ORBIT GARANT DRILLING REPORTS IMPROVED PROFITABILITY IN FISCAL 2024 THIRD QUARTER RESULTS AND RENEWAL OF SIGNIFICANT CONTRACTS IN CHILE
Financial Highlights
($ amounts in millions, except per share amounts) |
Three months ended |
Three months ended |
Nine months ended |
Nine months ended |
Revenue |
48.2 |
49.3 |
135.9 |
154.2 |
Gross Profit |
6.2 |
4.6 |
13.1 |
17.7 |
Gross Margin (%) |
12.8 |
9.4 |
9.6 |
11.5 |
Adjusted Gross Margin (%)¹ |
17.3 |
14.4 |
15.0 |
16.3 |
EBITDA¹ |
3.9 |
4.5 |
8.0 |
17.3 |
Net earnings (loss) |
2.0 |
0.2 |
(0.1) |
3.4 |
Net earnings (loss) per share |
|
|
|
|
- Basic and diluted ($) |
0.05 |
0.01 |
0.00 |
0.09 |
(1)This is a non-IFRS measure and is not a standardized financial measure. The Company's method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, the definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Refer to "Reconciliation of Non-IFRS financial measures" on page 3 of this news release for more information about each non-IFRS measure and for the reconciliations to the most directly comparable IFRS financial measures. |
"Our profitability improved year-over-year in the third quarter, a seasonally slower period for our business, as our drilling activity in
"With our West African operations now ceased, we expect our margins to improve as we focus on our core Canadian operations and attractive projects in
Third Quarter Results
Revenue for Q3 2024 totalled
Gross profit for Q3 2024 was
General and Administrative expenses were
EBITDA totalled
Liquidity and Capital Resources
The Company repaid a net amount of
As at
Orbit Garant's unaudited interim consolidated financial statements and management's discussion and analysis for Q3 2024 are available via the Company's website at www.orbitgarant.com or SEDAR+ at www.sedarplus.ca.
Conference Call
Pierre Alexandre, President and CEO, and
A live webcast of the call will be available on Orbit Garant's website at: http://www.orbitgarant.com/en/events. The webcast will be archived following conclusion of the call. To access a replay of the conference call dial 416-764-8677 or 1-888-390-0541, passcode: 467540 #. The replay will be available until
RECONCILIATION OF NON - IFRS FINANCIAL MEASURES
Financial data has been prepared in conformity with International Financial Reporting Standards ("IFRS"). However, certain measures used in this discussion and analysis do not have any standardized meaning under IFRS and could be calculated differently by other companies. The Company believes that certain non-IFRS financial measures, when presented in conjunction with comparable IFRS financial measures, are useful to investors and other readers because the information is an appropriate measure to evaluate the Company's operating performance. Internally, the Company uses this non-IFRS financial information as an indicator of business performance. These measures are provided for information purposes, in addition to, and not as a substitute for, measures of financial performance prepared in accordance with IFRS.
EBITDA and EBITDA Margin
EBITDA and EBITDA margin: Net earnings (loss) before interest, taxes, depreciation and amortization.
Management believes that EBITDA is an important measure when analyzing its operating profitability, as it removes the impact of financing costs, certain non-cash items and income taxes. As a result, Management considers it a useful and comparable benchmark for evaluating the Company's performance, as companies rarely have the same capital and financing structure.
Reconciliation of EBITDA and EBITDA Margin
(unaudited) (in millions of dollars) |
3 months ended
|
3 months ended
|
9 months ended
|
9 months ended
|
Net (loss) earnings for the period |
2.0 |
0.2 |
(0.1) |
3.4 |
Add: |
|
|
|
|
Finance costs |
0.9 |
0.9 |
2.6 |
2.4 |
Income tax (recovery) expense |
(1.3) |
0.7 |
(2.5) |
3.2 |
Depreciation and amortization |
2.3 |
2.7 |
8.0 |
8.3 |
EBITDA |
3.9 |
4.5 |
8.0 |
17.3 |
Contract Revenue |
48.2 |
49.3 |
135.9 |
154.2 |
EBITDA margin (%) (1) |
8.2 |
9.2 |
5.9 |
11.2 |
(1) EBITDA, divided by contract revenue x 100 |
Adjusted Gross Profit and Adjusted Gross Margin
Adjusted gross profit and margin: Contract revenue, less operating costs. Operating expenses comprise material and service expenses, personnel expenses, other operating expenses, excluding depreciation.
Although adjusted gross profit and adjusted gross margin are not recognized financial measures defined by IFRS, Management considers them to be important measures as they represent the Company's core profitability, without the impact of depreciation expense. As a result, Management believes they provide a useful and comparable benchmark for evaluating the Company's performance.
Reconciliation of Adjusted Gross Profit and Adjusted Gross Margin
(unaudited) (in millions of dollars) |
3 months ended
|
3 months ended
|
9 months ended
|
9 months ended
|
Contract revenue |
48.2 |
49.3 |
135.9 |
154.2 |
Cost of contract revenue (including depreciation) |
42.0 |
44.7 |
122.8 |
136.5 |
Less depreciation |
(2.2) |
(2.5) |
(7.3) |
(7.5) |
Direct costs |
39.8 |
42.2 |
115.5 |
129.0 |
Adjusted gross profit |
8.4 |
7.1 |
20.4 |
25.2 |
Adjusted gross margin (%) (1) |
17.3 |
14.4 |
15.0 |
16.3 |
(1) Adjusted gross profit, divided by contract revenue X 100 |
About Orbit Garant
Headquartered in
Forward-looking information
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to business of
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