| Reportable Segments |
We report our
business activities in six business segments: (1) Rental
Tools, (2) U.S. Barge Drilling, (3) U.S. Drilling,
(4) International Drilling, (5) Technical Services, and
(6) Construction Contract. We eliminate inter-segment revenues
and expenses. The following table represents the results of
operations by reportable segment:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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Operations by Reportable
Industry Segment
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2012 |
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2011 |
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2012 |
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2011 |
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(Dollars in
Thousands) |
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(Dollars in
Thousands) |
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Revenues:
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Rental Tools
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$ |
59,947 |
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$ |
62,388 |
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$ |
191,233 |
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$ |
173,197 |
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U.S. Barge
Drilling
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33,142 |
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28,895 |
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94,269 |
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70,876 |
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U.S. Drilling(2)
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— |
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— |
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— |
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— |
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International
Drilling
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68,503 |
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79,591 |
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224,176 |
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229,250 |
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Technical
Services
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3,709 |
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5,715 |
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11,117 |
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22,619 |
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Construction
Contract
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— |
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— |
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— |
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9,638 |
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Total revenues
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165,301 |
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176,589 |
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520,795 |
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505,580 |
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Operating gross
margin:
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Rental Tools(1)
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27,032 |
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33,389 |
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91,885 |
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88,052 |
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U.S. Barge
Drilling(1)
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11,042 |
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6,732 |
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29,215 |
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8,502 |
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U.S. Drilling(1)
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(4,712 |
) |
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(1,334 |
) |
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(7,881 |
) |
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(2,015 |
) |
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International
Drilling(1)
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783 |
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10,017 |
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21,395 |
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12,141 |
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Technical
Services(1)
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(107 |
) |
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1,162 |
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(118 |
) |
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4,518 |
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Construction
Contract(1)
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— |
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— |
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— |
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771 |
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Total operating gross
margin
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34,038 |
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49,966 |
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134,496 |
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111,969 |
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General and administrative
expense
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(8,905 |
) |
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(8,630 |
) |
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(21,822 |
) |
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(23,384 |
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Gain on disposition of
assets, net
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606 |
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623 |
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2,466 |
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1,993 |
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Total operating
income
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25,739 |
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41,959 |
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115,140 |
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90,578 |
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Interest expense
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(8,171 |
) |
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(5,591 |
) |
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(25,133 |
) |
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(17,208 |
) |
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Interest income
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30 |
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29 |
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109 |
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208 |
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Changes in fair value of
derivative positions
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19 |
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(49 |
) |
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8 |
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(186 |
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Loss on extinguishment of
debt
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(117 |
) |
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— |
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(1,766 |
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— |
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Other
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26 |
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(657 |
) |
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62 |
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(522 |
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Income before income
taxes
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$ |
17,526 |
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$ |
35,691 |
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$ |
88,420 |
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$ |
72,870 |
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| (1) |
Operating gross margin is
calculated as revenues less direct operating expenses, including
depreciation and amortization expense. |
| (2) |
As of September 30,
2012, this segment had not begun generating revenue. |
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