AMSTERDAM, Oct. 23, 2017
/PRNewswire/ -- Core Laboratories N.V. (NYSE: "CLB US" and
Euronext Amsterdam: "CLB NA") ("Core", "Core Lab", or the
"Company") reported third quarter 2017 revenue of $166,200,000, up sequentially from its second
quarter 2017 revenue, with operating and net income of $27,500,000 and $21,100,000, respectively, and earnings per
diluted share ("EPS") of $0.48, all
in accordance with U.S. generally accepted accounting principles
("GAAP"). Third quarter 2017 results were affected by Hurricanes
Harvey, Irma, and Maria, and even though damage to Company
facilities was minor, Core Lab and its clients did suffer
interruptions of business activity due to local area flooding,
power outages and wind damage. Despite these events, Core's
third quarter 2017 results exceeded the updated guidance issued by
the Company on 5 September 2017.
Operating margins for the Company were 17% for the third quarter
2017 which were negatively affected by client workflow disruptions
as a result of the hurricanes.
Core generated $25,000,000 in free
cash flow ("FCF") a non-GAAP financial measure defined as cash from
operations less capital expenditures, which was in excess of its
dividend in the quarter, and returned virtually all of that FCF to
its shareholders via its regular quarterly dividend.
Reconciliations of non-GAAP financial measures are included in the
attached financial tables.
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 relative performance
return on invested capital ("ROIC") among 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 service Comp Group.
On 6 July 2017, Standard and
Poor's ("S&P") announced that Core Laboratories will be added
to the S&P MidCap 400® Index. Core officially
entered the S&P MidCap Global Industry Classification Standard
("GICS") Oil & Gas Equipment and Services Sub-Industry index as
of 12 July 2017.
Segment Highlights
Beginning in the first quarter of 2017, Core Laboratories
realigned its operations and is reporting results under two
segments: Reservoir Description and Production Enhancement. The
financial statements that follow show the Company's results for the
second and third quarters of 2017 and third quarter of 2016 for
comparison of sequential quarterly and year-over-year quarterly
results. All quarterly financial comparisons in this Segment
Highlights section are made relative to previously reported
ex-items results.
Reservoir Description
Reservoir Description operations, primarily focused on projects
funded by operating budgets from internationally-based fields,
deepwater provinces and from the development of U.S. tight-oil
(shale) reservoirs, posted revenue of $101,400,000 in the third quarter of 2017.
Operating income was $14,600,000,
yielding operating margins of 14%. Based on adjusted guidance
provided on 5 September 2017 as a
result of Hurricane Harvey, the majority of the $4,000,000 projected decrease in revenue was
related to locations impacted within the Reservoir Description
segment. Revenue, operating income, and margins were all affected
by the impact of hurricanes in the third quarter of 2017, which
interrupted client field operations and workflow into Company
laboratories and offices; however, without this business
interruption, third quarter results for Reservoir Description would
have achieved a slight increase in sequential revenue with 18% EBIT
margins.
The number of pressure-volume-temperature ("PVT")-related
projects has been increasing for the last several years, and
reservoir fluid analyses now contribute approximately 60% of
Reservoir Description revenue. In U.S. tight-oil developments,
especially shale-related plays in the Permian basin, the Company is
benefiting from increased client interest and the need for detailed
PVT testing of reservoir fluids.
These PVT data sets are used to determine estimated ultimate
recoveries ("EURs") of hydrocarbons and predict reservoir
performance over time. Fluid properties measured include
bubble point pressures, compositional make-up of the crude oil and
natural gases, formation volume factors, viscosity, and natural
gas-to-crude oil ratios. Our clients use this data to
optimize production streams and maximize returns on invested
capital. Core participated in a number of technical panels
and hosted several industry conference calls during the third
quarter to discuss expected trends in the Permian Basin.
Core continues to expand its presence in the Middle East region to support client demand
for rock and fluid laboratory services. Core remains a key
partner in helping clients by providing critical data sets for
evaluating opportunities in both new and mature fields.
Core's scientists are conducting comprehensive studies involving
the integration of data from laboratory and geological analyses to
assess reserve potential and benchmark reservoir performance.
As a result of the Company's extensive expertise dealing with
fluid flow through porous media, Core has determined that the
enhanced oil recovery ("EOR") techniques most effective in
unconventional reservoirs will differ greatly from EOR methods used
in conventional reservoirs worldwide. The injection of miscible
gases and the application of gas-adsorption techniques developed in
Core's laboratories at in-situ reservoir pressures and temperatures
have proved far superior to the pressurized physical movement of
hydrocarbons using flood fronts that are typically employed in
conventional fields.
The Company continues to increase the number of major EOR
projects in various stages for unconventional reservoirs. Several
formations and different basins are under study with multiple
clients.
During the third quarter, Core had numerous client discussion
regarding a second Joint Industry Project ("JIP") on unconventional
EOR. When initiated, this Permian Basin study will provide
participants with laboratory data that will enable them to access
opportunities to boost ultimate recovery rates in these tight
reservoirs.
Production Enhancement
Production Enhancement operations, largely focused on
unconventional tight-oil reservoirs and complex deepwater
completions, posted higher third quarter 2017 revenue and operating
income compared with second quarter 2017 results. Revenue
increased 9% sequentially from the second quarter to $64,800,000, and operating income was up 20% to
$13,000,000, while operating margins
expanded by almost 200 basis points to 20%. Production
Enhancement's U.S. land revenue results were up 16% sequentially,
which outperformed the sequential EIA reported U.S. land
completions activity which was up just 12%.
Based on adjusted guidance provided earlier in the quarter as a
result of Hurricane Harvey, and while minor by comparison to
Reservoir Description, part of the $4,000,000 projected decrease to our revenue was
for locations impacted within the Production Enhancement
segment. Consequently, the incremental margins would have
been in the ~50% range comparable with the first and second
quarters of 2017 had Hurricane Harvey not occurred. Core's
clients continue to seek new and higher technology solutions for
increasing daily production and estimated ultimate recoveries which
are driving Production Enhancement operating and incremental
operating margins higher.
The continued revenue growth for Production Enhancement was
bolstered by increased demand for Core's recently introduced
HERO®PerFRAC perforating charges and gun systems.
Client acceptance of HERO®PerFRAC technology is among
the highest of all new product lines introduced by Core over the
past five-plus years and is evidence of the Company's technological
advantage and leverage for expansion in North American
activity. Client acceptance of our HERO®PerFRAC
technology during this downturn is confirmation that if a company
develops value-add services which increase IRRs and EURs, clients
are more than willing to evaluate and ultimately use that new
technology.
The HERO®PerFRAC perforating system provides
consistent hole sizes throughout the perforating cluster, thereby
maximizing frac efficiency and increasing Stimulated Reservoir
Volume ("SRV"). This system equalizes the perforating friction and
allows all perforations to contribute more equally to the fracing
operation. Further, tortuosity is reduced, enhancing proppant
deployment at lower hydraulic pumping pressures.
The HERO®PerFRAC system is specifically designed to
provide 100% contribution of perforating clusters, require minimal
hydraulic horsepower to efficiently place fracture treatments,
maximize SRV, and increase ultimate recovery from the
reservoir. The HERO®PerFRAC system is proving to
be far superior to conventional perforating systems, decades-old
sand-jet perforating techniques, and sliding sleeves, which have
limited applications in some tight-oil reservoirs.
Core's clients are also using SpectraStimTM,
SpectraScanTM, and FLOWPROFILERTM completion
diagnostics to further enhance their completion programs. These
technologies are helping Core's clients optimize completions by
increased cluster efficiency and eliminate the need for diverters
yielding lower well costs and significant improvement to the
reservoir EURs.
Free Cash Flow and Dividends
During the third quarter of 2017, Core continued to generate
FCF, with cash from operations of $29,900,000 and capital expenditures of
$4,900,000 yielding $25,000,000 of FCF. This free cash was
returned to Core's shareholders via the Company's regular quarterly
dividend. Reconciliations of non-GAAP financial measures are
included in the attached financial tables.
On 6 July 2017, the Board
announced a quarterly cash dividend of $0.55 per share of common stock, which was paid
on 14 August 2017 to shareholders of
record on 17 July 2017. Dutch
withholding tax was deducted from the dividend at a rate of
15%.
On 10 October 2017, the Board
announced a quarterly cash dividend of $0.55 per share of common stock, payable in the
fourth quarter of 2017. The quarterly cash dividend will be payable
21 November 2017 to shareholders of
record on 20 October 2017. 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 a relative
ROIC performance compared with 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 at high levels of ROIC relative to its Comp Group.
According to the latest Comp Group financial information from
Bloomberg, Core's ROIC is the highest of any comparably sized
oilfield service company (greater than $2
billion market capitalization). Comp Group companies listed
by Bloomberg include Halliburton, Schlumberger, Baker Hughes,
Oceaneering, National Oilwell Varco, RPC, and the Wood Group, among
others. Eleven of the 13 companies listed in the Comp Group failed
to post ROIC that exceeded their weighted average cost of capital
("WACC"). Core's ratio of ROIC to WACC is the highest of any
comparably sized company in the Comp Group.
Fourth Quarter 2017 Revenue and EPS Guidance
Core is encouraged by the increasing focus of its major clients
regarding capital management, ROIC, FCF and returning capital back
to their shareholders, as opposed to just production growth.
The Companies adopting these metrics tend to be the more
technologically sophisticated operators and form the foundation of
Core's worldwide client base. Core will benefit from this
shift in focus from production growth to employing higher
technological solutions to maximize economic production growth and
EURs. The client's increased use of higher technological
solutions from Core is considered in the Company's guidance for
continued increases in operating and incremental operating margins
into the fourth quarter of 2017. Clients will pay for
technologies that boost their ROIC and FCF.
Internationally, a number of Final Investment Decisions ("FIDs")
have been announced during the quarter by oil and gas companies;
however, activities for Core Lab relating to those FIDs are not
expected to materially increase in 2017 as the operators are
currently developing their project plans and should begin to
implement those plans early in 2018. Further, the
international rig count remains flat due to limited capital
projects underway by international operators. However,
operators continue to spend from their operating budgets on
maximizing recovery from their existing producing fields.
Core expects fourth quarter 2017 North American completion
activity levels to continue to expand as current completion levels
will be supplemented by reductions in drilled-but-uncompleted
("DUC") inventories. The Company expects fourth quarter 2017
international activity levels to be flat to up slightly from third
quarter levels with most ongoing projects to be funded largely from
their operating budgets.
Core projects fourth quarter 2017 revenue of approximately
$171,500,000. As discussed in
prior quarterly earnings releases, Core expects our incremental
operating income margins to exceed 60% as the recovery phase
continues, followed by historical incremental operating income
margins of approximately 35% to 45%. The Company projects
that its operating income in the fourth quarter 2017 is expected to
be approximately $32,800,000 yielding
operating margins of approximately 19%. EPS for the fourth
quarter 2017 is expected to be approximately $0.58.
Fourth quarter 2017 FCF is expected to exceed net income and
Core expects that it will continue to return all excess capital to
its shareholders during the quarter.
Earnings Call Scheduled
The Company has scheduled a conference call to discuss Core's
third quarter 2017 earnings announcement. The call will begin at
7:30 a.m. CDT / 2:30 p.m. CEST on Tuesday, 24 October 2017. 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 and production
enhancement 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
2016 Form 10-K filed on 10 February
2017 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.
Visit the Company's website at www.corelab.com. Connect
with Core Lab on Facebook, LinkedIn and YouTube.
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(amounts in
thousands, except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
%
Variance
|
|
|
30 Sep
2017
|
|
30 Jun
2017
|
|
30 Sep
2016
|
|
vs
Q2-17
|
|
vs
Q3-16
|
REVENUE
|
$
|
166,247
|
|
|
$
|
163,903
|
|
|
$
|
143,483
|
|
|
1.4%
|
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Costs of services and
sales
|
120,890
|
|
|
117,118
|
|
|
107,153
|
|
|
3.2%
|
|
12.8%
|
|
General and
administrative expenses
|
11,887
|
|
|
11,100
|
|
|
8,406
|
|
|
7.1%
|
|
41.4%
|
|
Depreciation and
amortization
|
6,091
|
|
|
6,302
|
|
|
6,724
|
|
|
(3.3)%
|
|
(9.4)%
|
|
Other (income)
expense, net
|
(97)
|
|
|
(24)
|
|
|
(288)
|
|
|
NM
|
|
NM
|
|
Total operating
expenses
|
138,771
|
|
|
134,496
|
|
|
121,995
|
|
|
3.2%
|
|
13.8%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
27,476
|
|
|
29,407
|
|
|
21,488
|
|
|
(6.6)%
|
|
27.9%
|
Interest
expense
|
2,707
|
|
|
2,692
|
|
|
2,569
|
|
|
0.6%
|
|
5.4%
|
Income before income
tax expense
|
24,769
|
|
|
26,715
|
|
|
18,919
|
|
|
(7.3)%
|
|
30.9%
|
Income tax
expense
|
3,716
|
|
|
4,006
|
|
|
2,081
|
|
|
(7.2)%
|
|
78.6%
|
Net income
|
21,053
|
|
|
22,709
|
|
|
16,838
|
|
|
(7.3)%
|
|
25.0%
|
Net income
attributable to non-controlling interest
|
(33)
|
|
|
19
|
|
|
108
|
|
|
NM
|
|
NM
|
Net income
attributable to Core Laboratories N.V.
|
$
|
21,086
|
|
|
$
|
22,690
|
|
|
$
|
16,730
|
|
|
(7.1)%
|
|
26.0%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share:
|
$
|
0.48
|
|
|
$
|
0.51
|
|
|
$
|
0.38
|
|
|
(5.9)%
|
|
26.3%
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Avg Diluted
Common Shares Outstanding
|
44,332
|
|
|
44,374
|
|
|
44,320
|
|
|
(0.1)%
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
15%
|
|
|
15%
|
|
|
11%
|
|
|
NM
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
101,442
|
|
|
$
|
104,313
|
|
|
$
|
105,427
|
|
|
(2.8)%
|
|
(3.8)%
|
Production
Enhancement
|
64,805
|
|
|
59,590
|
|
|
38,056
|
|
|
8.8%
|
|
70.3%
|
|
Total
|
$
|
166,247
|
|
|
$
|
163,903
|
|
|
$
|
143,483
|
|
|
1.4%
|
|
15.9%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
14,621
|
|
|
$
|
18,670
|
|
|
$
|
21,274
|
|
|
(21.7)%
|
|
(31.3)%
|
Production
Enhancement
|
12,972
|
|
|
10,765
|
|
|
118
|
|
|
20.5%
|
|
10,893.2%
|
Corporate and
other
|
(117)
|
|
|
(28)
|
|
|
96
|
|
|
NM
|
|
NM
|
|
Total
|
$
|
27,476
|
|
|
$
|
29,407
|
|
|
$
|
21,488
|
|
|
(6.6)%
|
|
27.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
"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
2017
|
|
30 Sep
2016
|
|
%
Variance
|
|
|
|
|
|
|
|
REVENUE
|
$
|
487,957
|
|
|
$
|
445,199
|
|
|
9.6%
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
Costs of services and
sales
|
352,580
|
|
|
329,966
|
|
|
6.9%
|
|
General and
administrative expenses
|
35,743
|
|
|
30,595
|
|
|
16.8%
|
|
Depreciation and
amortization
|
18,820
|
|
|
20,322
|
|
|
(7.4)%
|
|
Other (income)
expense, net
|
752
|
|
|
(339)
|
|
|
NM
|
|
Total operating
expenses
|
407,895
|
|
|
380,544
|
|
|
7.2%
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
80,062
|
|
|
64,655
|
|
|
23.8%
|
Interest
expense
|
8,017
|
|
|
9,024
|
|
|
(11.2)%
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAX EXPENSE
|
72,045
|
|
|
55,631
|
|
|
29.5%
|
INCOME TAX
EXPENSE
|
10,601
|
|
|
7,141
|
|
|
48.5%
|
NET INCOME
|
61,444
|
|
|
48,490
|
|
|
26.7%
|
NET INCOME
ATTRIBUTABLE TO
NON-CONTROLLING
INTEREST
|
10
|
|
|
54
|
|
|
NM
|
NET INCOME
ATTRIBUTABLE TO
CORE LABORATORIES
N.V.
|
$
|
61,434
|
|
|
$
|
48,436
|
|
|
26.8%
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share:
|
$
|
1.39
|
|
|
$
|
1.11
|
|
|
25.2%
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
DILUTED COMMON SHARES OUTSTANDING
|
44,335
|
|
|
43,450
|
|
|
2.0%
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
15%
|
|
|
13%
|
|
|
NM
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
Reservoir
Description
|
$
|
310,650
|
|
|
$
|
321,129
|
|
|
(3.3)%
|
Production
Enhancement
|
177,307
|
|
|
124,070
|
|
|
42.9%
|
|
Total
|
$
|
487,957
|
|
|
$
|
445,199
|
|
|
9.6%
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
Reservoir
Description
|
$
|
49,231
|
|
|
$
|
60,011
|
|
|
(18.0)%
|
Production
Enhancement
|
31,132
|
|
|
4,615
|
|
|
574.6%
|
Corporate and
other
|
(301)
|
|
|
29
|
|
|
NM
|
|
Total
|
$
|
80,062
|
|
|
$
|
64,655
|
|
|
23.8%
|
|
|
|
|
|
|
|
|
"NM" means
not meaningful
|
|
|
|
|
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
%
Variance
|
ASSETS:
|
30 Sep
2017
|
|
30 Jun
2017
|
|
31 Dec
2016
|
|
vs
Q2-17
|
|
vs
Q4-16
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
13,780
|
|
|
$
|
14,318
|
|
|
$
|
14,764
|
|
|
(3.8)%
|
|
(6.7)%
|
Accounts Receivable,
net
|
129,656
|
|
|
128,983
|
|
|
114,329
|
|
|
0.5%
|
|
13.4%
|
Inventory
|
34,499
|
|
|
35,598
|
|
|
33,720
|
|
|
(3.1)%
|
|
2.3%
|
Other Current
Assets
|
25,194
|
|
|
27,323
|
|
|
23,648
|
|
|
(7.8)%
|
|
6.5%
|
|
Total Current
Assets
|
203,129
|
|
|
206,222
|
|
|
186,461
|
|
|
(1.5)%
|
|
8.9%
|
|
|
|
|
|
|
|
|
|
|
|
Property, Plant and
Equipment, net
|
124,120
|
|
|
125,746
|
|
|
129,882
|
|
|
(1.3)%
|
|
(4.4)%
|
Intangibles, Goodwill
and Other Long Term Assets, net
|
255,495
|
|
|
251,790
|
|
|
256,709
|
|
|
1.5%
|
|
(0.5)%
|
|
Total
Assets
|
$
|
582,744
|
|
|
$
|
583,758
|
|
|
$
|
573,052
|
|
|
(0.2)%
|
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Payable
|
$
|
34,904
|
|
|
$
|
41,607
|
|
|
$
|
33,720
|
|
|
(16.1)%
|
|
3.5%
|
Other Current
Liabilities
|
58,234
|
|
|
59,199
|
|
|
70,303
|
|
|
(1.6)%
|
|
(17.2)%
|
|
Total Current
Liabilities
|
93,138
|
|
|
100,806
|
|
|
104,023
|
|
|
(7.6)%
|
|
(10.5)%
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Debt &
Lease Obligations
|
233,864
|
|
|
233,739
|
|
|
216,488
|
|
|
0.1%
|
|
8.0%
|
Other Long-Term
Liabilities
|
102,445
|
|
|
97,761
|
|
|
97,244
|
|
|
4.8%
|
|
5.3%
|
|
|
|
|
|
|
|
|
|
|
Total
Equity
|
153,297
|
|
|
151,452
|
|
|
155,297
|
|
|
1.2%
|
|
(1.3)%
|
|
Total Liabilities and
Equity
|
$
|
582,744
|
|
|
$
|
583,758
|
|
|
$
|
573,052
|
|
|
(0.2)%
|
|
1.7%
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
30 Sep
2017
|
|
30 Jun
2017
|
|
30 Sep
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net Income
|
$
|
21,053
|
|
|
$
|
22,709
|
|
|
$
|
16,838
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Stock-based
compensation
|
5,760
|
|
|
5,840
|
|
|
5,675
|
|
|
Depreciation and
amortization
|
6,091
|
|
|
6,302
|
|
|
6,724
|
|
|
Accounts
Receivable
|
(961)
|
|
|
(7,002)
|
|
|
2,910
|
|
|
Inventory
|
1,130
|
|
|
1,972
|
|
|
2,190
|
|
|
Accounts
Payable
|
(6,136)
|
|
|
3,867
|
|
|
803
|
|
|
Other adjustments to
net income
|
2,942
|
|
|
(14,973)
|
|
|
(270)
|
|
|
|
Net cash provided
by operating activities
|
$
|
29,879
|
|
|
$
|
18,715
|
|
|
$
|
34,870
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
(4,902)
|
|
|
$
|
(2,913)
|
|
|
$
|
(2,438)
|
|
|
Other investing
activities
|
(435)
|
|
|
(378)
|
|
|
(2,227)
|
|
|
|
Net cash used in
investing activities
|
$
|
(5,337)
|
|
|
$
|
(3,291)
|
|
|
$
|
(4,665)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Repayment of debt
borrowings
|
$
|
(22,000)
|
|
|
$
|
(18,000)
|
|
|
$
|
(31,550)
|
|
|
Proceeds from debt
borrowings
|
22,000
|
|
|
33,000
|
|
|
29,000
|
|
|
Dividends
paid
|
(24,271)
|
|
|
(24,306)
|
|
|
(24,257)
|
|
|
Issuance of common
shares
|
—
|
|
|
—
|
|
|
(9)
|
|
|
Repurchase of
treasury shares
|
(809)
|
|
|
(6,115)
|
|
|
(1,045)
|
|
|
Other financing
activities
|
—
|
|
|
(27)
|
|
|
97
|
|
|
|
Net cash used in
financing activities
|
$
|
(25,080)
|
|
|
$
|
(15,448)
|
|
|
$
|
(27,764)
|
|
|
|
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
(538)
|
|
|
(24)
|
|
|
2,441
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
14,318
|
|
|
14,342
|
|
|
14,778
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
|
13,780
|
|
|
$
|
14,318
|
|
|
$
|
17,219
|
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
|
Nine Months
Ended
|
|
|
|
30 Sep
2017
|
|
30 Sep
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net Income
|
$
|
61,444
|
|
|
$
|
48,490
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Stock-based
compensation
|
17,323
|
|
|
16,762
|
|
|
Depreciation and
amortization
|
18,820
|
|
|
20,322
|
|
|
Accounts
Receivable
|
(15,488)
|
|
|
37,610
|
|
|
Inventory
|
(796)
|
|
|
2,995
|
|
|
Accounts
Payable
|
2,307
|
|
|
(3,023)
|
|
|
Other adjustments to
net income
|
(5,255)
|
|
|
(14,472)
|
|
|
|
Net cash provided
by operating activities
|
$
|
78,355
|
|
|
$
|
108,684
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Capital
expenditures
|
$
|
(14,264)
|
|
|
$
|
(7,740)
|
|
|
Other investing
activities
|
(990)
|
|
|
(2,757)
|
|
|
|
Net cash used in
investing activities
|
$
|
(15,254)
|
|
|
$
|
(10,497)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Repayment of debt
borrowings
|
$
|
(89,000)
|
|
|
$
|
(290,226)
|
|
|
Proceeds from debt
borrowings
|
106,000
|
|
|
63,000
|
|
|
Dividends
paid
|
(72,861)
|
|
|
(70,883)
|
|
|
Issuance of common
shares
|
—
|
|
|
197,202
|
|
|
Repurchase of
treasury shares
|
(8,197)
|
|
|
(2,157)
|
|
|
Other financing
activities
|
(27)
|
|
|
(398)
|
|
|
|
Net cash used in
financing activities
|
$
|
(64,085)
|
|
|
$
|
(103,462)
|
|
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
(984)
|
|
|
(5,275)
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
14,764
|
|
|
22,494
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
|
13,780
|
|
|
$
|
17,219
|
|
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
2017
|
|
30 Sep
2017
|
Net cash provided by
operating activities
|
|
$
|
29,879
|
|
|
$
|
78,355
|
|
Capital
expenditures
|
|
(4,902)
|
|
|
(14,264)
|
|
Free cash
flow
|
|
$
|
24,977
|
|
|
$
|
64,091
|
|
View original
content:http://www.prnewswire.com/news-releases/core-lab-reports-third-quarter-2017-results-300541588.html
SOURCE Core Laboratories N.V.