AMSTERDAM, Oct. 22, 2014 /PRNewswire/ -- In the third
quarter of 2014, Core Laboratories N.V. (NYSE: "CLB US" and
Euronext Amsterdam: "CLB NA") posted the most profitable quarter in
Company history. The record results were driven primarily by
new, or recently introduced, technology and related services by
Core's Reservoir Description and Production Enhancement operations,
in addition to Reservoir Management operations' most profitable
third quarter ever. The Company posted all-time quarterly
records for earnings per diluted share ("EPS") and net
income. Core's third quarter year-over-year EPS increased 13%
to $1.53, excluding items referenced
in the non-GAAP reconciliations. Third quarter net income
increased 9% to $67,900,000,
ex-items, from the year-earlier period, while operating income,
ex-items, increased 7% to $91,000,000
from the same year-ago quarter. Revenue for the third quarter
of 2014 increased to $276,100,000,
3.2% sequentially and 1% over the third quarter of 2013.
Operating margins increased sequentially by 190 basis points while
year-over-year margins increased 170 basis points to an all-time
quarterly high of 33%, ex-items.
Third quarter 2014 free cash flow ("FCF"), defined as cash from
operations less capital expenditures, reached $66,600,000, up 2% from the year-earlier third
quarter, and established a new all-time high for any third quarter
in Company history. During the quarter, FCF nearly equaled
net income as Core turned 24 cents of
every revenue dollar into FCF, the highest percentage of all major
oilfield service companies.
The Company repurchased approximately 563,000 shares in the
quarter, lowering Core's outstanding diluted share count to
44,155,000, a 16-year low. Including the quarterly dividend
payment of $22,200,000, the Company
returned over $107,300,000 to
shareholders during the third quarter of 2014, the most for any
quarter in Core's history.
The Company's improved year-over-year and sequential quarterly
results reflect Core's growth strategies of adding new technologies
and services, while continuing to focus on characterizing reservoir
quality for emerging unconventional resource plays in North America and initiating enhanced oil
recovery projects for maturing unconventional plays. As
expected, Core also received several deepwater projects from the
Gulf of Mexico during the quarter,
boosting operating and incremental margins.
As reported in previous quarters, the Board of Supervisory
Directors ("Board") of Core Laboratories N.V. established an
internal performance metric of achieving a return on invested
capital ("ROIC") in the top decile of the service companies listed
as Core's peers by Bloomberg Financial ("Comp Group"). Based
on Bloomberg's calculations for the latest comparable data
available, Core's ROIC is the highest in its oilfield services Comp
Group. Moreover, the Company has the highest ROIC to Weighted
Average Cost of Capital ("WACC") ratio in its Comp Group.
Segment Highlights
Core Laboratories reports results under three operating
segments: Reservoir Description, Production Enhancement, and
Reservoir Management. All operating results exclude foreign
exchange, as referenced in the non-GAAP reconciliation.
Reservoir Description
Reservoir Description operations, which focus primarily on
international and global deepwater developments, reported third
quarter 2014 revenue of $131,400,000,
operating income of $36,300,000, and
operating margins of 28%, all essentially flat compared with levels
reported in the year-ago quarter, although operating margins
improved by 50 basis points sequentially and 20 basis points
year-over-year. The Company continued to see flat
year-over-year international activities and flat-to-down global
deepwater activity.
However, Reservoir Description operations benefited from the
initiation of deepwater Gulf of
Mexico ("GOM") coring programs delayed from the first half
of 2014. The Company also received core and reservoir fluid
samples from emerging unconventional plays that offset the lower
number of projects from maturing North American plays. In
addition, projects related to enhanced oil recovery ("EOR") efforts
in maturing shale plays increased in the quarter.
As stated in Core's second quarter 2014 earnings release, the
Company has been awarded nine major GOM coring programs scheduled
for the second half of 2014. Core risk-adjusted the nine projects,
by including revenue from only five of the projects in its second
half guidance. The Company continues to project second half
revenue from at least five of the nine major coring programs.
Third quarter 2014 deepwater GOM activities also included the
successful debut of the Company's proprietary Iron
CoreHandTM (patent pending) technology. This unique,
entirely self-contained, automated core-handling device and the
associated services employ a proprietary design developed by Core
Lab engineers in response to requests from several major and major
independent deepwater GOM operating companies. Iron CoreHand
technology was developed to address large-diameter and other heavy
core segments that would otherwise pose risk of injuries to
personnel during core retrieval and handling procedures. When
deployed at the wellsite, the Iron CoreHand system dramatically
reduces or eliminates safety risks associated with these
procedures. Seeing the obvious safety advantage of Iron
CoreHand technology, a major GOM operator had Core deploy the unit
on successive core-handling jobs. The unit and Core's highly
trained wellsite engineers performed flawlessly. In addition
to improved core handling safety, the Iron CoreHand
unit accelerated the wellsite core-handling process, reducing
expensive rig time. Based on these successful deployments and
the confirmation of the anticipated efficiencies, additional units
are being constructed.
The Company received additional reservoir cores and reservoir
fluids - crude oils, natural gases, and waters - from emerging
North American unconventional plays, including the Tuscaloosa
Marine Shale, the Woodford and
Springer shales of south central
Oklahoma ("SCOOP"), Spraberry,
Wolfcamp A, B, and D intervals, and Codell and Parkman formations,
among others, offsetting lesser amounts of static evaluation of
reservoir quality from the more established unconventional
plays. Moreover, the Company received increasing amounts of
work related to enhanced oil recovery projects in the mature shale
plays, including the Bakken and Eagle Ford formations.
Revenues from the dynamic flow testing projects are still small,
but they generate higher incremental and operating margins for the
Company. Increased profits from dynamic flow projects are
expected in 2015 as more EOR programs are initiated in maturing
unconventional shale plays.
As increasing quantities of North American crude oil are
transported by rail, Core continues to improve its thermal imaging
("TVisionTM") technology that expedites the efficiency
of loading crude oil into tank cars for transport. First, the
crude is fractionated and distilled to determine its quality and
value. TVision thermal imaging is then used to
accurately measure the quantity of crude loaded in each car.
TVision technology can be used for Bakken, Eagle Ford, and
Permian Basin tank car shipments since rail transport is now used
to move approximately one million barrels of oil per day through
North America.
The Company also has developed a web-based dashboard
("liveQTM") display using HTML5 technology that, when
coupled with the TVision technology, can be accessed by
customers via laptop or mobile devices. The liveQ service
allows storage terminal operators to receive real-time crude oil
characterization data sets for valuation of product and blending
mixtures. The real-time data updates enable more efficient
and profitable management of crude oil and products, while
optimizing delivery operations to pipelines, tankers, and rail
cars.
Production Enhancement
Production Enhancement operations posted its best quarter in
Company history, bolstered by the continued successful
implementation of FlowProfilerTM technologies and
KODIAKTM perforating systems. For the third
quarter of 2014, Production Enhancement reported revenue of
$122,200,000, up 10% over second
quarter 2014 levels. Operating income increased 25% to $46,700,000, and operating income margins
increased 460 basis points to 38% compared to the second quarter of
2014. During the quarter, incremental and operating margins
were significantly enhanced by increasing sales of higher-margin
new and recently introduced technology and services that replace
basic technology perforating products and services. While this has
reduced year-over-year revenue growth, the Company generates a
significantly higher ROIC, which is consistent with Core's
financial tenets.
Operators are continuing to increase the use of Core's
FlowProfiler service to help optimize well spacing, fracture
stimulation size, and horizontal targeting. This has resulted
in increased hydrocarbon recovery by identifying opportunities to
stimulate more intervals along the wellbores and layers within
complex formations. These diagnostics have identified that
fracture systems are more contained vertically than previously
expected. This means that horizontal wells need to be landed
at various depths within the reservoir to ensure all layers are
stimulated and produced. Core's FlowProfiler service
continues to identify hydrocarbon-bearing rock that is not being
contacted by the hydraulic fracture system. This information
is driving changes to completion designs and development plans that
are yielding increased hydrocarbon recovery.
In West Texas specifically,
Core has provided its proprietary diagnostic services on almost 150
wells (both vertical and horizontal). Several operators have
used Core's diagnostics to adjust horizontal landing depths and
targeted intervals based on the hydrocarbon productivity of certain
intervals. Additionally, the Company currently has several
well spacing studies underway to help determine both interwell
spacing and spacing between various formation intervals.
A recent project utilized the combination of our FlowProfiler,
SpectraStimTM, and SpectraScan® services to
characterize the hydraulic fracture profile; that is, the
hydraulically created flow capacity and the resulting oil
production profile of the reservoir. This information was
used to identify the "sweet spot" in the reservoir, which is being
used as the target for upcoming horizontal wells.
In the western US, an operator was unable to use conventional
fracing procedures in its field and decided to use Core's new,
patented KODIAK™ Enhanced Perforating System and HERO®
High Efficiency Reservoir Optimization charges (now API-certified
as the world's deepest-penetrating charges). The perforating and
simultaneous stimulation was tubing-conveyed on a single run with
5,544 feet of guns (1.05 miles) loaded with 25,560 HERO charges and
2,604 KODIAK propellant pellets. The 39-gram HERO charges,
with 69.3 inches of penetration, and the KODIAK accelerator
propellant pellets were used to boost the effectiveness of the
perforating/stimulating event. The detonation of the HERO
perforating charge initiates a complex, sequentially oxidizing
reaction of the accelerator propellant pellets, thereby generating
a high-pressure pulse of gas. This pulse then initiates and
propagates fractures ("mini-fracs") into the reservoir sequence,
creating cleaner perforating tunnels and improving hydrocarbon
production and ultimate recovery rates.
Core's Ultra High Pressure, High Temperature ("UltraHPHT™")
perforating gun system successfully completed a Lower Tertiary well
on the shallow shelf in the Gulf of Mexico. Core's UltraHPHT
system is designed to withstand pressures to 30,000 psi and
temperatures to 470 degrees Fahrenheit, making it suitable for
operating in the ultradeep wells currently being drilled on the
continental shelf in the GOM. Currently, plans are being made
for completion of an additional well in that play. Core's
Perforating Testing Facility utilized in the design and testing of
the UltraHPHT perforating system is expanding its capabilities to
allow testing at up to 40,000 psi and 600 degrees Fahrenheit.
Reservoir Management
Reservoir Management operations, posting its most profitable
third quarter in Company history, reported third quarter 2014
operating income of $7,600,000, an
increase of 18% over year-earlier third quarter 2013 levels.
Revenue increased to $22,600,000, as
sales of completed or nearly completed Joint Industry Projects
("JIPs") produced high year-over-year quarterly incremental
margins, increasing operating margins to almost 34%.
Reservoir Management continued to expand existing JIPs and
initiated new JIPs as requested by industry participants.
Internationally, Reservoir Management completed deepwater
projects in the Equatorial Basins of Brazil and phase two of the Cote D'Ivoire study in West Africa.
These projects extend Core's footprint in two additional rapidly
developing petroleum provinces. Reservoir Management work is
continuing on the Senegal-Guinea
Bissau deepwater joint industry project where a major
deepwater discovery was recently reported. Overall, Core has
had high demand for South Atlantic and Transform Margin regional
datasets. In East Africa, Core is working with its partner
INP Mozambique to complete the Mozambique Regional Reservoir Study
in anticipation of the recently announced license round.
Also internationally, Reservoir Management completed a fracture
stimulation optimization project for an operator exploiting tight
gas sands in Eastern Australia. The operator will be
implementing new stimulation designs and modifying its field
development plans as a result. Reservoir Management also
signed a multi-year contract for the evaluation of potential
unconventional reservoirs in the Middle East. Projects
continue in Bahrain with the
deployment of our high-temperature ERDTM sensors into
horizontal and vertical thermal wells with temperatures exceeding
550 degrees Fahrenheit. The operator is using the downhole
pressure and temperature data to evaluate and operate a pilot
steamflood EOR project. The data will be used to better
understand the distribution of the steam and production effects
along the wellbore and to closely monitor the parts of the wellbore
where temperatures are below what is necessary to recover the
incremental barrel. In addition, the data will assist in
determining the overall fracture network and optimal well patterns
to maximize hydrocarbon recovery rates.
In North America, demand has
remained strong for joint industry projects in the Permian
Basin. Three more companies joined Core's Delaware Basin project, bringing the total to
27, and two more joined the Company's Midland Basin project, for a
total of 50 members. Both of these projects focus on the
reservoir characterization, fracture stimulation, and well
performance optimization of the Wolfcamp, Bone Spring, Avalon,
Cline, and other unconventional horizons. In the third
quarter 2014, Reservoir Management completed a large proprietary
pilot project that evaluated a new shale play in the Rocky
Mountains.
Free Cash Flow, Share Repurchases, Dividends, Capital
Returned To Shareholders
During the third quarter of 2014, Core Laboratories generated
$74,400,000 of cash from operating
activities and had capital expenditures of $7,800,000, yielding $66,600,000 in FCF. For the third quarter
of 2014, Core converted over 24 cents
of every revenue dollar into FCF, the highest percentage of all
major oilfield services companies.
Core's FCF in the third quarter 2014, along with borrowings from
the Company's revolving credit facility, was used to pay
$22,200,000 in cash dividends and to
repurchase approximately 563,000 shares for $85,100,000. Core's outstanding diluted
share count of 44,155,000 shares stands at its lowest level in 16
years. In all, Core has reduced its diluted share count by over
39,000,000 shares and has returned almost $1.94 billion to its shareholders -- over
$44 per diluted share -- through
diluted share count reductions, special dividends, and quarterly
dividends since implementing its Shareholder Capital Return Program
over 12 years ago.
On 8 July 2014, the Company's
Board announced a quarterly cash dividend of $0.50 per share of common stock that was paid on
18 August 2014 to shareholders of
record on 18 July 2014. Dutch
withholding tax was deducted from the dividend at the rate of
15%.
On 6 October 2014, the Board
announced a quarterly cash dividend of $0.50 per share of common stock payable in the
fourth quarter of 2014. The fourth quarter cash dividend will be
payable on 25 November 2014 to
shareholders of record on 17 October 2014. Dutch withholding
tax will be deducted from the dividend at a rate of 15%. Dividends
for 2014 will equal a total payout of $2.00 per share of common stock, which represents
a 56.25% increase over the amount paid in 2013.
Return On Invested Capital
As reported in previous quarters, the Company's Board has
established an internal performance metric of achieving a return on
invested capital in the top decile of the oilfield service
companies listed as Core's peers by Bloomberg Financial. The
Company and its Board believe that ROIC is a leading performance
metric used by shareholders to determine the relative investment
value of publicly traded companies. Further, the Company and
its Board believe shareholders will benefit if Core consistently
performs in the highest ROIC decile among its Bloomberg
peers. According to the latest financial information from
Bloomberg, Core Laboratories' ROIC is the highest of any of the
oilfield service companies listed in its Comp Group. Comp
Group companies listed by Bloomberg include Halliburton,
Schlumberger, Carbo Ceramics, FMC Technologies, Baker Hughes,
Cameron International, Oceaneering, National Oilwell Varco, and Oil
States International, among others.
Several of the peer companies failed to post ROIC that exceeded
their WACC, thereby eroding capital and shareholder value.
Core's ratio of ROIC to WACC is the highest of any company in the
Comp Group. Core will update its ROIC compared with the
oilfield services sector for the third quarter of 2014 in its
fourth quarter 2014 earnings release.
Fourth Quarter 2014 Revenue and EPS Guidance
Currently, Core Lab generates approximately 70% of its revenue
from projects originating outside of the U.S. Over 80% of the
revenue originates from crude oil-related projects, and
approximately 40% of Core's revenue is from offshore reservoirs,
with approximately 20% of all Company revenue derived from
deepwater developments.
Core anticipates that fourth quarter 2014 North American
activity will continue to increase slightly for emerging
unconventional oil plays while activity will remain at stable
levels in established unconventional tight-oil and gas plays.
The Company also anticipates generating revenue from five of the
nine second-half 2014 coring programs awarded to Core Lab in the
deepwater Gulf of Mexico. The volume of high-pressure,
high-temperature reservoir fluid phase behavior projects is also
expected to remain at high levels. Internationally, in
response to weaker Brent crude prices, the Company projects flat
activity levels through the end of 2014 and expects similar levels
of activity entering 2015.
Fourth quarter 2014 guidance does reflect a continuation of the
higher activity levels than experienced in the third quarter.
In spite of recent crude oil pricing weakness and continued
softness in the near-term worldwide deepwater environment, Core's
fourth quarter results are still expected to be up from the third
quarter levels. The effects of lower crude prices can be seen
in the outlying areas of unconventional plays as production growth
rates continue to decelerate in the Bakken play. If crude prices
strengthen in the fourth quarter Core's guidance could be
conservative. The Company believes crude oil markets will
balance early in 2015 with crude oil prices strengthening to
earlier 2014 levels. Longer term the world will continue to
be challenged to increase global crude supplies and the incremental
barrel will continue to gain in value. Core's technological
focus aimed at helping its clients produce those incremental
barrels positions Core for continued future long-term revenue and
profit growth.
For the fourth quarter of 2014, Core expects revenue of
$275,000,000 to $280,000,000, with
EPS ranging between $1.53 and
$1.56. Exogenous events affecting Core's prior fourth
quarter 2014 EPS guidance include reduced profitability in
Russia due to ruble depreciation
($0.02), a cessation of work from
Kurdistan ($0.02) and slowing work from Southern Iraq ($0.01). Operating margins in the quarter
are expected to be approximately 33%, exiting the year at 34%, with
year-over-year incremental margins as high as 60%. A 24%
effective tax rate is assumed for the fourth quarter of 2014 as a
result of operational activity expected in higher tax rate
jurisdictions. FCF for the final quarter of 2014 is expected
to range between $72,000,000 and
$77,000,000.
All operational guidance excludes any foreign currency
translations and any shares that may be repurchased other than
already disclosed.
The Company has scheduled a conference call to discuss Core's
third quarter 2014 earnings announcement. The call will begin
at 7:30 a.m. CDT/2:30 p.m. CEST on Thursday, 23 October 2014. To listen to the call, please go
to Core's website at www.corelab.com.
Core Laboratories N.V. (www.corelab.com) is a leading provider
of proprietary and patented reservoir description, production
enhancement, and reservoir management services used to optimize
petroleum reservoir performance. The Company has over 70
offices in more than 50 countries and is located in every major
oil-producing province in the world.
This release includes forward-looking statements regarding the
future revenue, profitability, business strategies and developments
of the Company made in reliance upon the safe harbor provisions of
Federal securities law. The Company's outlook is subject to
various important cautionary factors, including risks and
uncertainties related to the oil and natural gas industry, business
conditions, international markets, international political climates
and other factors as more fully described in the Company's 2013
Form 10-K filed on 13 February 2014,
and in other securities filings. These important factors could
cause the Company's actual results to differ materially from those
described in these forward-looking statements. Such statements are
based on current expectations of the Company's performance and are
subject to a variety of factors, some of which are not under the
control of the Company. Because the information herein is based
solely on data currently available, and because it is subject to
change as a result of changes in conditions over which the Company
has no control or influence, such forward-looking statements should
not be viewed as assurance regarding the Company's future
performance. The Company undertakes no obligation to publicly
update any forward looking statement to reflect events or
circumstances that may arise after the date of this press release,
except as required by law.
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(amounts in
thousands, except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
30 September
2014
|
|
30 September
2013
|
|
30 September
2014
|
|
30 September
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
$
|
276,135
|
|
|
$
|
273,163
|
|
|
$
|
806,600
|
|
|
$
|
797,229
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Costs of services and
sales
|
166,927
|
|
|
167,427
|
|
|
496,754
|
|
|
494,575
|
|
General and
administrative expenses
|
12,316
|
|
|
14,346
|
|
|
33,983
|
|
|
38,328
|
|
Depreciation and
amortization
|
6,845
|
|
|
6,753
|
|
|
19,796
|
|
|
18,742
|
|
Other (income)
expense, net
|
927
|
|
|
41
|
|
|
(14)
|
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
89,120
|
|
|
84,596
|
|
|
256,081
|
|
|
245,502
|
Interest
expense
|
2,561
|
|
|
2,302
|
|
|
7,718
|
|
|
6,834
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE
|
86,559
|
|
|
82,294
|
|
|
248,363
|
|
|
238,668
|
INCOME TAX
EXPENSE
|
19,909
|
|
|
20,490
|
|
|
56,464
|
|
|
60,190
|
NET INCOME
|
66,650
|
|
|
61,804
|
|
|
191,899
|
|
|
178,478
|
NET INCOME
ATTRIBUTABLE TO NON-CONTROLLING
INTEREST
|
153
|
|
|
(91)
|
|
|
604
|
|
|
391
|
NET INCOME
ATTRIBUTABLE TO CORE LABORATORIES
N.V.
|
$
|
66,497
|
|
|
$
|
61,895
|
|
|
$
|
191,295
|
|
|
$
|
178,087
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share:
|
$
|
1.50
|
|
|
$
|
1.35
|
|
|
$
|
4.27
|
|
|
$
|
3.86
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
DILUTED COMMON SHARES OUTSTANDING
|
44,381
|
|
|
45,828
|
|
|
44,823
|
|
|
46,150
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
131,380
|
|
|
$
|
131,533
|
|
|
$
|
387,225
|
|
|
$
|
386,000
|
Production
Enhancement
|
122,161
|
|
|
119,511
|
|
|
343,434
|
|
|
337,141
|
Reservoir
Management
|
22,594
|
|
|
22,119
|
|
|
75,941
|
|
|
74,088
|
|
Total
|
$
|
276,135
|
|
|
$
|
273,163
|
|
|
$
|
806,600
|
|
|
$
|
797,229
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
35,377
|
|
|
$
|
35,938
|
|
|
$
|
106,571
|
|
|
$
|
107,707
|
Production
Enhancement
|
45,735
|
|
|
42,284
|
|
|
120,597
|
|
|
113,761
|
Reservoir
Management
|
7,553
|
|
|
6,516
|
|
|
27,821
|
|
|
23,837
|
Corporate and
other
|
455
|
|
|
(142)
|
|
|
1,092
|
|
|
197
|
|
Total
|
$
|
89,120
|
|
|
$
|
84,596
|
|
|
$
|
256,081
|
|
|
$
|
245,502
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(amounts in
thousands)
|
|
ASSETS:
|
30 September
2014
|
|
31 December
2013
|
|
|
(Unaudited)
|
|
|
Cash and Cash
Equivalents
|
$
|
25,307
|
|
|
$
|
25,088
|
Accounts Receivable,
net
|
201,769
|
|
|
201,322
|
Inventory
|
49,451
|
|
|
46,821
|
Other Current
Assets
|
34,741
|
|
|
30,637
|
|
Total Current
Assets
|
311,268
|
|
|
303,868
|
|
|
|
|
|
|
Property, Plant and
Equipment, net
|
146,951
|
|
|
138,824
|
Intangibles, Goodwill
and Other Long Term Assets, net
|
226,913
|
|
|
218,318
|
|
Total
Assets
|
$
|
685,132
|
|
|
$
|
661,010
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
Accounts
Payable
|
49,648
|
|
|
50,821
|
Other Current
Liabilities
|
77,389
|
|
|
84,954
|
|
Total Current
Liabilities
|
127,037
|
|
|
135,775
|
|
|
|
|
|
|
Long-Term Debt &
Lease Obligations
|
370,000
|
|
|
267,002
|
Other Long-Term
Liabilities
|
86,320
|
|
|
88,844
|
|
|
|
|
|
Total
Equity
|
101,775
|
|
|
169,389
|
|
Total Liabilities and
Equity
|
$
|
685,132
|
|
|
$
|
661,010
|
|
|
|
|
|
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOW
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
30 September
2014
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
$
|
205,659
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
(31,961)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
(173,479)
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
219
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
25,088
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
|
25,307
|
|
|
|
|
Non-GAAP
Information
|
|
Management believes
that the exclusion of certain income and expenses enables it to
evaluate more effectively the Company's operations
period-over-period and to identify operating trends that could
otherwise be masked by the excluded Items. For this reason, we used
certain non-GAAP measures that exclude these Items; and we feel
that this presentation provides the public a clearer comparison
with the numbers reported in prior periods.
|
Reconciliation of
Operating Income
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
30 September
2014
|
Operating
income
|
$
|
89,120
|
|
Foreign exchange
losses
|
1,858
|
|
Operating income
excluding foreign exchange
|
$
|
90,978
|
|
|
Three Months Ended
30 September 2014
|
|
Reservoir
Description
|
|
Production
Enhancement
|
|
Reservoir
Management
|
Operating
income
|
$
|
35,377
|
|
|
$
|
45,735
|
|
|
$
|
7,553
|
|
Foreign exchange
losses
|
960
|
|
|
915
|
|
|
76
|
|
Operating income
excluding foreign exchange
|
$
|
36,337
|
|
|
$
|
46,650
|
|
|
$
|
7,629
|
|
Reconciliation of
Net Income
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
30 September
2014
|
Net income
|
$
|
66,497
|
|
Foreign exchange
losses (net of tax)
|
1,431
|
|
Net income excluding
specific items
|
$
|
67,928
|
|
Reconciliation of
Earnings Per Diluted Share
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
30 September
2014
|
Earnings per diluted
share
|
$
|
1.50
|
|
Foreign exchange
losses (net of tax)
|
0.03
|
|
Pro-Forma earnings
per diluted share
|
$
|
1.53
|
|
Free Cash
Flow
|
|
Core uses the
non-GAAP measure of free cash flow to evaluate its cash flows and
results of operations. Free cash flow is an important measurement
because it represents the cash from operations, in excess of
capital expenditures, available to operate the business and fund
non-discretionary obligations. Free cash flow is not a measure of
operating performance under GAAP, and should not be considered in
isolation nor construed as an alternative consideration to
operating income, net income, earnings per share, or cash flows
from operating, investing, or financing activities, each as
determined in accordance with GAAP. You should also not consider
free cash flow as a measure of liquidity. Moreover, since free cash
flow is not a measure determined in accordance with GAAP and thus
is susceptible to varying interpretations and calculations, free
cash flow as presented may not be comparable to similarly titled
measures presented by other companies.
|
Computation of
Free Cash Flow
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
30 September
2014
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
74,426
|
|
Capital
expenditures
|
|
(7,837)
|
|
Free cash
flow
|
|
$
|
66,589
|
|
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SOURCE Core Laboratories N.V.