AMSTERDAM, April 18, 2012
/PRNewswire/ -- Core Laboratories N.V. (NYSE: CLB) reported
first quarter 2012 net income of $53,951,000 and earnings per diluted share
("EPS") of $1.13, which included
approximately $0.07 per share in
gains from foreign exchange translations and a favorable insurance
settlement. Excluding these gains and year-ago net gains from
one-time items, EPS increased 38%, while net income increased 34%
over year-earlier first quarter totals. First quarter 2012
revenue increased 13% over year-earlier levels to $234,191,000. Operating income, defined as
revenue minus expenses, climbed 24% to $69,514,000, excluding the items above, from
$55,987,000 in last year's first
quarter, while operating margins increased 300 basis points to 30%.
Year-over-year quarterly incremental margins, calculated as the
change in operating income divided by the change in revenue,
increased to 49%. Free cash flow ("FCF"), defined as cash
from operations minus capital expenditures, was $46,492,000 in the quarter, while the Company's
diluted share count decreased 2% year-over-year to
47,945,000. During the quarter, Core returned over
$26,000,000 to its shareholders by
repurchasing 104,279 shares and paying dividends totaling over
$13,000,000, and at the same time,
the Company reduced its outstanding debt. Also in the first
quarter, the Company commenced the process for the dual listing of
its common shares on the NYSE Euronext Amsterdam stock exchange and
now expects to complete the listing process in mid-May.
(Logo:
http://photos.prnewswire.com/prnh/20100712/DA33898LOGO)
Core's first quarter 2012 EPS, net income, operating income and
operating margins, all excluding specific items, were at record
highs for any first quarter in Company history. These records
resulted from continued high demand for the Company's proprietary
and patented technologies, services, and products that help oil
companies increase daily production and maximize the total
hydrocarbon recovery from conventional and unconventional
reservoirs. Deepwater projects worldwide and increased
activities in North American oil-shale reservoirs, lifted first
quarter 2012 results.
Continued emphasis on selecting projects that yield superior
returns has the Company focused on major, giant, and super-giant
hydrocarbon developments worldwide. Most of these
developments are in deepwater, however, the Company is also seeing
high returns from projects in the North Sea, the Middle East, especially Iraq, Asia
Pacific, and unconventional oil reservoirs in North America.
As reported the previous ten 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 more
than 38 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.
Segment Highlights
Core Laboratories reports results under three operating
segments: Reservoir Description, Production Enhancement, and
Reservoir Management.
Reservoir Description
Reservoir Description operations, focusing primarily on
international developments, reported first quarter 2012 revenue of
$116,106,000 and operating income of
$31,953,000, increases of 8% and 22%,
respectively, over year-ago totals, excluding currency translation
gains. By comparison, the international rig count increased
just 2% over the last 12 months. Operating margins, excluding
currency gains, increased 400 basis points to 28%, while
year-over-year quarterly incremental margins were 68%. The
strong increases in operating and incremental margins are
attributable to the continuation and expansion of deepwater
projects worldwide. During the quarter, the Company initiated
new studies, and continued projects, involving hundreds of meters
of cores and hundreds of reservoir fluid samples, including crude
oils, natural gases, natural gas liquids, and connate waters from
deepwater Gulf of Mexico, offshore
Brazil, offshore West Africa, including areas off Ghana and south to Angola, East
Africa, the eastern sections of the Mediterranean province,
and offshore northwest Australia.
Routine rock properties and reservoir-condition, advanced rock
properties data sets are being generated and will be combined with
data from pressure, volume and temperature ("PVT") and crude oil
testing, inspection, distillation, fractionation, and
characterization analyses to determine maximum sustainable daily
hydrocarbon flows for optimized recovery from these deepwater
assets. Through detailed examinations of cores and their
sedimentological features and structural elements, Core Lab
geologists have reconstructed the depositional processes to better
define reservoir quality.
Estimated hydrocarbon recovery rates for several deepwater
fields have recently been projected to be below the worldwide
average of approximately 40% because of the compositions and
interactions of the reservoir fluids or the quality of reservoir
rocks. Field operators have asked Core to apply comprehensive
and integrated core analysis, reservoir fluids, and reservoir
geology data sets to increase ultimate hydrocarbon recovery rates
by formulating long-term pressure maintenance and enhanced oil
recovery programs that involve reinjection of various gases,
including nitrogen, CO2, and liquid hydrocarbon components.
The Company has successfully introduced several advanced
technologies related to Digital Core Analysis. Core is
integrating computed 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
generated quickly and are cost-effective. Moreover, all
of the analyses are non-destructive, and the data sets generated
are superior to permeability estimates using older,
sample-destructive, ion-milling techniques.
Production Enhancement
Production Enhancement operations reported first quarter 2012
revenue of $96,733,000, an increase
of 18% over year-ago totals. Operating income, excluding gains from
an insurance settlement and currency translation gains, was
$29,658,000, an increase of 29% over
year-earlier totals. Operating margins, excluding gains, were 31%,
while year-over-year quarterly incremental margins reached 46%. The
insurance settlement is related to last year's business
interruption precipitated by shortages of certain specialty steel
supplies that resulted from a fire in a supplier's mill in
Germany. Core has since established multiple suppliers for
these specialty steel supplies.
Production Enhancement results were strengthened by continued
market penetration by the Company's patented and proprietary
HTD-Blast™ perforating system, which improves the
economics of extended-reach horizontal, multi-staged well
completions, especially in the toe portions of the well.
Since its introduction just over one year ago, Core estimates that
the HTD-Blast™ perforating system was used on
approximately 3,000 of the approximately 8,000 extended-reach
horizontal primarily oil wells drilled. Additionally, the
HTD-Blast™ system, originally designed to deliver up
to eight perforating guns, has been upgraded to deliver up to 27
perforating events.
Core is also seeing unprecedented demand for the Company's
patented and proprietary hydraulic-fracture and field-flood
diagnostic technologies. Core's SpectraChem® tracers,
detectable at concentrations in the parts-per-billion, are being
used to determine the effectiveness and efficiencies of multi-stage
hydraulic fractures in extended-reach horizontal wells. The
combination of Core's SpectraChem® tracers and
HTD-Blast™ technologies, enables oil company clients
to immediately optimize horizontal wellbore completion and
stimulation programs. In addition, the SpectraChem® tracers'
various chemical isomers are being used to determine the direction
of flow and the sweep efficiencies of large field floods in
North America and international
areas. These field flood studies include large miscible-gas
flood projects currently underway or in the planning stages in the
Middle East.
Reservoir Management
Reservoir Management operations reported first quarter 2012
revenue of $21,352,000 and operating
income of $7,915,000, increasing 25%
and 19%, respectively, over year-ago quarterly totals.
Operating margins were 37%.
Reservoir Management operations continued to expand 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 the Vaca Muerta formation in Argentina, the Tanezzuft formation in
North Africa, and numerous
formations in the Middle East,
Indonesia, Australia, and China. Core was directed
by two major oil companies to build two new dedicated facilities to
evaluate, analyze, and characterize unconventional oil-shale
reservoirs in Argentina and
Australia. Plans for construction of both facilities are
underway although the Company is monitoring events in Argentina to determine how ROIC may be
affected as a result of the proposed nationalization of YPF
Sociedad Anonima and whether the construction of the facility will
meet Company specific ROIC guidelines.
The Company's Eagle Ford Shale Study now has 38
participants as interest continues to grow in unconventional
oil-shale reservoirs in West Texas. Core's Tight Oil
Reservoirs of the Midland Basin Study has quickly grown to 22
members focusing on oil bearing shales including the Wolfcamp in
the Permian Basin. Core believes that there is one, and
possibly two, large-scale unconventional shale oil developments
remaining in North America.
In deepwater Africa, Reservoir
Management continues to see strong interest in petrophysical data
sets from offshore Kenya and
Tanzania and has initiated a study
of reservoir rocks offshore Namibia and South
Africa in the North Orange basin.
Free Cash Flow, Share Repurchases, Dividends, Capital
Returned To Shareholders
During the first quarter of 2012, Core Laboratories generated
$53,789,000 of cash from operating
activities and had capital expenditures of $7,297,000, yielding $46,492,000 in FCF. This cash was used to
pay down outstanding debt by $25,000,000, to pay $13,000,000 in cash dividends, and to repurchase
104,279 shares at a cost of $12,889,000 for an average per share price of
$123.60. Year-over-year, Core
decreased its average diluted quarterly share count by
approximately 2%, from 49,141,000 to 47,945,000.
On 13 January 2012, the Company's
Board announced a quarterly cash dividend of $0.28 per share that was paid in the first
quarter 2012. This amount represented a 12% increase over the
quarterly dividends of $0.25 per
share that were paid in 2011, and if paid each quarter of 2012,
would equal a payout of $1.12 per
share of common stock. The quarterly $0.28 per share cash dividend was paid on
24 February 2012 to shareholders of
record on 24 January 2012. Dutch withholding tax was deducted
from the dividend at the rate of 15%. For the quarter, Core
returned over $26,000,000 to its
shareholders in the forms of share repurchases and
dividends.
On 16 April 2012, the Board
announced a cash dividend of $0.28
per share of common stock payable in the second quarter of
2012. The quarterly $0.28 per
share cash dividend will be payable on 25
May 2012 to shareholders of record on 27 April 2012.
Dutch withholding tax will be deducted from the dividend at a rate
of 15%.
Return On Invested Capital
As reported in the previous ten 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 38 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 first quarter
2012 in its second quarter 2012 earnings release.
NYSE Euronext Amsterdam Stock Exchange Dual Listing Planned
for Mid-May 2012
Core Laboratories N.V. is a Dutch company with operational
subsidiaries, 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 to just over $6 billion, so too has interest from prospective
international institutional investors in participating in 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 plans to dual list the Company's shares on the
NYSE Euronext Exchange in Amsterdam in mid-May. The NYSE Euronext
Amsterdam Stock Exchange is considered a logical choice for a dual
listing given the Company's historical ties to Holland, its relatively large operational
footprint in the Netherlands with
laboratories in Rotterdam,
Vlaardingen, and Amsterdam, its
client base, and the presence of several other distinctive global
service providers to the oil and gas industry. European
institutional investors currently hold approximately 5% of Core's
outstanding shares, and the Company believes the NYSE Euronext
listing will expand Core's international investor ownership.
General Industry Outlook
As a result of the dual listing process of its shares on the
NYSE Euronext Amsterdam, the Company is not issuing specific
quarterly and annual earnings guidance until the listing process is
complete. However, Core Lab is able to update its general
industry outlook.
For the second quarter and remainder of 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. These prior observations have
been supported by the recent announcement of pre-salt discoveries
by Maersk Oil and Cobalt International Energy in the Kwanza
basin. Other international areas including the Middle East specifically Iraq, and Asia
Pacific, should see activity levels remain brisk with the
support of higher international commodity prices. In
addition, Core should benefit from increasing activities in the
deepwater Gulf of Mexico, which is
projected to approach the highs of early 2008 by late 2012.
Core will also benefit from increasing activities in unconventional
oil-shale reservoirs, not only in North
America, but also in South
America and North Africa. Core assumes that
worldwide activity levels will increase by 10%, and possibly more,
with sustained higher commodity prices.
Core will resume quarterly and annual revenue and EPS guidance
once its shares commence trading on the NYSE Euronext Amsterdam
Exchange, in addition to continued trading on the NYSE.
The Company has scheduled a conference call to discuss Core's
first quarter 2012 earnings announcement. The call will begin
at 7:30 a.m. CDT on Thursday,
19 April 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 2011
Form 10-K filed on 15 February 2012,
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
|
|
|
|
|
31
March 2012
|
|
31
March 2011
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
REVENUE
|
|
$
|
234,191
|
|
|
$
|
206,733
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
Costs of
services and sales
|
|
149,140
|
|
|
136,750
|
|
|
|
General
and administrative expenses
|
|
10,174
|
|
|
9,524
|
|
|
|
Depreciation and amortization
|
|
5,883
|
|
|
5,831
|
|
|
|
Other
(income) expense, net
|
|
(4,912)
|
|
|
(1,871)
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
73,906
|
|
|
56,499
|
|
|
Loss on
exchange of Senior Exchangeable Notes
|
|
—
|
|
|
629
|
|
|
Interest
expense
|
|
2,190
|
|
|
2,360
|
|
|
|
|
|
|
|
|
|
INCOME
BEFORE INCOME TAX EXPENSE
|
|
71,716
|
|
|
53,510
|
|
|
INCOME TAX
EXPENSE
|
|
17,786
|
|
|
7,518
|
|
|
NET
INCOME
|
|
53,930
|
|
|
45,992
|
|
|
NET INCOME
(LOSS) ATTRIBUTABLE TO
NON-CONTROLLING
INTEREST
|
|
(21)
|
|
|
(298)
|
|
|
NET INCOME
ATTRIBUTABLE TO CORE
LABORATORIES
N.V.
|
|
$
|
53,951
|
|
|
$
|
46,290
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Share:
|
$
|
1.13
|
|
|
$
|
0.94
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE DILUTED COMMON SHARES OUTSTANDING
|
47,945
|
|
|
49,141
|
|
|
|
|
|
|
|
|
SEGMENT
INFORMATION:
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
Reservoir
Description
|
$
|
116,106
|
|
|
$
|
107,621
|
|
|
Production
Enhancement
|
96,733
|
|
|
82,098
|
|
|
Reservoir
Management
|
21,352
|
|
|
17,014
|
|
|
|
Total
|
$
|
234,191
|
|
|
$
|
206,733
|
|
|
|
|
|
|
|
|
|
Operating income (loss):
|
|
|
|
|
Reservoir
Description
|
$
|
32,415
|
|
|
$
|
26,438
|
|
|
Production
Enhancement
|
33,531
|
|
|
23,262
|
|
|
Reservoir
Management
|
7,915
|
|
|
6,664
|
|
|
Corporate
and other
|
45
|
|
|
135
|
|
|
|
Total
|
$
|
73,906
|
|
|
$
|
56,499
|
|
|
CORE
LABORATORIES N.V. & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(amounts in thousands)
|
ASSETS:
|
31
March 2012
|
|
31
December 2011
|
|
|
(Unaudited)
|
|
|
Cash and
Cash Equivalents
|
$
|
23,537
|
|
|
$
|
29,332
|
|
Accounts
Receivable, net
|
171,656
|
|
|
170,805
|
|
Inventory
|
58,119
|
|
|
53,214
|
|
Other
Current Assets
|
31,014
|
|
|
27,463
|
|
|
Total
Current Assets
|
284,326
|
|
|
280,814
|
|
|
|
|
|
|
Property,
Plant and Equipment, net
|
114,812
|
|
|
115,295
|
|
Intangibles, Goodwill and Other Long Term Assets,
net
|
211,540
|
|
|
209,030
|
|
|
Total
Assets
|
$
|
610,678
|
|
|
$
|
605,139
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY:
|
|
|
|
|
|
|
|
|
Short-Term
Debt & Lease Obligations
|
$
|
1,487
|
|
|
$
|
2,344
|
|
Accounts
Payable
|
48,189
|
|
|
57,639
|
|
Other
Current Liabilities
|
81,997
|
|
|
77,478
|
|
|
Total
Current Liabilities
|
131,673
|
|
|
137,461
|
|
|
|
|
|
|
Long-Term
Debt & Lease Obligations
|
$
|
198,066
|
|
|
$
|
223,075
|
|
Other
Long-Term Liabilities
|
66,675
|
|
|
62,948
|
|
|
|
|
|
Total
Equity
|
214,264
|
|
|
181,655
|
|
|
Total
Liabilities and Equity
|
$
|
610,678
|
|
|
$
|
605,139
|
|
|
|
|
|
|
CORE
LABORATORIES N.V. & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
(amounts in thousands)
(Unaudited)
|
|
|
|
Three
Months Ended
|
|
|
|
31
March 2012
|
|
|
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES
|
$
|
53,789
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES
|
(7,987)
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES
|
(51,597)
|
|
|
|
|
|
NET CHANGE
IN CASH AND CASH EQUIVALENTS
|
(5,795)
|
|
CASH AND
CASH EQUIVALENTS, beginning of period
|
29,332
|
|
CASH AND
CASH EQUIVALENTS, end of period
|
$
|
23,537
|
|
|
|
|
|
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
|
|
Three
Months Ended
|
|
|
31
March 2012
|
|
31
March 2011
|
|
|
|
|
|
|
Operating
income
|
$
|
73,906
|
|
|
$
|
56,499
|
|
|
Gain from
insurance settlement
|
(3,366)
|
|
|
—
|
|
|
Foreign
exchange gains
|
(1,026)
|
|
|
(512)
|
|
|
Operating
income excluding specific items
|
$
|
69,514
|
|
|
$
|
55,987
|
|
|
|
|
|
|
|
|
Reservoir Description
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
|
31
March 2012
|
|
31
March 2011
|
|
|
|
|
|
|
Operating
income
|
$
|
32,415
|
|
|
$
|
26,438
|
|
|
Foreign
exchange gains
|
(462)
|
|
|
(260)
|
|
|
Operating
income excluding specific items
|
$
|
31,953
|
|
|
$
|
26,178
|
|
|
|
|
|
|
|
|
Production Enhancement
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
|
31
March 2012
|
|
31
March 2011
|
|
|
|
|
|
|
Operating
income
|
$
|
33,531
|
|
|
$
|
23,262
|
|
|
Gain from
insurance settlement
|
(3,366)
|
|
|
—
|
|
|
Foreign
exchange gains
|
(507)
|
|
|
(290)
|
|
|
Operating
income excluding specific items
|
$
|
29,658
|
|
|
$
|
22,972
|
|
|
|
|
|
|
|
Reconciliation of Net Income
(amounts in thousands)
(Unaudited)
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
|
31
March 2012
|
|
31
March 2011
|
|
|
|
|
|
|
Net
income
|
$
|
53,951
|
|
|
$
|
46,290
|
|
|
Gain from
insurance settlement (net of tax)
|
(2,531)
|
|
|
—
|
|
|
Foreign
exchange gains (net of tax)
|
(772)
|
|
|
(358)
|
|
|
Loss on
exchange of Notes
|
—
|
|
|
629
|
|
|
Impact of
lower effective tax rate
|
—
|
|
|
(8,724)
|
|
|
Net income
excluding specific items
|
$
|
50,648
|
|
|
$
|
37,837
|
|
|
|
|
|
|
|
Reconciliation of Earnings Per Diluted
Share
(Unaudited)
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
|
31
March 2012
|
|
31
March 2011
|
|
|
|
|
|
|
Earnings
per diluted share
|
$
|
1.13
|
|
|
$
|
0.94
|
|
|
Gain from
insurance settlement (net of tax)
|
(0.05)
|
|
|
—
|
|
|
Foreign
exchange gains (net of tax)
|
(0.02)
|
|
|
(0.01)
|
|
|
Loss on
exchange of Notes
|
—
|
|
|
0.01
|
|
|
Impact of
lower effective tax rate
|
—
|
|
|
(0.17)
|
|
|
Earnings
per diluted share excluding specific items
|
$
|
1.06
|
|
|
$
|
0.77
|
|
|
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
March 2012
|
|
|
|
Net cash
provided by operating activities
|
|
$
|
53,789
|
|
Less:
capital expenditures
|
|
(7,297)
|
|
Free cash
flow
|
|
$
|
46,492
|
|
SOURCE Core Laboratories N.V.