Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments (Tables)

v3.10.0.1
Reportable Segments (Tables)
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Results of Operations by Reportable Segment Our International Rental Tools segment maintains an inventory of rental tools and provides well construction, well intervention, and surface and tubular services to our customers in the Middle East, Latin America, United Kingdom, Europe, and Asia-Pacific regions.
The following table represents the results of operations by reportable segment:
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
Dollars in thousands
2018
 
2017
 
2018
 
2017
Revenues: (1)
 
 
 
 
 
 
 
Drilling Services:
 
 
 
 
 
 
 
U.S. (Lower 48) Drilling
$
4,530

 
$
4,585

 
$
9,167

 
$
10,843

International & Alaska Drilling
47,770

 
62,726

 
157,168

 
186,606

Total Drilling Services
52,300

 
67,311

 
166,335

 
197,449

Rental Tools Services:
 
 
 
 
 
 
 
U.S. Rental Tools
50,944

 
35,677

 
127,775

 
85,613

International Rental Tools
20,151

 
15,320

 
57,563

 
43,124

Total Rental Tools Services
71,095

 
50,997

 
185,338

 
128,737

Total revenues
123,395

 
118,308

 
351,673

 
326,186

Operating gross margin: (2)
 
 
 
 
 
 
 
Drilling Services:
 
 
 
 
 
 
 
U.S. (Lower 48) Drilling
(3,402
)
 
(3,516
)
 
(12,443
)
 
(15,278
)
International & Alaska Drilling
(8,541
)
 
1,082

 
(17,701
)
 
(3,461
)
Total Drilling Services
(11,943
)
 
(2,434
)
 
(30,144
)
 
(18,739
)
Rental Tools Services:
 
 
 
 
 
 
 
U.S. Rental Tools
16,588

 
8,556

 
30,903

 
7,746

International Rental Tools
(2,713
)
 
(6,001
)
 
(9,402
)
 
(19,647
)
Total Rental Tools Services
13,875


2,555

 
21,501

 
(11,901
)
Total operating gross margin (loss)
1,932

 
121

 
(8,643
)
 
(30,640
)
General and administrative expense
(14,495
)
 
(7,033
)
 
(28,984
)
 
(20,576
)
Loss on impairment
(43,990
)
 

 
(43,990
)
 

Gain (loss) on disposition of assets, net
9

 
97

 
(126
)
 
(368
)
Total operating income (loss)
(56,544
)
 
(6,815
)
 
(81,743
)
 
(51,584
)
Interest expense
(11,350
)
 
(11,067
)
 
(33,787
)
 
(33,032
)
Interest income
23

 
128

 
76

 
160

Other income (loss)
(709
)
 
(638
)
 
(1,609
)
 
452

Income (loss) before income taxes
$
(68,580
)
 
$
(18,392
)
 
$
(117,063
)
 
$
(84,004
)
 
(1)
For the nine months ended September 30, 2018, our largest customer, ENL, constituted approximately 25.7 percent of our total consolidated revenues and approximately 57.5 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $34.6 million, ENL constituted approximately 17.9 percent of our total consolidated revenues and approximately 47.6 percent of our International & Alaska Drilling segment revenues.
For the nine months ended September 30, 2017, our largest customer, ENL, constituted approximately 32.6 percent of our total consolidated revenues and approximately 56.9 percent of our International & Alaska Drilling segment revenues. Excluding reimbursable revenues of $39.9 million, ENL constituted approximately 23.6 percent of our total consolidated revenues and approximately 46.9 percent of our International & Alaska Drilling segment revenues. Our second largest customer, BP, constituted 10.0 percent of our total consolidated revenues and approximately 17.5 percent of our International & Alaska Drilling segment revenues.
(2)
Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
Schedule of Revenue by Geographic Region The following table shows the Company’s revenues by geographic region:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Dollars in Thousands
2018
 
2017
 
2018
 
2017
Revenues by geographic region:
 
 
 
 
 
 
 
United States
$
57,016

 
$
51,444

 
$
153,665

 
$
129,405

Russia
30,315

 
35,794

 
90,378

 
106,819

EMEA & Asia
23,902

 
15,646

 
66,206

 
44,283

Latin America
2,596

 
2,393

 
10,214

 
8,013

Other CIS
2,743

 
6,378

 
9,799

 
18,439

Other
6,823

 
6,653

 
21,411

 
19,227

Total revenues
$
123,395

 
$
118,308

 
$
351,673

 
$
326,186