| 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 |
2015 |
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2014 |
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2015 |
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2014 |
Revenues: (1)
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U.S. (Lower 48) Drilling |
$ |
6,848 |
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$ |
46,085 |
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$ |
20,945 |
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$ |
81,872 |
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International & Alaska Drilling |
114,969 |
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120,980 |
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228,890 |
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233,910 |
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Rental Tools |
64,124 |
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87,169 |
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140,182 |
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167,677 |
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Total revenues |
185,941 |
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254,234 |
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390,017 |
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483,459 |
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Operating gross margin: (2)
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U.S. (Lower 48) Drilling |
(7,552 |
) |
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17,808 |
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(13,274 |
) |
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26,548 |
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International & Alaska Drilling |
6,844 |
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7,913 |
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24,208 |
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14,689 |
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Rental Tools |
4,729 |
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17,764 |
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17,354 |
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31,111 |
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Total operating gross margin |
4,021 |
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43,485 |
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28,288 |
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72,348 |
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General and administrative expense |
(9,511 |
) |
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(7,007 |
) |
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(20,348 |
) |
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(15,971 |
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Provision for reduction in carrying value of certain assets |
(2,316 |
) |
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— |
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(2,316 |
) |
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— |
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Gain (loss) on disposition of assets, net |
(138 |
) |
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1,019 |
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2,303 |
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890 |
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Total operating income |
(7,944 |
) |
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37,497 |
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7,927 |
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57,267 |
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Interest expense |
(11,396 |
) |
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(10,599 |
) |
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(22,474 |
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(22,638 |
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Interest income |
19 |
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88 |
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202 |
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120 |
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Loss on extinguishment of debt |
— |
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(479 |
) |
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— |
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(30,152 |
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Other income (loss) |
(1,529 |
) |
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1,032 |
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(2,909 |
) |
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1,927 |
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Income (loss) from continuing operations before income taxes |
$ |
(20,850 |
) |
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$ |
27,539 |
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$ |
(17,254 |
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$ |
6,524 |
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(1)For the six months ended June 30, 2015, our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 26.0 percent of our total consolidated revenues and approximately 44.3 percent of our International & Alaska Drilling segment revenues. For the six months ended June 30, 2014, our largest customer, ENL, constituted approximately 17.9 percent of our total consolidated revenues and approximately 37.1 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.
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