Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v2.4.0.8
Reportable Segments
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
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 following table represents the results of operations by reportable segment:
 
Three months ended June 30,
 
Six months ended June 30,
Dollars in thousands
2014
 
2013
 
2014
 
2013
Revenues:
 
 
 
 
 
Rental Tools (1)
$
87,169

 
$
82,022

 
$
167,677

 
$
139,105

U.S. Barge Drilling (1)
40,289

 
38,301

 
70,778

 
68,165

U.S. Drilling (1)
20,039

 
17,910

 
39,456

 
29,545

International Drilling(1)
91,754

 
83,182

 
177,222

 
147,832

Technical Services(1)
14,983

 
4,539

 
28,326

 
8,443

Total revenues
254,234

 
225,954

 
483,459

 
393,090

Operating gross margin:
 
 
 
 
 
 
 
Rental Tools (2)
17,764

 
25,149

 
31,111

 
46,655

U.S. Barge Drilling (2)
16,551

 
16,660

 
24,371

 
25,417

U.S. Drilling (2)
1,124

 
(666
)
 
2,765

 
(4,719
)
International Drilling (2)
7,105

 
9,073

 
12,582

 
3,432

Technical Services (2)
941

 
57

 
1,519

 
366

Total operating gross margin
43,485

 
50,273

 
72,348

 
71,151

General and administrative expense
(7,007
)
 
(22,203
)
 
(15,971
)
 
(35,049
)
Gain (loss) on disposition of assets, net
1,019

 
517

 
890

 
1,665

Total operating income
37,497

 
28,587

 
57,267

 
37,767

Interest expense
(10,599
)
 
(10,741
)
 
(22,638
)
 
(20,747
)
Interest income
88

 
2,203

 
120

 
2,262

Loss on extinguishment of debt
(479
)
 
—

 
(30,152
)
 
—

Changes in fair value of derivative positions
—

 
17

 
—

 
54

Other
1,032

 
(459
)
 
1,927

 
(661
)
Income from continuing operations before income taxes
$
27,539

 
$
19,607

 
$
6,524

 
$
18,675

 
(1)For the three months ended June 30, 2014, our largest customer, ENL, constituted 17.5% of our total consolidated revenues and approximately 39.0% and 58.4% of our International Drilling and Technical Services segment revenues, respectively. For the three months ended June 30, 2013, our largest customer, ENL, constituted approximately 13.9% of our total consolidated revenues and approximately 37.7% of our International Drilling segment revenues.
For the six months ended June 30, 2014, our largest customer, ENL, constituted 17.9% of our total consolidated revenues and approximately 40.5% and 52.6% of our International Drilling and Technical Services segment revenues, respectively. For the six months ended June 30, 2013, our largest customer, ENL, constituted approximately 14.3% of our total consolidated revenues.
(2)Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense.