AMSTERDAM, April 23, 2014 /PRNewswire/ -- Core
Laboratories N.V. (NYSE: "CLB US" and NYSE Euronext: "CLB NA")
posted its most profitable first quarter in Company history.
The record first quarter levels of earnings per diluted share
("EPS"), net income, and revenue were driven by year-over-year
improvements for all three of the Company's operating
segments. Reservoir Description and Production Enhancement
operations reported record first quarter revenue, operating income,
and operating margins, while Reservoir Management operations posted
its most profitable quarter in Company history. As was the
case for all other oilfield service companies with operations in
Northern America and Europe, these
results were weakened by severe weather-related disruptions.
Specifically, Core believes first quarter 2014 EPS was reduced
approximately 5%, or $0.07 per
diluted share, because of transitory weather disruptions, slower
than expected international activities, and delays of certain
deepwater development projects.
After removing the effect of the weather disruptions and project
delays, and excluding foreign exchange ("ex-fx") referenced
in the non-GAAP reconciliations, Core's first quarter 2014 EPS
increased 19% from year-earlier totals to $1.45. First quarter net income increased
10%, ex-fx, to $62,280,000, and
operating income, ex-fx, increased 7% to $84,427,000. Year-over-year first quarter
2014 revenue increased 1% to $262,903,000, lower than expected due to the
transitory weather impact and delays of certain deepwater
development projects. However, because of increased demand
for Core's reservoir-optimizing technologies, along with
productivity gains in the Company's global operational network,
first quarter 2014 operating margins expanded 180 basis points to
an all-time quarterly record of 32%, ex-fx, even though revenue
growth was lower than expected. Year-over-year quarterly
incremental margins, calculated by dividing the change in quarterly
operating income by the change in quarterly revenue, exceeded 100
percent.
First quarter 2014 free cash flow ("FCF"), defined as cash from
operations less capital expenditures, was $57,956,000, as Core converted over 22% of its
revenue into free cash. During the quarter, Core returned
over $69,300,000 to its shareholders
via dividends of approximately $22,500,000 and share repurchases totaling
approximately $46,800,000. Core
repurchased 254,340 shares during the first quarter of 2014,
lowering the Company's outstanding diluted share count to
45,132,000, a new 16-year low. The Company's Shareholder Capital
Return Program has returned approximately $1.73 billion, equaling over $38 per diluted share, to its shareholders via
quarterly dividends, special dividends, and diluted share count
reductions over the past 11-plus years, during which time the
Company's market capitalization increased from approximately
$300 million to over $9 billion.
The Company's improved year-over-year results are a testament to
Core's long-held growth strategy of adding new high-margin
technologies and services. In addition, rather than relying
on exploration budgets that are increasingly volatile and that are
trending downward as oil companies exercise greater capital
discipline, the Company continues to outperform industry peers
because of its multi-decade-long focus on existing fields and
fields under development.
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 was the highest in its oilfield services
Comp Group. Moreover, the Company had 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
currency translations from the first quarter of 2014 as referenced
in the non-GAAP reconciliations.
Reservoir Description
Reservoir Description operations, which focus primarily on
offshore, complex crude-oil projects and, to a lesser extent, North
American tight-oil developments, posted first quarter revenues of
$125,256,000, up slightly from
year-ago levels. Revenue levels were less than expected as
several deepwater projects continued to be delayed because of
projected cost overruns precipitating redesign of production
facilities. However, as redesigns emerge and deepwater rig
day rates and spread costs continue to decline, Core expects more
deepwater projects to be initiated over the next several
quarters. For example, Total's recent announcement that it
will develop the ultra-deepwater Block 32 Kaombo complex off
Angola is a positive
indication. In addition, weather disruptions in most North
American tight-oil plays and North Sea projects pushed plans to
core and collect reservoir fluids samples into later
quarters. Nevertheless, Reservoir Description posted an
all-time first quarter high for operating income at $35,381,000, up 2% from year-ago levels, while
first quarter 2014 operating margins increased 40 basis points from
last year to over 28%, establishing an all-time high for any first
quarter in Company history.
The record operating margins were underpinned by
ultra-high-pressure reservoir fluid phase behavior studies related
to enhanced oil recovery ("EOR") projects in the deepwater
Gulf of Mexico ("GOM"). Data
sets generated from analytical programs for formations with
pressures up to 21,500 pounds per square inch were used to
determine minimum miscibility pressures, physical properties of
reservoir fluids after contact with injection gases, and
thermodynamic parameters for reservoir stimulation models.
The combinations of injection gases and in-situ reservoir fluids
were tested using Core's proprietary Pressurized Fluid
ImagingTM system to ensure production deposition and
formation damage do not occur. These high-pressure EOR data
sets and associated flow-assurance studies are utilized by
deepwater operators to increase daily production rates while
maximizing estimated ultimate recovery ("EUR") rates.
Also for deepwater and ultra-deepwater applications, Core has
developed mobile offshore reservoir fluids laboratories.
These unique labs employ accelerated fluid sampling procedures that
ensure high-quality, mission-critical data sets within hours,
instead of days, thereby saving expensive rig and spread
costs. These data enable deepwater operators to make
decisions regarding the commercial viability of developments early
in the appraisal process.
Core is also providing valuable EOR services in several of the
tight-oil plays in North America. Secondary and tertiary
recovery projects are being conducted to increase EUR rates and
maximize the economics of shale plays outside the "sweet spots" in
various basins and shale plays, including the Eagle Ford and
Wolfcamp.
Core is studying the effects of using a low-salinity water in
floods to increase EUR rates in an oilfield that had employed other
EOR techniques in the past. The Company also is determining
the effectiveness of straight CO2 injections versus
alternating water and gaseous ("WAG") injections, and WAG processes
are showing excellent results in one field.
Several large-scale Middle East
projects are ongoing to improve the production of natural gas from
unconventional reservoirs. Core has been requested to expand
its analytical capabilities in the Middle
East to meet increased demand from numerous clients who are
evaluating multiple, unconventional natural gas plays. Over
1,000 core samples from various potential unconventional reservoirs
are being analyzed for geochemical and mineralogical properties and
studied with thin-section microphotography to determine specific
reservoir characteristics.
Reservoir Description operations in Asia Pacific received 3,600 feet of core in
its Jakarta facility during the
first quarter, and 1,200 feet of additional core are scheduled for
the second quarter of 2014. The cores are from two giant
field developments that involve several appraisal wells, as well as
a number of step-out wells being used to increase proven calculated
reserves in both fields.
Production Enhancement
Production Enhancement operations, which focus primarily on
North American tight-oil plays and have exposure to GOM deepwater
developments, posted record first quarter revenues of $110,280,000, up 3% over first quarter 2013
levels. Revenue levels were lower than expected, primarily
because of weather disruptions to most North American tight-oil
operations and continued delays in deepwater Gulf of Mexico projects. However,
operating income for the quarter surged over 11% from year-earlier
first quarter totals to $38,140,000,
and operating margins expanded over 270 basis points to 35%.
Operating income and margins were both first quarter highs for
Production Enhancement.
Production Enhancement continues to see robust demand for its
FLOWPROFILERTM service. FLOWPROFILER technology
employs a unique oil-soluble tracer, or combination of unique
oil-soluble tracers, introduced into isolated stages via the
stimulating proppant stream. The tracers are absorbed by the
crude oil associated with each stage. When the well is
flowed, crude oil samples are collected and analyzed by gas
chromatography-mass spectrometry to identify and quantify flow from
each stage. Stages not flowing optimally can be identified,
precipitating remedial efforts and providing valuable insights for
future wells.
Because this powerful technology can help maximize initial flow
and EUR rates for virtually all unconventional tight-oil plays,
Core has been recommending closer well spacings, longer laterals
with more and shorter stages, and pumping proppant to "screen-out"
for all stages. While these applications can increase well
costs by as much as 20%, the additional expenses are clearly offset
by the potential for a 40% to 60% increase in the EUR of
hydrocarbons in certain tight-oil plays.
Core's proprietary completion diagnostics services were also
employed offshore in the deepwater GOM. In two separate
projects, clients employed Core's SpectraStimTM,
SpectraScan®, and PackScan® technologies to
identify serious problems with the gravel pack completions used for
sand control. The diagnostic services allowed both clients to
remediate faulty gravel packs that would have allowed abrasive sand
to flow into, and erode, wellbore tubulars. The preemptive
remediation potentially saved both operators hundreds of millions
of dollars in future remediation costs and lost production.
There was a significant increase in demand during the first
quarter for Core's KODIAKTM Enhanced Perforating
SystemsTM energetic technology, which combines the
Company's HERO® High Efficiency Reservoir Optimization
perforating charges (now API-certified as the industry's deepest
penetrating perforating charges) with proprietary accelerator
propellant pellets to boost the effectiveness of the
perforating/stimulating event. The detonation of the perforating
charge initiates a complex, sequentially oxidizing reaction of the
solid rocket fuel pellets, thereby generating a high-pressure pulse
of gases. This pulse then initiates and propagates fractures
("mini-fracs") into the unconventional reservoir sequence, creating
cleaner perforation tunnels, improving stimulant/proppant
injection, and increasing hydrocarbon production. Moreover,
the propellant-activated mini-frac can potentially reduce the frac
breakdown pressure of the reservoir. Lowering the formation
frac breakdown pressure should, in turn, reduce the amount of
compressive horsepower needed at the surface, thereby lowering frac
stimulation costs.
Reservoir Management
Reservoir Management operations posted its most profitable
quarter in Company history in the first quarter of 2014.
Revenue for the quarter totaled $27,367,000, which generated $10,559,000 in operating income, an all-time
quarterly record, which is up over 7% year-over-year and drove
significant margin expansion. Operating margins rose to
39%.
Reservoir Management introduced two new joint-industry
unconventional projects. The first, the Eaglebine Play -
Reservoir Characterization and Project Properties, is an
extension of Core's highly successful South Texas Eagle Ford
Shale Project and focuses on the Eagle Ford shale extension
into East Texas and the overlying
Woodbine sandstones. Initial drilling results have been
encouraging, with production ranging from 600 to 1,254 barrels of
oil equivalent per day. Most of the operators in the play
have joined the project. The second project focuses on the
liquids window of the Woodford Shale in the Permian Basin and in
Oklahoma. This project is designed to evaluate the
prospectivity of the Woodford in areas not currently being
exploited by operators. In the quarter, the Company also
added members to its Permian Basin projects, bringing the total
number of participating companies to 66.
Internationally, Reservoir Management continued to focus on West
and East Africa development
projects. Core completed the second phase of its Tanzania
Reservoirs and Seals project and Uganda Study,
culminating in workshops and seminars for the member
companies. The Company also initiated new projects in
Mozambique and Senegal.
These studies are directed toward providing data sets consisting of
biostratigraphy, geology, reservoir quality, petrophysical
properties, and seal evaluation with ties to seismic data sets for
companies exploiting these deepwater provinces.
Free Cash Flow, Share Repurchases, Dividends, Capital
Returned To Shareholders
During the first quarter of 2014, Core Laboratories generated
$65,624,000 of cash from operating
activities and had capital expenditures of $7,668,000, yielding $57,956,000 in FCF. Core converted over
22 cents of every revenue dollar into
FCF, one of the highest conversion rates for the oilfield services
sector.
The FCF in the first quarter 2014, along with borrowings from
the Company's revolving credit facility, was used to pay
$22,500,000 in cash dividends and to
repurchase 254,340 shares. Core's outstanding diluted share
count of 45,132,000 shares stands at its lowest level in 16 years.
In all, Core has reduced its diluted share count by over 37,000,000
shares and has returned over $1.73
billion to its shareholders, equaling over $38 per diluted share, via diluted share count
reductions, special dividends, and quarterly dividends since
implementing its Shareholder Capital Return Program over 11 years
ago.
On 13 January 2014, the Company's
Board announced a quarterly cash dividend of $0.50 per share of common stock that was paid on
21 February 2014 to shareholders of
record on 24 January 2014. This amount represented a 56%
increase over the quarterly dividends of $0.32 per share that were paid in each quarter of
2013, and if paid each quarter of 2014, will equal a payout of
$2.00 per share of common
stock. Dutch withholding tax was deducted from the dividend
at the rate of 15%.
On 14 April 2014, the Board
announced a quarterly cash dividend of $0.50 per share of common stock payable in the
second quarter of 2014. The second quarter cash dividend will
be payable on 23 May 2014 to
shareholders of record on 25 April 2014. Dutch
withholding tax will be deducted from the dividend at a rate of
15%.
Return On Invested Capital
As reported in previous quarters, the Company's Board
established an internal performance metric of achieving an ROIC 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 was the highest of any of the oilfield service companies
listed in its Comp Group. 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.
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. Core will update its ROIC
compared with the oilfield services sector for the first quarter
2014 in its second quarter 2014 earnings release.
Second Quarter 2014 And Full-Year 2014 EPS Guidance
Core Lab anticipates a continuation of the improving trend
experienced in the latter part of the first quarter which began in
March. Since that time, North American activity and that in
the international arena have increased as well. The Company
believes that second quarter 2014 North American activity levels
will continue to ramp up from the weather-affected first quarter
levels which will drive its expected earnings higher than previous
implied guidance based on our prior full year 2014 outlook.
Therefore, Core expects second quarter revenue to range between
$280,000,000 and $286,000,000 which
would be up about 8% year-over-year. Using the range of
revenue guidance and applying approximately 35% to 40% sequential
incremental margins, second quarter 2014 EPS guidance would range
from $1.48 to $1.53 which would be up
over 14% year-over-year. FCF for the quarter is expected to
be approximately $70,000,000, once
again exceeding net income for the period. This operational
guidance excludes foreign currency translations or any shares that
may be repurchased in the second quarter. A 24.0% effective
tax rate is assumed for the quarter.
Based on the anticipated increases in worldwide activity levels,
Core believes that full-year 2014 revenue will range between
approximately $1,155,000,000 and
$1,175,000,000, up 8% year-over-year, with full-year EPS
ranging from approximately $6.00 to
approximately $6.25, up 15%
year-over-year, when using first quarter EPS, ex-fx.
Operating income margins are expected to expand to 33%, increasing
approximately 200 basis points over 2013 levels.
Core expects FCF totals to exceed $300,000,000 in 2014, with the Company's
client-directed capex program to be slightly greater than in 2013
and to be more than offset by continued improvements in working
capital efficiencies. The Company, once again, has
significantly increased its quarterly dividend in 2014, while
continuing its Share Repurchase Program, thereby expanding its
Shareholder Capital Return Program.
The Company has scheduled a conference call to discuss Core's
first quarter 2014 earnings announcement. The call will begin
at 7:30 a.m. CDT/2:30 p.m. CEST on Thursday, 24 April 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
|
|
|
|
31 March
2014
|
|
31 March
2013
|
|
|
|
|
|
|
|
|
|
REVENUE
|
$
|
262,903
|
|
|
$
|
260,927
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
Costs of services and
sales
|
161,669
|
|
|
163,645
|
|
|
|
General and
administrative expenses
|
10,519
|
|
|
12,809
|
|
|
|
Depreciation and
amortization
|
6,633
|
|
|
6,025
|
|
|
|
Other (income)
expense, net
|
1,255
|
|
|
(589)
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
82,827
|
|
|
79,037
|
|
|
Interest
expense
|
2,363
|
|
|
2,269
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE
|
80,464
|
|
|
76,768
|
|
|
INCOME TAX
EXPENSE
|
19,311
|
|
|
20,036
|
|
|
NET INCOME
|
61,153
|
|
|
56,732
|
|
|
NET INCOME
ATTRIBUTABLE TO
NON-CONTROLLING
INTEREST
|
89
|
|
|
216
|
|
|
NET INCOME
ATTRIBUTABLE TO CORE
LABORATORIES
N.V.
|
$
|
61,064
|
|
|
$
|
56,516
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share:
|
$
|
1.35
|
|
|
$
|
1.22
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
DILUTED COMMON SHARES OUTSTANDING
|
45,182
|
|
|
46,493
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
125,256
|
|
|
$
|
125,245
|
|
|
Production
Enhancement
|
110,280
|
|
|
107,431
|
|
|
Reservoir
Management
|
27,367
|
|
|
28,251
|
|
|
|
Total
|
$
|
262,903
|
|
|
$
|
260,927
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
34,853
|
|
|
$
|
34,851
|
|
|
Production
Enhancement
|
37,202
|
|
|
34,238
|
|
|
Reservoir
Management
|
10,474
|
|
|
9,846
|
|
|
Corporate and
other
|
298
|
|
|
102
|
|
|
|
Total
|
$
|
82,827
|
|
|
$
|
79,037
|
|
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(amounts in
thousands)
|
|
ASSETS:
|
31 March
2014
|
|
31 December
2013
|
|
|
(Unaudited)
|
|
|
|
Cash and Cash
Equivalents
|
$
|
23,253
|
|
|
$
|
25,088
|
|
Accounts Receivable,
net
|
209,234
|
|
|
201,322
|
|
Inventory
|
50,906
|
|
|
46,821
|
|
Other Current
Assets
|
35,115
|
|
|
30,637
|
|
|
Total Current
Assets
|
318,508
|
|
|
303,868
|
|
|
|
|
|
|
|
|
Property, Plant and
Equipment, net
|
141,758
|
|
|
138,824
|
|
Intangibles, Goodwill
and Other Long Term Assets, net
|
220,097
|
|
|
218,318
|
|
|
Total
Assets
|
$
|
680,363
|
|
|
$
|
661,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Payable
|
53,715
|
|
|
50,821
|
|
Other Current
Liabilities
|
94,746
|
|
|
84,954
|
|
|
Total Current
Liabilities
|
148,461
|
|
|
135,775
|
|
|
|
|
|
|
|
|
Long-Term Debt &
Lease Obligations
|
279,000
|
|
|
267,002
|
|
Other Long-Term
Liabilities
|
85,968
|
|
|
88,844
|
|
|
|
|
|
|
|
Total
Equity
|
166,934
|
|
|
169,389
|
|
|
Total Liabilities and
Equity
|
$
|
680,363
|
|
|
$
|
661,010
|
|
|
|
|
|
|
|
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOW
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
31 March
2014
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
$
|
65,624
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
(10,475)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
(56,984)
|
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
(1,835)
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
25,088
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
|
23,253
|
|
|
|
|
|
|
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
|
|
|
31 March
2014
|
|
Operating
income
|
$
|
82,827
|
|
|
Foreign exchange
losses
|
1,600
|
|
|
Operating income
excluding foreign exchange
|
$
|
84,427
|
|
|
|
Three Months Ended
31 March 2014
|
|
|
Reservoir
Description
|
|
Production
Enhancement
|
|
Reservoir
Management
|
|
Operating
income
|
$
|
34,853
|
|
|
$
|
37,202
|
|
|
$
|
10,474
|
|
|
Foreign exchange
losses
|
528
|
|
|
938
|
|
|
85
|
|
|
Operating income
excluding foreign exchange
|
$
|
35,381
|
|
|
$
|
38,140
|
|
|
$
|
10,559
|
|
|
Reconciliation of
Net Income
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
31 March
2014
|
|
Net income
|
$
|
61,064
|
|
|
Foreign exchange
losses (net of tax)
|
1,216
|
|
|
Net income excluding
foreign exchange
|
$
|
62,280
|
|
|
Reconciliation of
Earnings Per Diluted Share
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
31 March
2014
|
|
Earnings per diluted
share
|
$
|
1.35
|
|
|
Foreign exchange
losses (net of tax)
|
0.03
|
|
|
Weather disruption
& project delay losses (net of tax)
|
0.07
|
|
|
Pro-Forma earnings
per diluted share
|
$
|
1.45
|
|
|
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
|
|
|
|
31 March
2014
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
65,624
|
|
|
Capital
expenditures
|
|
(7,668)
|
|
|
Free cash
flow
|
|
$
|
57,956
|
|
|
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SOURCE Core Laboratories N.V.