Business
Major Drilling Reports Second Quarter Results
Major Drilling Reports Second Quarter Results
About this update from Major Drilling Group International Inc.
[{"type":"text","content":"\n\n\n\nDec. 7, 2009 (Canada NewsWire Group) -- MONCTON, NB, Dec. 7 /CNW/ -- Major Drilling Group International Inc. (TSX: MDI) today reported results for its second quarter of fiscal year 2010 ended October 31, 2009.Highlights-------------------------------------------------------------------------In millions of Canadian Q2-10 Q2-09 YTD-10 YTD-09dollars (except earnings ------- ------- ------- ---------per share)-------------------------------------------------------------------------Revenue $ 75.5 $ 191.0 $ 138.0 $ 369.2-------------------------------------------------------------------------Gross profitAs percentage of sales 22.8 70.4 40.0 133.730.2% 36.9% 29.0% 36.2%-------------------------------------------------------------------------Net earnings 4.1 29.3 0.8 55.6-------------------------------------------------------------------------Earnings per share 0.17 1.23 0.03 2.35-------------------------------------------------------------------------Cash flow fromoperations * 12.3 38.9 19.9 75.5-------------------------------------------------------------------------* before changes in working capital- Cash flow from continuing operations before changes in working capitalwas $12.3 million for the quarter.- Net cash position increased by $8.7 million to $27.8 million from thefirst quarter, positioning the Company well for future growth.- Major Drilling posted quarterly revenue of $75.5 million, down60.5 percent from the $191.0 million recorded for the same quarter lastyear, but up $13.0 million or 21 percent from the first quarter offiscal 2010.- Gross margin percentage for the quarter was 30.2 percent, compared to36.9 percent for the corresponding period last year.- Net earnings were $4.1 million or $0.17 per share for the quarter,compared to net earnings of $29.3 million or $1.23 per share for theprior year quarter.\"As expected, we started to see a recovery during the quarter as revenue was up 21 percent relative to the first quarter despite the weakening U.S. dollar. Global exploration spending continued to improve, driven by sustained strength in key commodity prices, particularly gold and copper. Also, the financing environment has improved for mining companies over the past few months. These factors helped improve our drill utilization as we moved through the quarter, particularly the specialized rigs,\" said Francis McG...