AMSTERDAM, Feb. 1, 2012 /PRNewswire/ -- Core Laboratories
N.V. (NYSE: "CLB") reported fourth quarter 2011 earnings per share
("EPS") of $1.11, up 32%, and net
income of $53,076,000, up 29% from
2010 fourth quarter totals, excluding the year-ago non-cash,
non-operational item. Foreign currency translations equaling
a loss of $0.01 per diluted share and
a $0.03 gain per diluted share from a
lower-than-expected tax rate were included in the fourth quarter
2011 results; therefore, Core's operations, excluding these items,
earned $1.09 per diluted share in the
quarter. Revenue for the quarter increased 17% to
$243,786,000, while operating income
increased 18% over last year's fourth quarter to $72,888,000. Operating margins for the
quarter were 30%.
(Logo:
http://photos.prnewswire.com/prnh/20100712/DA33898LOGO)
The fourth quarter 2011 EPS, net income, operating income, and
revenue totals were all-time quarterly records for the Company.
The results were bolstered by increased levels of
international activities - especially those in deepwater, increased
deepwater Gulf of Mexico
activities, and increased drilling in unconventional oil-shale
reservoirs in North and South
America.
During the fourth quarter of 2011, Core generated $57,297,000 in cash from operations and had
capital expenditures of $11,724,000,
yielding $45,573,000 in free cash
flow, defined as cash provided by operating activities, less
capital expenditures. The Company returned approximately
$18,000,000 of this cash to
shareholders through its quarterly dividend and share
repurchases.
As reported the previous nine 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 36 percentage points, and the Company had the highest
ROIC to Weighted Average Cost of Capital ("WACC") ratio and one of
the lowest WACCs 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 fourth
quarter of 2011, there were only five companies in the S&P 500,
none of which were in the oilfield services sector, that had
produced better total shareholder returns than Core Laboratories
over the last 15 years.
For the full year 2011, Core's revenue increased 14% to
$907,648,000, operating income
increased 14% excluding non-operational items creating operating
income margins of 29%. Net income was up 27% to $184,684,000, and EPS totaled $3.82, increasing 27% over full-year 2010
results. Cash from operating activities was $204,126,000 for 2011, while free cash flow
totaled $174,199,000. This cash
and borrowings under the Company's credit facility were used to
opportunistically repurchase shares and settle warrants that
represented over 5% of Core's outstanding diluted shares in 2011.
Total cash returned to shareholders through dividends, share
repurchases, and the settlement of warrants in 2011 was
approximately $327,303,000, or about
$6.76 per diluted share, the highest
per share amount in the oilfield services industry.
Segment Highlights
Core Laboratories reports results under three operating
segments: Reservoir Description, Production Enhancement, and
Reservoir Management.
Reservoir Description
Reservoir Description operations reported record quarterly
revenue and operating income for the fourth quarter 2011.
Revenue increased 14% to $123,543,000, and operating income increased 23%
to $34,397,000, while operating
margins increased to 28%, 200 basis points over year-earlier fourth
quarter levels. Year-over-year quarterly incremental margins
were 44%.
Reservoir Description operations continued to benefit from
increasing levels of international activities, especially in
deepwater offshore West and East
Africa, and the increased drilling in unconventional
oil-shale reservoirs in North and South
America. Projects from the Middle East and Asia-Pacific remained robust, while recent
large oil discoveries in the northern North Sea supported
European-based operations. In the deepwater Gulf of Mexico during the fourth quarter, Core
initiated several large core analyses and reservoir fluids projects
for multiple clients that were previewed in the Company's third
quarter 2011 earnings conference call.
The Company is introducing several advanced technologies related
to Digital Core Analyses. Core is integrating computer
tomography (CT) images with laboratory-measured petrophysical data
sets. Accurate and precise porosity measurements coupled with
data sets from Core's patented and proprietary Nano-Perm™ and
MRShale™ services are used to quantify and calibrate petrophysical
and hydrocarbon saturation properties of CT imaged cores. The
integrated technologies are especially effective in unconventional
oil-shale reservoirs. Data sets can be quickly generated and
are cost effective. Moreover, all of the analyses are
non-destructive and the data sets generated are superior to data
sets, especially permeabilities, estimated using older
sample-destructive ion-milling techniques.
Production Enhancement
Production Enhancement operations reported record quarterly
revenue and operating income for the fourth quarter 2011.
Revenue increased 19% to $103,157,000, operating income increased 22% to
$34,086,000, and operating margins
increased 100 basis points over year-earlier fourth quarter levels
to 33%. Year-over-year quarterly incremental margins were
37%.
Production Enhancement operations continued to benefit from
increased market penetration by the Company's proprietary and
patented HTD-Blast™ perforating systems. This technology is
enabling longer horizontal lateral segments to be effectively and
efficiently perforated for optimal completion and stimulation
programs. In addition, the Company continues to see high
demand for its SpectraScan®, SpectraStim™, and SpectraChem®Plus+
completion and fracture diagnostic services. SpectraFlood™
technology continued to be applied to monitor field flood
efficiencies in Oman and
Kuwait and in offshore fields in
Ghana, Equatorial Guinea, and the Eastern
Mediterranean.
Reservoir Management
Reservoir Management operations reported fourth quarter 2011
revenue of $17,086,000, up 31% from
year-earlier totals, and operating income of $4,414,000. Operating margins were 26%,
lower than the year-earlier quarter because of sales mix and
project timing.
Reservoir Management operations continued to build regional and
worldwide consortium studies with most client interest focused on
unconventional oil from shale reservoirs. Operations also
continued to add formations to the Worldwide Oil and Natural Gas
Shale Reservoir Study, including potential oil-shale reservoirs
from Argentina, North Africa, the Middle East, and China. The Company's Eagle Ford Shale
Study now has 38 participants as interest continues to grow in
unconventional oil-shale reservoirs in West Texas, including the Wolfcamp in the
Permian Basin.
Quarterly Dividends
On 11 October 2011, the Company's
Board announced a quarterly cash dividend of $0.25 per share that was paid on 22 November 2011 to shareholders of record on
21 October 2011. Dutch
withholding tax was deducted from the dividend at the rate of 15%.
The dividend payment represented a return of approximately
$12,000,000 to Company
shareholders.
On 13 January 2012, the Company's
Board announced a cash dividend of $0.28 per share of common stock payable in the
first quarter of 2012. This amount represents a 12% increase
over the quarterly dividends of $0.25
per share that were paid in 2011, and if paid each quarter of 2012,
it would equal a payout of $1.12 per
share of common stock. The quarterly $0.28 per share cash dividend will be paid on
24 February 2012 to shareholders of
record on 24 January 2012.
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.
Free Cash Flow - Share Repurchase Program - Capital Returned To
Shareholders
In the fourth quarter of 2011, Core generated $57,297,000 in cash from operations, had capital
expenditures of $11,724,000, and
generated free cash flow of $45,573,000. During the quarter, the
Company returned approximately $18,000,000 of this cash through its regular
quarterly dividend and by repurchasing 64,677 shares of stock.
For the full year 2011, the Company generated $204,126,000 in cash from operations, had capital
expenditures of $29,927,000, and
generated free cash flow of $174,199,000. This cash and borrowings
under the Company's credit facility were used to fund approximately
$46,027,000 in regular quarterly
dividends and to repurchase shares and settle warrants for
approximately $281,276,000. The
repurchased shares and warrant settlements represented
approximately 3,000,000 diluted shares, or approximately 5% of the
Company's diluted outstanding shares. Total capital returned
to shareholders in 2011 was approximately $327,303,000, or about $6.76 per diluted share.
Since the Company initiated its share repurchase program in
October 2002, Core has returned
almost $1.2 billion to its
shareholders via quarterly and special dividends, the repurchase of
shares, and settlements of warrants. The total number of
shares repurchased and warrants settled by the Company over the
nine-plus-year period represents 35,194,000 diluted shares.
As of the fourth quarter 2011, when Core's average diluted
share count reached 47,677,000, the Company had repurchased over
42% of its outstanding diluted shares, a return to its shareholders
of approximately $24.00 per diluted
share.
Return On Invested Capital
As reported in the previous nine 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 36 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 one of 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
the ROIC for the oilfield services sector for the fourth quarter
2011 in its first quarter 2012 earnings release.
NYSE Euronext Amsterdam Dual Listing
Core Laboratories N.V. is a Dutch company with operations,
employees and clients in over 50 countries providing Core with one
of the most geographically diversified operational platforms in the
oilfield service sector. As the Company's market
capitalization has grown, so too has the interest from prospective
international institutional investors to participate in the
ownership of Core Lab through its publicly traded shares.
Given Core's international business platform, the Company is
interested in expanding investor ownership beyond the United States. Accordingly, Core has
begun the process to dual list the Company's shares on the NYSE
Euronext Exchange in Amsterdam
effective in the second quarter of 2012. European
institutional investors currently hold approximately 5% of Core's
outstanding shares, and the Company believes the Euronext listing
will expand Core's international investor ownership.
First Quarter 2012 and Full-Year 2012 Earnings Guidance
For 2012, the Company expects increasing international growth,
especially in deepwater projects supported by the scheduled
arrivals of additional deepwater rigs. Deepwater pre-salt
activities in several international basins, such as the Kwanza
Basin offshore Angola, should
increase significantly throughout 2012. In addition, Core
should benefit from increasing activities in the deepwater
Gulf of Mexico, which is projected
to approach early 2008 highs by late 2012. Core will also
benefit from increasing activities in unconventional oil-shale
reservoirs, not only in North
America, but also South
America - particularly Argentina - and North Africa. The Company expects to
generate $200,000,000 in revenue from
primarily oil-shale reservoirs in 2012. Core assumes that
worldwide activity levels will increase by 10%, and the Company's
annual revenue is expected to grow 13%.
As a result of the Company's outlook, for the first quarter of
2012 Core expects revenue of approximately $230,000,000 to $240,000,000, with EPS between
$1.01 and $1.06, where the midpoints
of guidance represent an increase in revenue of approximately 14%
and EPS growth of 35% over first quarter 2011 totals, excluding
year-ago non-operational gains and charges. First quarter
2012 operating margins are projected to be 29%, up approximately
200 basis points over year-earlier levels.
For the full year 2012, the Company expects revenue of
approximately $1,005,000,000 to
$1,045,000,000, with EPS between $4.50 and $4.82. Using the mid-points of
the yearly guidance, the Company's annual revenue is expected to
grow 13%. Using an effective tax rate of 25% yields a
mid-point of EPS guidance at $4.66, a
23% increase over full-year 2011 EPS, excluding non-operational
gains and charges. Full-year 2012 operating margins are
projected to be in the 30% range, an increase of approximately 100
basis points over full-year 2011 levels.
For 2012, Core expects to generate over $200,000,000 in free cash flow, an all-time high,
while increasing capital expenditures to an estimated $33,000,000. This capital program, the
largest in the Company's history, is in response to anticipated
strong client demand for Core's proprietary and patented
technologies in 2012 and into 2013. Up to 80% of the 2012
capital program will address opportunities that are driven by
increasing client activity levels, primarily in international
areas. The Company will maintain its strict ROIC standards
when deploying 2012 capital with the goal of Core remaining the
industry leader for returns on invested capital. The Company
also anticipates that it will continue opportunistic repurchases of
shares in 2012.
If worldwide activity levels increase more than the anticipated
10%, the Company's results will trend toward the upper end of the
2012 revenue and EPS guidance. Conversely, if worldwide
activity levels increase less than 10%, the Company's results will
trend lower. Future guidance excludes any foreign currency
translations or any shares that may be repurchased by the
Company.
The Company has scheduled a conference call to discuss Core's
fourth quarter 2011 earnings announcement. The call will
begin at 7:30 a.m. CST on Thursday,
2 February 2012. 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 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
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
(amounts in
thousands, except per share data)
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
31 December
2011
|
|
31 December
2010
|
|
31 December
2011
|
|
31 December
2010
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
$
|
243,786
|
|
|
$
|
208,193
|
|
|
$
|
907,648
|
|
|
$
|
794,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Costs of services and
sales
|
|
154,034
|
|
|
133,513
|
|
|
593,369
|
|
|
513,790
|
|
|
|
General and administrative
expenses
|
|
10,678
|
|
|
9,022
|
|
|
41,141
|
|
|
33,029
|
|
|
|
Depreciation and
amortization
|
|
5,929
|
|
|
5,779
|
|
|
23,303
|
|
|
23,113
|
|
|
|
Other (income) expense,
net
|
|
257
|
|
|
(1,697)
|
|
|
(919)
|
|
|
(2,205)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
72,888
|
|
|
61,576
|
|
|
250,754
|
|
|
226,926
|
|
|
Loss on
exchange of Senior Exchangeable Notes
|
|
142
|
|
|
1,264
|
|
|
1,012
|
|
|
1,939
|
|
|
Interest expense
|
|
2,216
|
|
|
3,651
|
|
|
10,900
|
|
|
15,839
|
|
|
INCOME BEFORE INCOME TAX
EXPENSE
|
|
70,530
|
|
|
56,661
|
|
|
238,842
|
|
|
209,148
|
|
|
INCOME TAX EXPENSE
|
|
17,371
|
|
|
16,671
|
|
|
54,198
|
|
|
63,747
|
|
|
NET INCOME
|
|
53,159
|
|
|
39,990
|
|
|
184,644
|
|
|
145,401
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE
TO NON-CONTROLLING
INTEREST
|
|
83
|
|
|
48
|
|
|
(40)
|
|
|
484
|
|
|
NET INCOME ATTRIBUTABLE TO
CORE
LABORATORIES
N.V.
|
|
$
|
53,076
|
|
|
$
|
39,942
|
|
|
$
|
184,684
|
|
|
$
|
144,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share:
|
$
|
1.11
|
|
|
$
|
0.81
|
|
|
$
|
3.82
|
|
|
$
|
3.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE DILUTED COMMON SHARES OUTSTANDING
|
47,677
|
|
|
49,195
|
|
|
48,393
|
|
|
48,241
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Reservoir Description
|
$
|
123,543
|
|
|
$
|
108,723
|
|
|
$
|
469,775
|
|
|
$
|
425,829
|
|
|
Production
Enhancement
|
103,157
|
|
|
86,403
|
|
|
371,449
|
|
|
313,956
|
|
|
Reservoir Management
|
17,086
|
|
|
13,067
|
|
|
66,424
|
|
|
54,868
|
|
|
|
Total
|
$
|
243,786
|
|
|
$
|
208,193
|
|
|
$
|
907,648
|
|
|
$
|
794,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss):
|
|
|
|
|
|
|
|
|
Reservoir Description
|
$
|
34,397
|
|
|
$
|
27,950
|
|
|
$
|
116,244
|
|
|
$
|
106,179
|
|
|
Production
Enhancement
|
34,086
|
|
|
27,886
|
|
|
112,576
|
|
|
101,241
|
|
|
Reservoir Management
|
4,414
|
|
|
4,932
|
|
|
21,887
|
|
|
19,759
|
|
|
Corporate and other
|
(9)
|
|
|
808
|
|
|
47
|
|
|
(253)
|
|
|
|
Total
|
$
|
72,888
|
|
|
$
|
61,576
|
|
|
$
|
250,754
|
|
|
$
|
226,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORE
LABORATORIES N.V. & SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEET
(amounts in
thousands)
|
|
ASSETS:
|
31 December
2011
|
|
31 December
2010
|
|
|
|
(Unaudited)
|
|
|
|
Cash and Cash
Equivalents
|
$
|
29,332
|
|
|
$
|
133,880
|
|
|
Accounts Receivable,
net
|
170,805
|
|
|
154,726
|
|
|
Inventory
|
53,214
|
|
|
33,979
|
|
|
Other Current
Assets
|
22,787
|
|
|
26,735
|
|
|
|
Total Current
Assets
|
276,138
|
|
|
349,320
|
|
|
|
|
|
|
|
|
Property, Plant and
Equipment, net
|
115,295
|
|
|
104,223
|
|
|
Intangibles, Goodwill and
Other Long Term Assets, net
|
203,499
|
|
|
182,499
|
|
|
|
Total Assets
|
$
|
594,932
|
|
|
$
|
636,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY:
|
|
|
|
|
|
|
|
|
|
|
Short-Term Debt &
Lease Obligations
|
$
|
2,344
|
|
|
$
|
147,543
|
|
|
Accounts
Payable
|
57,639
|
|
|
44,710
|
|
|
Other Current
Liabilities
|
72,802
|
|
|
87,100
|
|
|
|
Total Current
Liabilities
|
132,785
|
|
|
279,353
|
|
|
|
|
|
|
|
|
Long-Term Debt & Lease
Obligations
|
$
|
223,075
|
|
|
$
|
—
|
|
|
Other Long-Term
Liabilities
|
57,417
|
|
|
55,485
|
|
|
Equity Component of Senior
Exchangeable Notes
|
—
|
|
|
8,864
|
|
|
Total Equity
|
181,655
|
|
|
292,340
|
|
|
|
Total Liabilities and
Equity
|
$
|
594,932
|
|
|
$
|
636,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORE
LABORATORIES N.V. & SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOW
(amounts in
thousands)
(Unaudited)
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
|
31 December
2011
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES
|
$
|
204,126
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES
|
(52,018)
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES
|
(256,656)
|
|
|
|
|
|
|
|
NET CHANGE IN CASH AND CASH
EQUIVALENTS
|
(104,548)
|
|
|
CASH AND CASH EQUIVALENTS,
beginning of period
|
133,880
|
|
|
CASH AND CASH EQUIVALENTS, end
of period
|
$
|
29,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
Twelve
Months Ended
|
|
Twelve
Months Ended
|
|
|
|
December 31,
2011
|
|
December 31,
2010
|
|
|
|
|
|
|
|
|
Operating income
|
$
|
250,754
|
|
|
$
|
226,926
|
|
|
|
Employee retention stock awards
cost
|
4,431
|
|
|
—
|
|
|
|
One time severance benefits and
other personnel costs
|
3,665
|
|
|
—
|
|
|
|
Legal entity
realignment
|
711
|
|
|
—
|
|
|
|
Foreign exchange
losses
|
1,809
|
|
|
1,712
|
|
|
|
Operating income excluding
specific items
|
$
|
261,370
|
|
|
$
|
228,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income
(amounts in
thousands)
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
December 31,
2010
|
|
|
|
|
|
|
Net income
|
$
|
39,942
|
|
|
|
Loss on exchange of
Notes
|
1,264
|
|
|
|
Net income excluding specific
items
|
$
|
41,206
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Earnings Per
Diluted Share
(Unaudited)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December 31,
2011
|
|
December 31,
2010
|
|
December 31,
2011
|
|
|
|
|
|
|
|
|
Earnings per diluted
share
|
$
|
1.11
|
|
|
$
|
0.81
|
|
|
$
|
3.82
|
|
|
Employee retention stock awards
cost
|
—
|
|
|
—
|
|
|
0.09
|
|
|
One time severance benefits and
other personnel costs (net of tax)
|
—
|
|
|
—
|
|
|
0.05
|
|
|
Legal entity realignment (net of
tax)
|
—
|
|
|
—
|
|
|
0.01
|
|
|
Foreign exchange losses (net of
tax)
|
0.01
|
|
|
—
|
|
|
0.03
|
|
|
Loss on exchange of
Notes
|
—
|
|
|
0.03
|
|
|
0.02
|
|
|
Financing costs (net of
tax)
|
—
|
|
|
—
|
|
|
0.02
|
|
|
Impact of lower effective tax
rate
|
(0.03)
|
|
|
—
|
|
|
(0.29)
|
|
|
Earnings per diluted share
excluding specific items
|
$
|
1.09
|
|
|
$
|
0.84
|
|
|
$
|
3.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Twelve
Months
|
|
|
|
Ended
|
|
Ended
|
|
|
|
31 December
2011
|
|
31 December
2011
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
$
|
57,297
|
|
|
$
|
204,126
|
|
|
Less: capital
expenditures
|
|
(11,724)
|
|
|
(29,927)
|
|
|
Free cash flow
|
|
$
|
45,573
|
|
|
$
|
174,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Core Laboratories N.V.