Business
Foraco International reports Q2 2014
Soft quarter Net debt reduced by US$11.6 million over the period TORONTO and MARS...
About this update from Foraco International Sa
[{"type":"text","content":"\n\nSoft quarterNet debt reduced by US$11.6 million over the period\n\n\n\nTORONTO and MARSEILLE, FRANCE, Aug. 5, 2014 /CNW/ - Foraco International SA (TSX:FAR) (the \"Company\" or \"Foraco\"), a leading global provider of mineral drilling services, today reported unaudited financial results for its second quarter 2014. All figures are reported in US Dollars (US$), unless otherwise indicated.\n\nThree months Q2 2014 Highlights\n\nRevenue \n\n\nQ2 2014 revenue amounted to US$ 48.4 million compared to US$ 74.6 million in Q2 2013, a decrease of 35% (31% excluding foreign exchange rate differences). Compared to Q1 2014, revenue increased by US$ 3 million or 7%. The Company's drill utilization rate was 34% in Q2 2014 (46% in Q2 2013), increasing from 30% in Q1 2014. Many customers continued to push the execution of projects into H2 2014.\nProfitability\n\n\nQ2 2014 gross profit including depreciation within cost of sales was US$ 0.9 million (or 2% of revenue) compared to US$ (0.9) million in Q2 2013 (or -1% of revenue). The Company incurred extra costs and delays linked to the start up of projects and late contract signatures. In addition the decrease of revenue generated further under absorption of fixed cost, compensated by the positive effect of the fixed operational costs reduction.\nSG&A costs decreased by 21% between Q2 2013 and Q2 2014, mainly as a result of the continued implementation of the company-wide cost cutting action plans. \nEBIT was US$ (5.6) million in Q1 2014 compared to US$ 0.5 million in Q2 2013, or US$ (1.7) million excluding the impact of one-off costs, losses on troubled contracts and the remeasurement in Q2 2013 of the contribution payable for Servitec, in accordance with IFRS.\nCapital expenditures were US$ 1.9 million in Q2 2014 compared to US$ 3.0 million in Q2 2013.\nH2 2014 Highlights\n\nRevenue \n\n\nH1 2014 revenue amounted to US$ 93.9 million compared to US$ 134.4 million in H1 2013, a decrease of 30%. Many customers continued to push the execution of projects into H2 2014.\nProfitability\n\n\nH1 2014 gross profit including depreciation within cost of sales was US$ 3.5 million (or 4% of revenue) compared to US$ (9.6) million in H1 2013 (or -7% of revenue). Although the revenue decreased, generating some under absorption of fixed costs, there were no one-off costs and the Company fully benefited f...