Cabo Drilling Corp · OTC:CBEEF
Cabo Drilling — Investor Presentation (September 2012)
23 slides from Cabo Drilling's investor presentation, Sep 13, 2012
Slide 1: Cabo Drilling Corp. Corporate Presentation
CABO DRILLING CORP. CORPORATE PRESENTATION Professionals to the Core TSX-V: CBE
Slide 2: 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 forward-looking. Such forward-lo
Slide 3: Delivering the Best Value for all our Clients
Focused on Delivering the Best Value for all our Clients in: North America, Central America and Europe 3
Slide 4: Board of Directors
Board of Directors John A. Versfelt, Chairman, President, Chief Executive Officer & Director Mr. Versfelt has over 30 years experience providing leadership, management consulting, chief financial office, administration and paralegal/regulatory services to private and public companies. Serving in a v
Slide 5: Cabo Drilling Corp.
CABO DRILLING CORP. Acquired five drilling services companies in 2004 and 2005 Revenue bottomed in 2010 at $28.99 million after reaching a record $58.65 million in 2008 2011 revenues increased 50% from 2010 to $43.42 million 2012 revenues targeted to reach 2008 record revenue of $58.65 milli
Slide 6: Symbol, Price and Share Data
Symbol: CBE - TSX-V DHL - FWB Price: $0.085 Week High / Low $0.19 - $0.07 Market Cap: $6,610,295 Shares Outstanding: 77,768,175 Fully Diluted: 92,027,755 Insider Holdings: President & CEO 4.72% Directors & Senior Management 4.21% September 13, 2011 – September 13, 2012 6
Slide 7: Cabo's clients and locations
CANADA ALBANIA USA TURKEY PANAMA COLOMBIA Cabo’s clients include: Kirkland Lake Gold Inc. Minera Panama SA (Inmet Mining) Galway Resources Ltd. Cliffs Natural Resources Inc. Queenston Mining Inc. Goldcorp Inc. Century Iron Ore Mining Corp. Labrador Iron Mines Limited Teck Resources
Slide 8: Strong Industry Fundamentals
Source: MEG STRONG INDUSTRY FUNDAMENTALS Base & precious metals demand & pricing have experienced record growth over the past 4 years Total 2011 budget for nonferrous metals exploration was estimated at $18.2 billion, up 50% from 2010, a new all time high $2.29 billion was raised by junior and
Slide 9: Global Mining Industry Facing Supply/Demand Imbalance
GLOBAL MINING INDUSTRY IS FACING A MAJOR SUPPLY/DEMAND IMBALANCE FOR PRECIOUS & BASE METALS Rising commodity prices continue to positively impact the revenue and profit margins of mining companies, as well as the availability of equity financings for the intermediate mining and more advanced junio
Slide 10: Drill fleet and revenue mix
Fiscal FiscalYear Year2011 2012 Revenue Drills: Underground 15% Geotechnical 4% 27 Conventional Surface Surface 80% 15 Deep Hole Surface 18 Helicopter Support 3 Man Portable Fiscal Year 2012 Other Revenue 6 Reverse Circulation Foreign Countries 24% 27 Underground 6 Geotechnical Canada & United State
Slide 11: Revenue and annual financial results
(CDN $000s except earnings per share) FY2011 FY2010 FY2009 FY2008 EBITDA per Share (Basic)* $ 0.04 $ 0.03 $ 0.08 $ 0.15 Earnings (Loss) per Share (Basic) $ (0.01) $ (0.03) $ (0.02) $ 0.07 Cash from Operations** $ 1,402 $ 1,057 $ 2,060 $ 5,149 Gross Margin % 22.1 25.3 26.7 23.4 *Net Earnings before i
Slide 12: Working capital and cost controls
Capital expenditures are controlled Stable working capital Implementing new field cost control systems Negotiating new bank credit facilities Working Capital C$ millions 9.64* 8.14 7.28 5.74 4.59 FY2008 FY2009 FY2010 FY2011 FY2012 *FY2012 – For the nine month period ended March 31 12
Slide 13: Balance sheet March 31, 2012
(CDN $000s) Mar 31, 2012 Cash & cash equivalents $ 121 Current assets $ 25,899 Non-current assets $ 15,825 Total assets $ 41,845 Current liabilities (including current portion of long-term debt) $ 16,381 Long-term debt $ 1,048 Future income tax $ 436 Equity $ 23,980 Total equity and liabilities $ 41
Slide 14: Quarterly results fiscal 2012
(CDN $000s except earnings per 1st QTR 2012 2nd QTR 2012 3rd QTR 2012 Ended Ended Ended share) Sep 30, 2011 Dec 31, 2011 Mar 31, 2012 Revenue $ 16,929 $ 14,363 $ 14,046 EBITDA as a % of gross revenue 18.04 10.23 11.04 EBITDA per Share (Basic)* $ 0.04 $ 0.02 $ 0.02 Earnings before Taxes $ 1,520 $ 637
Slide 15: Achievements to Date
Expand effective capacity per drill and increase drill utilization Increase profit margins Retain skilled workers and enforce high safety standards Increase community training programs Enforce higher environmental standards Achievements to Date Increased overall revenue by 50% Increase
Slide 16: Positioned to move forward
Cabo Drilling is in a position to move forward despite the stressed global financial and economic environment High capital expenditures, in fiscal 2006-2008 and 2011, have positioned Cabo for the projected growth of the mining markets in 2012 - 2013 Offering a variety of drilling services – in
Slide 17: Raving Fans and Human Resources
“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 Resources” Employee
Slide 18: Safety
“Safety” Cabo is committed to protect human health, employee safety and the natural environment and to be looked upon as a responsible contractor and good neighbour Cabo is committed to keeping safety front and center through education, engineering and enforcement of best practices Cabo provid
Slide 19: Community responsibility
Cabo is committed to a culture of sensitivity and responsibility to the communities in which we work Cabo’s goal is to partner with our clients and the community, and to participate within the community and encourage the community to participate with the Company in our drilling programs, whereby
Slide 20: Being the first choice
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 To be the first choice
Slide 21: Relative Size of Contract Drillers
Relative Size of Contract Drillers 21
Slide 22: Growth and expansion highlights
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 22
Slide 23: Professionals to the Core
PROFESSIONALS TO THE CORE
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