| 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 in the first
quarter of 2013 or the comparable period in 2012. 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
March 31, |
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Operations by
Reportable Industry Segment
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2013 |
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2012 |
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(Dollars in
Thousands) |
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Revenues:
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Rental Tools
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$ |
57,082 |
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$ |
66,284 |
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U.S. Barge
Drilling
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|
29,865 |
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|
27,835 |
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U.S. Drilling
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|
11,635 |
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— |
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International
Drilling(1)
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|
64,650 |
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|
78,750 |
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Technical
Services
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|
3,923 |
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|
3,700 |
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Total revenues
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|
167,155 |
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|
176,569 |
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Operating gross
margin:
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Rental Tools (2)
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21,507 |
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|
33,602 |
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U.S. Barge
Drilling(2)
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|
8,758 |
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|
7,157 |
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U.S. Drilling(2)
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|
(4,052 |
) |
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(1,547 |
) |
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International
Drilling(2)
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(5,945 |
) |
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14,559 |
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Technical
Services(2)
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|
329 |
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|
247 |
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Total operating gross
margin
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|
20,597 |
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|
54,018 |
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General and administrative
expense
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|
(12,883 |
) |
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(5,497 |
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Gain on disposition of
assets, net
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|
1,148 |
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|
492 |
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Total operating
income
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8,862 |
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|
49,013 |
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Interest expense
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(10,006 |
) |
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(8,037 |
) |
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Interest income
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|
59 |
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|
26 |
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Changes in fair value of
derivative positions
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37 |
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(49 |
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Other
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|
116 |
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16 |
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Income before income
taxes
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$ |
(932 |
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$ |
40,969 |
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(1) |
In the first quarter of
2013, our largest customer, Exxon Neftegas Limited (ENL),
constituted 15.1 percent of our total consolidated revenues
and approximately 38.5% of our International Drilling segment. In
the first quarter of 2012, no single customer contributed 10
percent or more to our year to date consolidated
revenues. |
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(2) |
Operating gross margin is
calculated as revenues less direct operating expenses, including
depreciation and amortization expense. |
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