AMSTERDAM, Oct. 19, 2011 /PRNewswire/ -- Core Laboratories
N.V. (NYSE: CLB) reported third quarter 2011 revenues of
$231,344,000, an all-time quarterly
high and an increase of 16% over year-earlier third quarter levels.
The Company's Reservoir Description and Production
Enhancement segments posted all-time quarterly highs for revenue,
and Core's Reservoir Management segment reported its highest
third-quarter revenue total ever. Net income for the quarter
increased year-over-year by 24% to $47,996,000, while earnings per diluted share
("EPS") increased 27% to $1.00,
excluding certain "Items". Excluding the Items, net income
and EPS totals for the third quarter were also all-time quarterly
highs. Operating income, excluding the Items, reached
$69,517,000, while operating margins,
defined as quarterly operating income divided by quarterly revenue,
reached 30%, equaling the highest quarterly level ever reported by
Core. On a GAAP basis, the Company earned $63,564,000 in operating income, had net income
of $44,867,000 and an EPS of
$0.93 per diluted share.
(Logo:
http://photos.prnewswire.com/prnh/20100712/DA33898LOGO)
During the third quarter of 2011, the Company's operating
activities generated $48,900,000 in
cash, while capital expenditures were $6,200,000. Free cash flow, defined as cash
provided by operating activities, less capital expenditures,
equaled approximately $42,700,000.
During the third quarter, the Company utilized a portion of
this cash for a small acquisition to add manufacturing capacity in
the Company's Canadian operations within the Production Enhancement
segment. Additionally, the Company paid $7.0 million for the early exchange of the
Company's Senior Exchangeable Notes (the "Exchangeable Notes"), and
repurchased shares and settled warrants for cash representing a
combined total of approximately 1,474,000 diluted shares. At
quarter's end, all outstanding warrants had been settled by Core.
Year-to-date, the Company has repurchased shares and settled
warrants representing approximately 2,676,000 shares, or 6% of the
Company's outstanding diluted share count. The Company also
returned approximately $12,000,000 to
shareholders in the third quarter of 2011 via its regular quarterly
dividend payment of $0.25 per share.
Over the past nine years, Core has returned over $1.1 billion to its shareholders in the form of
dividends, special dividends, and through its share repurchase and
warrant settlement programs.
As reported the previous eight quarters, the Board of
Supervisory Directors (the "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.
Based on Bloomberg's calculations for the latest comparable
data available, Core's ROIC was the highest in its oilfield
services Peer Group. Moreover, Core's ROIC exceeded the Peer
Group average ROIC by approximately 39 percentage points, and the
Company had the highest ROIC to Weighted Average Cost of Capital
("WACC") ratio and the lowest WACC in the Peer Group.
Core's long-term focus on ROIC has produced exceptional total
shareholder returns for the Company's long-term shareholders.
According to Bloomberg Financial, at the end of the third
quarter of 2011, there were only twelve companies in the S&P
500 that had produced better total shareholder returns than Core
Laboratories over the last 10-year period and only four companies
producing better returns over the last 15-year period.
For the first three quarters of 2011, Core's revenue increased
13% to $663,862,000, net income was
up 25% to $131,608,000, and EPS was
$2.71, increasing 24% over the first
nine month total of 2010. Cash from operating activities
reached approximately $147,000,000
for the first nine months of 2011; capital expenditures equaled
approximately $18,000,000 over the
same period, while free cash flow reached approximately
$129,000,000.
Segment Highlights
Core Laboratories reports results under three operating
segments: Reservoir Description, Production Enhancement, and
Reservoir Management.
Reservoir Description
Reservoir Description operations, which are mainly focused on
international crude-oil-related projects, posted third quarter 2011
revenue of $119,853,000, up 13% over
year-earlier totals, even though total international rig counts
increased by only 5% over the same period. The 13% revenue
growth rate for Reservoir Description was the highest in three
years and reflects increasing activities related to several
international-based and deepwater offshore projects.
Operating income for Reservoir Description, excluding the Items,
reached an all-time quarterly high at $31,908,000, up 14% over year-earlier totals.
Operating margins were 27% for the quarter, up 100 basis
points from the third quarter of 2010, while sequential quarterly
incremental margins, calculated by dividing the change in operating
income by the change in revenue, exceeded 140%.
Reservoir Description operations continued to benefit from the
initiation and continuation of several large international
projects, including those from offshore deepwater East and
West Africa and from onshore
basins in South America.
Activity levels in the Middle
East, especially in Iraq,
and in Asia-Pacific remained
strong. In addition, several projects have commenced in the
deepwater Gulf of Mexico.
Reservoir Description has received over 1,000 meters of core
from offshore deepwater Mozambique. Tertiary-aged channel and
fan systems have been extensively cored to determine the volumes
and production potential of hydrocarbon reserves.
Cretaceous-aged cores and reservoir fluids from channel and
fan depositional systems offshore West
Africa are also being characterized to optimize the
development of several major oilfields. Both of these African
offshore deepwater developments were featured in Core Laboratories'
2010 Annual Report.
In South America, the Company
has received and is analyzing multiple cores from the Vaca Muerta
shale formation in the Neuquen basin of Argentina. The objectives of this
project are to determine the liquid producing potential of the Vaca
Muerta, as well as best practices for horizontal drilling,
completion, and stimulation techniques to maximize daily
productivity and ultimate hydrocarbon recoveries. In
Colombia, Core continues to study reservoir rock and fluids samples
received from recent discoveries in the Llanos Orientale basin.
In the deepwater Gulf of
Mexico, Reservoir Description operations are active on
numerous projects, including analysis of hundreds of meters of core
from lower Tertiary clastic reservoirs. Also, dozens of
high-pressure reservoir fluids samples have been received for
pressure-volume-temperature characterization. All data sets
will be integrated to plan the development of several lower
Tertiary fields now being evaluated.
Production Enhancement
Production Enhancement operations, which focus mainly on North
American drilling activities, generated third quarter 2011 revenue
of $97,407,000, increasing 23% over
the year-ago quarter and 10% sequentially over the second quarter
of 2011. For comparison, the Baker Hughes U.S. rig count
increased only 6% sequentially over second quarter 2011 levels,
indicating increasing market penetration for Production
Enhancement's products and services.
Operating income for Production Enhancement, excluding the
Items, increased 25% from third quarter 2010 levels to $32,898,000, while operating margins increased to
34%. Sequential quarterly incremental margins exceeded 90%.
The anticipated shortages of high-grade specialty steel were
overcome by engineering solutions, substituting parallel
perforating gun systems, and obtaining supplies of this high-grade
steel from alternative sources. Inventories of specialty
steel products have returned to normal levels.
The record quarter for Production Enhancement operations was
due, in part, to continued market penetration by Core's HTD-Blast™
perforating systems, which are used in extended-reach horizontal
wells in non-conventional reservoirs. The HTD-Blast
perforating system increases economic returns from wells by
lowering completion and stimulation costs while increasing initial
and ultimate production from, primarily, oil-shale reservoirs.
Another of the Company's propriety and patented perforating gun
systems, the Spiral Shogun™, has performed at very high levels
during recompletions of wells in southern Iraq. Sales are expected to increase as
recompletion activities continue to ramp up in the major oilfields
in southern Iraq.
Also bolstering quarterly results was the unprecedented number
of completion and fracture-diagnostic studies performed in both
North American and International theaters. Data from the
Company's patented and proprietary diagnostic services are
essential for optimizing complex multistage fracs and for
determining the effectiveness of sliding-sleeve completion and
stimulation methods.
In addition, several large field-flood projects continue in
deepwater offshore Ghana and
Equatorial Guinea. Core's
SpectraFlood™ tracers are being injected into newly developed
oilfields to determine water injection and reservoir fluid flow
patterns. The resulting data sets will be used to maximize
the sweep efficiency and ultimate hydrocarbon recovery rates.
Reservoir Management
Reservoir Management operations posted third quarter 2011
revenue of $14,084,000 and operating
income, excluding the Items, of $4,226,000, yielding margins of 30%. As
stated in previous investor updates, operating results and margins
are highly variable for Reservoir Management and are dependent on
the timing of the completion of large projects.
As first referenced in Core's fourth quarter 2010 earnings
release, the Company continues to characterize horizons and
laterally equivalent facies of the Utica shale in the Appalachian and
mid-continent regions. The Utica formation is an organic-rich
shale of Ordovician age that lies 2,000 to 5,000 feet below the
more recognized Devonian-aged Marcellus
Shale.
The Company's proprietary Shale Reservoir Quality Index(SM)
("SRQI"), calculated based on multiple petrophysical, geochemical,
and mineralogical properties of the reservoir rock, is being used
by oil companies to determine whether productive facies within the
Utica are liquid-rich or contain
dry natural gas. Recent well results announced in
Harrison and Carroll counties, Ohio, confirmed SRQI indications that the
facies were liquid-rich, and an SRQI indication of dry gas
production in Beaver County,
Pennsylvania, was also confirmed by recently released well
results.
Cash From Operating Activities, Warrant Settlements, Share
Count, and Senior Exchangeable Notes
For the third quarter of 2011, Core generated approximately
$48,900,000 in cash from operating
activities that funded capital expenditures of approximately
$6,200,000 and provided cash, along
with borrowings from Core's existing credit facility, to pay for
the early exchange of $7.0 million of
the Exchangeable Notes and for additional share repurchases and
warrant settlements. During the quarter, Core repurchased
shares and settled warrants representing approximately 1,474,000
diluted shares for approximately $157,000,000. All outstanding warrants had
been settled by the end of the third quarter 2011. The
Company's average diluted share count for the third quarter was
48,030,000.
The balance of the Exchangeable Notes at the end of the quarter
was approximately $85,000,000.
The Exchangeable Notes mature at the end of October 2011 and will be fully paid by the
Company using cash from operations and its revolving credit
facility.
New Senior Unsecured Notes
On September 30, 2011, Core
Laboratories N.V. through its subsidiary, Core Laboratories (U.S.)
Interests Holdings, Inc. (the "Issuer"), completed a private
placement of $150 million in aggregate principal amount of the
Issuer's fixed-rate 10- and 12- year Senior Notes, with
$75 million due 2021 (the "2021
Notes") at an interest rate of 4.01% and $75
million due 2023 (the "2023 Notes") at an interest rate of
4.11%. The 2021 Notes and the 2023 Notes (collectively, the "Senior
Notes") were issued in a private transaction and will not be
subject to the registration requirements of the Securities Act of
1933, as amended. The Senior Notes are guaranteed by the Company
and certain of its subsidiaries. The Company used the net
proceeds from the private placement to repay the indebtedness on
its existing bank credit facility. The Senior Notes will
mature on September 30, 2021 and
2023, for the 2021 Notes and 2023 Notes, respectively, with
interest payable semi-annually on March
30 and September 30 of each
year, commencing March 30, 2012.
Quarterly Dividends
On 12 July 2011 the Company's
Board announced that a regular quarterly dividend of $0.25 per share would be paid on 22 August 2011 to shareholders of record on
22 July 2011. Dutch withholding
tax was deducted from the dividend at the rate of 15%. The dividend
payment totaled an additional return of $12,000,000 to Company shareholders.
On 11 October 2011 the Company's
Board announced that a regular quarterly dividend of $0.25 per share would be paid on 22 November 2011 to shareholders of record on
21 October 2011. Dutch
withholding tax will be deducted from the payment at a rate of
15%.
Any determination to declare a future quarterly cash dividend,
as well as the amount of any such cash dividend that may be
declared, will be based on the Company's financial position,
earnings, earnings outlook, capital expenditure plans, ongoing
share repurchases, potential acquisition opportunities, and other
relevant factors at the time.
Capital Returned To Shareholders
During the third quarter of 2011, Core returned over
$169,000,000 to its shareholders via
its regular quarterly dividend and the repurchase of shares and
settlement of warrants. Over the past nine years, since the
Company initiated its share repurchase program in October of 2002,
Core has returned over $1.1 billion
to its shareholders via dividends, special dividends, and the
repurchase of shares and settlements of warrants. The total
number of shares repurchased and warrants settled by the Company
over the nine-year period represents approximately 35,000,000
diluted shares. As of the third quarter 2011 when Core's
average diluted share count reached 48,030,000, the Company had
repurchased over 40% of its outstanding diluted shares and returned
over $28.98 per diluted share since
October 2002.
Return On Invested Capital
As reported in the previous eight 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 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 Peer Group. In
addition, Core's ROIC was approximately 39 percentage points above
the Peer Group average. Several of the Peer companies failed
to post ROICs that exceeded their WACCs, thereby eroding capital
and shareholder value. Core's ratio of ROIC to WACC is the
highest, and its WACC is the lowest, of any company in the Peer
Group.
Peer companies listed by Bloomberg include Halliburton,
Schlumberger, Tidewater, Carbo Ceramics, FMC Technologies, Baker
Hughes, Cameron International, Oceaneering, National Oilwell Varco,
and Oil States International, among others. Core will update
oilfield services sector returns for the third quarter 2011 in its
fourth quarter 2011 earnings release.
Fourth Quarter and Full-Year 2011 Earnings Guidance
For the fourth quarter of 2011, Core expects revenue of
approximately $240,000,000 to
$246,000,000, with EPS between $1.06
and $1.08. For full year 2011, Core expects revenue of
approximately $904,000,000 to
$910,000,000, with EPS between $3.73
and $3.75, up from prior full-year guidance of $3.65 to $3.72, excluding one-time items,
currency effects, and the favorable tax adjustments in the first
and third quarters of 2011. The increased fourth quarter EPS
guidance reflects the Company's confidence in trends in North
American, deepwater and international activity levels associated
with crude-oil developments.
Adjustment to the Exchange Rate for Senior Exchangeable
Notes
The dividends described herein will result in an adjustment to
the exchange rate on the Company's Notes. The new exchange
rate will be 22.0794 per $1,000
principal amount of the outstanding Notes and will be effective
24 October 2011.
The Company has scheduled a conference call to discuss Core's
third quarter 2011 earnings announcement. The call will begin
at 7:30 a.m. CDT on Thursday,
20 October 2011. 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 revenues, 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
2010 Form 10-K filed on 22 February
2011, 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.
CORE
LABORATORIES N.V. & SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF INCOME
(amounts in
thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
30 September
2011
|
|
30 September
2010
|
|
30 September
2011
|
|
30 September
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
$
231,344
|
|
$
199,221
|
|
$
663,862
|
|
$
586,460
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Costs of services and
sales
|
150,312
|
|
125,772
|
|
439,335
|
|
380,277
|
|
|
|
General and administrative
expenses
|
11,182
|
|
8,416
|
|
30,463
|
|
24,007
|
|
|
|
Depreciation and
amortization
|
5,738
|
|
5,814
|
|
17,374
|
|
17,334
|
|
|
|
Other (income) expense,
net
|
548
|
|
(998)
|
|
(1,176)
|
|
(508)
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
63,564
|
|
60,217
|
|
177,866
|
|
165,350
|
|
Loss on exchange of Senior
Exchangeable Notes
|
31
|
|
675
|
|
870
|
|
675
|
|
Interest expense
|
3,825
|
|
4,015
|
|
8,684
|
|
12,188
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAX
EXPENSE
|
59,708
|
|
55,527
|
|
168,312
|
|
152,487
|
|
INCOME TAX EXPENSE
|
14,599
|
|
16,764
|
|
36,827
|
|
47,076
|
|
NET INCOME
|
45,109
|
|
38,763
|
|
131,485
|
|
105,411
|
|
NET INCOME (LOSS) ATTRIBUTABLE
TO
NON-CONTROLLING
INTEREST
|
242
|
|
209
|
|
(123)
|
|
436
|
|
NET INCOME ATTRIBUTABLE TO
CORE
LABORATORIES
N.V.
|
$
44,867
|
|
$
38,554
|
|
$
131,608
|
|
$
104,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share:
|
$
0.93
|
|
$
0.79
|
|
$
2.71
|
|
$
2.19
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE DILUTED
COMMON
|
|
|
|
|
|
|
|
|
|
SHARES OUTSTANDING
|
48,030
|
|
48,955
|
|
48,634
|
|
47,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Reservoir Description
|
$
119,853
|
|
$
106,485
|
|
$
346,232
|
|
$
317,106
|
|
Production
Enhancement
|
97,407
|
|
78,992
|
|
268,292
|
|
227,553
|
|
Reservoir Management
|
14,084
|
|
13,744
|
|
49,338
|
|
41,801
|
|
|
Total
|
$
231,344
|
|
$
199,221
|
|
$
663,862
|
|
$
586,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
Reservoir Description
|
$
28,780
|
|
$
28,014
|
|
$
81,847
|
|
$
78,229
|
|
Production
Enhancement
|
30,728
|
|
26,260
|
|
78,490
|
|
73,355
|
|
Reservoir Management
|
3,502
|
|
5,535
|
|
17,473
|
|
14,827
|
|
Corporate and other
|
554
|
|
408
|
|
56
|
|
(1,061)
|
|
|
Total
|
$
63,564
|
|
$
60,217
|
|
$
177,866
|
|
$
165,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORE
LABORATORIES N.V. & SUBSIDIARIES
CONSOLIDATED
BALANCE SHEET
(amounts in
thousands)
|
|
|
|
ASSETS:
|
30 September
2011
|
|
31 December
2010
|
|
|
|
(Unaudited)
|
|
|
|
Cash and Cash
Equivalents
|
$
17,021
|
|
$
133,880
|
|
Accounts Receivable,
net
|
157,594
|
|
154,726
|
|
Inventory
|
52,536
|
|
33,979
|
|
Other Current
Assets
|
27,272
|
|
26,735
|
|
|
Total Current
Assets
|
254,423
|
|
349,320
|
|
|
|
|
|
|
|
Property, Plant and
Equipment, net
|
110,025
|
|
104,223
|
|
Intangibles, Goodwill and
Other Long Term Assets, net
|
198,453
|
|
182,499
|
|
|
Total Assets
|
$
562,901
|
|
$
636,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY:
|
|
|
|
|
|
|
|
|
|
|
Short-Term Debt &
Lease Obligations
|
$
84,493
|
|
$
147,543
|
|
Accounts
Payable
|
46,776
|
|
44,710
|
|
Other Current
Liabilities
|
78,850
|
|
87,100
|
|
|
Total Current
Liabilities
|
210,119
|
|
279,353
|
|
|
|
|
|
|
|
Long-Term Debt & Lease
Obligations
|
155,093
|
|
-
|
|
Other Long-Term
Liabilities
|
59,130
|
|
55,485
|
|
Equity Component of Senior
Exchangeable Notes
|
509
|
|
8,864
|
|
Total Equity
|
138,050
|
|
292,340
|
|
|
Total Liabilities and
Equity
|
$
562,901
|
|
$
636,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORE
LABORATORIES N.V. & SUBSIDIARIES
CONSOLIDATED
STATEMENT OF CASH FLOW
(amounts in
thousands)
(Unaudited)
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
30 September
2011
|
|
|
|
|
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES
|
$
146,829
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES
|
(39,474)
|
|
|
|
|
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES
|
(224,214)
|
|
|
|
|
|
|
NET CHANGE IN CASH AND
CASH EQUIVALENTS
|
(116,859)
|
|
CASH AND CASH EQUIVALENTS,
beginning of period
|
133,880
|
|
CASH AND CASH EQUIVALENTS,
end of period
|
$
17,021
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2011
|
|
|
|
|
Reservoir
Description
|
|
Production
Enhancement
|
|
Reservoir
Management
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$
28,780
|
|
$
30,728
|
|
$ 3,502
|
|
$
63,564
|
|
Employee retention stock award
costs
|
2,198
|
|
1,577
|
|
656
|
|
4,431
|
|
Foreign exchange loss
|
930
|
|
593
|
|
68
|
|
1,522
|
|
Operating income excluding
Items
|
$
31,908
|
|
$
32,898
|
|
$ 4,226
|
|
$
69,517
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income
(amounts in
thousands)
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
30 September
2011
|
|
|
|
|
|
|
|
|
Net income
|
$
44,867
|
|
|
|
Employee retention stock award
costs
|
4,431
|
|
|
|
Foreign exchange loss (net of
tax)
|
1,148
|
|
|
|
Financing costs (net of
tax)
|
1,012
|
|
|
|
Impact of lower effective tax
rate
|
(3,462)
|
|
|
|
Net income excluding
Items
|
$
47,996
|
|
|
|
|
|
|
|
|
|
Reconciliation of Earnings Per
Diluted Share
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
30 September
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
0.93
|
|
|
|
Employee retention stock award
costs
|
0.09
|
|
|
|
Foreign exchange loss (net of
tax)
|
0.02
|
|
|
|
Financing costs (net of
tax)
|
0.02
|
|
|
|
Impact of lower effective tax
rate
|
(0.06)
|
|
|
|
Diluted earnings per share
excluding Items
|
$
1.00
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine
Months
|
|
|
|
Ended
|
|
Ended
|
|
|
|
30 September
2011
|
|
30 September
2011
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
$
48,875
|
|
$
146,829
|
|
Less: capital
expenditures
|
|
(6,219)
|
|
(18,203)
|
|
Free cash flow
|
|
$
42,656
|
|
$
128,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Core Laboratories N.V.