Tesco Corporation Reports Second Quarter 2016 Results
Cash increased by $44 million during the quarter from $47 million of proceeds from an issuance of shares, ending at $97 million with no debt
Reported U.S. GAAP diluted EPS was a loss of $(0.47) on a net loss of $(18.9) million and adjusted EPS was a loss of $(0.39) on an adjusted net loss of $(15.8) million, after $0.08 in charges
Adjusted EBITDA was $(7.5) million for the second quarter, up from $(7.7) million for the first quarter, despite a sequential decline in revenue of 5%.
HOUSTON, August 9, 2016 -- Tesco Corporation ("TESCO" or the "Company") (NASDAQ: TESO) today reported second quarter 2016 financial and operating results.
Second Quarter Operating Results
Fernando Assing, Tesco's Chief Executive Officer, commented, "With liquidity of approximately $97 million at the end of the quarter and no debt, we are in a strong position to take advantage of opportunities to start growing our business even though the timing of a market recovery remains uncertain. In this quarter, our restructuring actions drove improved results despite a sequential decline in sales. As additional restructuring opportunities become more limited, we are putting increased focus on bringing our new technologies to market as well as other options to add scale and critical mass."
“To fund these strategic initiatives and be prepared for the market recovery, we successfully raised $47 million through a secondary offering this quarter. We must make the investments to continue to adapt our business and commercial models to create a more sustainable and competitive company."
Tesco reported revenue of $33.6 million for the second quarter ended June 30, 2016, down from $35.5 million, or 5%, in the first quarter of 2016, and down from $74.5 million, or 55%, for the second quarter of 2015. The sequential decline in revenue was primarily from lower tubular service activity in U.S. land and offshore markets, partially offset by higher sales of new products.
Tesco reported a U.S. GAAP net loss of $(18.9) million, or $(0.47) per diluted share, for the second quarter ended June 30, 2016. Our adjusted net loss for the quarter was $(15.8) million, or $(0.39) per diluted share, excluding special items, consisting primarily of several charges related to restructuring costs. This compares to a U.S. GAAP net loss of $(56.8) million, or $(1.45) per diluted share, in the first quarter of 2016, and a U.S. GAAP net loss of $(27.5) million, or $(0.71) per diluted share, for the second quarter of 2015. Adjusted net loss in the first quarter of 2016 was $(17.9) million, or $(0.46) per diluted share, and in the second quarter of 2015 was $(8.0) million, or $(0.21) per diluted share.
Adjusted EBITDA was $(7.5) million for the second quarter ended June 30, 2016 compared to adjusted EBITDA of $(7.7) million in the first quarter of 2016 on nearly 5% revenue decline, reflecting the benefits of restructuring in the last several quarters. Additional restructuring was completed in the second quarter, with further initiatives expected in the second half of the year. For the second quarter ended June 30, 2016, U.S. GAAP operating loss was $(19.2) million and adjusted operating loss was $(16.0) million, which excludes the impact of $3.2 million of charges. This is an improvement over the first quarter 2016 U.S. GAAP operating loss of $(54.8) million and adjusted operating loss of $(17.2) million, which excludes $37.6 million of charges.
Cash and cash equivalents as of June 30, 2016 increased from the first quarter by $43.6 million to $97.5 million, primarily due to the June 2016 secondary public equity offering of 7.0 million shares that generated proceeds of $46.7 million, net of underwriting discounts, commissions and issuance costs. In July 2016, our underwriter partially exercised its over-allotment option to purchase an additional 130,752 common shares that generated nearly $1 million in additional proceeds. The offering proceeds provide Tesco
The following information was filed by Tesco Corp (TESO) on Tuesday, August 9, 2016 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.