TESCO NET LOSS $38.8 MLN

TESCO CORP. - Tesco Corporation ("TESCO" or the "Company") (NASDAQ:TESO)  reported third quarter 2017 financial and operating results.

• Liquidity of $64.6 million and no debt at the end of the third quarter, after funding approximately $1.0 million of transaction-related payments and $1.4 million of restructuring payments during the third quarter
• Reported U.S. GAAP diluted EPS was a loss of $(0.28) on a net loss of $13.0 million and adjusted EPS was a loss of $(0.20) on an adjusted net loss of $9.2 million, after $3.8 million in charges
• Adjusted EBITDA loss improved 46% to $2.1 million in the third quarter on a sequential revenue increase of 1%

Third Quarter Operating Results

Fernando Assing, TESCO's President and Chief Executive Officer, commented, "Our business continues to improve, especially in Tubular Services with a favorable mix to increased offshore and CDS sales and lower U.S. land ramp-up costs in the third quarter. Despite lower used top drive sales, revenue and EBITDA both improved sequentially. Also, while Hurricane Harvey had a minor impact on our financial results this quarter of approximately $0.2 million in EBITDA, it did have a significant direct impact on many of our employees. I am proud of the quick response our employees made to help those with both immediate and longer-term needs."

TESCO reported revenue of $40.5 million in the third quarter of 2017, up from $40.1 million, or 1%, in the second quarter of 2017, and up from $30.4 million, or 33%, in the third quarter of 2016.

TESCO reported a U.S. GAAP net loss of $13.0 million, or $(0.28) per share, in the third quarter of 2017. Adjusted net loss for the quarter was $9.2 million, or $(0.20) per share, excluding special items, consisting primarily of charges related to restructuring and transaction costs. Restructuring costs were mainly for facility consolidation and headcount reductions in Latin America. This compares to a U.S. GAAP net loss of $12.1 million, or $(0.26) per diluted share, in the second quarter of 2017, and a U.S. GAAP net loss of $22.1 million, or (0.48) per diluted share, in the third quarter of 2016. Adjusted net loss in the second quarter of 2017 was $11.6 million, or $(0.25) per diluted share, and in the third quarter of 2016 was $17.3 million, or $(0.37)per diluted share.

Adjusted EBITDA loss was $2.1 million in the third quarter of 2017 compared to an adjusted EBITDA loss of $3.9 million in the second quarter of 2017 on a 1% revenue increase. For the third quarter of 2017, U.S. GAAP operating loss was $12.7 million and adjusted operating loss was $8.4 million. This compares to the second quarter 2017 U.S. GAAP operating loss of $11.5 million and adjusted operating loss of $11.4 million, which excluded $0.1 million of charges.

Cash and cash equivalents as of September 30, 2017 decreased from the second quarter of 2017 by $7.9 million to $64.6 million primarily due to continued operating losses and $1.0 millionof transaction-related payments. While working capital levels remained relatively flat compared to the end of the second quarter, working capital levels had been projected to decline. Certain international payments valued at over $4 million were delayed but are expected to be paid in the fourth quarter. Inventory ended higher by nearly $3 million primarily to support increased top drive sales expected in the fourth quarter.

Free cash flow was a use of cash of $7.9 million before approximately $1.0 million of transaction-related payments and $1.4 million of restructuring payments.

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Earlier:

2017, August, 15, 10:30:00 NABORS - TESCO ACQUISITION Nabors Industries Ltd. ("Nabors") (NYSE: NBR) is pleased to announce that the company has signed an Arrangement Agreement ("Agreement") to acquire all of the issued and outstanding common shares of Tesco Corporation ("Tesco") (NASDAQ: TESO), with each outstanding share of common stock of Tesco being exchanged for 0.68 common shares of Nabors. This transaction will create a leading rig equipment and drilling automation provider by combining Canrig, Nabors rig equipment subsidiary, with Tesco's rig equipment manufacturing, rental and aftermarket service business. Additionally, Tesco operates a tubular services business in numerous key regions globally, which will immediately benefit Nabors Drilling Solutions' operation.

2017, August, 9, 09:51:00 TESCO NET LOSS $25.8 MLN TESCO reported a U.S. GAAP net loss of $12.1 million, or $(0.26) per share, in the second quarter of 2017. Adjusted net loss for the quarter was $11.6 million, or $(0.25) per share, excluding special items, consisting primarily of charges related to restructuring costs. This compares to a U.S. GAAP net loss of $13.7 million, or $(0.29) per diluted share, in the first quarter of 2017, and a U.S. GAAP net loss of $18.9 million, or (0.47) per diluted share, in the second quarter of 2016. Adjusted net loss in the first quarter of 2017 was $13.4 million, or $(0.29) per diluted share, and in the second quarter of 2016 was $15.8 million, or $(0.39) per diluted share.

2015, November, 5, 18:55:00 TESCO CORPORATION DOWN 57% Fernando Assing, TESCO's Chief Executive Officer, commented, "We continue to be impacted by market conditions that reduced drilling activity and pricing. We are positioning our business under the assumption that the market will be lower for longer. Consistent with our commitment of sustainability through the current market, we implemented additional global restructuring actions in the third quarter with annualized savings of approximately $5 million, bringing our total annualized savings from restructuring to $40 million. These actions are designed to lower our cost structure and better match current market activity. We continue to see opportunities to improve our operating performance and improve cash generation".

2014, August, 25, 18:00:00 TESCO NAMED THE NEW BOSS Tesco appoints new president, chief executive officer

2014, March, 3, 16:38:00 TESCO CORPORATION: DIE ANOTHER DAY TESCO CORPORATION published 4th Quarter and Full Year 2013 results.

2014, February, 26, 16:38:00 TESCO DON'T PAY AND LOSE OKSET, Moscow subsidiary of the TESСO CORPORATION lost a court case on tax offenses in the amount of RUR 18.05 mln. (about $ 0.5 mln.) Русский | English

2014, February, 20, 16:38:00 TESCO REWIEW STRATEGIC PLAN The Company reviews its strategic plan and capital allocation policies on a regular periodic basis, in addition to considering those topics in normal discussions at our Board meetings.