compared to US$17.2 million in\n Q2 2012.\n\n\n\nSix months Q2 2013 Highlights \n\n\nRevenue \n\n\n\nH1 2013 revenue amounted to US$ 134.4 million compared to US$ 194.8\n million in H1 2012, a decrease of 31% due to the low level of\n exploration activities of mining companies in all regions which\n significantly impacted the activity since Q4 2012.\n\n\n\nProfitability\n\n\n\nH1 2013 gross profit including depreciation within cost of sales was US$\n (9.6) mi...