| 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 |
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 |
$ |
5,961 |
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$ |
44,409 |
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$ |
26,906 |
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$ |
126,281 |
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International & Alaska Drilling |
110,661 |
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109,892 |
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339,551 |
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343,803 |
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Rental Tools |
56,796 |
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87,711 |
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196,978 |
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255,387 |
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Total revenues |
173,418 |
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242,012 |
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563,435 |
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725,471 |
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Operating gross margin: (2)
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U.S. (Lower 48) Drilling |
(7,397 |
) |
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16,283 |
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(20,673 |
) |
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42,829 |
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International & Alaska Drilling |
13,212 |
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9,131 |
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37,428 |
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23,824 |
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Rental Tools |
(944 |
) |
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19,652 |
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16,404 |
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50,761 |
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Total operating gross margin |
4,871 |
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45,066 |
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33,159 |
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117,414 |
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General and administrative expense |
(8,895 |
) |
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(9,370 |
) |
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(29,243 |
) |
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(25,341 |
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Provision for reduction in carrying value of certain assets |
(906 |
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— |
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(3,222 |
) |
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— |
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Gain (loss) on disposition of assets, net |
383 |
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(457 |
) |
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2,686 |
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433 |
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Total operating income (loss) |
(4,547 |
) |
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35,239 |
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3,380 |
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92,506 |
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Interest expense |
(11,293 |
) |
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(10,848 |
) |
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(33,767 |
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(33,486 |
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Interest income |
7 |
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36 |
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209 |
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156 |
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Loss on extinguishment of debt |
— |
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— |
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— |
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(30,152 |
) |
Other income (loss) |
(719 |
) |
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(536 |
) |
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(3,628 |
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1,391 |
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Income (loss) from continuing operations before income taxes |
$ |
(16,552 |
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$ |
23,891 |
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$ |
(33,806 |
) |
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$ |
30,415 |
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(1)For the nine months ended September 30, 2015, our largest customer, Exxon Neftegas Limited (ENL), constituted approximately 27.0 percent of our total consolidated revenues and approximately 44.7 percent of our International & Alaska Drilling segment revenues. For the nine months ended September 30, 2014, our largest customer, ENL, constituted approximately 18.9 percent of our total consolidated revenues and approximately 39.9 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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