Registration of securities issued in business combination transactions

Reportable Segments

v2.4.0.8
Reportable Segments
 9 Months Ended 12 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Reportable Segments
5. 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. We eliminate inter-segment revenues and expenses. 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 
September 30,		     Nine Months Ended 
September 30,		  

Operations by Reportable Industry Segment

    2013     2012     2013     2012  
     (Dollars in Thousands)     (Dollars in Thousands)  

Revenues:

         

Rental Tools

    $ 89,614      $ 59,947      $ 228,718      $ 191,233   

U.S. Barge Drilling

      33,919        33,142        102,085        94,269   

U.S. Drilling

      18,693        —          48,238        —     

International Drilling(1)

      88,562        68,503        236,394        224,176   

Technical Services

      6,974        3,709        15,483        11,117   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      237,762        165,301        630,918        520,795   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating gross margin(2):

         

Rental Tools

      25,816        27,032        72,470        91,885   

U.S. Barge Drilling

      12,236        11,042        37,657        29,215   

U.S. Drilling

      103        (4,712 )      (4,618 )      (7,881 ) 

International Drilling

      9,831        783        12,815        21,395   

Technical Services

      153        (107 )      584        (118 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating gross margin

      48,139        34,038        118,908        134,496   

General and administrative expense

      (14,188 )      (8,905 )      (49,449 )      (21,822 ) 

Gain on disposition of assets, net

      1,094        606        2,759        2,466   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating income

      35,045        25,739        72,218        115,140   

Interest expense

      (13,127 )      (8,171 )      (33,874 )      (25,133 ) 

Interest income

      130        30        2,392        109   

Loss on extinguishment of debt

      (5,218 )      (117 )      (5,218 )      (1,766 ) 

Changes in fair value of derivative positions

      —          19        54        8   

Other

      400        26        333        62   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

    $ 17,230      $ 17,526      $ 35,905      $ 88,420   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

Identifiable assets:

    September 30,
2013		      December 31,
2012		  
   (Dollars in Thousands)  

Rental Tools

    $ 375,900       $ 194,600   

U.S. Barge Drilling

      84,402         99,409   

U.S. Drilling

      367,020         374,794   

International Drilling

      466,356         414,546   
  

 

 

     

 

 

  

Total identifiable assets

      1,293,678         1,083,349   

Corporate assets(3)

      241,702         172,384   
  

 

 

     

 

 

  

Total assets

    $ 1,535,380       $ 1,255,733   
  

 

 

     

 

 

  

 

  (1) For the nine months ended September 30, 2013, our largest customer, Exxon Neftegas Limited, constituted 14.3% of our total consolidated revenues and approximately 36.9% of our International Drilling segment. For the nine months ended September 30, 2012, our two largest customers, Exxon Neftegas Limited (ENL) and Schlumberger, constituted approximately 10.6% and 10.2%, respectively, of our total consolidated revenues and approximately 32.0% and 24.0%, respectively, of our International Drilling segments.
  (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.

Note 12 — 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 revenue and expenses. The following table represents the results of operations by reportable segment:

 

     Year Ended December 31,  

Operations by Reportable Industry Segment:

    2012     2011     2010  
     (Dollars in Thousands)  

Revenues:

       

Rental Tools(1)

    $ 246,900      $ 237,068      $ 172,598   

U.S. Barge Drilling(1)

      123,672        93,763        64,543   

U.S. Drilling(1)(3)

      1,387        —          —     

International Drilling(1)

      291,772        318,482        294,821   

Technical Services(1)

      14,251        27,695        36,423   

Construction Contract(1)

      —          9,638        91,090   
  

 

 

    

 

 

    

 

 

  

Total revenues

      677,982        686,646        659,475   
  

 

 

    

 

 

    

 

 

  

Operating income:

       

Rental Tools(2)

      113,899        120,822        74,541   

U.S. Barge Drilling(2)

      39,774        11,116        (11,503 )

U.S. Drilling(2)

      (15,168 )     (3,915 )     (217 )

International Drilling(2)

      12,642        22,237        5,092   

Technical Services(2)

      (246 )     5,335        5,052   

Construction Contract(2)

      —          771        202   
  

 

 

    

 

 

    

 

 

  

Total operating gross margin

      150,901        156,366        73,167   

General and administrative expense

      (46,052 )     (31,314 )     (30,728 )

Impairments and other charges

      —          (170,000 )     —     

Provision for reduction in carrying value of certain assets

      —          (1,350 )     (1,952 )

Gain on disposition of assets, net

      1,974        3,659        4,620   
  

 

 

    

 

 

    

 

 

  

Total operating income (loss)

      106,823        (42,639 )     45,107   

Interest expense

      (33,542 )     (22,594 )     (26,805 )

Changes in fair value of derivative positions

      55        (110 )     —     

Loss on extinguishment of debt

      (2,130 )     —          (7,209 )

Other

      (229 )     (69 )     412   
  

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations before income taxes

    $ 70,977      $ (65,412 )   $ 11,505   
  

 

 

    

 

 

    

 

 

  

 

     2012      2011  

Identifiable assets:

      

Rental Tools

    $ 194,600       $ 188,520   

U.S. Barge Drilling

      99,409         108,396   

U.S. Drilling

      374,794         265,166   

International Drilling

      414,546         426,490   
  

 

 

     

 

 

  

Total identifiable assets

      1,083,349         988,572   

Corporate and other assets(4)

      172,384         227,674   
  

 

 

     

 

 

  

Total assets

    $ 1,255,733       $ 1,216,246   
  

 

 

     

 

 

  

 

1) In 2012, our two largest customers, Exxon Neftegas Limited (ENL) and Schlumberger, constituted approximately 12 percent and 10 percent, respectively, of our total consolidated revenues and approximately 27 percent and 24 percent of our International Drilling segment, respectively. In 2011, our largest customer, ENL constituted approximately 16 percent of our total revenues and approximately 34 percent of our International Drilling segment. In 2010, our two largest customers BP and ExxonMobil both accounted for approximately 12 percent of the Company’s total revenues. In 2010, BP accounted for 90 percent of our construction contract segment revenues and ExxonMobil accounted for approximately 22 percent of our International Drilling segment and 7 percent of our Rental Tools segment.
2) Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
3) As of December 31, 2011, this segment had not begun generating revenue.
4) This category includes corporate assets as well as minimal assets for our Technical Services segment primarily related to office furniture and fixtures.

 

     Year ended December 31,  

Operations by Reportable Industry Segment:

    2012      2011      2010  
     (Dollars in Thousands)  

Capital expenditures:

         

Rental Tools

    $ 61,958       $ 61,702       $ 48,872   

U.S. Barge Drilling

      8,808         7,339         5,315   

U.S. Drilling

      86,786         99,915         113,177   

International Drilling

      15,240         15,011         50,482   

Corporate

      18,751         6,432         1,338   
  

 

 

     

 

 

     

 

 

  

Total capital expenditures

    $ 191,543       $ 190,399       $ 219,184   
  

 

 

     

 

 

     

 

 

  

Depreciation and amortization:

         

Rental Tools

      42,944         40,497         36,558   

U.S. Barge Drilling

      13,906         17,006         22,165   

U.S. Drilling

      7,011         2,223         —     

International Drilling

      45,967         48,965         52,429   

Corporate and other(1)

      3,189         3,445         3,878   
  

 

 

     

 

 

     

 

 

  

Total depreciation and amortization

    $ 113,017       $ 112,136       $ 115,030   
  

 

 

     

 

 

     

 

 

  

 

1) This category includes depreciation of corporate assets as well as minimal depreciation for our Technical Services segment primarily related to office furniture and fixtures.

 

     Year Ended December 31,  

Operations by Geographic Area:

    2012     2011     2010  
     (Dollars in Thousands)  

Revenues:

       

Africa and Middle East

    $ 26,528      $ 6,774      $ 22,621   

Asia Pacific

      39,400        38,477        26,416   

CIS

      122,304        176,421        149,963   

Latin America

      103,540        96,810        103,885   

United States

      386,210        368,164        356,590   
  

 

 

    

 

 

    

 

 

  

Total revenues

      677,982        686,646        659,475   
  

 

 

    

 

 

    

 

 

  

Operating gross margin:

       

Africa and Middle East(1)

      (2,234 )     (6,383 )     659   

Asia Pacific(1)

      (927 )     1,933        2,374   

CIS(1)

      6,840        26,402        8,139   

Latin America(1)

      8,990        377        1,210   

United States(1)

      138,232        134,037        60,785   
  

 

 

    

 

 

    

 

 

  

Total operating gross margin

      150,901        156,366        73,167   
  

 

 

    

 

 

    

 

 

  

General and administrative expense

      (46,052 )     (31,314 )     (30,728 )

Impairments and other charges

      —          (170,000 )     —     

Provision for reduction in carrying value of certain assets

      —          (1,350 )     (1,952 )

Gain on disposition of assets, net

      1,974        3,659        4,620   
  

 

 

    

 

 

    

 

 

  

Total operating income (loss)

      106,823        (42,639 )     45,107   

Interest expense

      (33,542 )     (22,594 )     (26,805 )

Changes in fair value of derivative positions

      55        (110 )     —     

Loss on extinguishment of debt

      (2,130 )     —          (7,209 )

Other

      (229 )     (69 )     412   
  

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations before income taxes

    $ 70,977      $ (65,412 )   $ 11,505   
  

 

 

    

 

 

    

 

 

  

Long-lived assets:(2)

       

Africa and Middle East

    $ 25,032      $ 28,427     

Asia Pacific

      15,723        18,300     

CIS

      106,774        119,282     

Latin America

      63,899        57,710     

United States

      574,730        496,090     
  

 

 

    

 

 

    

Total long-lived assets

    $ 786,158      $ 719,809     
  

 

 

    

 

 

    

 

1) Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
2) Long-lived assets primarily consist of property, plant and equipment, net and exclude assets held for sale, if any.