2014-03-03 16:38:00
TESCO CORPORATION: DIE ANOTHER DAY
TESCO CORPORATION published 4th Quarter and Full Year 2013 results.
REVENUE:
- Q4-2013 to Q4-2012: down from $ 137.6 M to $ 136.9 M, $ (0.7) M, 0.5%;
- Q4-2013 to Q3-2013: growth with $ 132.2 M to $ 136.9 M, $ 4.5 M, 3.4%;
- 2013 to 2012: down from $ 553.1 M to $ 525.3 M, $(27.8) M, 5%;
- TOP DRIVES SEGMENT:
- Q4-2013 to Q4 – 2012: down from $ 86.7 M to $ 81.9 M, $ (4.8) M, 5.5%;
- Q4-2013 to Q3-2013: growth with $ 78 M to $ 81.9 M, $ 3.9M, 5%;
- 2013 to 2012: down from $ 166.7 M to $ 127.2 M, $ (39.5) M, 23.7%;
- segment share 2013 to 2012 increased from 46.7% to 59.3%;
- TOP DRIVES SALES:
- Q4-2013 to Q4 – 2012: down from $ 42.6 M to $ 34.6 M, $ (8) M, 18.8%;
- Q4-2013 to Q3-2013: growth with $ 30.6 M to $ 34.6 M, $ 4M, 13.1%;
- 2013 to 2012: down from $ 166.7 M to $ 127.2 M, $ (39.5) M, 23.7%;
- segment share 2013 to 2012 decreased from 30.1% to 24.2%;
- TOP DRIVES RENTAL SERVICES:
- Q4-2013 to Q4-2012: growth with $ 28.7 M to $ 32.0 M, $ 3.3 M, 11.5%;
- Q4-2013 to Q3 – 2013: down from $ 32.6 M to $ 32.0 M, $ (0.6) M, 1.8%;
- 2013 to 2012: down from $ 126.1 M to $ 125.2 M, $ (0,9) M, 0.7%;
- segment share 2013 to 2012 increased from 22.8% to 23.8%;
- TOP DRIVES AFTER-MARKET SALES AND SERVICE:
- Q4-2013 to Q4-2012: down with $ 15.4 M to $ 15.3 M, $ (0.1) M, 0.6%;
- Q4-2013 to Q3 – 2013: growth from $ 14.8 M to $ 15.3 M, $ 0.5 M, 3.4%;
- 2013 to 2012: down from $ 65 M to $ 59.2 M, $ (5.8) M, 8.9%;
- segment share 2013 to 2012decreased from 11.8% to 11.3%;
OPERATING INCOME:
- Q4-2013 to Q4-2012: down with $ 17.0 M to $ 12.2 M, $ 4.8 M, 39.3%;
- Q4-2013 to Q3-2013 down with $ 17.8 M to $ 12.2 M, $ 5.6 M, 31.5%;
- 2013 to 2012: down with $ 76.8 M to $ 55.6 M, $ 22.2 M, 28.9%;
- TOP DRIVE SEGMENT:
- Q4-2013 to Q4-2012: down with $ 21.3 M to $ 15.8 M, $ 5.5 M, 25.8%;
- Q4-2013 to Q3-2013 down with $ 19.4 M to $ 15.8 M, $ 4.4 M, 22.7%;
- 2013 to 2012: down with $ 87.7 M to $ 67.5 M, $ 20.2 M, 23%;
NET INCOME:
- Q4-2013 to Q-4 2012: down from $ 13.3 M to $ 5.5 M, $ 7.8 M, 58.6%;
- Q4-2013 to Q3-2013: down from $ 11.7 M to $ 5.5 M, $ 6.2 M, 53%;
- 2013 to 2012: down from $ 49.9 M to $ 36.3 M, $ 13.6 M, 27.5%.
EARNINGS PER SHARE:
- Q4-2013 to Q-4 2012: down from $ 0.34 to $ 0.14, $ 0.2, 58.8%;
- Q4-2013 to Q3-2013: down from $ 0.29 to $ 0.14, $ 0.15, 51.7%;
- 2013 to 2012: down from $ 1.27 to $ 0.91, $ 0.36, 28.3%.
EBITDA:
- Q4-2013 to Q-4 2012: down from $ 32.8 M to $ 23.9 M, $ 8.9 M, 27.1%;
- Q4-2013 to Q3-2013: down from $ 29.1 M to $ 23.9 M, $ 5.2 M, 17.9%;
- 2013 to 2012: down from $ 111.3 M to $ 100.9 M, $ 10.4 M, 9.3%.
| TESCO CORPORATION Summary of Results (in millions, except per share information) |
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| Quarter 4 | Quarter 3 | Year Ended December 31, 2013 |
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| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||
| Segment revenue | (Unaudited) | (Unaudited) | ||||||||||||||
| Top Drives | ||||||||||||||||
| Sales | $ | 34.6 | $ | 42.6 | $ | 30.6 | $ | 127.2 | $ | 166.7 | ||||||
| Rental services | 32.0 | 28.7 | 32.6 | 125.2 | 126.1 | |||||||||||
| After-market sales and service | 15.3 | 15.4 | 14.8 | 59.2 | 65.0 | |||||||||||
| 81.9 | 86.7 | 78.0 | 311.6 | 357.8 | ||||||||||||
| Tubular Services | ||||||||||||||||
| Automated | 45.3 | 39.0 | 43.6 | 172.2 | 141.2 | |||||||||||
| Conventional | 9.7 | 11.3 | 10.6 | 40.9 | 41.2 | |||||||||||
| 55.0 | 50.3 | 54.2 | 213.1 | 182.4 | ||||||||||||
| Casing Drilling | — | 0.6 | — | 0.6 | 12.9 | |||||||||||
| Consolidated revenue | $ | 136.9 | $ | 137.6 | $ | 132.2 | $ | 525.3 | $ | 553.1 | ||||||
| Segment operating income (loss): | ||||||||||||||||
| Top Drives | $ | 15.8 | $ | 21.3 | $ | 19.4 | $ | 67.5 | $ | 87.7 | ||||||
| Tubular Services | 8.6 | 6.9 | 9.6 | 37.0 | 21.7 | |||||||||||
| Casing Drilling | 0.1 | (0.5) | — | 2.1 | 8.2 | |||||||||||
| Research and Engineering | (1.9) | (2.7) | (2.1) | (8.6) | (10.5) | |||||||||||
| Corporate and other | (10.4) | (8.0) | (9.1) | (42.4) | (30.3) | |||||||||||
| Consolidated operating income | $ | 12.2 | $ | 17.0 | $ | 17.8 | $ | 55.6 | $ | 76.8 | ||||||
| Net income | $ | 5.5 | $ | 13.3 | $ | 11.7 | $ | 36.3 | $ | 49.8 | ||||||
| Earnings per share (diluted) | $ | 0.14 | $ | 0.34 | $ | 0.29 | $ | 0.91 | $ | 1.27 | ||||||
| Adjusted EBITDA(a) (as defined) | $ | 23.9 | $ | 32.8 | $ | 29.1 | $ | 100.9 | $ | 111.3 | ||||||
| TESCO CORPORATION Non-GAAP Measure - Adjusted EBITDA (1) (in millions) |
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| Quarter 4 | Quarter 3 | Year Ended December 31, 2013 |
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| 2013 | 2012 | 2013 | 2013 | 2012 | ||||||||||||||||
| Net income under U.S. GAAP | $ | 5.5 | $ | 13.3 | $ | 11.7 | $ | 36.3 | $ | 49.8 | ||||||||||
| Income tax expense | 3.6 | 4.6 | 5.5 | 15.4 | 24.8 | |||||||||||||||
| Depreciation and amortization | 10.1 | 12.6 | 10.4 | 40.8 | 43.0 | |||||||||||||||
| Net interest expense | 0.7 | (0.1) | 0.1 | 0.7 | 1.1 | |||||||||||||||
| Stock compensation expense—non-cash | 1.3 | 1.8 | 1.4 | 5.9 | 5.0 | |||||||||||||||
| Severance charges | 0.9 | - | - | 0.9 | - | |||||||||||||||
| Foreign exchange losses | 2.3 | - | - | 2.3 | - | |||||||||||||||
| (Gain) Loss on sale of Casing Drilling | - | 0.6 | — | (1.4) | (12.4) | |||||||||||||||
| Adjusted EBITDA | $ | 23.9 | $ | 32.8 | $ | 29.1 | $ | 100.9 | $ | 111.3 |
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Julio M. Quintana - President & CEO said “With the increased focus on our base businesses and continuous improvement in our operational efficiency, we are well positioned to meet the challenges and opportunities for 2014 and beyond”
Where is the beef?
