HOUSTON, Nov. 4, 2014
/PRNewswire/ -- Tesco Corporation (NASDAQ: TESO) ("TESCO" or
the "Company") today reported net income of $7.5 million, or $0.18 per diluted share, for the third quarter
ended September 30, 2014. Adjusted net income for the quarter
was $11.1 million, or $0.27 per diluted share, which excludes the
after-tax impact of foreign currency losses in Argentina, Mexico and Russia, totaling $2.7
million, or $0.07 per diluted
share, and the negative tax impact of certain losses with no tax
benefit in several countries, or $0.02 per diluted share. This compares to net
income of $12.7 million, or
$0.31 per diluted share, in the
second quarter of 2014, and net income of $11.7 million, or $0.29 per diluted share, for the third quarter of
2013. Adjusted net income in the second quarter of 2014 was
$11.9 million, or $0.29 per diluted share. Third quarter 2014
revenue was $141.9 million, compared
to $145.1 million for the second
quarter of 2014 and to $132.2 million
for the third quarter of 2013, a decrease of 2% and an increase of
7%, respectively.
Commentary
Julio Quintana, TESCO's Chief
Executive Officer, commented, "This quarter proved to be
challenging on a couple of fronts. Managing exposure to various
currencies continues to be difficult in this economic environment.
Also, as we tighten our credit policy in several international
locations, deliveries of our products have a tendency to be pushed
out into future quarters. Finally, we experienced some short-term
tubular service activity declines in the U.S. due to sales coverage
and a contract extension delay in Ecuador. . On the positive front, the
operational momentum on a global scale remains strong. We hit
another record revenue in our After Market Sales and Service
business; a keystone of our strategy. Bookings for top drives
continued at a healthy level and we project a very strong delivery
volume in Q4 2014. Top drive rentals continues to strengthen,
particularly in our Latin American operations and despite headwinds
in Tubular Services in markets like Iraq; we are becoming more effective at
managing our costs to control margin erosion. We also expect
tubular service revenue and margins to improve as U.S. activity
levels have already rebounded in October back to the levels of the
first half of the year and the Ecuador contract has been extended. The fourth
quarter promises to be an excellent quarter and positions us well
for a healthy 2015. Finally, we continue to show the quality of our
operations through our ability to generate cash. We ended the
quarter with almost $88 million in
cash, despite paying a quarterly dividend of $0.05 per share, or $2.0
million, and repurchasing approximately 700,000 shares worth
$15 million during the third
quarter."
TESCO
CORPORATION
|
Summary of
Results
|
(in millions,
except per share information)
|
|
|
Three Months Ended
September 30,
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
September 30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
Segment
revenue
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Top Drives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
41.6
|
|
|
$
|
30.6
|
|
|
$
|
40.5
|
|
|
$
|
107.4
|
|
|
$
|
92.6
|
|
Rental
services
|
26.7
|
|
|
32.6
|
|
|
26.8
|
|
|
78.2
|
|
|
93.1
|
|
After-market sales and
service
|
19.4
|
|
|
14.8
|
|
|
19.0
|
|
|
53.1
|
|
|
44.0
|
|
|
87.7
|
|
|
78.0
|
|
|
86.3
|
|
|
238.7
|
|
|
229.7
|
|
Tubular
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automated
|
43.7
|
|
|
43.6
|
|
|
48.6
|
|
|
137.3
|
|
|
126.9
|
|
Conventional
|
10.5
|
|
|
10.6
|
|
|
10.2
|
|
|
32.4
|
|
|
31.1
|
|
|
54.2
|
|
|
54.2
|
|
|
58.8
|
|
|
169.7
|
|
|
158.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Casing
Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.6
|
|
Consolidated
revenue
|
$
|
141.9
|
|
|
$
|
132.2
|
|
|
$
|
145.1
|
|
|
$
|
408.5
|
|
|
$
|
388.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Top Drives
|
$
|
18.9
|
|
|
$
|
19.4
|
|
|
$
|
19.4
|
|
|
$
|
49.0
|
|
|
$
|
51.7
|
|
Tubular
Services
|
9.3
|
|
|
9.6
|
|
|
10.9
|
|
|
31.0
|
|
|
28.4
|
|
Casing
Drilling
|
(0.3)
|
|
|
—
|
|
|
—
|
|
|
(0.6)
|
|
|
2.0
|
|
Research and
Engineering
|
(1.9)
|
|
|
(2.1)
|
|
|
(2.5)
|
|
|
(6.8)
|
|
|
(6.7)
|
|
Corporate and
other
|
(9.0)
|
|
|
(9.1)
|
|
|
(9.3)
|
|
|
(28.0)
|
|
|
(32.0)
|
|
Consolidated operating
income
|
$
|
17.0
|
|
|
$
|
17.8
|
|
|
$
|
18.5
|
|
|
$
|
44.6
|
|
|
$
|
43.4
|
|
Net income
|
$
|
7.5
|
|
|
$
|
11.7
|
|
|
$
|
12.7
|
|
|
$
|
23.2
|
|
|
$
|
30.7
|
|
Earnings per share
(diluted)
|
$
|
0.18
|
|
|
$
|
0.29
|
|
|
$
|
0.31
|
|
|
$
|
0.57
|
|
|
$
|
0.78
|
|
Adjusted
EBITDA(a) (as defined)
|
$
|
28.5
|
|
|
$
|
29.1
|
|
|
$
|
30.0
|
|
|
$
|
80.5
|
|
|
$
|
76.4
|
|
________________________
|
(a)
|
See
explanation of Non-GAAP measure below
|
TESCO
CORPORATION
|
Operating
Metrics
|
|
|
Three Months Ended
September 30,
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
September 30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
Number of Top Drive
Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
32
|
|
|
21
|
|
|
33
|
|
|
84
|
|
|
64
|
|
Used or
consignment
|
1
|
|
|
5
|
|
|
2
|
|
|
4
|
|
|
10
|
|
|
33
|
|
|
26
|
|
|
35
|
|
|
88
|
|
|
74
|
|
End of period number
of top drives in rental fleet
|
135
|
|
|
130
|
|
|
135
|
|
|
135
|
|
|
130
|
|
Rental operating
days(a)
|
5,979
|
|
|
6,671
|
|
|
5,389
|
|
|
16,452
|
|
|
18,662
|
|
Average daily
operating rate
|
$
|
4,470
|
|
|
$
|
4,886
|
|
|
$
|
4,959
|
|
|
$
|
4,750
|
|
|
$
|
4,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tubular
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number
of automated jobs
|
1,045
|
|
|
1,063
|
|
|
1,075
|
|
|
3,128
|
|
|
2,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________________
|
(a)
|
Defined as a
day that a unit in our rental fleet is under contract and
operating; does not include stand-by days.
|
TESCO
CORPORATION
|
Non-GAAP Measure -
Adjusted EBITDA (1)
|
(in
millions)
|
|
|
Three Months Ended
September 30,
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
September 30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
Net income under U.S.
GAAP
|
$
|
7.5
|
|
|
$
|
11.7
|
|
|
$
|
12.7
|
|
|
$
|
23.2
|
|
|
$
|
30.7
|
|
Income tax
expense
|
6.1
|
|
|
5.5
|
|
|
6.6
|
|
|
14.8
|
|
|
11.8
|
|
Depreciation and
amortization
|
10.4
|
|
|
10.4
|
|
|
10.4
|
|
|
30.5
|
|
|
30.6
|
|
Net interest
expense
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
1.0
|
|
|
—
|
|
Stock compensation
expense—non-cash
|
1.2
|
|
|
1.4
|
|
|
1.1
|
|
|
4.0
|
|
|
4.7
|
|
Bad debt from certain
accounts
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
Foreign exchange
(gain) loss
|
3.1
|
|
|
0.5
|
|
|
(1.0)
|
|
|
5.4
|
|
|
2.5
|
|
Gain on sale of
Casing Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4)
|
|
Adjusted
EBITDA
|
$
|
28.5
|
|
|
$
|
29.6
|
|
|
$
|
30.0
|
|
|
$
|
80.5
|
|
|
$
|
78.9
|
|
|
|
(1)
|
Our management
reports our financial statements in accordance with U.S. GAAP but
evaluates our performance based on non-GAAP measures, of which a
primary performance measure is Adjusted EBITDA. Adjusted EBITDA
consists of earnings (net income or loss) available to common
stockholders before interest expense, income tax expense, foreign
exchange gains or losses, noted income or charges from certain
accounts, non-cash stock compensation, non-cash impairments,
depreciation and amortization, gains or losses from merger and
acquisition transactions and other non-cash items. This measure may
not be comparable to similarly titled measures employed by other
companies and is not a measure of performance calculated in
accordance with GAAP. Adjusted EBITDA should not be considered in
isolation or as substitutes for operating income, net income or
loss, cash flows provided by operating, investing and financing
activities, or other income or cash flow statement data prepared in
accordance with GAAP.
|
We believe Adjusted EBITDA is useful to an investor in
evaluating our operating performance because:
- it is widely used by investors in our industry to measure a
company's operating performance without regard to items such as net
interest expense, depreciation and amortization, which can vary
substantially from company to company depending upon accounting
methods and book value of assets, financing methods, capital
structure and the method by which assets were acquired;
- it helps investors more meaningfully evaluate and compare the
results of our operations from period to period by removing the
impact of our capital structure (primarily interest), merger and
acquisition transactions (primarily gains/losses on sale of a
business), and asset base (primarily depreciation and amortization)
and actions that do not affect liquidity (stock compensation
expense and non-cash impairments) from our operating results;
and
- it helps investors identify items that are within our
operational control. Depreciation and amortization charges, while a
component of operating income, are fixed at the time of the asset
purchase in accordance with the depreciable lives of the related
asset and as such are not a directly controllable period operating
charge.
Our management uses Adjusted EBITDA:
- as a measure of operating performance because it assists us in
comparing our performance on a consistent basis as it removes the
impact of our capital structure and asset base from our operating
results;
- as one method we use to evaluate potential acquisitions;
- in presentations to our Board of Directors to enable them to
have the same consistent measurement basis of operating performance
used by management;
- to assess compliance with financial ratios and covenants
included in our credit agreements; and
- in communications with investors, analysts, lenders, and others
concerning our financial performance.
TESCO
CORPORATION
|
Reconciliation of
GAAP Net Income to Adjusted Net Income
(2)
|
(in millions.
except earnings per share data)
|
|
|
Three Months Ended
September 30,
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
September 30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
Net income under U.S.
GAAP
|
$
|
7.5
|
|
|
$
|
11.7
|
|
|
$
|
12.7
|
|
|
$
|
23.2
|
|
|
$
|
30.7
|
|
Certain foreign
exchange (gains) losses
|
2.7
|
|
|
—
|
|
|
(0.8)
|
|
|
4.8
|
|
|
—
|
|
Bad debt on certain
accounts
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
Certain tax-related
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
(1.6)
|
|
Unbenefited Tax
Losses
|
0.9
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
(Gain)/Loss on sale
of Casing Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0)
|
|
Adjusted Net
Income
|
$
|
11.1
|
|
|
$
|
11.7
|
|
|
$
|
11.9
|
|
|
$
|
31.4
|
|
|
$
|
28.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income under U.S.
GAAP
|
$
|
0.18
|
|
|
$
|
0.29
|
|
|
$
|
0.31
|
|
|
$
|
0.57
|
|
|
$
|
0.78
|
|
Certain foreign
exchange (gains) losses
|
0.07
|
|
|
—
|
|
|
(0.02)
|
|
|
0.12
|
|
—
|
|
Bad debt on certain
accounts
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Certain tax-related
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
(0.04)
|
|
Unbenefited Tax
Losses
|
0.02
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
(Gain)/Loss on sale
of Casing Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
0.00
|
|
|
(0.03)
|
|
Adjusted Net
Income
|
$
|
0.27
|
|
|
$
|
0.29
|
|
|
$
|
0.29
|
|
|
$
|
0.77
|
|
|
$
|
0.71
|
|
|
|
(2)
|
Adjusted net income
is a non-GAAP measure comprised of net income attributable to Tesco
excluding the impact of certain identified items. The Company
believes that adjusted net income is useful to investors because it
is a consistent measure of the underlying results of the Company's
business. Furthermore, management uses adjusted net income as a
measure of the performance of the Company's operations.
|
Third Quarter 2014 Financial and
Operating Highlights
Top Drives Segment
- Revenue from the Top Drive segment for Q3 2014 was $87.7 million, a $1.4
million, or 1.6%, increase from Q2 2014 and a $9.7 million, or 12.4%, increase from Q3 2013.
- Top Drive sales for Q3 2014 included 33 units (32 new and 1
used), compared to 35 units (33 new and 2 used) sold in Q2 2014 and
26 units (21 new and 5 used) sold in Q3 2013. Revenue from
after-market sales and service for Q3 2014 was a record
$19.4 million, an increase of
$0.4 million, or 2.1%, from Q2 2014
and $4.6 million, or 31.1%, from Q3
2013.
- Operating days for the Top Drive rental fleet were 5,979 for Q3
2014 compared to 5,389 in Q2 2014 and 6,671 for Q3 2013.
- Operating income before adjustments in the Top Drive segment
for Q3 2014 was $18.9 million, a
$0.5 million, or 2.6%, decrease from
Q2 2014 and Q3 2013. Our Top Drive operating margins before
adjustments were 22% in Q3 2014, unchanged from Q2 2014 and a
decrease from 25% in Q3 2013.
- At September 30, 2014, Top Drive backlog was 47 units,
with a total potential value of $52.0
million, compared to 51 units at June 30, 2014, with a
potential value of $56.7
million. This compares to a backlog of 26 units
at September 30, 2013, with a potential value of $37.6 million. Today, our top drive
backlog stands at 50 units with a potential value of $57 million.
Tubular Services Segment
- Revenue from the Tubular Services segment for Q3 2014 was
$54.2 million, a $4.6 million, or 7.8%, decrease from Q2 2014 and
remained flat compared to Q3 2013. Revenue decreased
from Q2 2014 levels due to operations in Iraq stopping due to political instability,
the delay in shipping two CDS units into the fourth quarter and
activity levels in the U.S. and Ecuador.
- We performed 1,045 automated casing running jobs in Q3 2014
compared to 1,075 in Q2 2014 and 1,063 in Q3 2013.
- Operating income before adjustments in the Tubular Services
segment for Q3 2014 was $9.3 million,
a $1.6 million, or 14.7%, decrease
from Q2 2014 and a $0.3 million, or
3.1%, decrease from Q3 2013. Our Tubular Services operating
margins were 17% for Q3 2014, down from 18% in Q2 2014 and Q3 2013.
The leverage impact of lower revenue and the delayed CDS shipments
drove the decline in margins.
Other Segments and Expenses
- Research and engineering costs for Q3 2014 were $1.9 million, compared to $2.5 million in Q2 2014 and $2.1 million in Q3 2013. We continue to
invest in the development, commercialization, and enhancements of
our proprietary technologies relating to our Top Drive and Tubular
Services segments.
- Corporate and other costs for Q3 2014 were $9.0 million, a $0.3
million, or 3.2%, decrease from Q2 2014 and a $0.1 million, or 1.1%, decrease from Q3
2013.
- Net foreign exchange losses for Q3 2014 were $3.1 million, compared to foreign exchange gains
of $1.0 million in Q2 2014 and losses
of $0.5 million in Q3 2013. The
largest foreign exchange losses were from the Argentine peso, the
Russian ruble, and the Mexican peso in the amounts of $1.4 million, $0.8
million and $0.5 million,
respectively.
- Our effective tax rate for Q3 2014 was 45% compared to 34% in
Q2 2014 and 32% in Q3 2013. Our effective tax rate, which is income
tax expense as a percentage of pre-tax earnings, increased from Q2
2014 due to the fluctuating mix of pre-tax earnings in the various
tax jurisdictions in which we operate around the world, the
nondeductible nature of foreign exchange losses and certain
operating losses, and $1.4 million of
favorable tax settlements in foreign jurisdictions in the nine
months ended September 30, 2013, compared to $0.4 million of unfavorable tax settlements in
foreign jurisdictions in the nine months ended September 30,
2014.
- Total capital expenditures were $14.8
million in Q3 2014, primarily for tubular services
equipment, a $3.3 million, or 29.0%,
increase from Q2 2014 and a $6.4
million, or 76%, increase from Q3 2013.
Conference Call
The Company will conduct a conference call to discuss its
results for the third quarter 2014 on November 4, 2014 at
9:00 a.m. Central Time. To
participate in the conference call, dial 1-888-417-8465 inside the
U.S. or 1-719-325-2281 outside the U.S. approximately 10 minutes
prior to the scheduled start time. The conference call and all
questions and answers will be recorded and made available until
November 18, 2014. To listen to the
replay, call 1-888-203-1112 inside the U.S. or 1-719-457-0820
outside the U.S. and enter conference ID 3622319#.
The conference call will be webcast live as well as by replay at
the Company's web site, www.tescocorp.com. Listeners may access the
call through the "Conference Calls" link in the Investor Relations
section of the site.
TESCO Corporation is a global leader in the design, manufacture
and service of technology based solutions for the upstream energy
industry. The Company's strategy is to change the way people drill
wells by delivering safer and more efficient solutions that add
real value by reducing the costs of drilling for and producing oil
and natural gas. TESCO® is a registered trademark in
the United States and Canada. Casing Drive System™, CDS™, Multiple
Control Line Running System™ and MCLRS™ are trademarks in
the United States and Canada.
For further information please contact:
Chris
Boone (713) 359-7000
Tesco Corporation
Caution Regarding Forward-Looking Information and Risk
Factors
This news release contains forward-looking statements within
the meaning of Canadian and United
States securities laws, including the United States Private
Securities Litigation Reform Act of 1995. From time to time, our
public filings, press releases and other communications (such as
conference calls and presentations) will contain forward-looking
statements. Forward-looking information is often, but not always
identified by the use of words such as "anticipate", "believe",
"expect", "plan", "intend", "forecast", "target", "project", "may",
"will", "should", "could", "estimate", "predict" or similar words
suggesting future outcomes or language suggesting an outlook.
Forward-looking statements in this press release include, but are
not limited to, statements with respect to expectations of our
prospects, future revenue, earnings, activities and technical
results.
Forward-looking statements and information are based on
current beliefs as well as assumptions made by, and information
currently available to, us concerning anticipated financial
performance, business prospects, strategies and regulatory
developments. Although management considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. The forward-looking statements in this news
release are made as of the date it was issued and we do not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and
risks that outcomes implied by forward-looking statements will not
be achieved. We caution readers not to place undue reliance on
these statements as a number of important factors could cause the
actual results to differ materially from the beliefs, plans,
objectives, expectations and anticipations, estimates and
intentions expressed in such forward-looking statements.
These risks and uncertainties include, but are not limited
to, the impact of changes in oil and natural gas prices and
worldwide and domestic economic conditions on drilling activity and
demand for and pricing of our products and services, other risks
inherent in the drilling services industry (e.g. operational risks,
potential delays or changes in customers' exploration or
development projects or capital expenditures, the uncertainty of
estimates and projections relating to levels of rental activities,
uncertainty of estimates and projections of costs and expenses,
risks in conducting foreign operations, the consolidation of our
customers, and intense competition in our
industry), risks, including litigation, associated with
our intellectual property and with the performance of our
technology. These risks and uncertainties may cause our actual
results, levels of activity, performance or achievements to be
materially different from those expressed or implied by any
forward-looking statements. When relying on our forward-looking
statements to make decisions, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events.
Copies of our Canadian public filings are available through
www.tescocorp.com and on SEDAR at www.sedar.com. Our U.S. public
filings are available at www.sec.gov and through
www.tescocorp.com.
The risks included here are not exhaustive. Refer to "Part I,
Item 1A - Risk Factors" in our Annual Report on Form 10-K filed for
the year ended December 31, 2013 for
further discussion regarding our exposure to risks. Additionally,
new risk factors emerge from time to time and it is not possible
for us to predict all such factors, nor to assess the impact such
factors might have on our business or the extent to which any
factor or combination of factors may cause actual results to differ
materially from those contained in any forward looking statements.
Given these risks and uncertainties, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results.
TESCO
CORPORATION
|
Condensed
Consolidated Statements of Income
|
(in millions,
except per share information)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenue
|
$
|
141.9
|
|
|
$
|
132.2
|
|
|
$
|
408.5
|
|
|
$
|
388.3
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales and
services
|
112.4
|
|
|
102.6
|
|
|
319.1
|
|
|
303.5
|
|
Selling, general and
administrative
|
10.6
|
|
|
9.7
|
|
|
38.0
|
|
|
36.1
|
|
(Gain) Loss on sale of
Casing Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4)
|
|
Research and
engineering
|
1.9
|
|
|
2.1
|
|
|
6.8
|
|
|
6.7
|
|
|
124.9
|
|
|
114.4
|
|
|
363.9
|
|
|
344.9
|
|
Operating
income
|
17.0
|
|
|
17.8
|
|
|
44.6
|
|
|
43.4
|
|
Interest expense,
net
|
0.2
|
|
|
0.1
|
|
|
1.0
|
|
|
—
|
|
Other expense
(income), net
|
3.2
|
|
|
0.5
|
|
|
5.6
|
|
|
0.9
|
|
Income before income
taxes
|
13.6
|
|
|
17.2
|
|
|
38.0
|
|
|
42.5
|
|
Income
taxes
|
6.1
|
|
|
5.5
|
|
|
14.8
|
|
|
11.8
|
|
Net income
|
$
|
7.5
|
|
|
$
|
11.7
|
|
|
$
|
23.2
|
|
|
$
|
30.7
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.19
|
|
|
$
|
0.30
|
|
|
$
|
0.58
|
|
|
$
|
0.79
|
|
Diluted
|
$
|
0.18
|
|
|
$
|
0.29
|
|
|
$
|
0.57
|
|
|
$
|
0.78
|
|
Dividends per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
0.10
|
|
|
$
|
—
|
|
Weighted average
number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
40.0
|
|
|
39.1
|
|
|
40.0
|
|
|
39.0
|
|
Diluted
|
40.6
|
|
|
39.8
|
|
|
40.6
|
|
|
39.6
|
|
TESCO
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
(in
millions)
|
|
|
September 30,
2014
|
|
December 31,
2013
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
87.7
|
|
|
$
|
97.3
|
|
Accounts receivable,
net
|
127.7
|
|
|
142.6
|
|
Inventories,
net
|
117.1
|
|
|
97.4
|
|
Other current
assets
|
41.7
|
|
|
44.1
|
|
Total current
assets
|
374.2
|
|
|
381.4
|
|
Property, plant and
equipment, net
|
203.8
|
|
|
204.9
|
|
Goodwill
|
34.4
|
|
|
32.7
|
|
Other
assets
|
15.3
|
|
|
18.7
|
|
Total
assets
|
$
|
627.7
|
|
|
$
|
637.7
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current portion of
long term debt
|
$
|
0.1
|
|
|
$
|
0.4
|
|
Accounts
payable
|
37.2
|
|
|
45.6
|
|
Accrued and other
current liabilities
|
43.7
|
|
|
59.1
|
|
Income taxes
payable
|
3.7
|
|
|
5.9
|
|
Total current
liabilities
|
84.7
|
|
|
111.0
|
|
Other
liabilities
|
1.2
|
|
|
0.2
|
|
Long-term
debt
|
—
|
|
|
—
|
|
Deferred income
taxes
|
9.7
|
|
|
9.5
|
|
Shareholders'
equity
|
532.1
|
|
|
517.0
|
|
Total
liabilities and shareholders' equity
|
$
|
627.7
|
|
|
$
|
637.7
|
|
SOURCE Tesco Corporation