AMSTERDAM, July 20, 2016
/PRNewswire/ -- Core Laboratories N.V. (NYSE: "CLB US")
(Euronext Amsterdam: "CLB NA") ("Core", "Core Lab", or the
"Company") reported second quarter 2016 revenue of $148,100,000 and earnings per diluted share
("EPS") of $0.38 in accordance with
U.S. generally accepted accounting principles ("GAAP") and EPS of
$0.35, excluding foreign currency
translations ("ex-fx") and a lower than expected tax rate
(collectively with ex-fx, "ex-items"). Second quarter 2016 EPS,
ex-items, was down 5% on a sequential quarterly basis when compared
with first quarter 2016 results while Core's cost reduction,
multi-skilling, and lab automation programs continue to right-size
quarterly expense levels. On a GAAP basis, second quarter
2016 net income was $16,600,000;
operating income was $20,200,000; and
operating margins were 14%. Free cash flow ("FCF"), defined
as cash from operations less capital expenditures, for the first
half of 2016 was $68,500,000 as the
Company converted 23% of every revenue dollar into FCF.
Core's Reservoir Description operations posted relatively strong
operating margins reflecting ongoing deepwater and international
projects while Production Enhancement outperformed the North
American market place where the U.S. land rig count was down 23% on
a sequential quarterly basis. Clients continued to show
interest in Core's Reservoir Management regional geological studies
encompassing offshore Guyana and
Senegal, locations of two recently
discovered potential giant oilfields, from which both reservoir
fluids and cores are being analyzed by the Company.
As reported in previous quarters, the Board of Supervisory
Directors ("Board") of Core Laboratories N.V. has 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 of comparably-sized companies
in its oilfield services Comp Group.
The Company continues to anticipate a "V-shaped" worldwide
commodity recovery beginning in the second half of 2016. One
indication is that several U.S.-based operators have recently
announced rig additions. Further, global demand for
hydrocarbon-based energy continues to increase, while worldwide
crude oil supply peaked in the second half of 2015 and began a
decline that Core believes will continue through all of 2016 and
2017. The Company has observed that U.S. onshore oil
production peaked in March 2015 and
has fallen since then by an estimated 1,000,000 barrels of oil per
day ("BOPD"), some of which was offset by new additions to
production in the Gulf of Mexico
("GOM") as eight deepwater legacy-field developments came on-line
in late 2015.
At current activity levels, Core predicts 2016 U.S. onshore oil
production will fall approximately 1,100,000 BOPD and will be
somewhat offset by deepwater GOM gains of approximately 160,000
BOPD, yielding a U.S. net decline of 940,000 BOPD resulting in a
net decline curve rate of approximately 10.1%. Based on
currently available worldwide crude oil production data, coupled
with internal Core Lab data, Core estimates that the net worldwide
annual crude oil production decline rate is approximately 3.3%.
That is supported by recent International Energy Agency ("IEA")
reports that worldwide crude oil production continued to fall
through the second quarter of 2016. In addition to the U.S.,
Core expects 2016 production declines in Angola, China, Colombia, Indonesia, Iraq, Mexico,
Nigeria, and Venezuela, among others.
The net worldwide decline rate is predicated on sharper decline
curve rates for tight-oil reservoirs and the significant reduction
of maintenance capital expenditures for the existing crude oil
production base. These factors, together with the continuing
decline in global production, the accelerated decline in
inventories, and the continuing increase in global energy
consumption, should create a tight crude oil supply market for the
second half of 2016, and result in increased crude prices and
industry activity levels worldwide.
Segment Highlights
Core Laboratories reports results under three operating
segments: Reservoir Description, Production Enhancement, and
Reservoir Management.
Reservoir Description
Reservoir Description operations, which focus primarily on
international markets and an increasing number of reservoir fluid
phase-behavior and crude-oil-characterization projects, posted
second quarter 2016 revenue of $103,000,000 and operating income, GAAP and
ex-fx, of $19,200,000, up
sequentially 5% on a GAAP basis and 3%, ex-fx. Operating
margins also were up on a sequential quarterly basis to 19%.
The relative outperformance of Reservoir Description operations,
when compared with continued declines in worldwide activity levels
and other major oilfield service companies' results, was
underpinned by Core's differentiated technology superiority of
service offerings for deepwater projects in the GOM, offshore
eastern South America, and western
Africa, and by the development of
cutting-edge miscible gas flooding technologies and others for
enhanced oil recovery ("EOR") projects in tight-oil developments in
North America.
In deepwater, ExxonMobil continued the successful evaluation of
its massive 6.6-million-acre Stabroek block offshore Guyana.
ExxonMobil's public disclosure of drilling results from the Liza-2
well confirmed a world-class discovery with a recoverable resource
between 800-million and 1.4-billion oil-equivalent barrels.
Core Lab has been working with ExxonMobil since the inception of
the analytical program; and Core's data will be used to define rock
properties, determine reservoir fluid saturations, and measure flow
properties of these reservoirs. These data sets will form the
foundation for calculating hydrocarbon volume in-place and the
production potential of the various reservoir zones.
The multiple EOR projects in progress at Core for tight-oil
reservoirs are being conducted at in-situ reservoir pressures and
temperatures. In several of the projects, Core is cycling
various liquids through the reservoir rock matrix that include
various gases and fluids which has led to additional hydrocarbon
production of lighter oils from the fracture network, followed by
relatively heavier oils from the matrix porosity. These
projects are from the Eagle Ford play as well as the Wolfcamp and
other sequences of the Permian basin.
Crude oil characterization, distillation, and fractionation
studies increased during the second quarter of 2016, as oil company
clients are investigating ways to maximize yields through the
refining process. The Company continues to invest in
technologies to improve yields and product blends for its clients,
most recently through enhancements to its liveQTM
dashboard display using HTML5 technology that can be accessed via
mobile devices in real-time.
Production Enhancement
Production Enhancement operations, largely focused on North
American unconventional reservoirs and complex deepwater
completions and stimulations, reported second quarter 2016 revenue
of $39,100,000 and operating income
of $760,000 on a GAAP basis, yielding
operating margins of 2%, and $980,000, ex-fx, yielding operating margins of
2.5%. Sequentially, Production Enhancement quarterly revenue
was down 11% versus the U.S. land rig count that fell by 23%.
Noble Energy and Core Laboratories coauthored a Society of
Petroleum Engineers ("SPE") technical paper in the second quarter,
which will be presented at the fall 2016 SPE Annual Technology
Conference and Exhibition. This paper describes thirteen frac-pack
treatments performed on Noble Energy wells in the deepwater
Mississippi Canyon tract in the GOM in which Core Laboratories'
proprietary diagnostic technologies -- SpectraStim™ proppant
tracers and SpectraScan®/PackScan® combo logging tools -- were
employed to improve offshore operations, ensure complete annular
packs, evaluate frac-pack efficiencies, and provide decision-making
data in the development of best practices for Noble Energy.
Also during the second quarter, Core's X-SPAN® system was
delivered to a LUKOIL conventional, onshore, non-Arctic oilfield in
Russia. The X-SPAN system utilizes
a proprietary energetic-based, multi-dimensional, metal-to-metal
technology to provide a permanent seal over existing perforations
for zonal isolation. It was successfully adapted and tested to meet
Russian/FSU Gosudarstvennyy Standart ("GOST") standards, which are
equivalent to American Petroleum Institute ("API") casing standards
used in most oilfield regions. Core's X-SPAN
water shut-off solution has been shown to be a more reliable and
economical method for eliminating unwanted water production from
old wells versus the conventional method of cement squeezing.
Reservoir Management
Reservoir Management operations posted second quarter 2016
revenue of $6,000,000, with GAAP
operating income of $420,000,
yielding operating margins of 7%, and operating income of
$470,000, ex-fx, yielding operating
margins of 8%. All results were sequentially lower than
levels reported for first quarter 2016 because the highly
discretionary nature of participating in Core's joint-industry
projects has delayed spending commitments from oil companies.
As crude-oil and natural gas prices rallied during the second
quarter, oil companies did respond with the purchases of studies in
the Permian Basin and Marcellus and Haynesville plays.
Outside of North America, clients
continued to purchase data bases related to recent industry
activity in offshore Surinam and
Guyana and the Company's Central
Atlantic Margin Study, which encompasses offshore Senegal and Guinea
Bissau.
Free Cash Flow, Equity Offering and Dividends
During the first half of 2016, Core generated $73,800,000 of cash from operating activities and
had capital expenditures of $5,300,000, yielding $68,500,000 in FCF. Core converted 23% of
every revenue dollar into FCF. Moreover, for the first half,
FCF was more than double net income, demonstrating Core's continued
focus on managing its working capital and items it can control in a
declining market. The Company's FCF was used to pay
$46,600,000 in cash dividends and to
pay down outstanding debt.
During the second quarter of 2016, in order to strengthen the
Company's balance sheet and to enhance its flexibility in
preparation for the recovery, Core issued 1,696,250 of its common
shares, including an overallotment option by the underwriters, in a
public offering at a public share price of $118.45. After deducting the underwriter's
discounts, commissions, and expenses, the Company received net
proceeds of $197,200,000 based upon a
net price of $116.67 per share. The
proceeds were used to repay a substantial portion of the Company's
outstanding borrowings and reduced Core's total debt by almost 50%.
Additionally, the equity offering is accretive to the Company's EPS
and the net offering price per share exceeded the average price per
share of the most recent $197,200,000
of shares repurchased by the Company on the open market during 2014
and 2015.
On 14 April 2016, the Board
announced a quarterly cash dividend of $0.55 per share of common stock, which was paid
on 24 May 2016 to shareholders of
record on 4 May 2016. Dutch withholding tax was deducted from
the dividend at a rate of 15%.
On 7 July 2016, the Board
announced a quarterly cash dividend of $0.55 per share of common stock, payable in the
third quarter of 2016. The quarterly cash dividend will be
payable 15 August 2016 to
shareholders of record on 18 July 2016. 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 has
established an internal performance metric of achieving an ROIC in
the top decile of the oilfield service companies listed as Core's
Comp Group by Bloomberg Financial. The Company and its Board
believe that ROIC is a leading long-term performance metric used by
shareholders to determine the relative investment value of publicly
traded companies. Further, the Company and its Board believe
that shareholders will benefit if Core consistently performs in the
highest ROIC decile of its Comp Group. According to the
latest financial information from Bloomberg, Core's ROIC is the
highest of any comparably-sized oilfield service company listed in
its Comp Group. Comp Group companies listed by Bloomberg
include Halliburton, Schlumberger, CARBO Ceramics, FMC Technologies, Baker
Hughes, Oceaneering, National Oilwell Varco, and Oil States
International, among others.
Several of Core's peer companies failed to post ROIC that
exceeded their weighted average cost of capital, thereby eroding
capital and shareholder value by significantly overpaying for
acquisitions for perceived revenue growth or over-investing in
low-tech, low-return service offerings.
Industry Outlook and Third Quarter 2016 Revenue and EPS
Guidance
The balancing of worldwide crude oil markets continues, as
evidenced by the continued sharp decline in U.S. onshore oil
production that began in the second half of 2015. Further,
the IEA estimated that worldwide demand increased in 2015 by
1,800,000 BOPD and will increase an additional 1,400,000 BOPD, or
more, in 2016 in response to low commodity prices. Core
continues to believe that tighter crude markets will prevail in the
second half of 2016, leading to further increases in energy prices
that should drive increased client activity later in the second
half and ultimately boost demand for Core's unique
technology-related services and products beginning in 2017.
At current U.S. activity levels, Core predicts 2016 U.S. onshore
oil production will fall approximately 1,100,000 BOPD from 2015
levels, offset somewhat by GOM gains of approximately 160,000 BOPD,
yielding a U.S. net decline of 940,000 BOPD and net decline curve
rate of 10.1%. Declines in U.S. onshore oil production will
be led by tight-oil plays in the Eagle Ford, Bakken, and Niobrara
and will be slightly offset with limited gains from the Permian
Basin. Based on currently available worldwide crude oil production
data, coupled with internal Core Lab data, Core has estimated the
net worldwide annual crude oil production decline rate to be
3.3%.
Based on typical seasonality, Core projects third quarter
results will increase on a sequential basis from the second
quarter, with revenue ranging between approximately $148,000,000 to $151,000,000, yielding operating
margins increasing sequentially to approximately 15%. Core's
effective tax rate is expected to be approximately 11% in the third
quarter as a result of lower profitability in higher tax rate
jurisdictions. Third quarter EPS is expected to be in the
$0.39 to $0.41 range, with FCF
exceeding net income for the ninth consecutive quarter. On an
equivalent currency basis, Core expects third quarter 2016 revenue
and operating income and margins to increase from second quarter
2016 levels. Therefore, Core's second quarter 2016 results
should mark the bottom of our anticipated "V-shaped" worldwide
commodity recovery, followed by increased crude oil prices and
expanded industry activity levels worldwide.
Earnings Call Scheduled
The Company has scheduled a conference call to discuss Core's
second quarter 2016 earnings announcement. The call will
begin at 7:30 a.m. CDT / 2:30 p.m. CEST on Thursday, 21 July 2016.
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 2015 Form 10-K
filed on 12 February 2016 and Form
10-Q filed on 22 April
2016, 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
|
|
%
Variance
|
|
|
30 Jun
2016
|
|
31 Mar
2016
|
|
30 Jun
2015
|
|
vs
Q1-16
|
|
vs
Q2-15
|
REVENUE
|
$
|
148,069
|
|
|
$
|
153,647
|
|
|
$
|
203,889
|
|
|
(3.6)%
|
|
(27.4)%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Costs of services and
sales
|
109,999
|
|
|
112,814
|
|
|
134,619
|
|
|
(2.5)%
|
|
(18.3)%
|
|
General and
administrative expenses
|
11,139
|
|
|
11,050
|
|
|
12,634
|
|
|
0.8%
|
|
(11.8)%
|
|
Depreciation and
amortization
|
6,751
|
|
|
6,847
|
|
|
6,930
|
|
|
(1.4)%
|
|
(2.6)%
|
|
Other (income)
expense, net
|
(47)
|
|
|
(4)
|
|
|
1,813
|
|
|
NM
|
|
NM
|
|
Total operating
expenses
|
127,842
|
|
|
130,707
|
|
|
155,996
|
|
|
(2.2)%
|
|
(18.0)%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
20,227
|
|
|
22,940
|
|
|
47,893
|
|
|
(11.8)%
|
|
(57.8)%
|
Interest
expense
|
3,021
|
|
|
3,434
|
|
|
3,116
|
|
|
(12.0)%
|
|
(3.0)%
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE
|
17,206
|
|
|
19,506
|
|
|
44,777
|
|
|
(11.8)%
|
|
(61.6)%
|
INCOME TAX
EXPENSE
|
671
|
|
|
4,389
|
|
|
10,075
|
|
|
(84.7)%
|
|
(93.3)%
|
NET INCOME
|
16,535
|
|
|
15,117
|
|
|
34,702
|
|
|
9.4%
|
|
(52.4)%
|
NET INCOME
ATTRIBUTABLE TO NON-CONTROLLING INTEREST
|
(89)
|
|
|
35
|
|
|
76
|
|
|
NM
|
|
NM
|
NET INCOME
ATTRIBUTABLE TO CORE LABORATORIES N.V.
|
$
|
16,624
|
|
|
$
|
15,082
|
|
|
$
|
34,626
|
|
|
10.2%
|
|
(52.0)%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share:
|
$
|
0.38
|
|
|
$
|
0.35
|
|
|
$
|
0.81
|
|
|
8.6%
|
|
(53.1)%
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
DILUTED COMMON SHARES OUTSTANDING
|
43,505
|
|
|
42,520
|
|
|
42,959
|
|
|
2.3%
|
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
102,962
|
|
|
$
|
101,549
|
|
|
$
|
118,911
|
|
|
1.4%
|
|
(13.4)%
|
Production
Enhancement
|
39,149
|
|
|
44,145
|
|
|
70,589
|
|
|
(11.3)%
|
|
(44.5)%
|
Reservoir
Management
|
5,958
|
|
|
7,953
|
|
|
14,389
|
|
|
(25.1)%
|
|
(58.6)%
|
|
Total
|
$
|
148,069
|
|
|
$
|
153,647
|
|
|
$
|
203,889
|
|
|
(3.6)%
|
|
(27.4)%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
19,209
|
|
|
$
|
18,220
|
|
|
$
|
30,944
|
|
|
5.4%
|
|
(37.9)%
|
Production
Enhancement
|
755
|
|
|
4,141
|
|
|
14,376
|
|
|
(81.8)%
|
|
(94.7)%
|
Reservoir
Management
|
422
|
|
|
487
|
|
|
3,452
|
|
|
(13.3)%
|
|
(87.8)%
|
Corporate and
other
|
(159)
|
|
|
92
|
|
|
(879)
|
|
|
NM
|
|
NM
|
|
Total
|
$
|
20,227
|
|
|
$
|
22,940
|
|
|
$
|
47,893
|
|
|
(11.8)%
|
|
(57.8)%
|
|
"NM" means
not meaningful
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (amounts in
thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
Six Months
Ended
|
|
|
30 Jun
2016
|
|
30 Jun
2015
|
|
%
Variance
|
|
|
|
|
|
|
|
REVENUE
|
$
|
301,716
|
|
|
$
|
417,532
|
|
|
(27.7)%
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
Costs of services and
sales
|
222,813
|
|
|
278,893
|
|
|
(20.1)%
|
|
General and
administrative expenses
|
22,189
|
|
|
25,308
|
|
|
(12.3)%
|
|
Depreciation and
amortization
|
13,598
|
|
|
13,496
|
|
|
0.8%
|
|
Other (income)
expense, net
|
(51)
|
|
|
2,135
|
|
|
NM
|
|
Severance and other
charges
|
—
|
|
|
7,090
|
|
|
NM
|
|
Total operating
expenses
|
258,549
|
|
|
326,922
|
|
|
(20.9)%
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
43,167
|
|
|
90,610
|
|
|
(52.4)%
|
Interest
expense
|
6,455
|
|
|
5,519
|
|
|
17.0%
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE
|
36,712
|
|
|
85,091
|
|
|
(56.9)%
|
INCOME TAX
EXPENSE
|
5,060
|
|
|
19,347
|
|
|
(73.8)%
|
NET INCOME
|
31,652
|
|
|
65,744
|
|
|
(51.9)%
|
NET INCOME
ATTRIBUTABLE TO NON-CONTROLLING
INTEREST
|
(54)
|
|
|
(281)
|
|
|
NM
|
NET INCOME
ATTRIBUTABLE TO CORE LABORATORIES
N.V.
|
$
|
31,706
|
|
|
$
|
66,025
|
|
|
(52.0)%
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share:
|
$
|
0.74
|
|
|
$
|
1.53
|
|
|
(51.6)%
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
DILUTED COMMON SHARES OUTSTANDING
|
43,008
|
|
|
43,214
|
|
|
(0.5)%
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
Reservoir
Description
|
$
|
204,511
|
|
|
$
|
240,670
|
|
|
(15.0)%
|
Production
Enhancement
|
83,294
|
|
|
145,734
|
|
|
(42.8)%
|
Reservoir
Management
|
13,911
|
|
|
31,128
|
|
|
(55.3)%
|
|
Total
|
$
|
301,716
|
|
|
$
|
417,532
|
|
|
(27.7)%
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
Reservoir
Description
|
$
|
37,429
|
|
|
$
|
59,474
|
|
|
(37.1)%
|
Production
Enhancement
|
4,896
|
|
|
24,299
|
|
|
(79.9)%
|
Reservoir
Management
|
909
|
|
|
7,318
|
|
|
(87.6)%
|
Corporate and
other
|
(67)
|
|
|
(481)
|
|
|
NM
|
|
Total
|
$
|
43,167
|
|
|
$
|
90,610
|
|
|
(52.4)%
|
|
"NM" means
not meaningful
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET (amounts in
thousands)
(Unaudited)
|
|
|
|
|
ASSETS:
|
|
|
%
Variance
|
|
|
30 Jun
2016
|
|
31 Mar
2016
|
|
31 Dec
2015
|
|
vs
Q1-16
|
|
vs
Q4-15
|
Cash and Cash
Equivalents
|
$
|
14,778
|
|
|
$
|
16,665
|
|
|
$
|
22,494
|
|
|
(11.3)%
|
|
(34.3)%
|
Accounts Receivable,
net
|
111,752
|
|
|
122,496
|
|
|
145,689
|
|
|
(8.8)%
|
|
(23.3)%
|
Inventory
|
39,818
|
|
|
41,702
|
|
|
40,906
|
|
|
(4.5)%
|
|
(2.7)%
|
Other Current
Assets
|
28,637
|
|
|
26,547
|
|
|
29,458
|
|
|
7.9%
|
|
(2.8)%
|
|
Total Current
Assets
|
194,985
|
|
|
207,410
|
|
|
238,547
|
|
|
(6.0)%
|
|
(18.3)%
|
|
|
|
|
|
|
|
|
|
|
|
Property, Plant and
Equipment, net
|
135,060
|
|
|
138,860
|
|
|
143,211
|
|
|
(2.7)%
|
|
(5.7)%
|
Intangibles, Goodwill
and Other Long Term Assets, net
|
242,061
|
|
|
240,980
|
|
|
243,500
|
|
|
0.4%
|
|
(0.6)%
|
|
Total
Assets
|
$
|
572,106
|
|
|
$
|
587,250
|
|
|
$
|
625,258
|
|
|
(2.6)%
|
|
(8.5)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Payable
|
$
|
29,404
|
|
|
$
|
34,753
|
|
|
$
|
33,474
|
|
|
(15.4)%
|
|
(12.2)%
|
Other Current
Liabilities
|
66,811
|
|
|
73,663
|
|
|
87,284
|
|
|
(9.3)%
|
|
(23.5)%
|
|
Total Current
Liabilities
|
96,215
|
|
|
108,416
|
|
|
120,758
|
|
|
(11.3)%
|
|
(20.3)%
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Debt &
Lease Obligations
|
208,237
|
|
|
407,112
|
|
|
430,987
|
|
|
(48.9)%
|
|
(51.7)%
|
Other Long-Term
Liabilities
|
100,703
|
|
|
99,704
|
|
|
97,212
|
|
|
1.0%
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
Total
Equity
|
166,951
|
|
|
(27,982)
|
|
|
(23,699)
|
|
|
NM
|
|
NM
|
|
Total Liabilities and
Equity
|
$
|
572,106
|
|
|
$
|
587,250
|
|
|
$
|
625,258
|
|
|
(2.6)%
|
|
(8.5)%
|
|
"NM" means
not meaningful
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (amounts in
thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
30 Jun
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
$
|
73,814
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
(5,832)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
(75,698)
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
(7,716)
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
22,494
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
|
14,778
|
|
Non-GAAP Information
Management believes that the exclusion of certain income and
expenses enables management, our investors and the public to more
effectively evaluate 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 better understanding of the
underlying operations' current period financial results on a more
comparable basis to those reported in prior periods. The non-GAAP
financial measures should be considered in addition to, and not as
a substitute for, the financial results prepared in accordance with
GAAP, as more fully discussed in Core Lab's financial statements
and filings with the Securities and Exchange Commission.
Reconciliation of
Earnings Per Diluted Share (amounts in thousands, except per
share data)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
30 June
2016
|
|
31 March
2016
|
|
|
Earnings Per
Diluted Share
|
|
Earnings Per
Diluted Share
|
GAAP
reported
|
|
$
|
0.38
|
|
|
$
|
0.35
|
|
Foreign exchange
losses
|
|
0.01
|
|
|
0.02
|
|
Benefit of lower tax
rate 1
|
|
$
|
(0.04)
|
|
|
$
|
—
|
|
Excluding specific
items
|
|
$
|
0.35
|
|
|
$
|
0.37
|
|
|
(1) Current
quarter tax rate of 3.9%; guidance given at 14%
|
Segment
Information (amounts in thousands)
(Unaudited)
|
|
|
|
|
Three Months Ended
30 June 2016
|
|
|
Reservoir
Description
|
|
Production
Enhancement
|
|
Reservoir
Management
|
|
Corporate and
Other
|
|
Operating
income
|
$
|
19,209
|
|
|
$
|
755
|
|
|
$
|
422
|
|
|
$
|
(159)
|
|
|
Foreign exchange
losses
|
31
|
|
|
227
|
|
|
52
|
|
|
$
|
124
|
|
|
Operating income
excluding specific items
|
$
|
19,240
|
|
|
$
|
982
|
|
|
$
|
474
|
|
|
$
|
(35)
|
|
|
|
Three Months Ended
31 March 2016
|
|
|
Reservoir
Description
|
|
Production
Enhancement
|
|
Reservoir
Management
|
|
Corporate and
Other
|
|
Operating
income
|
$
|
18,220
|
|
|
$
|
4,141
|
|
|
$
|
487
|
|
|
$
|
92
|
|
|
Foreign exchange
losses
|
448
|
|
|
318
|
|
|
50
|
|
|
$
|
(36)
|
|
|
Operating income
excluding specific items
|
$
|
18,668
|
|
|
$
|
4,459
|
|
|
$
|
537
|
|
|
$
|
56
|
|
|
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)
|
|
|
|
|
|
Six Months
Ended
|
|
|
30 Jun
2016
|
Net cash provided by
operating activities
|
|
$
|
73,814
|
|
Capital
expenditures
|
|
(5,302)
|
|
Free cash
flow
|
|
$
|
68,512
|
|
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SOURCE Core Laboratories N.V.