| Reportable Segments |
Reportable Segments
We report our business activities in five business segments: (1) Rental Tools, (2) U.S. Barge Drilling, (3) U.S. Drilling, (4) International Drilling, and (5)Technical Services. As of December 31, 2012, we had a sixth business segment, Construction Contract, for which there was no activity during the three and six months ended June 30, 2013 or the comparable period in 2012. We eliminate inter-segment revenues and expenses. As of and for the three months ended June 30, 2013, the results of operations for ITS, acquired on April 22, 2013, are included in our Rental Tools segment.
The following table represents the results of operations by reportable segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
Operations by Reportable Industry Segment |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
(Dollars in Thousands) |
|
(Dollars in Thousands) |
Revenues: |
|
|
|
|
|
Rental Tools |
$ |
82,022 |
|
|
$ |
65,002 |
|
|
$ |
139,105 |
|
|
$ |
131,286 |
|
U.S. Barge Drilling |
38,301 |
|
|
33,292 |
|
|
68,165 |
|
|
61,127 |
|
U.S. Drilling |
17,910 |
|
|
— |
|
|
29,545 |
|
|
— |
|
International Drilling(1)
|
83,182 |
|
|
76,923 |
|
|
147,832 |
|
|
155,673 |
|
Technical Services |
4,586 |
|
|
3,708 |
|
|
8,509 |
|
|
7,408 |
|
Total revenues |
226,001 |
|
|
178,925 |
|
|
393,156 |
|
|
355,494 |
|
Operating gross margin: |
|
|
|
|
|
|
|
Rental Tools(2)
|
25,149 |
|
|
31,251 |
|
|
46,656 |
|
|
64,853 |
|
U.S. Barge Drilling(2)
|
16,660 |
|
|
11,014 |
|
|
25,417 |
|
|
18,171 |
|
U.S. Drilling(2)
|
(666 |
) |
|
(1,623 |
) |
|
(4,719 |
) |
|
(3,170 |
) |
International Drilling(2)
|
8,925 |
|
|
6,056 |
|
|
2,983 |
|
|
20,615 |
|
Technical Services(2)
|
104 |
|
|
(258 |
) |
|
432 |
|
|
(11 |
) |
Total operating gross margin |
50,172 |
|
|
46,440 |
|
|
70,769 |
|
|
100,458 |
|
General and administrative expense |
(22,378 |
) |
|
(7,420 |
) |
|
(35,261 |
) |
|
(12,917 |
) |
Gain on disposition of assets, net |
517 |
|
|
1,368 |
|
|
1,665 |
|
|
1,860 |
|
Total operating income |
28,311 |
|
|
40,388 |
|
|
37,173 |
|
|
89,401 |
|
Interest expense |
(10,741 |
) |
|
(8,925 |
) |
|
(20,747 |
) |
|
(16,962 |
) |
Changes in fair value of derivative positions |
17 |
|
|
38 |
|
|
54 |
|
|
(11 |
) |
Interest income |
2,203 |
|
|
53 |
|
|
2,251 |
|
|
79 |
|
Loss on extinguishment of debt |
— |
|
|
(1,649 |
) |
|
— |
|
|
(1,649 |
) |
Other |
(183 |
) |
|
20 |
|
|
(56 |
) |
|
36 |
|
Income before income taxes |
$ |
19,607 |
|
|
$ |
29,925 |
|
|
$ |
18,675 |
|
|
$ |
70,894 |
|
|
|
|
|
|
|
|
|
Operations by Reportable Industry Segment |
|
|
|
|
|
|
|
|
June 30, 2013 |
|
December 31, 2012 |
|
|
|
|
Identifiable assets: |
|
|
|
|
|
|
|
Rental Tools |
$ |
368,371 |
|
|
$ |
194,600 |
|
|
|
|
|
U.S. Barge Drilling |
111,711 |
|
|
99,409 |
|
|
|
|
|
U.S. Drilling |
340,773 |
|
|
374,794 |
|
|
|
|
|
International Drilling |
487,005 |
|
|
414,546 |
|
|
|
|
|
Total identifiable assets |
1,307,860 |
|
|
1,083,349 |
|
|
|
|
|
Corporate assets (3)
|
128,677 |
|
|
172,384 |
|
|
|
|
|
Total assets |
$ |
1,436,537 |
|
|
$ |
1,255,733 |
|
|
|
|
|
|
|
(1) |
In the second quarter of 2013, our largest customer, Exxon Neftegas Limited (ENL), constituted 13.9% of our total consolidated revenues and approximately 37.7% of our International Drilling segment. In the second quarter of 2012, no single customer contributed 10% or more of our year-to-date consolidated revenues.
|
|
|
(2) |
Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense. |
|
|
(3) |
This category includes corporate assets as well as minimal assets for our Technical Services segment primarily related to office furniture and fixtures. |
|