Major Drilling Earnings Increase with Strong Revenue Growth and Higher Margins

About this update from Major Drilling Group International Inc.

[{"type":"text","content":"\n\n\n\n\n\nMONCTON, NB, Sept. 6, 2011 /CNW/ - Major Drilling Group International\n Inc. (TSX: MDI) today reported results for its first quarter of fiscal\n year 2012, ended July 31, 2011. These are the first results the\n Corporation is presenting following its adoption of the International\n Financial Reporting Standards (\"IFRS\") effective May 1, 2011. The\n previous fiscal year's results have been restated accordingly with only\n minor changes.\n\n\nHighlights \n\n\n\n\n\nIn millions of Canadian dollars (except earnings per share)\n\n\nQ1-12\n\n\nQ1-11\n\n\nRevenue\n\n\n$164.2\n\n\n$109.5\n\n\nGross profit\n\n\n51.5\n\n\n26.5\n\n\n \n\n\nAs percentage of sales\n\n\n31.4%\n\n\n24.2%\n\n\nNet earnings\n\n\n17.9\n\n\n5.1\n\n\nEarnings per share\n\n\n0.25\n\n\n0.07\n\n\nCash flow from operations (*)\n\n\n36.8\n\n\n15.3\n\n\n*before changes in non-cash operating working capital items, interest\n and income taxes\n\n\nMajor Drilling posted quarterly revenue of $164.2 million, an increase\n of 50% from the $109.5 million recorded for the same quarter last year.\n\nGross margin percentage for the quarter improved significantly to 31.4%,\n compared to 24.2% last year, and up from 25.4% in the fourth quarter of\n fiscal 2011.\n\nNet earnings were $17.9 million or $0.25 per share ($0.25 per share\n diluted) for the quarter, compared to net earnings of $5.1 million or\n $0.07 per share ($0.07 per share diluted) for the prior year quarter.\n\nThe Company has increased its semi-annual dividend to $0.08 per share,\n to be paid on November 1, 2011, which represents a 9.1% increase from\n the previous dividend.\n\n\n\"Activity levels continue to be robust in every region.  Our revenue\n increased during the quarter by 50% to $164.2 million and we continue\n to see inquiries from all categories of customers,\" said Francis\n McGuire, President and CEO of Major Drilling Group International Inc.\n \"We continue to be successful in delivering growth as well as\n diversifying the scope of our drilling services.  While drilling for\n gold remains our most important contributor, accounting for 48% of our\n revenue, 17% of our revenue now comes from energy, coal and\n environmental drilling.  Drilling for base metals and uranium accounts\n for the remaining 35% of our revenue.\"\n\n\nMargins in this quarter improved significantl...

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