AMSTERDAM, Oct. 19, 2016
/PRNewswire/ -- Core Laboratories N.V. (NYSE: "CLB US" and
Euronext Amsterdam: "CLB NA") ("Core", "Core Lab", or the
"Company") reported third quarter 2016 revenue of $143,500,000, down 3% sequentially from the
second quarter 2016, with earnings per diluted share ("EPS") of
$0.38, in accordance with U.S.
generally accepted accounting principles ("GAAP"), flat from the
second quarter 2016. Third quarter 2016 net income ("NI") was
$16,700,000; operating income was
$21,500,000; and operating margins
were 15%, all of which were up from the second quarter of 2016 as
Core's cost reduction, multi-skilling, and lab automation programs
continue to produce positive financial results for the Company.
Third quarter EPS and net income increased more significantly, 9%
and 10%, respectively, when compared to the second quarter of 2016
non-GAAP results, which included removing the benefits of a lower
than expected tax rate. During the quarter, Core generated
$32,400,000 of free cash flow
("FCF"), defined as cash from operations less capital expenditures,
which was used to pay the Company's third quarter dividend,
repurchase Company shares, and reduce the outstanding balance on
Core's revolving credit facility. Year-to-date ("YTD") FCF
reached $101,000,000, as Core
converted 23% of every YTD revenue dollar into FCF.
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 believes the anticipated "V-shaped" worldwide
commodity recovery has begun. One indication is that several
U.S.-based operators continue to announce 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. oil production peaked at approximately 9,700,000 barrels of
oil per day ("BOPD") in March 2015
and has fallen since then by an estimated 1,300,000 BOPD, with
decreases of 450,000 BOPD in 2015 and another 850,000 BOPD so far
in 2016.
At current activity levels, Core predicts 2016 U.S. onshore oil
production will fall more than 1,100,000 BOPD which may be somewhat
offset by deepwater Gulf of Mexico
("GOM") gains of approximately 100,000 BOPD (significantly lower
than previously projected), yielding a U.S. net decline of
approximately 1,000,000 BOPD and an updated net decline curve rate
of approximately 11%. 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 third quarter of 2016 and by recent bullish U.S.
inventory trends. In addition to the U.S. decline, Core
expects 2016 production declines in Angola, Colombia, Indonesia, Iraq, Mexico,
Nigeria, and Venezuela, among others. China recently reported a year-over-year
production decline of 10% to less than 3,900,000 BOPD, nearing a
six-year low.
The net worldwide decline rate is predicated on sharper decline
curve rates for tight-oil reservoirs and a significant reduction of
maintenance capital expenditures for the existing crude oil
production base. These factors, together with the continuing
decline in global production, recent Organization of the Petroleum
Exporting Countries ("OPEC") action, the accelerated decline in
U.S.-based inventories, and the continuing increase in global
energy consumption are creating a tighter crude oil supply market
and are expected to result in increasing 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, reported
third quarter 2016 revenue of $100,300,000, down 3% sequentially from second
quarter levels, while operating income and operating margins both
increased on a sequential quarterly basis. Third quarter 2016
operating income increased 6% to $20,400,000, and operating margins were 20.3%, an
increase of 160 basis points over second quarter 2016
results.
Reservoir Description's relative outperformance, compared with
falling international drilling activity, continues to be
underpinned by Core's differentiated technology offerings and
industry-leading reservoir fluid characterization capacity.
In addition, the outperformance of Reservoir Description was
bolstered by Core Lab joining a technical cooperation with Apache
Corporation ("Apache") for defining reservoir potential in Apache's
recently announced Alpine High resource play, the expansion of
high-margin reservoir fluid phase-behavior projects from the
deepwater GOM and West African fields, and the continuation of
multiple enhanced oil recovery ("EOR") projects in various U.S.
tight-oil reservoir plays.
Core Lab and Apache's Unconventional Reservoir Team, one of
Core's most technologically innovative clients, have worked
together to develop cutting-edge laboratory technologies and
protocols to evaluate the complex properties of unconventional
reservoirs. These collaborative efforts have resulted in the
deployment of one of the most technologically advanced flow-studies
instrumentation with ultra-low volume measurement capabilities at
full reservoir pressure and temperature conditions. The
development of these technologies was critical in evaluating the
natural gas and crude oil reservoirs in Apache's recently announced
Alpine High resource play. The data sets were used to
identify thousands of low-risk drilling locations in the Woodford
and Barnett formations, as well as ongoing evaluations of Wolfcamp
and Bone Springs locations.
The multiple miscible-gas-related 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 fluids through the reservoir rock
matrix, including combinations of light hydrocarbon gases,
CO2, and low salinity water, amongst other fluids, which
has led to additional hydrocarbon production of lighter oils from
the fracture network, followed by longer-chained hydrocarbon
molecules from the matrix porosity. These projects are from
the Eagle Ford play, as well as the Wolfcamp and other sequences of
the Permian Basin.
In deepwater, Core continues to perform increasing numbers of
reservoir fluid phase-behavior and crude oil characterization
studies from the GOM and West
Africa. Additionally, the Company is continuing extensive
advanced rock properties studies on the ExxonMobil Liza-2 well,
offshore Guyana, and on a
potential giant field discovery offshore West Africa. Both of
these discoveries are world-class in nature with recoverable crude
oil equivalent reserves expected to exceed one billion barrels.
Crude oil characterization, distillation, and fractionation
studies increased during the third quarter of 2016, as oil company
clients continued to investigate 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 direct client access to real-time data from
mobile devices.
Production Enhancement
Production Enhancement operations, largely focused on North
American unconventional reservoirs and complex deepwater
completions and stimulations, posted third quarter 2016 revenue of
$37,600,000, down 4% sequentially
from second quarter levels, while operating income and operating
margins increased versus last quarter.
Core's original third quarter revenue and EPS guidance for the
Company was based on increased Production Enhancement revenue,
operating margins, and significant incremental margins in response
to second quarter increases in U.S. rig count, and subsequent
increases in completion and stimulation events. However,
total completions for U.S. land wells for the third quarter were
down sequentially from second quarter levels,due, in part, to new
pad-drilling projects, during which all pad wells need to be
drilled before the completion process begins. Consequently,
anticipated increases in third quarter completion and stimulation
programs were delayed. While revenue decreased because of a lower
level of U.S. completions in the third quarter of 2016 compared
with the second quarter of the year, profitability increased
because of Core's cost reduction program and increasing numbers of
technologically sophisticated and challenging projects, many
located throughout the Permian Basin.
Occidental Petroleum ("Oxy"), another technologically driven
client, is continuing to identify and evaluate uphole recompletion
opportunities in the Permian Basin in order to target previously
uncompleted and unstimulated formations. Oxy, using data sets
from Core's SpectraStimTM and FlowProfilerTM
technologies, pumped oil- and water-soluble chemical diagnostic
tracers into uphole intervals and horizons to determine reservoir
quality and stimulation effectiveness, potentially increasing daily
production and future reserve totals.
Reservoir Management
For the third quarter of 2016, Reservoir Management operations
reported revenue of $5,700,000 and a
slight operating loss. Results were sequentially lower than
second quarter 2016 levels due to the highly discretionary nature
of participation in Core's joint industry projects ("JIPs") when
oil companies defer spending on such projects until higher prices
for crude oil and natural gas are realized.
In the quarter, interest in evaluating Permian Basin acreage
remained at high levels, and five additional operating companies
joined Core's Permian Basin JIPs. The Company also proposed a
JIP of the Mississippian-aged Meramac and Osage formations, which
overlay the Silurian-aged Woodford Formation in the STACK-B play,
which includes Blaine County. Core believes that the
combination of the STACK-B and SCOOP will be designated as a major
resource play in the U.S. The proposed JIP study will
complement Core's existing JIP in the Oklahoma Woodford shale,
which has numerous oil company participants.
Free Cash Flow, Dividends, Share Repurchases, and Debt
Reduction
During the third quarter of 2016, Core's operations generated
$34,800,000 in cash from operating
activities and had capital expenditures of $2,400,000, yielding $32,400,000 of FCF, which was utilized to pay the
Company's quarterly dividend, repurchase shares, and reduce the
debt outstanding on the Company's revolving credit facility.
On 7 July 2016, the Board
announced a quarterly cash dividend of $0.55 per share of common stock, which was paid
on 15 August 2016 to shareholders of
record on 18 July 2016. Dutch withholding tax was deducted
from the dividend at a rate of 15%.
On 11 October 2016, the Board
announced a quarterly cash dividend of $0.55 per share of common stock, payable in the
fourth quarter of 2016. The quarterly cash dividend will be
payable 22 November 2016 to
shareholders of record on 21 October
2016 and completes a total payout of $2.20 per share of common stock from the four
dividends declared and paid during 2016. Dutch withholding
tax will be deducted from the dividend at a rate of 15%.
During the quarter, the members of OPEC announced a framework to
reduce their daily crude oil production. This event, in the
Company's opinion, will likely serve as an important catalyst that
could speed the re-balancing of the crude oil markets which may
provide for a significant recovery in industry activity. Also
during the quarter, the Company generated free cash flow in excess
of the quarterly dividend and other investing and financing cash
requirements, and, as a result, the Company repurchased 16,000
shares on September 30.
Core also reduced the balance of debt outstanding on its
revolving credit facility by $2,000,000 to a quarter-end balance of
$58,000,000.
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 which failed to post ROIC
that exceeded their weighted average cost of capital ("WACC"),
thereby eroding capital and shareholder value. Core's ratio
of ROIC to WACC is the highest of any company in the Comp
Group.
Fourth Quarter 2016 Revenue and EPS Guidance
For the fourth quarter of 2016, Core expects activity levels to
increase in North America but be
offset by continuing weakness in international locations,
especially South America and
Asia-Pacific regions.
Reservoir Description margins are expected to remain at 20% even
with anticipated weakness in the international markets while
revenues and margins are expected to increase for North
American-centric Production Enhancement operations. As has
been the case in past industry recoveries of worldwide operating
activities, Core's Company-wide revenue growth and margin expansion
is not immediately correlated to increasing rig counts but to
subsequent completion and stimulation events and large scale
reservoir rock and reservoir fluid characterization projects.
Therefore, a well, or a number of wells, needs to be drilled and
either be completed, stimulated, cored and have reservoir fluid
samples collected, before Core realizes a revenue event.
As has been the case for past activity recoveries, Core expects
its revenue growth to ultimately outperform the increase in
industry activity rates by 200 to 400 basis points. Core
expects to generate incremental operating income margins of
approximately 60% early in the activity recovery phase followed by
historical incremental operating income margins of approximately
35% to 45% well into the recovery phase.
With international activity weaknesses being offset by North
American activity increases, Core projects flat fourth quarter
revenue ranging from between $143,000,000
and $145,000,000, and EPS to range between $0.38 and $0.40, with a quarterly effective tax
rate of approximately 6%. FCF is expected to exceed net
income as has been the case for the last nine quarters. Core
is also expected to continue to make opportunistic repurchases of
its shares using the FCF in excess of its dividend payments.
Earnings Call Scheduled
The Company has scheduled a conference call to discuss Core's
third quarter 2016 earnings announcement. The call will begin
at 7:30 a.m. CDT / 2:30 p.m. CEST on Thursday, 20 October 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 Forms
10-Q filed on 22 April 2016 and
22 July 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 Sep
2016
|
|
30 Jun
2016
|
|
30 Sep
2015
|
|
vs
Q2-16
|
|
vs
Q3-15
|
REVENUE
|
$
|
143,483
|
|
|
$
|
148,069
|
|
|
$
|
197,265
|
|
|
(3.1)%
|
|
(27.3)%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Costs of services and
sales
|
107,153
|
|
|
109,999
|
|
|
129,050
|
|
|
(2.6)%
|
|
(17.0)%
|
|
General and
administrative expenses
|
8,406
|
|
|
11,139
|
|
|
12,155
|
|
|
(24.5)%
|
|
(30.8)%
|
|
Depreciation and
amortization
|
6,724
|
|
|
6,751
|
|
|
6,910
|
|
|
(0.4)%
|
|
(2.7)%
|
|
Other (income)
expense, net
|
(288)
|
|
|
(47)
|
|
|
2,332
|
|
|
NM
|
|
NM
|
|
Total operating
expenses
|
121,995
|
|
|
127,842
|
|
|
150,447
|
|
|
(4.6)%
|
|
(18.9)%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
21,488
|
|
|
20,227
|
|
|
46,818
|
|
|
6.2%
|
|
(54.1)%
|
Interest
expense
|
2,569
|
|
|
3,021
|
|
|
3,471
|
|
|
(15.0)%
|
|
(26.0)%
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE
|
18,919
|
|
|
17,206
|
|
|
43,347
|
|
|
10.0%
|
|
(56.4)%
|
INCOME TAX
EXPENSE
|
2,081
|
|
|
671
|
|
|
9,753
|
|
|
NM
|
|
(78.7)%
|
NET INCOME
|
16,838
|
|
|
16,535
|
|
|
33,594
|
|
|
1.8%
|
|
(49.9)%
|
NET INCOME
ATTRIBUTABLE TO NON-CONTROLLING INTEREST
|
108
|
|
|
(89)
|
|
|
190
|
|
|
NM
|
|
NM
|
NET INCOME
ATTRIBUTABLE TO CORE LABORATORIES N.V.
|
$
|
16,730
|
|
|
$
|
16,624
|
|
|
$
|
33,404
|
|
|
0.6%
|
|
(49.9)%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share:
|
$
|
0.38
|
|
|
$
|
0.38
|
|
|
$
|
0.78
|
|
|
—%
|
|
(51.3)%
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
DILUTED COMMON SHARES OUTSTANDING
|
44,320
|
|
|
43,505
|
|
|
42,685
|
|
|
1.9%
|
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
100,267
|
|
|
$
|
102,962
|
|
|
$
|
117,943
|
|
|
(2.6)%
|
|
(15.0)%
|
Production
Enhancement
|
37,552
|
|
|
39,149
|
|
|
64,918
|
|
|
(4.1)%
|
|
(42.2)%
|
Reservoir
Management
|
5,664
|
|
|
5,958
|
|
|
14,404
|
|
|
(4.9)%
|
|
(60.7)%
|
|
Total
|
$
|
143,483
|
|
|
$
|
148,069
|
|
|
$
|
197,265
|
|
|
(3.1)%
|
|
(27.3)%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
20,395
|
|
|
$
|
19,209
|
|
|
$
|
30,338
|
|
|
6.2%
|
|
(32.8)%
|
Production
Enhancement
|
1,121
|
|
|
755
|
|
|
11,367
|
|
|
48.5%
|
|
(90.1)%
|
Reservoir
Management
|
(125)
|
|
|
422
|
|
|
4,796
|
|
|
(129.6)%
|
|
(102.6)%
|
Corporate and
other
|
97
|
|
|
(159)
|
|
|
317
|
|
|
NM
|
|
NM
|
|
Total
|
$
|
21,488
|
|
|
$
|
20,227
|
|
|
$
|
46,818
|
|
|
6.2%
|
|
(54.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
"NM" means
not meaningful
|
|
|
|
|
|
|
|
|
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(amounts in
thousands, except per share data)
|
(Unaudited)
|
|
|
Nine Months
Ended
|
|
|
30 Sep
2016
|
|
30 Sep
2015
|
|
%
Variance
|
|
|
|
|
|
|
|
REVENUE
|
$
|
445,199
|
|
|
$
|
614,797
|
|
|
(27.6)%
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
Costs of services and
sales
|
329,966
|
|
|
407,943
|
|
|
(19.1)%
|
|
General and
administrative expenses
|
30,595
|
|
|
37,463
|
|
|
(18.3)%
|
|
Depreciation and
amortization
|
20,322
|
|
|
20,406
|
|
|
(0.4)%
|
|
Other (income)
expense, net
|
(339)
|
|
|
4,467
|
|
|
NM
|
|
Severance and other
charges
|
—
|
|
|
7,090
|
|
|
NM
|
|
Total operating
expenses
|
380,544
|
|
|
477,369
|
|
|
(20.3)%
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
64,655
|
|
|
137,428
|
|
|
(53.0)%
|
Interest
expense
|
9,024
|
|
|
8,990
|
|
|
0.4%
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE
|
55,631
|
|
|
128,438
|
|
|
(56.7)%
|
INCOME TAX
EXPENSE
|
7,141
|
|
|
29,100
|
|
|
(75.5)%
|
NET INCOME
|
48,490
|
|
|
99,338
|
|
|
(51.2)%
|
NET INCOME
ATTRIBUTABLE TO NON-CONTROLLING
INTEREST
|
54
|
|
|
(91)
|
|
|
NM
|
NET INCOME
ATTRIBUTABLE TO CORE LABORATORIES
N.V.
|
$
|
48,436
|
|
|
$
|
99,429
|
|
|
(51.3)%
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share:
|
$
|
1.11
|
|
|
$
|
2.31
|
|
|
(51.9)%
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
DILUTED COMMON SHARES OUTSTANDING
|
43,450
|
|
|
43,038
|
|
|
1.0%
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
Reservoir
Description
|
$
|
304,778
|
|
|
$
|
358,613
|
|
|
(15.0)%
|
Production
Enhancement
|
120,846
|
|
|
210,652
|
|
|
(42.6)%
|
Reservoir
Management
|
19,575
|
|
|
45,532
|
|
|
(57.0)%
|
|
Total
|
$
|
445,199
|
|
|
$
|
614,797
|
|
|
(27.6)%
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
Reservoir
Description
|
$
|
57,824
|
|
|
$
|
89,812
|
|
|
(35.6)%
|
Production
Enhancement
|
6,017
|
|
|
35,666
|
|
|
(83.1)%
|
Reservoir
Management
|
784
|
|
|
12,114
|
|
|
(93.5)%
|
Corporate and
other
|
30
|
|
|
(164)
|
|
|
NM
|
|
Total
|
$
|
64,655
|
|
|
$
|
137,428
|
|
|
(53.0)%
|
|
|
|
|
|
|
|
|
"NM" means
not meaningful
|
|
|
|
|
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(amounts in
thousands)
|
(Unaudited)
|
ASSETS:
|
|
|
%
Variance
|
|
|
30 Sep
2016
|
|
30 Jun
2016
|
|
31 Dec
2015
|
|
vs
Q2-16
|
|
vs
Q4-15
|
Cash and Cash
Equivalents
|
$
|
17,219
|
|
|
$
|
14,778
|
|
|
$
|
22,494
|
|
|
16.5%
|
|
(23.5)%
|
Accounts Receivable,
net
|
108,520
|
|
|
111,752
|
|
|
145,689
|
|
|
(2.9)%
|
|
(25.5)%
|
Inventory
|
37,339
|
|
|
39,818
|
|
|
40,906
|
|
|
(6.2)%
|
|
(8.7)%
|
Other Current
Assets
|
22,276
|
|
|
28,637
|
|
|
29,458
|
|
|
(22.2)%
|
|
(24.4)%
|
|
Total Current
Assets
|
185,354
|
|
|
194,985
|
|
|
238,547
|
|
|
(4.9)%
|
|
(22.3)%
|
|
|
|
|
|
|
|
|
|
|
|
Property, Plant and
Equipment, net
|
131,210
|
|
|
135,060
|
|
|
143,211
|
|
|
(2.9)%
|
|
(8.4)%
|
Intangibles, Goodwill
and Other Long Term Assets, net
|
245,574
|
|
|
242,061
|
|
|
243,500
|
|
|
1.5%
|
|
0.9%
|
|
Total
Assets
|
$
|
562,138
|
|
|
$
|
572,106
|
|
|
$
|
625,258
|
|
|
(1.7)%
|
|
(10.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Payable
|
$
|
32,201
|
|
|
$
|
29,404
|
|
|
$
|
33,474
|
|
|
9.5%
|
|
(3.8)%
|
Other Current
Liabilities
|
61,341
|
|
|
66,811
|
|
|
87,284
|
|
|
(8.2)%
|
|
(29.7)%
|
|
Total Current
Liabilities
|
93,542
|
|
|
96,215
|
|
|
120,758
|
|
|
(2.8)%
|
|
(22.5)%
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Debt &
Lease Obligations
|
206,363
|
|
|
208,237
|
|
|
430,987
|
|
|
(0.9)%
|
|
(52.1)%
|
Other Long-Term
Liabilities
|
99,436
|
|
|
100,703
|
|
|
97,212
|
|
|
(1.3)%
|
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
Total
Equity
|
162,797
|
|
|
166,951
|
|
|
(23,699)
|
|
|
NM
|
|
NM
|
|
Total Liabilities and
Equity
|
$
|
562,138
|
|
|
$
|
572,106
|
|
|
$
|
625,258
|
|
|
(1.7)%
|
|
(10.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
"NM" means
not meaningful
|
|
|
|
|
|
|
|
|
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOW
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
30 Sep
2016
|
|
30 Sep
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
$
|
34,870
|
|
|
$
|
108,684
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
(4,665)
|
|
|
(10,497)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
(27,764)
|
|
|
(103,462)
|
|
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
2,441
|
|
|
(5,275)
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
14,778
|
|
|
22,494
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
|
17,219
|
|
|
$
|
17,219
|
|
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 Jun
2016
|
|
|
|
Net Income
attributable to
Core Laboratories N.V.
|
|
Earnings Per
Diluted Share
|
|
GAAP
reported
|
|
$
|
16,624
|
|
|
$
|
0.38
|
|
|
Foreign exchange
losses
|
|
417
|
|
|
0.01
|
|
|
Benefit of lower tax
rate 1
|
|
(1,782)
|
|
|
(0.04)
|
|
|
Excluding specific
items
|
|
$
|
15,259
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
(1) Quarter tax
rate of 3.9%; guidance given at 14%
|
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
|
|
Nine Months
Ended
|
|
|
30 Sep
2016
|
|
30 Sep
2016
|
Net cash provided by
operating activities
|
|
$
|
34,870
|
|
|
$
|
108,684
|
|
Capital
expenditures
|
|
(2,438)
|
|
|
(7,740)
|
|
Free cash
flow
|
|
$
|
32,432
|
|
|
$
|
100,944
|
|
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SOURCE Core Laboratories N.V.