Cabo Drilling Corp · OTC:CBEEF
Cabo Drilling — Investor Presentation (July 2011)
18 slides from Cabo Drilling's investor presentation, Jul 13, 2011
Slide 1: Professionals to the Core
PROFESSIONALS TO THE CORE TSX-V: CBE
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain information set forth in this presentation contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forwar
Slide 3: Serving the International Mining & Mineral Exploration Communities
SERVING THE INTERNATIONAL MINING & MINERAL EXPLORATION COMMUNITIES Focused on Delivering the Best Value for all our Clients in: North America, Central America and Europe 3
Slide 4: Cabo Drilling Corp. 109 Drill Rigs 500+ Employees
CABO DRILLING CORP. Acquired five drilling services companies in 2004 and 2005 Achieved year-over-year revenue growth to 2008 of C$58.64 million Fiscal years 2009 and 2010 revenues decreased to C$41.16 million and $28.99 million respectively 2011 revenues on track to achieve annual targeted
Slide 5: Corporate Overview
CORPORATE OVERVIEW (As at July 13, 2011) Symbol: CBE - TSX-V DHL - FWB Price: $0.14 52 Week High / Low: $0.26 - $0.11 Market Cap: $10,417,154 Shares Outstanding: 74,408,246 Fully Diluted: 90,791,238 July13, 2010 – July 13, 2011 5
Slide 6: Operating in 7 Countries
OPERATING IN 7 COUNTRIES CANADA ALBANIA USA SPAIN TURKEY PANAMA COLOMBIA Cabo’s clients include: Teck Resources Limited Kirkland Lake Gold Inc. Minera Panama SA (Inmet Mining) Galway Resources Ltd. SNC Lavalin Group Inc. Queenston Mining Inc. Goldcorp Inc. Grand Century Iron Ore Mining Labr
Slide 7: Cabo's Drill Fleet
CABO’S DRILL FLEET Drilling Revenue Fiscal Year 2010 9% Drills: 21% Underground Surface 37 Conventional Surface Geotechnical 70% 10 Deep Hole Surface 5 Reverse Circulation 13 Helicopter Support 3 Man Portable Canada & US 25% 34 Underground Other Foreign 75% Countries 7 Geotechnical 7
Slide 8: Cabo Drilling – Operations
CABO DRILLING – OPERATIONS (CDN $000s except earnings per share) FY2010 FY2009 FY2008 EBITDA per Share (Basic)** $ 0.03 $ 0.08 $ 0.15 Earnings (Loss) per Share (Basic) $ (0.03) $ (0.02) $ 0.07 Cash from Operations*** $ 1,057 $ 2,060 $ 5,149 Gross Margin % 25.3 26.7 23.4 REVENUE 58.65 C$ millions 41.
Slide 9: Cash Management Focus
CASH MANAGEMENT FOCUS Capital expenditures are controlled Stable working capital Debt rationalization is a priority Loss from bad debts is negligible Bank and major supplier credit facilities are good WORKING CAPITAL 7.28 C$ millions 5.74 4.59 3.33 3.27 FY2006 FY2007 FY2008 FY2009 FY2010 9
Slide 10: Strong Balance Sheet
STRONG BALANCE SHEET (CDN $000s) March 31, 2011 Cash & cash equivalents $ 418 Current assets $ 23,137 Non-current assets $ 15,489 Total assets $ 39,044 Current liabilities (including current portion of long-term debt) $ 15,514 Long-term debt $ 1,040 Future income tax $ 439 Equity $ 22,051 Total equi
Slide 11: Cabo Drilling 1st - 3rd Qtr 2011 Results
CABO DRILLING 1st - 3rd QTR 2011 RESULTS (CDN $000s except earnings 1st QTR 2011 2nd QTR 2011 3rd QTR 2011 Ended Ended Ended per share) Sep 30, 2010 Dec 31, 2010 Mar 31, 2011 Revenue $ 10,272 $ 10,583 $ 9,540 EBITDA as a % of gross 10.16 11.74 (3.15) revenue EBITDA per Share (Basic)** $ 0.02 $ 0.02
Slide 12: 2011 Objectives and Achievements to Date
2011 OBJECTIVES Debt reduction Reduce costs, inventory and capital expenditures Improve cash flow Expand effective capacity per drill and increase drill utilization Retain skilled workers and enforce high safety standards Achievements to Date 59% of drills turning on gold projects Main
Slide 13: Prepared for Future Growth
PREPARED FOR FUTURE GROWTH Cabo Drilling is in position to move forward despite the stressed global financial and economic environment: Capital expenditures, in fiscal 2006 through 2008, have positioned Cabo for the projected growth of the mining markets in 2011 and 2012 Offering a variety of dr
Slide 14: The Cabo Advantage
THE CABO ADVANTAGE “Raving Fans” Raving Fans is an initiative to deliver consistent high-quality services based on customers’ needs Cabo is committed to building relationships with its customers – discovering how we can meet and exceed our customers’ requirements for each drill project “Human Re
Slide 15: Cabo's Mission Statement
CABO’S MISSION STATEMENT To be the first choice for mineral exploration, mining & geotechnical customers by offering the best value in the drilling services industry To be the first choice among employees by offering the most stable, safe and rewarding workplace in the drilling services industry
Slide 16: Relative Size of Contract Drillers
CABO DRILLING CORP. Relative Size of Contract Drillers Tier 1 Boart Longyear 1,200 Layne Christensen 750 Major Drilling 547 Tier 2 Ausdrill/Brandrill 275 Foraco 180 Orbit Garant 176 Energold Drilling 219 Cabo Drilling Corp. 109 16
Slide 17: Summary
SUMMARY Expanding global market presence Long-term growth in the mineral drilling services sector through exposure to mid-tier and major mining and exploration companies Revolutionary approach to customer service Improved operational efficiencies Increased capacity per drill 17
Slide 18: Professionals to the Core
PROFESSIONALS TO THE CORE TSX-V: CBE 18