Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE

 

CORE LAB REPORTS THIRD QUARTER 2019 RESULTS FROM CONTINUING OPERATIONS:

 

COMPANY REVENUE OF $173 MILLION, UP 2.5% SEQUENTIALLY

 

GAAP EPS OF $0.54; $0.50, EX-ITEMS, UP 9% SEQUENTIALLY

 

CORE GENERATES FCF FOR 72ND CONSECUTIVE QUARTER

 

RESERVOIR DESCRIPTION REVENUE HIGHEST SINCE Q4 2015

 

RESERVOIR DESCRIPTION OPERATING MARGINS OF 18%, EX-ITEMS, UP 290 BPS YEAR-OVER-YEAR

 

PRODUCTION ENHANCEMENT REVENUE UP SLIGHTLY SEQUENTIALLY; U.S. COMPLETIONS DOWN GREATER THAN 10%

 

COMPANY POSTS OILFIELD SERVICE-LEADING ROIC OF 19.9%

AMSTERDAM (23 October 2019) - Core Laboratories N.V. (NYSE: "CLB US" and Euronext Amsterdam: "CLB NA") ("Core", "Core Lab", or the "Company") reported that continuing operations resulted in third quarter 2019 revenue of $173,200,000. Core’s operating income was $31,200,000 with earnings per diluted share ("EPS") of $0.54, all in accordance with U.S. generally accepted accounting principles ("GAAP"); operating income, ex-items, a non-GAAP financial measure, was $31,800,000, yielding operating margins of 18% and EPS, ex-items, of $0.50. A full reconciliation of non-GAAP financial measures is included in the attached financial tables.

Core’s Board of Supervisory Directors ("Board") and the Company’s Executive Management continue to focus on strategies that maximize return on invested capital ("ROIC") and free cash flow ("FCF"), a non-GAAP financial measure defined as cash from operations less capital expenditures, factors that have high correlation to maximizing total shareholder return.  Core’s asset-light business model and capital discipline promote capital efficiency designed to produce more predictable and superior long-term ROIC.   Bloomberg's calculations using the latest comparable data available indicate that Core’s ROIC of 19.9% is the highest of the oilfield service companies listed as Core’s Comp Group by Bloomberg.

Segment Highlights

Core Laboratories reports results under two operating segments: Reservoir Description and Production Enhancement.

 

 


 

Reservoir Description

Reservoir Description revenue in the third quarter of 2019 was $109,300,000 – a four year high, up 3.5% sequentially and up 5.5% year-over-year, driven by international activity, which increased more than 9% year-over-year. Operating income on a GAAP basis was $18,800,000, while operating income, ex-items, was $19,200,000, up 5.5% sequentially and 26% year-over-year, yielding year-over-year incremental margins in excess of 65% and operating margins, ex-items, of 18%.

Reservoir Description operations are heavily exposed to international and offshore activity levels, with approximately 80% of its revenue sourced from outside the U.S., where core, reservoir fluid and derived product samples originate from international projects.  Improvement in year-over-year and sequential financial performance in Reservoir Description is a result of increased international and offshore client activity. Core conducted services for both newly developed fields and brownfield extensions in offshore areas such as: Australia, Brazil, Guyana, the Gulf of Mexico, the Middle East and the North Sea. These analytical programs provide accurate, comprehensive datasets of rock and hydrocarbon properties that are critical for optimizing reservoir appraisal and development.

In the third quarter of 2019, Core Lab, under the direction of Santos Limited, continued its work on an extensive laboratory analytical program designed to evaluate both conventional core and reservoir fluids from the shallow-water Dorado discovery, located in the Bedout Sub-Basin, offshore Western Australia. More than 700 feet of conventional core were recovered from this high-quality sandstone reservoir. Core Lab utilized its proprietary, non-invasive, Digital Rock Characterization ("DRC") technology to determine lithological characteristics in the reservoir intervals of interest. In addition, the DRC work enabled Santos’ and Core Lab’s technical staff to quickly select representative samples for advanced geological and petrophysical testing. The ongoing physical measurements that are being conducted on these representative samples are crucial for accurate pay zone modeling, downhole log calibration and reserve calculations.

In addition to the reservoir rock characterization program, subsurface hydrocarbon samples were collected from multiple stratigraphic horizons within the reservoir.  Core Lab’s proprietary, mercury-free, Pressure-Volume-Temperature ("PVT") Cell was used to determine the phase behavior relationships of the hydrocarbons under varying conditions. Core Lab is pleased to be playing a role in evaluating one of the largest hydrocarbon discoveries offshore Western Australia.

Production Enhancement

Production Enhancement operations, largely focused on complex completions in unconventional tight-oil reservoirs in the U.S. and conventional offshore development projects, posted third quarter 2019 revenue of $63,900,000; up slightly sequentially. Operating income on a GAAP basis was $11,500,000, while operating income, ex-items, was $11,600,000, which yielded operating margins, ex-items, of 18%. Production Enhancement’s sequential performance was underpinned by high-end energetic sales and continued GoGunTM market penetration, offsetting the more than 10% decline, according to Rystad data, in U.S. well completions. In addition, sequential improvement in demand for diagnostic tracers supported improved financial performance for the segment.

 

 

 

 


 

Core Lab continues to be the technological leader in the design of more efficient and effective energetics, now employing the recently announced cutting-edge, Reservoir Optimized Completions Lab ("ROC LabTM") in Godley, Texas. The ROC LabTM is designed to determine the best Fit-For-ReservoirTM ("FFR") energetic solutions for specific stratigraphic targets. This more focused approach allows operators to optimize completion strategies for each producing formation in a basin, tuning energetic performance to the specific geologic properties of reservoir zones. Core will use its extensive worldwide petrophysical and reservoir fluids database, including its proprietary Rock Catalog, combined with its cutting edge ROC LabTM, to customize FFR energetics. This will enable Core’s clients to optimize initial production rates and maximize their Estimated Ultimate Recoveries and ROICs. Core is uniquely capable of bringing together its ballistics expertise, vast geological and flow studies knowledge, laboratory-instrumentation manufacturing and digital imaging technologies to provide this industry-leading service.

During the third quarter of 2019, Core Lab increased penetration of the U.S. energetic systems market with the pre-assembled GoGunTM. Core’s approach to the integrated perforating gun system market continues to focus on technologically sophisticated clients. Core’s line-up of energetic systems is led by technological solutions focused on ultra-high performance energetic products, versus commodity products, resulting in both greater reservoir performance and improved wellsite efficiency. Core Lab continues its investments in Production Enhancement to expand and advance its energetic systems capabilities, and make improvements through capital investment in automation and other efficiency programs. Core Lab remains committed to its plan to increase production of GoGunTM systems and production capabilities in 2020 to satisfy client demand.

Also in the third quarter of 2019, Core Lab continued its work on a comprehensive completion diagnostic program for LLOG Exploration Company, L.L.C. on their deepwater Buckskin Project in the Gulf of Mexico. Core’s diagnostic technologies were used to evaluate sand control for the operator’s deepwater completion strategy. The operator’s reservoir, having multiple pay zones, required separate completions across each reservoir horizon. Given the multiple pay zones and varying rock properties, the operator elected to utilize an alternative completion approach. Core utilized SpectraStimTM, SpectraScan®, PackScan®, and FLOWPROFILERTM diagnostic services to provide direct measurements of the completion quality, completion fluid recovery, and oil contribution from each of the completed stages.

Core’s diagnostic services guided LLOG Exploration’s decision to frac pack the well using a single-stage/multi-trip strategy, as opposed to the more typical multi-stage/single-trip strategy. This approach allowed for more proppant to be placed in each target zone, while minimizing operational risks. Core’s diagnostic services confirmed effective frac pack placement across all five completed stages, providing the operator with confidence to flow the well aggressively and achieve higher than normal drawdowns with no degradation of the flow capacities. The diagnostic data utilized by the operator resulted in a material increase in production compared to the original forecast.

Free Cash Flow, Dividends and Share Repurchases

During the third quarter of 2019, Core continued to generate FCF, with cash from operations of $26,000,000 and capital expenditures of $5,300,000, yielding FCF of $20,700,000. The sequential improvement in operating results also generated higher levels of FCF for the third quarter, approaching 90% of net income. As Core continues to expand its offerings of products like the GoGunTM and Select Fire Switch (SFS) TM, investments in working capital are required.

The third quarter of 2019 also marks the 72nd consecutive quarter that the Company generated positive FCF. Core’s third quarter 2019 free cash was returned to Core’s shareholders via the Company’s regular quarterly

 


 

dividend. Core will continue its commitment to invest for future growth of the Company, and will return generated FCF to shareholders via the Company’s regular quarterly dividend and future opportunistic share repurchases.

On 12 July 2019, the Board announced a quarterly cash dividend of $0.55 per share of common stock, which was paid on 12 August 2019 to shareholders of record on 22 July 2019. Dutch withholding tax was deducted from the dividend at a rate of 15%.

On 8 October 2019, the Board announced a quarterly cash dividend of $0.55 per share of common stock, payable in the fourth quarter of 2019. The quarterly cash dividend will be payable on 19 November 2019 to shareholders of record on 18 October 2019. Dutch withholding tax will be deducted from the dividend at a rate of 15%.

Return On Invested Capital

Core Lab's ROIC of 19.9% is the highest of the peer group compiled and reported by Bloomberg. The Company's Board has established an internal performance metric of achieving a leading relative ROIC performance compared with the oilfield service companies listed as Core's Comp Group by Bloomberg. The Company and its Board believe that ROIC is a leading long-term performance metric used by shareholders to determine the relative investment value of publicly traded companies. Further, the Company and its Board believe that shareholders will benefit if Core consistently performs at high levels of ROIC relative to its Comp Group. Core Lab’s commitment to capital stewardship is driven in part by the Company’s continuing philosophy of having a low capital intensive business, averaging less than 4% of Company revenues.

According to the latest Comp Group financial information from Bloomberg, Core's ROIC is the highest of any comparably-sized oilfield service company (greater than $1.5 billion market capitalization). Comp Group companies listed by Bloomberg include: Halliburton, Schlumberger, National Oilwell Varco, Baker Hughes, TGS-NOPEC Geophysical Company, Wood (formerly known as "The Wood Group"), and Apergy, among others. Core Lab is one of only three of the 17 companies listed in the Comp Group posting ROIC that exceeded their Weighted Average Cost of Capital ("WACC"). Core’s ratio of ROIC to WACC is the highest of any company in the Comp Group.

Fourth Quarter 2019 Revenue and EPS Guidance

The balance of supply and demand did not materially change during the third quarter 2019.   As the balancing of global crude-oil supply and demand continues, this should support a stable and positive crude-oil price, which underpins the reinvestment and Final Investment Decisions in international crude-oil field projects. These international investments are critical, as the decline in production from mature fields continues and new field development is required to replace the current supply.  Consequently, the outlook for activity on international projects remains positive for Core’s Reservoir Description segment.

Operators continue to publicly indicate and confirm their focus on FCF and spending within the 2019 budgets are priorities. This was apparent during the third quarter 2019 with the notable decline in both the U.S. onshore rig count and completion activity. As a result, Core believes fourth quarter U.S. land activity will continue to decline, from which Core’s Production Enhancement segment will be most affected. Core’s Reservoir Description segment is also expected to be impacted by the decline in U.S. onshore activity, though to a lesser degree.  

Therefore, considering the expected but uncertain level of decline in U.S. land activity, Core projects

 


 

consolidated fourth quarter 2019 revenue of approximately $161,000,000 to $163,000,000 and operating income of approximately $28,000,000 to $29,000,000, yielding operating margins of approximately 18%. The Company’s EPS for the fourth quarter of 2019, using an effective tax rate of 20%, is projected to be $0.44 to $0.45.  Core Lab is executing cost control actions that were announced earlier this year.  Further, the Company will continue to evaluate opportunities to efficiently align the business with market conditions.

Core Lab’s fourth quarter 2019 guidance is based on projections for the underlying operations and excludes gains or losses in foreign exchange.

Earnings Call Scheduled

The Company has scheduled a conference call to discuss Core's third quarter 2019 earnings announcement. The call will begin at 7:30 a.m. CDT / 2:30 p.m. CEST on Thursday, 24 October 2019. To listen to the call, please go to Core's website at www.corelab.com.

Core Laboratories N.V. is a leading provider of proprietary and patented reservoir description and production enhancement services and products 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, as well as other statements we make, 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 most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. 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 or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this press release, except as required by law.

Visit the Company's website at www.corelab.com. Connect with Core Lab on Facebook, LinkedIn and YouTube.

 

For more information, contact:

Gwen Schreffler - SVP Corporate Development and Investor Relations, +1 713 328 6210

 

 


 

CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

 

% Variance

 

 

 

 

September 30, 2019

 

 

June 30, 2019

 

 

September 30, 2018

 

 

vs. Q2-19

 

 

vs. Q3-18

 

 

REVENUE

 

$

173,200

 

 

$

169,038

 

 

$

182,146

 

 

2.5%

 

 

(4.9)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of services and sales

 

 

125,996

 

 

 

124,451

 

 

 

128,179

 

 

1.2%

 

 

(1.7)%

 

 

General and administrative expense

 

 

11,012

 

 

 

9,801

 

 

 

13,278

 

 

12.4%

 

 

(17.1)%

 

 

Depreciation and amortization

 

 

5,697

 

 

 

5,786

 

 

 

5,680

 

 

(1.5)%

 

 

0.3%

 

 

Other (income) expense, net

 

 

(712

)

 

 

992

 

 

 

130

 

 

NM

 

 

NM

 

 

Total operating expenses

 

 

141,993

 

 

 

141,030

 

 

 

147,267

 

 

0.7%

 

 

(3.6)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

31,207

 

 

 

28,008

 

 

 

34,879

 

 

11.4%

 

 

(10.5)%

 

 

Interest expense

 

 

3,662

 

 

 

3,714

 

 

 

3,278

 

 

(1.4)%

 

 

11.7%

 

 

Income from continuing operations

   before income tax expense

 

 

27,545

 

 

 

24,294

 

 

 

31,601

 

 

13.4%

 

 

(12.8)%

 

 

Income tax expense

 

 

3,335

 

 

 

4,808

 

 

 

9,404

 

 

(30.6)%

 

 

(64.5)%

 

 

Income from continuing operations

 

 

24,210

 

 

 

19,486

 

 

 

22,197

 

 

24.2%

 

 

9.1%

 

 

Income (loss) from discontinued

   operations, net of income taxes

 

 

(397

)

 

 

7,971

 

 

 

208

 

 

NM

 

 

NM

 

 

Net income

 

 

23,813

 

 

 

27,457

 

 

 

22,405

 

 

(13.3)%

 

 

6.3%

 

 

Net income (loss) attributable to non-

   controlling interest

 

 

84

 

 

 

43

 

 

 

(7

)

 

NM

 

 

NM

 

 

Net income attributable to Core

   Laboratories N.V.

 

$

23,729

 

 

$

27,414

 

 

$

22,412

 

 

(13.4)%

 

 

5.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing

   operations

 

$

0.54

 

 

$

0.43

 

 

$

0.50

 

 

25.6%

 

 

8.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS attributable to Core

   Laboratories N.V.

 

$

0.53

 

 

$

0.61

 

 

$

0.50

 

 

(13.1)%

 

 

6.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common

   shares outstanding

 

 

44,716

 

 

 

44,815

 

 

 

44,591

 

 

(0.2)%

 

 

0.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

12

%

 

 

20

%

 

 

30

%

 

NM

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

109,339

 

 

$

105,649

 

 

$

103,609

 

 

3.5%

 

 

5.5%

 

 

Production Enhancement

 

 

63,861

 

 

 

63,389

 

 

 

78,537

 

 

0.7%

 

 

(18.7)%

 

 

Total

 

$

173,200

 

 

$

169,038

 

 

$

182,146

 

 

2.5%

 

 

(4.9)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

18,835

 

 

$

15,878

 

 

$

14,956

 

 

18.6%

 

 

25.9%

 

 

Production Enhancement

 

 

11,456

 

 

 

10,424

 

 

 

19,243

 

 

9.9%

 

 

(40.5)%

 

 

Corporate and Other

 

 

916

 

 

 

1,706

 

 

 

680

 

 

NM

 

 

NM

 

 

Total

 

$

31,207

 

 

$

28,008

 

 

$

34,879

 

 

11.4%

 

 

(10.5)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"NM" means not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

 

Nine Months Ended

 

 

% Variance

 

 

 

 

September 30, 2019

 

 

September 30, 2018

 

 

 

 

 

 

REVENUE

 

$

511,432

 

 

$

527,639

 

 

(3.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of services and sales

 

 

377,830

 

 

 

371,270

 

 

1.8%

 

 

General and administrative expense

 

 

38,250

 

 

 

38,189

 

 

0.2%

 

 

Depreciation and amortization

 

 

17,070

 

 

 

17,366

 

 

(1.7)%

 

 

Other (income) expense, net

 

 

2,653

 

 

 

170

 

 

NM

 

 

Total operating expenses

 

 

435,803

 

 

 

426,995

 

 

2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

75,629

 

 

 

100,644

 

 

(24.9)%

 

 

Interest expense

 

 

11,102

 

 

 

9,694

 

 

14.5%

 

 

Income from continuing operations before income tax expense

 

 

64,527

 

 

 

90,950

 

 

(29.1)%

 

 

Income tax expense (benefit)

 

 

(19,467

)

 

 

19,697

 

 

NM

 

 

Income from continuing operations

 

 

83,994

 

 

 

71,253

 

 

17.9%

 

 

Income (loss) from discontinued operations, net of income taxes

 

 

7,833

 

 

 

(466

)

 

NM

 

 

Net income

 

 

91,827

 

 

 

70,787

 

 

29.7%

 

 

Net income attributable to non-controlling interest

 

 

174

 

 

 

96

 

 

NM

 

 

Net income attributable to Core Laboratories N.V.

 

$

91,653

 

 

$

70,691

 

 

29.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing operations

 

$

1.87

 

 

$

1.60

 

 

16.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS attributable to Core Laboratories N.V.

 

$

2.04

 

 

$

1.59

 

 

28.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding

 

 

44,854

 

 

 

44,613

 

 

0.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

(30

)%

 

 

22

%

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

318,280

 

 

$

306,525

 

 

3.8%

 

 

Production Enhancement

 

 

193,152

 

 

 

221,114

 

 

(12.6)%

 

 

Total

 

$

511,432

 

 

$

527,639

 

 

(3.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

40,892

 

 

$

44,473

 

 

(8.1)%

 

 

Production Enhancement

 

 

31,792

 

 

 

55,357

 

 

(42.6)%

 

 

Corporate and Other

 

 

2,945

 

 

 

814

 

 

NM

 

 

Total

 

$

75,629

 

 

$

100,644

 

 

(24.9)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"NM" means not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 

CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(amounts in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

% Variance

 

 

ASSETS:

 

September 30, 2019

 

 

June 30, 2019

 

 

December 31, 2018

 

 

vs. Q2-19

 

 

vs. Q4-18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

13,128

 

 

$

12,546

 

 

$

13,116

 

 

4.6%

 

 

0.1%

 

 

Accounts receivable, net

 

 

137,355

 

 

 

134,900

 

 

 

129,157

 

 

1.8%

 

 

6.3%

 

 

Inventory

 

 

53,528

 

 

 

49,311

 

 

 

45,664

 

 

8.6%

 

 

17.2%

 

 

Other current assets

 

 

26,675

 

 

 

28,476

 

 

 

43,040

 

 

(6.3)%

 

 

(38.0)%

 

 

Total Current Assets

 

 

230,686

 

 

 

225,233

 

 

 

230,977

 

 

2.4%

 

 

(0.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

125,078

 

 

 

125,699

 

 

 

122,917

 

 

(0.5)%

 

 

1.8%

 

 

Right-of-use assets

 

 

76,238

 

 

 

76,290

 

 

 

 

 

(0.1)%

 

 

NM

 

 

Intangibles, goodwill and other long-term assets, net

 

 

355,694

 

 

 

354,296

 

 

 

294,933

 

 

0.4%

 

 

20.6%

 

 

Total assets

 

$

787,696

 

 

$

781,518

 

 

$

648,827

 

 

0.8%

 

 

21.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

42,191

 

 

$

41,995

 

 

$

41,155

 

 

0.5%

 

 

2.5%

 

 

Short-term operating lease obligations

 

 

11,869

 

 

 

12,968

 

 

 

 

 

(8.5)%

 

 

NM

 

 

Other current liabilities

 

 

65,937

 

 

 

69,863

 

 

 

61,392

 

 

(5.6)%

 

 

7.4%

 

 

Total current liabilities

 

 

119,997

 

 

 

124,826

 

 

 

102,547

 

 

(3.9)%

 

 

17.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

 

297,148

 

 

 

290,022

 

 

 

289,770

 

 

2.5%

 

 

2.5%

 

 

Long-term operating lease obligations

 

 

63,754

 

 

 

62,737

 

 

 

 

 

1.6%

 

 

NM

 

 

Other long-term liabilities

 

 

112,236

 

 

 

111,441

 

 

 

95,610

 

 

0.7%

 

 

17.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

194,561

 

 

 

192,492

 

 

 

160,900

 

 

1.1%

 

 

20.9%

 

 

Total liabilities and equity

 

$

787,696

 

 

$

781,518

 

 

$

648,827

 

 

0.8%

 

 

21.4%

 

 

 


 


 

CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

(Unaudited)

 

Three Months Ended

 

 

 

 

September 30, 2019

 

 

June 30, 2019

 

 

September 30, 2018

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

24,210

 

 

$

19,486

 

 

$

22,197

 

 

Income (loss) from discontinued operations

 

 

(397

)

 

 

7,971

 

 

 

208

 

 

Net Income

 

$

23,813

 

 

$

27,457

 

 

$

22,405

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

3,311

 

 

 

3,245

 

 

 

6,141

 

 

Depreciation and amortization

 

 

5,697

 

 

 

5,786

 

 

 

5,680

 

 

Deferred income tax

 

 

(3,353

)

 

 

(3,356

)

 

 

(708

)

 

Gain on sale of business

 

 

 

 

 

(1,154

)

 

 

 

 

Gain on sale of discontinued operations

 

 

397

 

 

 

(8,808

)

 

 

 

 

Accounts receivable

 

 

(2,603

)

 

 

(2,385

)

 

 

(6,547

)

 

Inventory

 

 

(4,287

)

 

 

1,492

 

 

 

(5,008

)

 

Accounts payable

 

 

815

 

 

 

(399

)

 

 

(6,011

)

 

Other adjustments to net income

 

 

2,199

 

 

 

(4,798

)

 

 

7,891

 

 

Net cash provided by operating activities

 

$

25,989

 

 

$

17,080

 

 

$

23,843

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

$

(5,307

)

 

$

(7,047

)

 

$

(4,148

)

 

Proceeds from sale of business

 

 

 

 

 

2,980

 

 

 

 

 

Proceeds from sale of discontinued operations

 

 

(1,853

)

 

 

16,642

 

 

 

 

 

Other investing activities

 

 

(437

)

 

 

(316

)

 

 

(47,403

)

 

Net cash provided by (used in) investing activities

 

$

(7,597

)

 

$

12,259

 

 

$

(51,551

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of debt borrowings

 

$

(28,000

)

 

$

(36,000

)

 

$

(23,000

)

 

Proceeds from debt borrowings

 

 

35,000

 

 

 

31,000

 

 

 

77,000

 

 

Dividends paid

 

 

(24,399

)

 

 

(24,395

)

 

 

(24,294

)

 

Repurchase of treasury shares

 

 

(411

)

 

 

(604

)

 

 

(817

)

 

Other financing activities

 

 

 

 

 

 

 

 

(102

)

 

Net cash provided by (used in) financing activities

 

$

(17,810

)

 

$

(29,999

)

 

$

28,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

582

 

 

 

(660

)

 

 

1,079

 

 

CASH AND CASH EQUIVALENTS, beginning of period

 

 

12,546

 

 

 

13,206