COEUR D'ALENE, Idaho, May 10, 2010 (GLOBE NEWSWIRE) -- Timberline Resources Corporation (NYSE Amex:TLR) ("Timberline") today announced consolidated financial results for its second fiscal quarter ended March 31, 2010.
For the second fiscal quarter, Timberline reported total consolidated revenues of $5.26 million and a consolidated after-tax net loss of $0.91 million. Timberline's contract drilling subsidiaries, Timberline Drilling Incorporated ("Timberline Drilling") and World Wide Exploration, S.A. de C.V. ("World Wide") reported combined revenues of $5.26 million and a combined after-tax net income of $0.23 million for the second quarter. This marks the fourth consecutive quarter of positive combined net income for Timberline's contract drilling subsidiaries.
Timberline's corporate office and exploration division reported a net loss of $1.14 million for the quarter ended March 31, 2010, which included $0.28 million in non-cash charges, $0.23 million in exploration expenditures, $0.49 million in general and administrative costs, and $0.14 million in interest expense.Timberline CEO Randal Hardy commented, "We are very pleased with these quarterly results. At Timberline Drilling, our team has successfully navigated a very challenging period over the past year. In the U.S., our results from this latest quarter are very compelling - $5.11 million in drilling revenue, $0.54 million in net income, and positive cash flow provided by operating activities of $0.35 million. For the combined first and second quarters of fiscal year 2010, Timberline Drilling generated $8.37 million in revenue, $0.78 million in net income, and $1.30 million in positive cash flow provided by operating activities. Our relationship with our major customer is strong, and we have proven our ability to provide additional drills and competent, experienced crews as required. We are focused on providing effective drill services to our customers in a safe, productive environment. In recent months, we have obtained additional exploration and development drilling contracts that provide diversification and slightly higher margins. We anticipate continued profitable growth to be the result of our continued emphasis on cost control, customer satisfaction, and safe and superior performance at the drill rigs."