| 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. 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:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
Operations by Reportable Industry Segment |
2013 |
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2012 |
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2013 |
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2012 |
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(Dollars in Thousands) |
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(Dollars in Thousands) |
Revenues: |
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Rental Tools |
$ |
89,614 |
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$ |
59,947 |
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$ |
228,718 |
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$ |
191,233 |
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U.S. Barge Drilling |
33,919 |
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33,142 |
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102,085 |
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94,269 |
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U.S. Drilling |
18,693 |
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— |
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48,238 |
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— |
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International Drilling(1)
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88,562 |
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68,503 |
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236,394 |
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224,176 |
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Technical Services |
6,974 |
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3,709 |
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15,483 |
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11,117 |
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Total revenues |
237,762 |
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165,301 |
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630,918 |
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520,795 |
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Operating gross margin(2):
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Rental Tools |
25,816 |
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27,032 |
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72,470 |
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91,885 |
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U.S. Barge Drilling |
12,236 |
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11,042 |
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37,657 |
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29,215 |
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U.S. Drilling |
103 |
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(4,712 |
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(4,618 |
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(7,881 |
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International Drilling |
9,831 |
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783 |
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12,815 |
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21,395 |
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Technical Services |
153 |
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(107 |
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584 |
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(118 |
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Total operating gross margin |
48,139 |
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34,038 |
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118,908 |
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134,496 |
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General and administrative expense |
(14,188 |
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(8,905 |
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(49,449 |
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(21,822 |
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Gain on disposition of assets, net |
1,094 |
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606 |
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2,759 |
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2,466 |
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Total operating income |
35,045 |
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25,739 |
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72,218 |
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115,140 |
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Interest expense |
(13,127 |
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(8,171 |
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(33,874 |
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(25,133 |
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Interest income |
130 |
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30 |
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2,392 |
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109 |
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Loss on extinguishment of debt |
(5,218 |
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(117 |
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(5,218 |
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(1,766 |
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Changes in fair value of derivative positions |
— |
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19 |
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54 |
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8 |
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Other |
400 |
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26 |
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333 |
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62 |
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Income before income taxes |
$ |
17,230 |
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$ |
17,526 |
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$ |
35,905 |
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$ |
88,420 |
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September 30, 2013 |
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December 31, 2012 |
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Identifiable assets: |
(Dollars in Thousands) |
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Rental Tools |
$ |
375,900 |
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$ |
194,600 |
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U.S. Barge Drilling |
84,402 |
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99,409 |
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U.S. Drilling |
367,020 |
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374,794 |
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International Drilling |
466,356 |
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414,546 |
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Total identifiable assets |
1,293,678 |
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1,083,349 |
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Corporate assets (3)
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241,702 |
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172,384 |
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Total assets |
$ |
1,535,380 |
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$ |
1,255,733 |
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(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.
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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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(3) |
This category includes corporate assets as well as minimal assets for our Technical Services segment primarily related to office furniture and fixtures. |
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