HOUSTON, March 31, 2015
/CNW/ -- Tesco Corporation (NASDAQ: TESO) ("TESCO" or the
"Company") today reported a net loss of $2.1
million, or $(0.05) per
diluted share, for the fourth quarter ended December 31, 2014.
Adjusted net income for the quarter was $4.8
million, or $0.12 per diluted
share, which excludes the impact of certain foreign currency
losses, certain warranty and legal reserves, asset valuation
charges against our Venezuelan operation, and costs associated with
executive retirement and other severance costs. This compares to
net income of $7.5 million, or
$0.18 per diluted share, in the third
quarter of 2014, and net income of $5.1
million, or $0.13 per diluted
share, for the fourth quarter of 2013. Adjusted net income in the
third quarter of 2014 was $11.1
million, or $0.27 per diluted
share, and in the fourth quarter of 2013 was $8.3 million, or $0.21 per diluted share. Fourth quarter 2014
revenue was $134.5 million, compared
to $141.9 million for the third
quarter of 2014 and to $136.8 million
for the fourth quarter of 2013, a decrease of 5% and 2%,
respectively.
As disclosed in the Company's Annual Report on Form 10-K for the
year ended December 31, 2014, certain
prior-period financial information has been revised to properly
reflect out-of-period adjustments found during the year-end close
and audit process. All prior-period financial information in this
news release has been revised. The revisions to prior years did not
reach the materiality threshold to require restatements.
As a result of the financial control assessment around the
out-of-period adjustments requiring this revision, the Company has
determined it has a material weakness in its financial controls
over certain processes impacted by foreign exchange revaluation.
While the Company believes it has developed enhanced controls to
remediate this control weakness, the Company will have to test the
effectiveness of the enhanced controls over several quarters to
validate the remediation.
Commentary
Fernando Assing, TESCO's Chief
Executive Officer, commented, "As we announced in December, the
rapid decline in energy prices in the fourth quarter impacted
drilling activity and consequently reduced our customers' planned
spending. These developments affected the demand for TESCO's
capital equipment as some customers requested to defer the shipment
of eight top drives from the fourth quarter of 2014 to 2015 or
2016. In addition, we received order cancellations for six top
drives that impacted the fourth quarter. We shipped 26 top drives
and booked 18 new top drives during the fourth quarter, before
cancellations. We also experienced tubular service activity
declines, primarily in North
America, as well as some temporary client-related rig
activity disruptions in Mexico and
temporary customer drilling program changes in Argentina.
"During the fourth quarter, we initiated restructuring
activities to address the expected market pressures of 2015 that
should provide annualized savings of $3
million per year with a full benefit starting in the second
half of 2015. These actions resulted in approximately $1 million of charges. We ended the quarter
with almost $73 million in cash,
despite paying a quarterly dividend of $0.05 per share, or $2.0
million, and repurchasing approximately 918,000 shares for
$12 million during the fourth
quarter.
"During the first quarter of 2015, we expect to report 14 top
drives shipped and five top drives booked, resulting in a backlog
of 24 units, of which 12 are scheduled to ship in 2015. With lower
activity and pricing pressures in most of our offerings and cost
reductions lagging activity and pricing declines, especially in
North America, we expect to incur
a small operating loss in the first quarter before restructuring
charges. Tesco's revenues are highly correlated to rig count, and
the declines in rig count experienced in the first quarter are
expected to continue to negatively impact Tesco during the second
quarter and potentially for the balance of the year. During the
first quarter, we accelerated the restructuring initiatives through
headcount reductions, wage and benefit reductions and operating
expense controls. These additional measures will result in charges
of approximately $2.5 to $3.0 million
in the first quarter but are expected to provide annualized savings
of over $25 million per year with a
full benefit starting in the second half of 2015. We will continue
to take actions to protect profitability in this market.
"However, we have also been actively pursuing opportunities to
increase our market share in third-party top drive after-market and
reframing our tubular service offerings, including adding
additional scope and offerings. We are positioned to deal with the
current market conditions, and cash generation and preservation
remains a top priority until such conditions improve. Our balance
sheet provides stability and flexibility, and our technologies,
safety and quality will continue to provide the differentiation
required to be competitive in the market place."
TESCO
CORPORATION
Summary of
Results
(in millions,
except per share amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Three Months
Ended
September 30,
|
|
Year Ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
Segment
revenue
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Top Drives
|
|
|
|
|
|
|
|
|
|
Sales
|
$
|
35.2
|
|
|
$
|
34.6
|
|
|
$
|
41.6
|
|
|
$
|
142.6
|
|
|
$
|
127.2
|
|
Rental
services
|
25.5
|
|
|
32.0
|
|
|
26.7
|
|
|
103.7
|
|
|
125.1
|
|
After-market sales and
service
|
19.4
|
|
|
15.3
|
|
|
19.4
|
|
|
72.5
|
|
|
59.3
|
|
|
80.1
|
|
|
81.9
|
|
|
87.7
|
|
|
318.8
|
|
|
311.6
|
|
Tubular
Services
|
|
|
|
|
|
|
|
|
|
Automated
|
44.3
|
|
|
45.2
|
|
|
43.7
|
|
|
181.6
|
|
|
171.9
|
|
Conventional
|
10.1
|
|
|
9.7
|
|
|
10.5
|
|
|
42.5
|
|
|
40.8
|
|
|
54.4
|
|
|
54.9
|
|
|
54.2
|
|
|
224.1
|
|
|
212.7
|
|
|
|
|
|
|
|
|
|
|
|
Casing
Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.6
|
|
Consolidated
revenue
|
$
|
134.5
|
|
|
$
|
136.8
|
|
|
$
|
141.9
|
|
|
$
|
543.0
|
|
|
$
|
524.9
|
|
|
|
|
|
|
|
|
|
|
|
Segment operating
income (loss):
|
|
|
|
|
|
|
|
|
|
Top Drives
|
$
|
9.8
|
|
|
$
|
15.7
|
|
|
$
|
18.9
|
|
|
$
|
58.6
|
|
|
$
|
68.0
|
|
Tubular
Services
|
4.1
|
|
|
8.3
|
|
|
9.3
|
|
|
35.5
|
|
|
35.9
|
|
Casing
Drilling
|
—
|
|
|
0.1
|
|
|
(0.3)
|
|
|
(0.6)
|
|
|
2.1
|
|
Research and
Engineering
|
(2.8)
|
|
|
(1.9)
|
|
|
(1.9)
|
|
|
(9.6)
|
|
|
(8.6)
|
|
Corporate and
other
|
(9.5)
|
|
|
(10.4)
|
|
|
(9.0)
|
|
|
(37.4)
|
|
|
(42.6)
|
|
Consolidated operating
income
|
$
|
1.6
|
|
|
$
|
11.8
|
|
|
$
|
17.0
|
|
|
$
|
46.5
|
|
|
$
|
54.8
|
|
Net income
(loss)
|
$
|
(2.1)
|
|
|
$
|
5.1
|
|
|
$
|
7.5
|
|
|
$
|
21.4
|
|
|
$
|
35.3
|
|
Earnings (loss) per
share (diluted)
|
$
|
(0.05)
|
|
|
$
|
0.13
|
|
|
$
|
0.18
|
|
|
$
|
0.53
|
|
|
$
|
0.89
|
|
Adjusted
EBITDA(a) (as defined)
|
$
|
22.6
|
|
|
$
|
24.6
|
|
|
$
|
28.5
|
|
|
$
|
104.1
|
|
|
$
|
103.4
|
|
|
________________________
|
(a) See explanation of
Non-GAAP measure below
|
TESCO
CORPORATION
Non-GAAP Measure -
Adjusted EBITDA (1)
(in
millions)
|
|
|
Three Months
Ended
December 31,
|
|
Three Months
Ended
September 30,
|
|
Year Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
Net income under U.S.
GAAP
|
$
|
(2.1)
|
|
|
$
|
5.1
|
|
|
$
|
7.5
|
|
|
$
|
21.4
|
|
|
$
|
35.3
|
|
Income tax
expense
|
1.8
|
|
|
3.2
|
|
|
6.1
|
|
|
17.0
|
|
|
15.0
|
|
Depreciation and
amortization
|
11.5
|
|
|
10.3
|
|
|
10.4
|
|
|
42.0
|
|
|
41.2
|
|
Net interest
expense
|
0.2
|
|
|
0.7
|
|
|
0.2
|
|
|
1.0
|
|
|
0.8
|
|
Stock compensation
expense—non-cash
|
0.8
|
|
|
1.3
|
|
|
1.2
|
|
|
4.7
|
|
|
5.9
|
|
Severance &
executive retirement charges
|
2.8
|
|
|
1.3
|
|
|
—
|
|
|
2.8
|
|
|
1.3
|
|
Bad debt from certain
accounts
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
Foreign exchange
(gain) loss
|
1.9
|
|
|
2.7
|
|
|
3.1
|
|
|
7.1
|
|
|
5.3
|
|
Venezuela
charges
|
3.1
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|
—
|
|
Warranty & legal
reserves
|
2.6
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
Gain on sale of
Casing Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4)
|
|
Adjusted
EBITDA
|
$
|
22.6
|
|
|
$
|
24.6
|
|
|
$
|
28.5
|
|
|
$
|
104.1
|
|
|
$
|
103.4
|
|
|
|
(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 amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Three Months
Ended
September 30,
|
|
Year Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
Net income (loss)
under U.S. GAAP
|
$
|
(2.1)
|
|
|
$
|
5.1
|
|
|
$
|
7.5
|
|
|
$
|
21.4
|
|
|
$
|
35.3
|
|
Severance &
executive retirement charges
|
2.1
|
|
|
0.9
|
|
|
—
|
|
|
2.1
|
|
|
0.9
|
|
Warranty & Legal
reserves
|
1.9
|
|
|
—
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
Certain foreign
exchange (gains) losses
|
0.6
|
|
|
2.3
|
|
|
2.7
|
|
|
4.7
|
|
|
4.8
|
|
Bad debt on certain
accounts
|
—
|
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
Certain tax-related
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
Venezuela
charges
|
2.3
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
(Gain)/Loss on sale
of Casing Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.0)
|
|
Adjusted Net
Income
|
$
|
4.8
|
|
|
$
|
8.3
|
|
|
$
|
10.2
|
|
|
$
|
34.9
|
|
|
$
|
40.0
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
under U.S. GAAP
|
$
|
(0.05)
|
|
|
$
|
0.13
|
|
|
$
|
0.18
|
|
|
$
|
0.53
|
|
|
$
|
0.89
|
|
Severance &
executive retirement charges
|
0.05
|
|
|
0.02
|
|
|
—
|
|
|
0.05
|
|
|
0.02
|
|
Warranty & Legal
reserves
|
0.05
|
|
|
—
|
|
|
—
|
|
|
0.05
|
|
|
—
|
|
Certain foreign
exchange (gains) losses
|
0.01
|
|
|
0.06
|
|
|
0.07
|
|
|
0.12
|
|
|
0.12
|
|
Bad debt on certain
accounts
|
—
|
|
|
—
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
Certain tax-related
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
Venezuela
charges
|
0.06
|
|
|
—
|
|
|
—
|
|
|
0.06
|
|
|
—
|
|
(Gain)/Loss on sale
of Casing Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.02)
|
|
Adjusted Net
Income
|
$
|
0.12
|
|
|
$
|
0.21
|
|
|
$
|
0.25
|
|
|
$
|
0.87
|
|
|
$
|
1.01
|
|
|
|
(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.
|
Fourth Quarter 2014 Financial and
Operating Metrics
Top Drives Segment Metrics
- Revenue from the Top Drive segment for Q4 2014 was $80.1 million, a $7.6
million, or 8.7%, decrease from Q3 2014 and a $1.8 million, or 2.2%, decrease from Q4 2013.
- Top Drive sales for Q4 2014 included 26 units (26 new and 0
used), compared to 33 units (32 new and 1 used) sold in Q3 2014 and
26 units (24 new and 2 used) sold in Q4 2013.
- The rental top drive fleet was 135 during the fourth
quarter.
- Operating income before adjustments in the Top Drive segment
for Q4 2014 was $9.8 million, a
$9.1 million, or 48.1%, decrease from
Q3 2014 and a $5.9 million, or 37.6%,
decrease from Q4 2013. Our Top Drive operating margins before
adjustments were 12% in Q4 2014, a decrease from 22% and 19% in Q3
2014 and Q4 2013, respectively. Fourth quarter operating income and
operating margin after adjustments were $15.5 million and 19.4%, respectively, which was
consistent with prior quarters.
- At December 31, 2014, Top Drive backlog was 33 units, with
a total potential value of $35.5
million, compared to 47 units at September 30, 2014,
with a potential value of $52.0
million. This compares to a backlog of 32 units
at December 31, 2013, with a potential value of $44.2 million. Approximately one-third of
the backlog at year-end is not scheduled to ship until
2016. Today, our backlog stands at 24 units with a
potential value of $24.5
million.
Tubular Services Segment Metrics
- Revenue from the Tubular Services segment for Q4 2014 was
$54.4 million, a $0.2 million, or 0.4%, increase from Q3 2014 and
a $0.5 million, or 0.9%, decrease
from Q4 2013.
- We performed 1,044 automated casing running jobs in Q4 2014
compared to 1,045 in Q3 2014 and 1,014 in Q4 2013.
- Operating income before adjustments in the Tubular Services
segment for Q4 2014 was $4.1 million,
a $5.2 million, or 55.9%, decrease
from Q3 2014 and a $4.2 million, or
50.6%, decrease from Q4 2013. Our Tubular Services operating
margins were 8% for Q4 2014, down from 17% and 16% in Q3 2014 and
Q4 2013, respectively. Fourth quarter operating income and
operating margin after adjustments were $5.0
million and 9.2%, respectively. The sequential decline in
adjusted operating margins was due primarily to client-related rig
activity disruptions in Mexico and
temporary customer drilling program changes in Argentina.
Other Segments and Expenses
- Research and engineering costs for Q4 2014 were $2.8 million, compared to $1.9 million in Q3 2014 and $1.9 million in Q4 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 Q4 2014 were $9.5 million, a $0.5
million, or 5.6%, increase from Q3 2014 and a $0.9 million, or 8.7%, decrease from Q4 2013.
Excluding the costs associated with executive retirement, corporate
and other costs would have been $7.6
million.
- Net foreign exchange losses for Q4 2014 were $1.9 million, compared to $3.1 million in Q3 2014 and $2.7 million in Q4 2013. The largest foreign
exchange losses were from the Mexican peso, the Venezuelan bolivar,
and the Russian ruble, partially offset by a gain on the Argentine
peso.
- Our effective tax rate for Q4 2014 was (552)% compared to 45%
in Q3 2014 and 43% in Q4 2013. Excluding the impact of adjustments,
the fourth quarter tax rate would have been 48%. The reported
fourth quarter tax rate also included a year-to-date rate true-up
that negatively impacted the fourth quarter by $0.02 per diluted share, or 7 percentage points
of effective tax rate.
- Total capital expenditures were $5.3
million in Q4 2014, primarily for tubular services
equipment, a $3.9 million, or 30%,
decrease from Q3 2014 and a $3.5
million, or 27%, decrease from Q4 2013.
Conference Call
The Company will conduct a conference call to discuss its
results for the fourth quarter 2014 on Wednesday, April 1 at 9:00
a.m. Central Time. To participate in the
conference call, dial 1-877-407-0672 inside the U.S. or
1-412-902-0003 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 April 15. To listen to the replay, call
1-877-660-6853 inside the U.S. or 1-201-612-7415 outside the U.S.
and enter conference ID 13605778#.
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, 2014 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 amounts)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
|
Revenue
|
$
|
134.5
|
|
|
$
|
136.8
|
|
|
$
|
543.0
|
|
|
$
|
524.9
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Cost of sales and
services
|
114.8
|
|
|
109.8
|
|
|
433.6
|
|
|
413.4
|
|
Selling, general and
administrative
|
15.3
|
|
|
13.3
|
|
|
53.3
|
|
|
49.5
|
|
(Gain) Loss on sale of
Casing Drilling
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4)
|
|
Research and
engineering
|
2.8
|
|
|
1.9
|
|
|
9.6
|
|
|
8.6
|
|
|
132.9
|
|
|
125.0
|
|
|
496.5
|
|
|
470.1
|
|
Operating
income
|
1.6
|
|
|
11.8
|
|
|
46.5
|
|
|
54.8
|
|
Interest expense,
net
|
0.2
|
|
|
0.7
|
|
|
1.0
|
|
|
0.8
|
|
Other expense
(income), net
|
1.7
|
|
|
2.8
|
|
|
7.1
|
|
|
3.7
|
|
Income before income
taxes
|
(0.3)
|
|
|
8.3
|
|
|
38.4
|
|
|
50.3
|
|
Income
taxes
|
1.8
|
|
|
3.2
|
|
|
17.0
|
|
|
15.0
|
|
Net income
|
$
|
(2.1)
|
|
|
$
|
5.1
|
|
|
$
|
21.4
|
|
|
$
|
35.3
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.05)
|
|
|
$
|
0.13
|
|
|
$
|
0.54
|
|
|
$
|
0.90
|
|
Diluted
|
$
|
(0.05)
|
|
|
$
|
0.13
|
|
|
$
|
0.53
|
|
|
$
|
0.89
|
|
Dividends per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.05
|
|
|
$
|
—
|
|
|
$
|
0.15
|
|
|
$
|
—
|
|
Weighted average
number of shares:
|
|
|
|
|
|
|
|
Basic
|
39.7
|
|
|
39.4
|
|
|
39.9
|
|
|
39.1
|
|
Diluted
|
40.2
|
|
|
40.2
|
|
|
40.5
|
|
|
39.8
|
|
TESCO
CORPORATION
Condensed
Consolidated Balance Sheets
(in
millions)
|
|
|
December 31,
2014
|
|
December 31,
2013
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
72.5
|
|
|
$
|
97.3
|
|
Accounts receivable,
net
|
128.7
|
|
|
141.2
|
|
Inventories,
net
|
114.7
|
|
|
96.9
|
|
Other current
assets
|
44.8
|
|
|
42.8
|
|
Total current
assets
|
360.7
|
|
|
378.2
|
|
Property, plant and
equipment, net
|
202.5
|
|
|
204.5
|
|
Goodwill
|
34.4
|
|
|
32.7
|
|
Other
assets
|
21.7
|
|
|
19.3
|
|
Total
assets
|
$
|
619.3
|
|
|
$
|
634.7
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
Current
liabilities
|
|
|
|
Current portion of
long term debt
|
$
|
—
|
|
|
$
|
0.5
|
|
Accounts
payable
|
36.1
|
|
|
45.2
|
|
Accrued and other
current liabilities
|
46.7
|
|
|
60.3
|
|
Income taxes
payable
|
8.9
|
|
|
4.8
|
|
Total current
liabilities
|
91.7
|
|
|
110.8
|
|
Other
liabilities
|
2.2
|
|
|
1.0
|
|
Long-term
debt
|
—
|
|
|
—
|
|
Deferred income
taxes
|
12.3
|
|
|
9.5
|
|
Shareholders'
equity
|
513.1
|
|
|
513.4
|
|
Total
liabilities and shareholders' equity
|
$
|
619.3
|
|
|
$
|
634.7
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tesco-corporation-reports-fourth-quarter-2014-results-300059039.html
SOURCE Tesco Corporation