Tesco Corporation Reports Q4 and Full Year 2013 Results
For Immediate Release
"TESO" on NASDAQ
Houston, Texas--Tesco Corporation ("TESCO" or the "Company") today reported net income for the quarter ended December 31, 2013 was $5.5 million or $0.14 per diluted share. Adjusted net income for the quarter ended December 31, 2013, was $8.7 million, or $0.22 per diluted share. Adjusted net income for the fourth quarter excludes the after-tax impact of foreign currency translation losses, of $2.3 million, or $0.06 per diluted share primarily from Latin American currency devaluations, and certain severance charges of $0.9 million, or $0.02 per diluted shares, but includes the after-tax impact of a sequential quarterly swing in allowance for doubtful accounts in Latin America and The Middle East of $1.3 million or $0.03, higher legal fees for patent defense of $0.4 million, or $0.01 per diluted share and $0.6 million, or $0.02 per diluted share, due to drilling delays from severe North-American weather and Iraqi disruptions. This compares to adjusted net income of $11.7 million and $13.7 million, or $0.29 and $0.35 per diluted share, for the third quarter of 2013 and the fourth quarter of 2012, respectively. Revenue was $136.9 million for the quarter ended December 31, 2013, compared to revenue of $132.2 million for the third quarter of 2013 and $137.6 million for the comparable period in 2012.
Reported net income was $36.3 million or $0.91 per diluted share for the year ended December 31, 2013. Adjusted net income for the year ended December 31, 2013, was $38.5 million, or $0.97 per diluted share, compared to adjusted net income of $41.1 million or $1.05 per diluted share for 2012. Adjusted net income for the years ended December 31, 2013 and 2012 excluded a $1.0 million and $8.7 million after tax gain on the sale of our Casing Drilling business, respectively. Revenue was $525.3 million for the year ended December 31, 2013, compared to $553.1 million for 2012.
Julio Quintana, TESCO's Chief Executive Officer, commented, "Given year over year 2013 declining drilling activity levels in North America, we look forward to a more stable and improving market in 2014. With strengthening activity in our international business units, our Tubular Services business enjoyed the highest annual revenue in the Company's history and exceeded 4,000 automated jobs in the year. Although our Top Drive business has continued to be negatively impacted by the decreased active rig count in North America, our Top Drive strategy to shift to international markets, especially to Russia and Latin America, has partially offset the decline we experienced in North America. Today, our Top Drive backlog which stands at 39 units compares favorably to our third quarter backlog of 26 units. Finally, we are particularly proud of our improvement in our balance sheet where cash grew year on year from $22 million to $97 million as a result of greater focus on optimizing working capital; a key aspect of our Tesco 3.0 quality initiative. 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."
The following information was filed by Tesco Corp (TESO) on Monday, March 3, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.