| Results of Operations by Reportable Segment |
The following table represents the results of operations by reportable segment:
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Successor |
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Predecessor |
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Nine Months Ended December 31, |
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Three Months Ended March 31, |
|
Year Ended December 31, |
Dollars in thousands |
2019 |
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|
2019 |
|
2018 |
Revenues: (1)
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|
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U.S. rental tools |
$ |
144,698 |
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|
|
$ |
52,595 |
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|
$ |
176,531 |
|
International rental tools |
71,292 |
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|
|
21,109 |
|
|
79,150 |
|
Total rental tools services |
215,990 |
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|
|
73,704 |
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|
255,681 |
|
U.S. (lower 48) drilling |
36,710 |
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|
|
6,627 |
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|
11,729 |
|
International & Alaska drilling |
219,695 |
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|
|
77,066 |
|
|
213,411 |
|
Total drilling services |
256,405 |
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|
|
83,693 |
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|
225,140 |
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Total revenues |
$ |
472,395 |
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|
|
$ |
157,397 |
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|
$ |
480,821 |
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Operating gross margin: (2)
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U.S. rental tools |
$ |
38,054 |
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|
|
$ |
17,289 |
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|
$ |
44,512 |
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International rental tools |
4,633 |
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|
|
(3,581 |
) |
|
(11,684 |
) |
Total rental tools services |
42,687 |
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|
13,708 |
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|
32,828 |
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U.S. (lower 48) drilling |
2,189 |
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|
|
(1,508 |
) |
|
(15,720 |
) |
International & Alaska drilling |
11,845 |
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|
|
(776 |
) |
|
(21,936 |
) |
Total drilling services |
14,034 |
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|
|
(2,284 |
) |
|
(37,656 |
) |
Total operating gross margin |
56,721 |
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|
11,424 |
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|
(4,828 |
) |
General and administrative expense |
(17,967 |
) |
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|
(8,147 |
) |
|
(24,545 |
) |
Loss on impairment |
— |
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|
— |
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|
(50,698 |
) |
Gain (loss) on disposition of assets, net |
226 |
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|
384 |
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|
(1,724 |
) |
Pre-petition restructuring charges |
— |
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|
— |
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|
(21,820 |
) |
Reorganization items |
(1,173 |
) |
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|
(92,977 |
) |
|
(9,789 |
) |
Total operating income (loss) |
37,807 |
|
|
|
(89,316 |
) |
|
(113,404 |
) |
Interest expense |
(20,902 |
) |
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|
(274 |
) |
|
(42,565 |
) |
Interest income |
887 |
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|
|
8 |
|
|
91 |
|
Other |
(188 |
) |
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(10 |
) |
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(2,023 |
) |
Income (loss) before income taxes |
$ |
17,604 |
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|
$ |
(89,592 |
) |
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$ |
(157,901 |
) |
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(1) |
For the nine months ended December 31, 2019, our largest customer, ENL, constituted approximately 29.3 percent of our total consolidated revenues and approximately 62.9 percent of our International & Alaska drilling segment revenues. Excluding reimbursable revenues of $63.2 million, ENL constituted approximately 18.6 percent of our total consolidated revenues and approximately 48.8 percent of our International & Alaska drilling segment revenues.
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For the three months ended March 31, 2019, our largest customer, ENL, constituted approximately 31.2 percent of our total consolidated revenues and approximately 63.8 percent of our International & Alaska drilling segment revenues. Excluding reimbursable revenues of $26.3 million, ENL constituted approximately 17.7 percent of our total consolidated revenues and approximately 46.6 percent of our International & Alaska drilling segment revenues.
For the year ended December 31, 2018, our largest customer, ENL, constituted approximately 25.7 percent of our total consolidated revenues and approximately 58.0 percent of our International & Alaska drilling segment revenues. Excluding reimbursable revenues of $47.2 million, ENL constituted approximately 17.9 percent of our total consolidated revenues and approximately 48.0 percent of our International & Alaska drilling segment revenues.
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(2) |
Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense. |
Other business segment information
The following table represents capital expenditures and depreciation and amortization by reportable segment:
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Successor |
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Predecessor |
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Nine Months Ended December 31, |
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Three Months Ended March 31, |
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Year Ended December 31, |
Dollars in thousands |
2019 |
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|
2019 |
|
2018 |
Capital expenditures: |
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U.S. rental tools |
$ |
51,539 |
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|
|
$ |
4,429 |
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|
$ |
55,545 |
|
International rental tools |
9,650 |
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|
3,166 |
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|
6,275 |
|
U.S. (lower 48) drilling |
1,061 |
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|
|
395 |
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|
444 |
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International & Alaska drilling |
7,787 |
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|
1,199 |
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|
7,444 |
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Corporate |
1,070 |
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|
42 |
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|
859 |
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Total capital expenditures |
$ |
71,107 |
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|
$ |
9,231 |
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$ |
70,567 |
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Depreciation and amortization: (1)
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U.S. rental tools |
$ |
30,912 |
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|
|
$ |
11,715 |
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|
$ |
48,167 |
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International rental tools |
5,999 |
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|
|
4,115 |
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|
15,548 |
|
U.S. (lower 48) drilling |
4,424 |
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|
|
808 |
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|
7,758 |
|
International & Alaska drilling |
20,164 |
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|
|
8,464 |
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|
36,072 |
|
Total depreciation and amortization |
$ |
61,499 |
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|
$ |
25,102 |
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$ |
107,545 |
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(1) |
For presentation purposes, for the nine months ended December 31, 2019, the three months ended March 31, 2019, and the year ended December 31, 2018, depreciation expense for corporate assets are as follows:
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Successor |
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Predecessor |
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Nine Months Ended December 31, |
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Three Months Ended March 31, |
|
Year Ended December 31, |
Dollars in thousands |
2019 |
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|
2019 |
|
2018 |
Depreciation expense for corporate assets |
$ |
572 |
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|
$ |
2,337 |
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|
$ |
8,441 |
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The following table represents identifiable assets by reportable segment:
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Successor |
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Predecessor |
Dollars in Thousands |
December 31,
2019 |
|
|
December 31,
2018 |
U.S. rental tools |
$ |
221,383 |
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|
|
$ |
216,123 |
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International rental tools |
98,041 |
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|
146,471 |
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U.S. (lower 48) drilling |
27,335 |
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|
30,283 |
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International & Alaska drilling |
255,844 |
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|
366,856 |
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Total identifiable assets |
602,603 |
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|
759,733 |
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Corporate |
80,245 |
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|
68,681 |
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Total assets |
$ |
682,848 |
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$ |
828,414 |
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| Operations by Geographical Area |
The following table represents selected geographic information:
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Successor |
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Predecessor |
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Nine Months Ended December 31, |
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Three Months Ended March 31, |
|
Year Ended December 31, |
Dollars in Thousands |
2019 |
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|
2019 |
|
2018 |
Revenues: |
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|
|
|
|
United States |
$ |
204,450 |
|
|
|
$ |
66,252 |
|
|
$ |
207,612 |
|
Russia |
138,893 |
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|
49,388 |
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|
123,767 |
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EMEA & Asia |
69,027 |
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|
25,133 |
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|
92,568 |
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Latin America |
29,351 |
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|
5,482 |
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|
14,631 |
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Other CIS |
11,635 |
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|
3,621 |
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|
13,703 |
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Other |
19,039 |
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|
|
7,521 |
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|
28,540 |
|
Total revenues |
$ |
472,395 |
|
|
|
$ |
157,397 |
|
|
$ |
480,821 |
|
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|
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Successor |
|
|
Predecessor |
Dollars in Thousands |
December 31,
2019 |
|
|
December 31,
2018 |
Long-lived assets: (1)
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United States |
$ |
238,497 |
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$ |
369,106 |
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Russia |
3,276 |
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|
16,964 |
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EMEA & Asia |
27,342 |
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|
89,696 |
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Latin America |
20,181 |
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|
36,656 |
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Other CIS |
10,472 |
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|
21,949 |
|
Total long-lived assets |
$ |
299,768 |
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$ |
534,371 |
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(1)
Long-lived assets consist of property, plant, and equipment, net.
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