Boart Longyear Announces 2013 Full Year Financial Results
Boart Longyear Limited (ASX: BLY), the world’s leading supplier of drilling services, drilling equipment and performance tooling for mining and drilling companies, today announces its financial results for the full-year ended 31 December 2013 and a further amendment to the covenants of its US$140 million revolving credit agreement (“Credit Agreement”).
2013 full year results:
• Revenue of US$1,223 million, compared to US$2,012 million in 2012
• Statutory EBITDA of (US$337 million loss) compared to earnings of US$254 million in 2012
• Adjusted1 EBITDA of US$107 million compared to US$322 million in 2012
• Statutory net loss after taxes (NPAT) of (US$620 million) compared to US$68 million net profit in 2012
• Adjusted1 NPAT of (US$94 million loss) compared to US$116 million profit in 2012
• Statutory losses per share of (US$1.36) compared to an earnings per share US$0.15 in 2012
• US$461 million of restructuring charges and asset impairments (of which US$421 million were non-cash) taken as a result of continuing weakness in core markets
• US$107 million adjusted EBITDA on 39% lower revenue
• US$115M of cost reductions realised in 2013 and an additional US$58M projected in 2014
• Net Debt remained relatively flat, despite declining market conditions and revenues
• Six new products launched, with more projected to launch in 2014
• Covenant compliant at 31 December 2013
In spite of 2013 being an extremely challenging year for the global mining industry and the Company’s core markets, the Company generated US$107 million of adjusted EBITDA and held net debt relatively flat. With a backdrop of declining prices and a weak outlook for most key commodities, increased political and economic risk for mining activity and a focus on maximising near-term cash flows, many of the world’s mining companies significantly reduced their exploration, development and capital expenditures during the year. As a result, the Company experienced a material reduction in demand for its drilling services and products that impacted revenue and other key financial measures.