ORBIT GARANT DRILLING REPORTS FISCAL 2024 FOURTH QUARTER AND YEAR-END FINANCIAL RESULTS
– Margins increased in fourth quarter, following exit from
Financial Highlights
($ amounts in millions, except per share amounts) |
Three months ended |
Three months ended |
Fiscal year ended |
Fiscal year ended |
Revenue |
45.3 |
46.8 |
181.2 |
201.0 |
Gross Profit |
7.3 |
0.7 |
20.4 |
18.3 |
Gross Margin (%) |
16.1 |
1.4 |
11.2 |
9.1 |
Adjusted Gross Margin (%)¹ |
21.7 |
15.9 |
16.7 |
16.2 |
Adjusted EBITDA¹ |
6.4 |
1.8 |
14.4 |
19.1 |
Net earnings (loss) |
(1.2) |
(4.1) |
(1.3) |
(0.7) |
Net earnings (loss) per share |
|
|
|
|
- Basic and diluted ($) |
(0.04) |
(0.11) |
(0.04) |
(0.02) |
(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 4 of this news release for more information about each non-IFRS measure and for the reconciliations to the most directly comparable IFRS financial measures. |
"We generated solid margins in our fiscal fourth quarter, reflecting continued steady demand from our senior and intermediate mining customers in
"While financing conditions remain challenging for junior exploration and certain intermediates companies in
Fourth Quarter Results
Revenue for Q4 2024 totalled
The Company recorded a one-time, non-cash
The Company had entered into an agreement to sell its inventories, for an amount of
Gross profit for Q4 2024 was
General and Administrative expenses were
Adjusted EBITDA¹ totalled
Fiscal 2024 Results
Revenue in Fiscal 2024 totalled
Gross profit for Fiscal 2024 was
The increases in gross profit, gross margin, and adjusted gross margin¹ primarily reflect increased drilling revenue in
General and administrative expenses were
Adjusted EBITDA¹ was
Net loss for Fiscal 2024 was
Liquidity and Capital Resources
The Company repaid a net amount of
As at
Orbit Garant's audited consolidated financial statements and management's discussion and analysis for Fiscal 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 289-819-1450 or 1-888-660-6345, passcode: 17693 #. 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.
E BITDA, adjusted EBITDA and adjusted EBITDA margin: |
EBITDA is defined as net earnings (loss) before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of (i) the write-down of inventories from restructuring in |
|
|
Adjusted gross profit and adjusted gross margin: |
Adjusted gross profit is defined as gross profit excluding depreciation and write-down of inventories from restructuring in |
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
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, income taxes and restructuring costs. 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, Adjusted EBITDA and Adjusted EBITDA Margin
(audited) (in millions of dollars) |
Q4 2024 |
Q4 2023 |
Fiscal 2024 |
Fiscal 2023 |
Fiscal 2022 |
Net loss for the period |
(1.2) |
(4.1) |
(1.3) |
(0.7) |
(6.6) |
Add: |
|
|
|
|
|
Finance costs |
0.8 |
0.9 |
3.5 |
3.4 |
2.2 |
Income tax expense |
(1.2) |
(2.1) |
(3.7) |
1.1 |
3.2 |
Depreciation and amortization |
2.8 |
2.9 |
10.7 |
11.1 |
11.2 |
EBITDA |
1.2 |
(2.4) |
9.2 |
14.9 |
10.0 |
Write-down of inventories from restructuring in Effect of the substantial modification of a receivable and expected credit loss |
- 5.2 |
4.2 - |
- 5.2 |
4.2 - |
- - |
Adjusted EBITDA |
6.4 |
1.8 |
14.4 |
19.1 |
10.0 |
Contract revenue |
45.3 |
46.8 |
181.2 |
201.0 |
195.5 |
Adjusted EBITDA margin (%) (1) |
14.1 |
3.8 |
7.9 |
9.5 |
5.1 |
(1) Adjusted EBITDA, divided by contract revenue X 100 |
Adjusted Gross Profit and Adjusted Gross Margin
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
(audited) (in millions of dollars) |
Q4 2024 |
Q4 2023 |
Fiscal 2024 |
Fiscal 2023 |
Fiscal 2022 |
Contract revenue |
45.3 |
46.8 |
181.2 |
201.0 |
195.5 |
Cost of contract revenue |
38.0 |
46.2 |
160.9 |
182.7 |
181.7 |
Less: depreciation
write-down of inventories from restructuring in |
(2.5) - |
(2.6) (4.2) |
(9.9) - |
(10.1) (4.2) |
(10.0) - |
Direct costs |
35.5 |
39.4 |
151.0 |
168.4 |
171.7 |
Adjusted gross profit |
9.8 |
7.4 |
30.2 |
32.6 |
23.8 |
Adjusted gross margin (%) (1) |
21.7 |
15.9 |
16.7 |
16.2 |
12.2 |
(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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