AMSTERDAM, April 22, 2015
/PRNewswire/ -- Core Laboratories N.V. (NYSE: "CLB
US")(Euronext Amsterdam: "CLB NA") reported first quarter 2015
earnings per diluted share ("EPS") of $0.86, excluding items ("ex-items") which are
primarily employee severance costs and are referenced in the
non-GAAP reconciliation included in this release. First
quarter 2015 net income, ex-items, totaled $37,500,000, while revenue was $213,600,000, down 19% from first quarter 2014
levels. Year-over-year first quarter revenue was negatively
affected by approximately $8,500,000,
or 4%, in foreign currency exchange rate changes versus the U.S.
dollar. Operating income, ex-items, was $50,700,000, yielding operating margins of
24%.
Free cash flow ("FCF"), defined as cash from operations less
capital expenditures, for the first quarter of 2015 topped
$72,700,000, the most ever in any
first quarter in Company history. Core converted 34 cents of every revenue dollar into free cash,
the highest conversion rate for all major oilfield service
companies. Core used the cash and borrowings under its
revolving credit facility to pay approximately $23,900,000 in quarterly dividends and to
repurchase over 683,000 shares of Core's common stock for
$72,900,000, or approximately
$106.69 per share, reducing the
Company's outstanding share count to a new 17-year low.
During the quarter, Core returned over $96,800,000 to its shareholders, equaling
approximately $2.25 per common
share.
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 in its oilfield services Comp
Group. Moreover, the Company has the highest ROIC to Weighted
Average Cost of Capital ("WACC") ratio in its Comp Group.
As discussed in Core's fourth quarter 2014 earnings call, there
have been sharp decreases in revenue and earnings that are tied
directly to significant decreases in activity levels, primarily in
North America. Therefore, Core has
continued its cost-reduction program, focusing mainly on Canadian
and U.S. operations and international areas where activity levels
have been weak, or are projected to be weak for an extended
period. The associated expenses to appropriately size our
cost structure have been incurred in the first quarter, reducing
expense levels with incremental savings to be realized in the later
quarters of 2015.
Segment Highlights
Core Laboratories reports results under three operating
segments: Reservoir Description, Production Enhancement, and
Reservoir Management. All operating results exclude items
referenced in the non-GAAP reconciliation.
Reservoir Description
Reservoir Description operations, which focus primarily on
international markets, reported first quarter 2015 revenue of
$121,800,000, down only 3% from the
year-earlier quarter. However, using year-ago U.S. dollar
exchange rates versus the Canadian and Australian dollars, Russian
ruble, British pound sterling, and European euro, year-over-year
first quarter 2015 revenue for Reservoir Description would have
been up an additional $7,400,000;
which would have resulted in revenue for the first quarter 2015
being higher than the previous year by over 3%. Operating
income for the quarter was $32,400,000, yielding operating margins of 27%,
down only 160 basis points from the record first quarter operating
margins posted in 2014. Similar strength in operating margins
for Reservoir Description operations occurred in 2009 after the
downturn in activity levels in 2008 indicating the mission critical
nature of -- and the value created for operating companies by --
using cutting-edge technologies delivered by Core's Reservoir
Description operations.
Reservoir Description's relative strength, in an international
market expected to be down in activity levels in 2015 by 10% to
15%, is directly tied to the segment's focus on producing oil
fields in the international arena. The Company's
industry-leading reservoir fluids phase-behavior technologies and
services optimize daily production from an operating perspective,
not just relating to the initiation of new capital projects.
The growth in the importance of reservoir fluids phase-behavior
technologies to enhance base production, in addition to the
initiation of new capital projects, is causing the structural
expansion in this service line.
Internationally, Core continues to work on large-scale,
long-term crude-oil and LNG developments. Projects in the
South Atlantic margins include deepwater developments off
South America and West Africa that will generate many billions
of dollars of oil company revenue. Offshore East Africa
remains active, with large-scale LNG developments in the planning
stages. Although work in northern Iraq has been significantly reduced, projects
continue in legacy fields in southern Iraq. Several
large-scale enhanced oil recovery projects continue in Kuwait, the Emirates, Oman, and Saudi Arabia. Also in
Saudi Arabia, Core continues to
provide technical input for three large, unconventional,
natural-gas developments.
Core's reservoir fluids phase-behavior business continues to
structurally expand worldwide, with activity levels at new highs in
the North Sea, West Africa, the
Middle East, and the U.S. -
especially in the deepwater Gulf of
Mexico ("GOM"). Reservoir fluids phase-behavior
technologies are used to analyze the crude oil, natural gases, and
water that are present in petroleum reservoirs. By measuring
phase behaviors at various pressure, volume, and temperature
("PVT") levels, Core develops data sets that are used to determine
hydrocarbon reserves, predict reservoir performance, and maximize
daily production and ultimate hydrocarbon recovery rates.
PVT properties studied include bubble-point pressures,
compositional characterizations, formation volume factors,
viscosities, and gas-to-oil ratios. Core's data sets are used
to optimize production streams and enhance oil recovery techniques,
especially in unconventional reservoirs, where they maximize the
economic return on investment for the Company's clients. Low
commodity prices increase the need for, and value of, reservoir
fluids phase-behavior data.
Reservoir fluids phase-behavior data sets are mission-critical
for all complex reservoirs currently under production, including
deepwater developments, given the high investment levels and the
need to maximize the client's ROIC. This is especially the
case in the deepwater GOM. Core is the only oilfield service
company that can generate PVT data sets from reservoir fluids
measured at pressures greater than 20,000 pounds per square inch
("PSI"), which generally occur in reservoirs at depths greater than
20,000 feet. Most deepwater reservoirs around the world are
at formation depths greater than 20,000 feet, as is the case in the
GOM. The Company is currently developing PVT instrumentation
to measure pressures to 30,000 PSI, ensuring the continued
structural market expansion and growth driven by Core's unique
position of technological leadership. In addition, Core remains
committed to its worldwide environmental leadership by providing
reservoir fluids data sets from automated high-pressure,
mercury-free PVT testing systems.
Production Enhancement
Production Enhancement operations, largely focused on North
American unconventional reservoir developments, reported first
quarter 2015 revenue of $75,100,000,
down 32% from the year-earlier quarter, with operating income of
$13,400,000, down 65% from first
quarter 2014 levels. Operating margins were 18%, the highest
reported margin for any other company's North American activity
to-date this quarter. The rapid contraction of the North
American rig count, plus the increasing number of drilled but
uncompleted wells, precipitated the significantly lower
year-over-year first quarter results for Production
Enhancement.
Entering the second quarter of 2015, Production Enhancement is
becoming more active in recompletions and refracs of existing
unconventional wells. Refracturing older wells to contact new
reservoir rock yields a high return on investment if an effective
recompletion design can be identified. By combining its proprietary
SpectraStimTM, SpectraScan®,
FlowProfilerTM, and Completion Profiler®
diagnostic services, Core Laboratories provides one of the only
means of optimizing and determining the success of the various
refrac strategies.
Diversion technologies are one of the refrac strategies
evaluated by Core's diagnostic services. Diversion is critical to a
refrac because the goal of a refrac is to divert the hydraulic
fracturing fluids and proppant into new, unstimulated sections of
the producing formation.
Core's technologies are playing an essential role in the early
stages of the industry's refrac efforts, and the Company's
diagnostics are key to determining the best strategy to
apply. Core's role in determining the successful design of
refracs is evident in Society of Petroleum Engineers ("SPE")
technical literature and other industry publications that Core Lab
personnel have authored, co-authored or in which its technologies
have been cited. These publications include an SPE paper
co-authored by Core, Schlumberger, and the BG Group; an SPE paper
written by Pioneer Natural Resources; and recent articles published
in the Journal of Petroleum Technology.
Older wells have been completed using many different strategies
in various formations, meaning the best refrac strategy will have
to be determined on a case-by-case basis. Diagnostics will be
required to determine the optimal refrac design for the various
scenarios. There are many variables that can be adjusted to improve
the success of a refrac, such as injection rate, fluid type,
proppant type, proppant concentration, and perforating
design. Core Lab technologies such as HTD-BlastTM
perforating systems, SUPER HERO® charges, and the KODIAK
Enhanced Perforating SystemTM provide clients with
opportunities to combine technologies to optimize their refrac
designs based on the specific variables and requirements of each
well. As each variable is studied, it can be optimized
utilizing Core's diagnostic services.
Core Lab's HTD-Blast system sales in the first quarter of 2015
reflect the shift to refrac operations. Core's patented system can
be used to perforate new intervals in existing wells, whereas
conventional plug-and-perf operations cannot be deployed when there
are already open perforations in a well. Emerging refrac designs
using Core's HTD-Blast system allow conveyance on coiled tubing
with adjustable time-delayed firings in new zones targeted for
stimulation.
Reservoir Management
Reservoir Management operations posted first quarter 2015
revenues of $16,700,000, down from
near-record first quarter revenues of $27,400,000 in 2014. Operating income was
$4,300,000, yielding margins of
25%. Because most of Reservoir Management's joint-industry
projects are discretionary purchases by operating companies,
revenue and operating income showed sharp decreases.
Contributing to a difficult year-over-year comparison was
$8,000,000 of first quarter 2014
revenue directly related to Canadian oil-sand projects that ended
in that quarter. Core will continue to develop products and
initiate studies to add value to our clients' hydrocarbon
developments.
In North America, Reservoir
Management added new members to Core's highly successful,
joint-industry project focused on the reservoir characterization,
fracture stimulation, and production performance of the East Texas
"Eaglebine" play. Over 125 representatives from the 13 member
companies attended the workshop and seminar held in the quarter.
Interest has also remained high for the Utica-Pt. Pleasant project
in the Appalachian Basin, which now has 21 members. This play took
on new life after prolific natural-gas wells -- with initial
production rates of 20- to 60-million cubic feet of natural gas per
day -- were reported in Pennsylvania and West Virginia. Projections from regional
mapping into Pennsylvania led
several companies to test areas underlying the Marcellus Shale.
Several new lengthy cores have been contributed to Core's
Permian Basin projects and are being analyzed. This brings the
total number of cored wells in the Permian projects to over 140.
Reservoir Management also continued work in the unconventional
Duvernay, Montney, and Wilrich projects in Canada.
Internationally, Reservoir Management also completed the first
phase of its Central Atlantic Margin Regional Geological and
Petrophysical Joint-Industry Study. The study encompasses
Senegal, Gambia, and the offshore AGC Profond block.
Industry interest in the area is growing following discoveries
drilled in 2014, and several new participants were added in the
first quarter 2015. Core further extended its portfolio in the
Central Atlantic with the launch of a new joint-industry project in
Suriname. It is anticipated that this will extend into Guyana during the second quarter. The Central
Atlantic remains a focus area for the industry and Core Lab, with
projects from Senegal to
Cote D'Ivoire.
Free Cash Flow, Share Repurchases, Dividends, Capital
Returned To Shareholders
During the first quarter of 2015, Core Laboratories generated
$79,600,000 of cash from operating
activities and had capital expenditures of $6,900,000, yielding $72,700,000 in FCF, the most for any first
quarter in Core Lab history. This record level of FCF
demonstrates Core's continued focus on managing its working capital
and items it can control in the marketplace. During the
quarter, Core converted 34 cents of
every revenue dollar into FCF, the highest percentage of all major
oilfield services companies.
Core's FCF in the first quarter of 2015 along with borrowings
under the Company's revolving credit facility, were used to pay
approximately $23,900,000 in cash
dividends and to repurchase over 683,000 shares for approximately
$72,900,000. Core's outstanding
diluted share count of 43,466,000 shares stands at its lowest level
in 17 years. In all, Core has reduced its diluted share count by
approximately 48%, or 40,622,000 shares, and has returned over
$2.1 billion to its shareholders --
over $48 per diluted share -- through
diluted share count reductions, special dividends, and quarterly
dividends since implementing its Shareholder Capital Return Program
over 12 years ago.
On 12 January 2015, the Board
announced a quarterly cash dividend of $0.55 per share of common stock, payable in the
first quarter of 2015. This amount represented a 10% increase
over the quarterly dividends of $0.50
per share paid in 2014, and if paid each quarter of 2015, that
would equal a payout of $2.20 per
share of common stock. The first quarter 2015 dividend was paid on
20 February 2015 to shareholders of
record on 23 January 2015. Dutch withholding tax was deducted
from the dividend at a rate of 15%.
On 13 April 2015, the Board
announced a quarterly cash dividend of $0.55 per share of common stock, payable in the
second quarter of 2015. The quarterly $0.55-per-share cash dividend will be payable
on Friday, 22 May 2015,
to shareholders of record on Friday, 24 April 2015. 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 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
shareholders will benefit if Core consistently performs in the
highest ROIC decile among its Comp Group. According to the
latest financial information from Bloomberg, Core Laboratories'
ROIC is the highest of any of the oilfield service companies listed
in its Comp Group. Comp Group companies listed by Bloomberg
include Halliburton, Schlumberger, CARBO Ceramics, FMC Technologies, Baker
Hughes, Cameron International, Oceaneering, National Oilwell Varco,
and Oil States International, among others.
Several of the peer companies failed to post ROIC that exceeded
their WACC, thereby eroding capital and shareholder value.
Core's ratio of ROIC to WACC is the highest of any company in the
Comp Group. Core will update its ROIC compared with the
oilfield services sector for the first quarter of 2015 in its
second quarter 2015 earnings release.
Industry Outlook and Second Quarter 2015 Revenue and EPS
Guidance
The balancing of worldwide crude-oil markets is well underway.
U.S. production is starting to decline in the second quarter of
2015, and the most recent International Energy Agency estimates
project worldwide demand to increase in 2015 by 1,100,000 barrels
of oil per day ("BOPD") in response to low commodity prices.
Core now believes that U.S. supply growth will roll over in May or
June of 2015 and that year-over-year crude-oil production will be
flat-to-down. As a lead example of the severity of production
decline curves for unconventional oil reserves, Bakken production
has already fallen by 50,000 BOPD during the first two months of
2015, or by over 4%. The Bakken requires approximately 115
new well completions per month to avoid production declines; and
only 42 new Bakken well completions occurred in February of 2015,
whereas new Bakken well completions averaged over 160 per month in
2014. Therefore, at current activity levels, U.S. production
could fall significantly in 2015 and 2016, while worldwide oil
production continues to stagnate or decrease slightly because
recent international production gains may not be sustainable over
the long term.
Core continues to project North American and international
activity levels to decline in the second quarter of 2015.
Therefore, the Company projects that second quarter revenue will
range between $192,000,000 and
$202,000,000, with EPS ranging between $0.76 and $0.81. FCF for the second quarter
2015 is expected to exceed $60,000,000, significantly greater than projected
net income.
All operational guidance excludes any foreign currency
translations and any shares that may be repurchased, other than
those already disclosed, and assumes an effective tax rate of
22.5%.
Core's view for the remainder of the year continues to be
constructive, yet uncertain, while the Company's customers are
prioritizing operating plans for conducting their activities in
this environment. Consequently, Core is not able to provide
quantitative guidance for the remainder of the year at this time,
although from a qualitative perspective, the Company's sense is
that industry activity levels will flatten in the third and fourth
quarters of 2015, with a V-shaped recovery in activity levels
starting in the first quarter of 2016.
The Company has scheduled a conference call to discuss Core's
first quarter 2015 earnings announcement. The call will begin
at 7:30 a.m. CDT / 2:30 p.m. CEST on Thursday, 23 April 2015.
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 2014
Form 10-K filed on 17 February 2015,
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
|
|
|
31 Mar
2015
|
|
31 Mar
2014
|
|
31 Dec
2014
|
|
vs
Q1-14
|
|
vs
Q4-14
|
REVENUE
|
$
|
213,643
|
|
|
$
|
262,903
|
|
|
$
|
278,622
|
|
|
(18.7)%
|
|
(23.3)%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Costs of services and
sales
|
144,274
|
|
|
161,669
|
|
|
168,517
|
|
|
(10.8)%
|
|
(14.4)%
|
|
General and
administrative expenses
|
12,674
|
|
|
10,519
|
|
|
11,672
|
|
|
20.5%
|
|
8.6%
|
|
Depreciation and
amortization
|
6,566
|
|
|
6,633
|
|
|
6,900
|
|
|
(1.0)%
|
|
(4.8)%
|
|
Other (income)
expense, net
|
322
|
|
|
1,255
|
|
|
1,084
|
|
|
(74.3)%
|
|
(70.3)%
|
|
Severance and other
charges
|
7,090
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
NM
|
|
Total operating
expenses
|
170,926
|
|
|
180,076
|
|
|
188,173
|
|
|
(5.1)%
|
|
(9.2)%
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
42,717
|
|
|
82,827
|
|
|
90,449
|
|
|
(48.4)%
|
|
(52.8)%
|
Interest
expense
|
2,403
|
|
|
2,363
|
|
|
2,882
|
|
|
1.7%
|
|
(16.6)%
|
Income before income
tax expense
|
40,314
|
|
|
80,464
|
|
|
87,567
|
|
|
(49.9)%
|
|
(54.0)%
|
Income tax
expense
|
9,272
|
|
|
19,311
|
|
|
20,841
|
|
|
(52.0)%
|
|
(55.5)%
|
Net income
|
31,042
|
|
|
61,153
|
|
|
66,726
|
|
|
(49.2)%
|
|
(53.5)%
|
Net income
attributable to non-controlling interest
|
(357)
|
|
|
89
|
|
|
537
|
|
|
NM
|
|
NM
|
Net income
attributable to Core Laboratories N.V.
|
$
|
31,399
|
|
|
$
|
61,064
|
|
|
$
|
66,189
|
|
|
(48.6)%
|
|
(52.6)%
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share:
|
$
|
0.72
|
|
|
$
|
1.35
|
|
|
$
|
1.51
|
|
|
(46.7)%
|
|
(52.3)%
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Avg Diluted
Common Shares Outstanding
|
43,466
|
|
|
45,182
|
|
|
43,927
|
|
|
(3.8)%
|
|
(1.0)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
121,759
|
|
|
$
|
125,256
|
|
|
$
|
131,749
|
|
|
(2.8)%
|
|
(7.6)%
|
Production
Enhancement
|
75,145
|
|
|
110,280
|
|
|
124,143
|
|
|
(31.9)%
|
|
(39.5)%
|
Reservoir
Management
|
16,739
|
|
|
27,367
|
|
|
22,730
|
|
|
(38.8)%
|
|
(26.4)%
|
|
Total
|
$
|
213,643
|
|
|
$
|
262,903
|
|
|
$
|
278,622
|
|
|
(18.7)%
|
|
(23.3)%
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
Reservoir
Description
|
$
|
28,530
|
|
|
$
|
34,853
|
|
|
$
|
37,052
|
|
|
(18.1)%
|
|
(23.0)%
|
Production
Enhancement
|
9,923
|
|
|
37,202
|
|
|
44,607
|
|
|
(73.3)%
|
|
(77.8)%
|
Reservoir
Management
|
3,866
|
|
|
10,474
|
|
|
9,399
|
|
|
(63.1)%
|
|
(58.9)%
|
Corporate and
other
|
398
|
|
|
298
|
|
|
(609)
|
|
|
NM
|
|
NM
|
|
Total
|
$
|
42,717
|
|
|
$
|
82,827
|
|
|
$
|
90,449
|
|
|
(48.4)%
|
|
(52.8)%
|
|
|
|
|
|
|
|
|
|
|
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
(amounts in
thousands)
|
|
ASSETS:
|
31 Mar
2015
|
|
31 Dec
2014
|
|
%
Variance
|
|
|
(Unaudited)
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
19,137
|
|
|
$
|
23,350
|
|
|
(18.0)%
|
Accounts Receivable,
net
|
158,861
|
|
|
197,163
|
|
|
(19.4)%
|
Inventory
|
49,169
|
|
|
43,371
|
|
|
13.4%
|
Other Current
Assets
|
29,561
|
|
|
37,936
|
|
|
(22.1)%
|
|
Total Current
Assets
|
256,728
|
|
|
301,820
|
|
|
(14.9)%
|
|
|
|
|
|
|
|
Property, Plant and
Equipment, net
|
147,961
|
|
|
149,014
|
|
|
(0.7)%
|
Intangibles, Goodwill
and Other Long Term Assets, net
|
225,319
|
|
|
224,819
|
|
|
0.2%
|
|
Total
Assets
|
$
|
630,008
|
|
|
$
|
675,653
|
|
|
(6.8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
Payable
|
50,998
|
|
|
47,084
|
|
|
8.3%
|
Other Current
Liabilities
|
80,528
|
|
|
84,782
|
|
|
(5.0)%
|
|
Total Current
Liabilities
|
131,526
|
|
|
131,866
|
|
|
(0.3)%
|
|
|
|
|
|
|
|
Long-Term Debt &
Lease Obligations
|
373,000
|
|
|
356,000
|
|
|
4.8%
|
Other Long-Term
Liabilities
|
92,937
|
|
|
93,794
|
|
|
(0.9)%
|
|
|
|
|
|
|
Total
Equity
|
32,545
|
|
|
93,993
|
|
|
(65.4)%
|
|
Total Liabilities and
Equity
|
$
|
630,008
|
|
|
$
|
675,653
|
|
|
(6.8)%
|
CORE LABORATORIES
N.V. & SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOW
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
|
|
31 Mar
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
$
|
79,578
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
(6,976)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
(76,815)
|
|
|
|
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
(4,213)
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
23,350
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
|
19,137
|
|
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
|
|
|
31 Mar
2015
|
|
Operating
income
|
$
|
42,717
|
|
|
Severance and other
charges
|
7,090
|
|
|
Foreign exchange
losses
|
843
|
|
|
Operating income
excluding specific items
|
$
|
50,650
|
|
|
|
Three Months Ended
31 March 2015
|
|
|
Reservoir
Description
|
|
Production
Enhancement
|
|
Reservoir
Management
|
|
Operating
income
|
$
|
28,530
|
|
|
$
|
9,923
|
|
|
$
|
3,866
|
|
|
Severance and other
charges
|
4,251
|
|
|
2,528
|
|
|
177
|
|
|
Foreign exchange
losses
|
(337)
|
|
|
963
|
|
|
217
|
|
|
Operating income
excluding specific items
|
$
|
32,444
|
|
|
$
|
13,414
|
|
|
$
|
4,260
|
|
|
Reconciliation of
Net Income
|
(amounts in
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
31 Mar
2015
|
|
Net income
|
$
|
31,399
|
|
|
Severance and other
charges (net of tax)
|
5,459
|
|
|
Foreign exchange
losses (net of tax)
|
649
|
|
|
Net income excluding
specific items
|
$
|
37,507
|
|
|
Reconciliation of
Earnings Per Diluted Share
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
31 Mar
2015
|
|
Earnings per diluted
share
|
$
|
0.72
|
|
|
Severance and other
charges (net of tax)
|
0.13
|
|
|
Foreign exchange
losses (net of tax)
|
0.01
|
|
|
Earnings per diluted
share excluding specific items
|
$
|
0.86
|
|
|
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
|
|
|
|
31 Mar
2015
|
|
Net cash provided by
operating activities
|
|
$
|
79,578
|
|
|
Capital
expenditures
|
|
(6,869)
|
|
|
Free cash
flow
|
|
$
|
72,709
|
|
|
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SOURCE Core Laboratories N.V.