In This Article:
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Revenue: $189.3 million, down 8.6% from $207 million in the same period last year.
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Adjusted Gross Margin: 30.5%, compared to 31% in the same period last year.
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G&A Costs: $18.4 million, an increase of $800,000 from the same quarter last year.
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Income Tax Provision: $6.5 million, down from $7.4 million in the prior-year period.
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EBITDA: $38.7 million, compared to $43.6 million in the prior year.
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Net Earnings: $18.2 million or $0.22 per share, compared to $23.7 million or $0.29 per share in the prior year quarter.
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Net Cash Balance: Increased by $23.5 million, ending fiscal Q2 with $100.4 million.
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Capital Expenditures: $20.1 million, adding five new drill rigs and support equipment.
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Total Rig Count: 610, with 43% utilization.
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Revenue from Specialized Work: 64% of total revenue.
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Revenue from Conventional Drilling: 11% of total revenue.
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Revenue from Underground Drilling: 25% of total revenue.
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Revenue by Commodity: Gold at 41%, Copper at 23%, Iron Ore at 15%.
Release Date: December 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Major Drilling Group International Inc (MJDLF) achieved over 1.1 million hours without a lost time injury, earning the Safe Day Everyday Gold Award.
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The company maintained its revenue run rate despite challenging market conditions, with strong performances in Chile and Australia.
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Adjusted gross margin increased over the prior quarter, reflecting disciplined pricing and strong demand for specialized drilling services.
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The acquisition of Explomin is expected to enhance the company's presence in South America, particularly in Peru, a key copper-producing region.
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The company ended the quarter with a strong net cash balance of $100.4 million, positioning it well for future investments and growth opportunities.
Negative Points
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Revenue for the quarter was $189.3 million, down 8.6% from the same period last year, reflecting challenges in North America due to reduced exploration spending by juniors.
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Net earnings decreased to $18.2 million or $0.22 per share, compared to $23.7 million or $0.29 per share in the prior year quarter.
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General and administrative costs increased by $800,000 compared to the same quarter last year, driven by inflationary wage adjustments.
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The company's revenue from conventional drilling, primarily driven by juniors, remained low at 11% for the quarter.
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The income tax provision for the quarter was $6.5 million, reflecting a decrease in profitability compared to the prior-year period.