| Results of Operations by Reportable 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, |
Dollars in thousands |
2014 |
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2013 |
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2014 |
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2013 |
Revenues: (1)
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Rental Tools |
$ |
87,711 |
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$ |
89,614 |
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$ |
255,387 |
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$ |
228,717 |
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U.S. Barge Drilling |
39,630 |
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33,919 |
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110,408 |
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102,085 |
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U.S. Drilling |
19,687 |
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18,693 |
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59,143 |
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48,238 |
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International Drilling |
88,173 |
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88,562 |
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265,396 |
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236,394 |
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Technical Services |
6,811 |
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6,974 |
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35,137 |
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15,417 |
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Total revenues |
242,012 |
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237,762 |
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725,471 |
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630,851 |
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Operating gross margin: (2)
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Rental Tools |
19,652 |
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25,816 |
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50,761 |
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72,469 |
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U.S. Barge Drilling |
15,284 |
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12,236 |
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39,655 |
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37,656 |
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U.S. Drilling |
1,307 |
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103 |
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4,072 |
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(4,618 |
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International Drilling |
7,810 |
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10,425 |
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20,395 |
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13,858 |
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Technical Services |
1,013 |
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153 |
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2,531 |
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518 |
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Total operating gross margin |
45,066 |
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48,733 |
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117,414 |
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119,883 |
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General and administrative expense |
(9,370 |
) |
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(14,238 |
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(25,341 |
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(49,286 |
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Gain (loss) on disposition of assets, net |
(457 |
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1,094 |
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433 |
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2,759 |
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Total operating income |
35,239 |
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35,589 |
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92,506 |
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73,356 |
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Interest expense |
(10,848 |
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(13,127 |
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(33,486 |
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(33,874 |
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Interest income |
36 |
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130 |
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156 |
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2,392 |
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Loss on extinguishment of debt |
— |
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(5,218 |
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(30,152 |
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(5,218 |
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Changes in fair value of derivative positions |
— |
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— |
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— |
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54 |
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Other |
(536 |
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(144 |
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1,391 |
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(805 |
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Income from continuing operations before income taxes |
$ |
23,891 |
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$ |
17,230 |
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$ |
30,415 |
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$ |
35,905 |
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(1)For the nine months ended September 30, 2014, our largest customer, ENL, constituted approximately 20.0% of our total consolidated revenues and approximately 3.5% of our Rental Tools segment revenues, 43.0% of our International Drilling segment revenues, and 68.0% of our Technical Services segment revenues. For the nine months ended September 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.
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