| Reportable Segments |
Reportable Segments
Our business is comprised of two business lines: (1) Rental Tools Services and (2) Drilling Services. We report our business activities in five reportable segments: (1) Rental Tools, (2) U.S. Barge Drilling, (3) U.S. Drilling, (4) International Drilling, and (5) Technical Services. We eliminate inter-segment revenue and expenses.
The following table represents the results of operations by reportable segment:
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Year Ended December 31, |
Dollars in thousands |
2014 |
|
2013 |
|
2012 |
Revenues: |
|
|
|
|
|
Rental Tools(1)
|
$ |
347,766 |
|
|
$ |
310,041 |
|
|
$ |
246,900 |
|
U.S. Barge Drilling(1)
|
137,113 |
|
|
136,855 |
|
|
123,672 |
|
U.S. Drilling(1)
|
79,984 |
|
|
66,928 |
|
|
1,387 |
|
International Drilling(1)
|
360,588 |
|
|
333,962 |
|
|
291,772 |
|
Technical Services(1)
|
43,233 |
|
|
26,386 |
|
|
14,030 |
|
Construction Contract(1)
|
— |
|
|
— |
|
|
— |
|
Total revenues |
968,684 |
|
|
874,172 |
|
|
677,761 |
|
Operating income: |
|
|
|
|
|
Rental Tools(2)
|
72,946 |
|
|
91,164 |
|
|
113,899 |
|
U.S. Barge Drilling(2)
|
42,641 |
|
|
51,257 |
|
|
39,608 |
|
U.S. Drilling(2)
|
6,320 |
|
|
(4,484 |
) |
|
(15,168 |
) |
International Drilling(2)
|
28,966 |
|
|
23,732 |
|
|
13,138 |
|
Technical Services(2)
|
3,309 |
|
|
2,050 |
|
|
79 |
|
Construction Contract(2)
|
— |
|
|
4,728 |
|
|
— |
|
Total operating gross margin |
154,182 |
|
|
168,447 |
|
|
151,556 |
|
General and administrative expense |
(35,016 |
) |
|
(68,025 |
) |
|
(46,257 |
) |
Provision for reduction in carrying value of certain assets |
— |
|
|
(2,544 |
) |
|
— |
|
Gain on disposition of assets, net |
1,054 |
|
|
3,994 |
|
|
1,974 |
|
Total operating income |
120,220 |
|
|
101,872 |
|
|
107,273 |
|
Interest expense |
(44,265 |
) |
|
(47,820 |
) |
|
(33,542 |
) |
Interest income |
195 |
|
|
2,450 |
|
|
153 |
|
Loss on extinguishment of debt |
(30,152 |
) |
|
(5,218 |
) |
|
(2,130 |
) |
Changes in fair value of derivative positions |
— |
|
|
53 |
|
|
55 |
|
Other income (loss) |
2,539 |
|
|
1,450 |
|
|
(832 |
) |
Income from continuing operations before income taxes |
$ |
48,537 |
|
|
$ |
52,787 |
|
|
$ |
70,977 |
|
The following table represents capital expenditures and depreciation and amortization by reportable segment:
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Year Ended December 31, |
Dollars in thousands |
2014 |
|
2013 |
|
2012 |
Capital expenditures: |
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|
|
|
Rental Tools |
$ |
95,340 |
|
|
$ |
76,928 |
|
|
$ |
61,958 |
|
U.S. Barge Drilling |
43,114 |
|
|
23,694 |
|
|
8,808 |
|
U.S. Drilling |
1,159 |
|
|
1,809 |
|
|
86,786 |
|
International Drilling |
25,608 |
|
|
39,115 |
|
|
15,240 |
|
Corporate |
14,292 |
|
|
14,099 |
|
|
18,751 |
|
Total capital expenditures |
$ |
179,513 |
|
|
$ |
155,645 |
|
|
$ |
191,543 |
|
Depreciation and amortization: |
|
|
|
|
|
Rental Tools |
64,177 |
|
|
55,853 |
|
|
44,117 |
|
U.S. Barge Drilling |
21,118 |
|
|
14,338 |
|
|
14,492 |
|
U.S. Drilling |
15,948 |
|
|
16,385 |
|
|
7,017 |
|
International Drilling |
43,651 |
|
|
47,346 |
|
|
47,354 |
|
Technical Services |
227 |
|
|
131 |
|
|
37 |
|
Construction Contract |
— |
|
|
— |
|
|
— |
|
Total depreciation and amortization |
$ |
145,121 |
|
|
$ |
134,053 |
|
|
$ |
113,017 |
|
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|
1) |
In 2014, our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 18.7 percent of our total consolidated revenues and approximately 41.4 percent of our international drilling segment and 74.3 percent of our technical services segment. In 2013, our largest customer, ENL, constituted approximately 15.6 percent of our total consolidated revenues and approximately 38.3 percent of our international drilling segment and 33.9 percent of our technical services segment. In 2012, our two largest customers, ENL and Schlumberger, constituted approximately 12.0 percent and 10.0 percent, respectively, of our total consolidated revenues and approximately 27.0 percent and 24.0 percent of our international drilling segment, respectively.
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2) |
Operating income is calculated as revenues less direct operating expenses, including depreciation and amortization expense. |
The following table represents identifiable assets by reportable segment:
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Year Ended December 31, |
Dollars in Thousands |
2014 |
|
2013 |
Identifiable assets: |
|
|
|
Rental Tools |
$ |
444,195 |
|
|
$ |
350,429 |
|
U.S. Barge Drilling |
117,344 |
|
|
89,884 |
|
U.S. Drilling |
308,105 |
|
|
354,208 |
|
International Drilling |
451,168 |
|
|
460,461 |
|
Total identifiable assets |
1,320,812 |
|
|
1,254,982 |
|
Corporate and other assets(1)
|
199,847 |
|
|
279,774 |
|
Total assets |
$ |
1,520,659 |
|
|
$ |
1,534,756 |
|
|
|
1) |
This category includes corporate assets as well as minimal assets for our technical services segment primarily related to office furniture and fixtures. |
The following table represents selected geographic information:
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Year Ended December 31, |
Operations by Geographic Area: |
2014 |
|
2013 |
|
2012 |
Dollars in Thousands |
|
Revenues: |
|
|
|
|
|
Africa and Middle East |
$ |
128,214 |
|
|
$ |
58,416 |
|
|
$ |
26,528 |
|
Asia Pacific |
187,799 |
|
|
170,165 |
|
|
117,392 |
|
CIS |
61,849 |
|
|
55,165 |
|
|
44,312 |
|
Europe |
20,296 |
|
|
16,788 |
|
|
— |
|
Latin America |
86,651 |
|
|
120,261 |
|
|
103,540 |
|
United States |
483,875 |
|
|
453,377 |
|
|
385,989 |
|
Total revenues |
968,684 |
|
|
874,172 |
|
|
677,761 |
|
Operating gross margin: |
|
|
|
|
|
Africa and Middle East(1)
|
(16,973 |
) |
|
(383 |
) |
|
(2,027 |
) |
Asia Pacific(1)
|
29,769 |
|
|
21,995 |
|
|
16,550 |
|
CIS(1)
|
19,534 |
|
|
11,888 |
|
|
(9,580 |
) |
Europe(1)
|
11,534 |
|
|
274 |
|
|
— |
|
Latin America(1)
|
(9,914 |
) |
|
1,140 |
|
|
9,581 |
|
United States(1)
|
120,232 |
|
|
133,533 |
|
|
137,032 |
|
Total operating gross margin |
154,182 |
|
|
168,447 |
|
|
151,556 |
|
|
|
|
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|
Long-lived assets:(2)
|
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|
|
|
Africa and Middle East |
$ |
115,713 |
|
|
$ |
110,336 |
|
|
|
Asia Pacific |
43,252 |
|
|
44,606 |
|
|
|
CIS |
49,951 |
|
|
55,722 |
|
|
|
Europe |
20,140 |
|
|
82,473 |
|
|
|
Latin America |
77,136 |
|
|
15,198 |
|
|
|
United States |
589,748 |
|
|
563,021 |
|
|
|
Total long-lived assets |
$ |
895,940 |
|
|
$ |
871,356 |
|
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1) |
Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense. |
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2) |
Long-lived assets consist of property, plant and equipment, net. |
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