Major Drilling Reports First Quarter Results and Declares Dividend

About this update from Major Drilling Group International Inc.

[{"type":"text","content":"\n\n\nMONCTON, NB, Sept. 3, 2014 /CNW/ - Major Drilling Group International\n Inc. (TSX: MDI) today reported results for its first quarter of fiscal\n year 2015, ended July 31, 2014.\n\n\nHighlights\n\n\n\n\n \n\n\n \n\n\n \n\n\n\n\nIn millions of Canadian dollars\n(except earnings per share)\n\n\nQ1-15\n\n\nQ1-14\n\n\n\n\nRevenue\n\n\n$67.6\n\n\n$108.2\n\n\n\n\nGross profit\n\n\n16.7\n\n\n35.1\n\n\n\n\n \n\n\nAs percentage of sales\n\n\n24.7%\n\n\n32.5%\n\n\n\n\nEBITDA(1)\n\n\n4.8\n\n\n19.6\n\n\n\n\n \n\n\nAs percentage of revenue\n\n\n7.0%\n\n\n18.1%\n\n\n\n\nNet (loss) earnings\n\n\n(7.3)\n\n\n1.5\n\n\n\n\n(Loss) earnings per share\n\n\n(0.09)\n\n\n0.02\n\n\n\n\n\n\n(1)\n\n\nEarnings before interest, taxes, depreciation and amortization,\n excluding restructuring charges (see \"non-gaap financial measures\")\n\n\n\n\n\n\n\n\n\nCash on hand at quarter-end was $65.5 million while total debt was $22.6\n million, for a net cash position of $42.8 million.\n\n\nMajor Drilling posted quarterly revenue of $67.6 million, down 38% from\n the $108.2 million recorded for the same quarter last year.\n\n\nGross margin percentage for the quarter was 24.7%, compared to 32.5% for\n the corresponding period last year.\n\n\nGeneral and Administrative costs are down 16% from the same quarter last\n year and 13% from the previous quarter three months ago.\n\n\nNet loss was $7.3 million or $0.09 per share for the quarter, compared\n to net earnings of $1.5 million or $0.02 per share for the prior year\n quarter.\n\n\nCompleted acquisition of Taurus Drilling effective August 1st, 2014\n\n\nEmployees worldwide have worked over 12 months and 6 million hours\n without a lost time injury.\n\n\nThe Board of Directors has declared a semi-annual dividend of $0.10 per\n share to be paid on November 3, 2014.\n\n\n\n\"In the quarter, revenue and margins reflected the impact of the lowest\n pricing that we have seen in 15 years. As senior mining houses focus on\n cutting costs, they are more likely to defer specialized drilling\n projects, which are more expensive by nature. The Company, therefore,\n finds itself competing more often on a pure price basis, and management\n has to find the optimum balance between price and volume. \n Additionally, in a number of jurisdictions, uncertainty as to the\n policies of host governments o...

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