| Results of Operations by Reportable Segment |
The following table represents the results of operations by reportable segment:
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
Dollars in thousands |
2018 |
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2017 |
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2018 |
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2017 |
Revenues: (1)
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Drilling Services: |
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U.S. (Lower 48) Drilling |
$ |
3,283 |
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$ |
5,042 |
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$ |
4,637 |
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$ |
6,257 |
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International & Alaska Drilling |
53,302 |
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60,669 |
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109,398 |
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123,881 |
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Total Drilling Services |
56,585 |
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65,711 |
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|
114,035 |
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130,138 |
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Rental Tools Services: |
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U.S. Rental Tools |
42,083 |
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29,704 |
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76,831 |
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49,936 |
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International Rental Tools |
19,935 |
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14,192 |
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37,412 |
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27,804 |
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Total Rental Tools Services |
62,018 |
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43,896 |
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114,243 |
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77,740 |
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Total revenues |
118,603 |
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109,607 |
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228,278 |
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207,878 |
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Operating gross margin: (2)
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Drilling Services: |
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U.S. (Lower 48) Drilling |
(3,751 |
) |
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(4,528 |
) |
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(9,041 |
) |
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(11,761 |
) |
International & Alaska Drilling |
(3,827 |
) |
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(2,788 |
) |
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(9,157 |
) |
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(4,555 |
) |
Total Drilling Services |
(7,578 |
) |
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(7,316 |
) |
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(18,198 |
) |
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(16,316 |
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Rental Tools Services: |
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U.S. Rental Tools |
11,302 |
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2,988 |
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15,530 |
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(798 |
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International Rental Tools |
(3,891 |
) |
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(6,688 |
) |
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(7,907 |
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(13,647 |
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Total Rental Tools Services |
7,411 |
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(3,700 |
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7,623 |
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(14,445 |
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Total operating gross margin |
(167 |
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(11,016 |
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(10,575 |
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(30,761 |
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General and administrative expense |
(8,288 |
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(6,503 |
) |
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(14,489 |
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(13,543 |
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Gain (loss) on disposition of assets, net |
(478 |
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(113 |
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(135 |
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(465 |
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Total operating income (loss) |
(8,933 |
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(17,632 |
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(25,199 |
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(44,769 |
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Interest expense |
(11,197 |
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(11,095 |
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(22,437 |
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(21,965 |
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Interest income |
30 |
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22 |
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53 |
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32 |
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Other income (loss) |
(1,191 |
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560 |
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(900 |
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1,090 |
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Income (loss) before income taxes |
$ |
(21,291 |
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$ |
(28,145 |
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$ |
(48,483 |
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$ |
(65,612 |
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(1) |
For the six months ended June 30, 2018, our largest customer, ENL, constituted approximately 26.3 percent of our total consolidated revenues and approximately 54.9 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $22.6 million, ENL constituted approximately 18.6 percent of our total consolidated revenues and approximately 45.4 percent of our International & Alaska Drilling segment revenues.
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For the six months ended June 30, 2017, our largest customer, ENL, constituted approximately 34.0 percent of our total consolidated revenues and approximately 57.0 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $27.0 million, ENL constituted approximately 24.6 percent of our total consolidated revenues and approximately 46.7 percent of our International & Alaska Drilling segment revenues. Our second largest customer, BP, constituted 10.5 percent, of our total consolidated revenues and approximately 17.6 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. |
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| Schedule of Revenue by Geographic Region |
The following table shows the Company’s revenues by geographic region:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
Dollars in Thousands |
2018 |
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2017 |
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2018 |
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2017 |
Revenues by geographic region: |
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United States |
$ |
52,655 |
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$ |
45,387 |
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$ |
96,651 |
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$ |
77,961 |
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Russia |
28,771 |
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36,578 |
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60,062 |
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71,025 |
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EMEA & Asia |
22,260 |
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13,537 |
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42,304 |
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28,637 |
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Latin America |
4,104 |
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2,753 |
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7,617 |
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5,620 |
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Other CIS |
3,506 |
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5,753 |
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7,056 |
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12,061 |
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Other |
7,307 |
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5,599 |
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14,588 |
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12,574 |
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Total revenues |
$ |
118,603 |
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$ |
109,607 |
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$ |
228,278 |
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$ |
207,878 |
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