Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v2.4.1.9
Reportable Segments
 3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Reportable Segments
Reportable Segments
Our business is comprised of two business lines: (1) Drilling Services and (2) Rental Tools Services. We have completed a business review and as a result have aligned our reportable segments with our two core business lines and our current internal organizational structure. We continue to report our Rental Tools Services business as one reportable segment (Rental Tools); however, effective with the first quarter of 2015, the Company is reporting its Drilling Services business as two segments: (1) U.S. (Lower 48) Drilling and (2) International & Alaska Drilling. We eliminate inter-segment revenue and expenses.
The following table represents the results of operations by reportable segment:
 
Three Months Ended March 31,
Dollars in thousands
2015
 
2014
Revenues: (1)
 
U.S. (Lower 48) Drilling
$
14,097

 
$
35,787

International & Alaska Drilling
113,921

 
112,932

Rental Tools
76,058

 
80,506

Total revenues
204,076

 
229,225

Operating gross margin: (2)
 
 
 
U.S. (Lower 48) Drilling
(5,717
)
 
8,742

International & Alaska Drilling
17,354

 
6,776

Rental Tools
12,630

 
13,345

Total operating gross margin
24,267

 
28,863

General and administrative expense
(10,837
)
 
(8,964
)
Gain (loss) on disposition of assets, net
2,441

 
(129
)
Total operating income
15,871

 
19,770

Interest expense
(11,078
)
 
(12,039
)
Interest income
183

 
32

Loss on extinguishment of debt
—

 
(29,673
)
Other income (loss)
(1,380
)
 
895

Income (loss) from continuing operations before income taxes
$
3,596

 
$
(21,015
)
 
(1)For the three months ended March 31, 2015, our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 22.9% of our total consolidated revenues and approximately 41.0% of our International & Alaska Drilling segment revenues. For the three months ended March 31, 2014, our largest customer, ENL, constituted approximately 17.1% of our total consolidated revenues and approximately 39.6% of our International & Alaska Drilling segment revenues.
(2)Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense.