false 00-0000000 0001000229 0001000229 2021-01-27 2021-01-27

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 27, 2021

 

CORE LABORATORIES N.V.

(Exact name of registrant as specified in its charter)

 

 

The Netherlands

001-14273

Not Applicable

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

Van Heuven Goedhartlaan 7 B
1181 LE Amstelveen
The Netherlands

 

Not Applicable

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (31-20) 420-3191

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock (Par Value EUR 0.02)

 

CLB

 

New York Stock Exchange

Common Stock (Par Value EUR 0.02)

 

CLB

 

Euronext Amsterdam Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 


 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

On January 27, 2021, Core Laboratories N.V. (the “Company”) issued a press release announcing its financial results for the fourth quarter of 2020 and the year ending December 31, 2020. The full text of the press release is set forth in Exhibit 99.1 attached hereto.

The information in this Report and the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly stated by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d)

 

Exhibits

99.1Press release issued on January 27, 2021 *

104Cover Page Interactive Data File (embedded within the Inline XBRL document).

* This exhibit is intended to be furnished and shall not be deemed "filed" for purposes of the Exchange Act.


 


 

 

CORE LABORATORIES N.V.

EXHIBIT INDEX TO FORM 8-K

 

 

 

EXHIBIT NO.

 

ITEM

 

 

 

99.1

 

Press release issued on January 27, 2021 *

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document).

* This exhibit is intended to be furnished and shall not be deemed "filed" for purposes of the Exchange Act.

 


 


 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

 

 

 

 

Core Laboratories N.V.

 

 

 

 

 

 

 

Dated:  January 27, 2021

 

By

 

/s/ Christopher S. Hill

 

 

 

 

 

 

Christopher S. Hill

 

 

 

 

 

 

Chief Financial Officer

 

 

 

 

 

 

clb-ex991_6.htm

Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE

 

CORE LAB REPORTS FOURTH QUARTER AND FULL YEAR 2020 RESULTS FROM CONTINUING OPERATIONS:

 

COMPANY FOURTH QUARTER REVENUE OF $114 MILLION; UP 8% SEQUENTIALLY

 

FOURTH QUARTER GAAP EPS OF $0.31; $0.18, EX-ITEMS; UP OVER 10% SEQUENTIALLY

 

CORE GENERATES FCF FOR 19TH CONSECUTIVE YEAR; $46 MILLION FOR 2020

 

CORE REDUCES NET DEBT BY $49 MILLION OR 16.5% FOR 2020

 

RESERVOIR DESCRIPTION’S REVENUE UP 5% SEQUENTIALLY

 

PRODUCTION ENHANCEMENT’S REVENUE UP 18% SEQUENTIALLY, LED BY U.S. ENERGETICS SALES, UP OVER 65% SEQUENTIALLY

AMSTERDAM (27 January 2021) - Core Laboratories N.V. (NYSE: "CLB US" and Euronext Amsterdam: "CLB NA") ("Core", "Core Lab", or the "Company") reported that continuing operations resulted in fourth quarter 2020 revenue of $113,700,000. Core’s operating income was $23,400,000, with earnings per diluted share (“EPS”) of $0.31, all in accordance with U.S. generally accepted accounting principles ("GAAP"). The financial results for the fourth quarter of 2020 include a non-cash adjustment of $11.9 million to reverse previously recognized stock compensation expense associated with performance share awards that did not fully vest and were revalued.  Operating income, ex-items, a non-GAAP financial measure, was $13,000,000, yielding operating margins of 11% and EPS, ex-items, of $0.18. A full reconciliation of non-GAAP financial measures and year-over-year comparisons are included in the attached financial tables.

Core’s CEO, Larry Bruno stated, “Core’s fourth quarter results demonstrate the dedicated efforts of our innovative staff, the durability and adaptability of the business model, as well as the benefits of the cost reduction plans that were quickly enacted earlier this year. Despite the challenges encountered in 2020, after adjusting for non-cash impairments, Core generated sector-leading operating margins, four consecutive quarters of positive earnings, and positive free cash flow for 2020.  This performance enabled the Company to reduce net debt by $48,700,000 throughout the year, while continuing to fund capital investments for growth initiatives. As we embark on 2021, Core remains well-positioned to navigate today’s challenging market and capitalize on future growth opportunities, while providing innovative solutions that drive efficiency and reservoir optimization for our clients.”

Liquidity, Free Cash Flow, Private Placement Notes and Dividend

Core continues to focus and generate free cash flow (“FCF”), a non-GAAP financial measure defined as cash from operations less capital expenditures.  For the full year of 2020 cash from operations was $57,900,000 and capital expenditures were $11,900,000, yielding FCF of $ 46,000,000, marking the 19th


 

consecutive year in which the Company has generated positive free cash flow. Cash flow from operations, for the fourth quarter of 2020, included cash payments unique to the quarter, and had a negative impact on operational cash flow. These cash payments included (i) $16 million for employee post-retirement deferred compensation distributions and employment separation payments and (ii) approximately $5 million for prepaid 2021 corporate insurance programs, which resulted in lower annual premium costs. Accounting for the $21 million in cash payments ($16 million + $5 million), cash from operations was ($2,900,000) for the fourth quarter of 2020, and together with $3,300,000 in capital expenditures, FCF was ($6,200,000).  Although these cash payments for employee post-retirement benefits in the fourth quarter are required to be deducted from operational cash flow and FCF, the Company had partially funded the employee post-retirement payments with $11,500,000 of cash received through previously purchased company owned life insurance (“COLI”) policies.  The cash received from COLI is considered investing activities, and thus, is not included in cash generated from operations or FCF.  The following table summarizes the impact of these cash payments on operational cash flow.

 

 

 

Quarter ended

December 31, 2020

(in $ millions)

Net cash provided by operations, before employee post-retirement and prepaid insurance payments

 

$                  18.1

Cash payments for employee post-retirement and prepaid insurance

 

$ (21.0)

U.S. GAAP – net cash used by operations

 

$ (2.9)

Capital Expenditures

 

$       (3.3)

FCF

 

$        (6.2)

 

For the full year, free cash was used to reduce the Company’s outstanding debt, and net debt was decreased by $48,700,000 or 16.5%. Core will continue applying its excess free cash flow towards debt reduction for the foreseeable future.  

The following graph summarizes the maximum leverage ratio permitted over the relevant period:

Quarter Ending 2020 2021 Jun. 30 Sept. 30 Dec. 31 Mar. 31 Jun. 30 Sept. 30 Dec. 31 Maximum Leverage Ratio 3.00 2.75 2.50 2.00 1.50 1.00 Core Lab’s leverage ratio of 2.21 at 30 June 2020

As of 31 December 2020, Core Lab’s leverage ratio was 2.82, with $101,000,000 of excess capacity under the Company’s revolving credit facility. As previously disclosed, subsequent to year-end, on 12 January 2021, the Company issued $60 million of senior unsecured notes in a private placement

 


 

transaction. Proceeds from the sale were exclusively used to reduce outstanding borrowings under the credit facility. The Company anticipates it will continue to generate positive cash flow and reduce net debt, while maintaining ample liquidity and remaining in compliance with debt covenants.

On 17 December 2020, Core announced the launch of an “at-the-market offering” for the issuance and sale of up to $60.0 million of common shares.  Core Lab intends to use the net proceeds from the sale of Shares, if any, for general corporate purposes, which may include, among other things, investments in the development of new products and technologies, capital expenditures, repayments of indebtedness, working capital and potential acquisitions.  The Company has not sold shares under this program as of 27 January 2021.   

The following table summarizes the quarterly cash dividends paid by the Company for the year ended 31 December 2020.  Dutch withholding tax was deducted from each dividend at a rate of 15%.

 

 

Quarter Ending

 

Record Date

 

Payment Date

$ Amount per Common Share

31 March 2020

24 January 2020

14 February 2020

$0.25

30 June 2020

8 May 2020

19 May 2020

$0.01

30September 2020

27 July 2020

10 August 2020

$0.01

31 December 2020

26 October 2020

17 November 2020

$0.01

2020 Total

 

 

$0.28

On 15 January 2021, the Board announced a quarterly cash dividend of $0.01 per share of common stock, payable on 16 February 2021 to shareholders of record on 25 January 2021. Dutch withholding tax will be deducted from the dividend at a rate of 15%.

Reservoir Description

Reservoir Description revenue in the fourth quarter of 2020 was $83,800,000, up 5% sequentially.  Operating income for the fourth quarter of 2020 on a GAAP basis was $19,400,000, while operating income, ex-items, was $12,300,000, up 5% sequentially, yielding operating margins, ex-items, of 15%, which were flat sequentially. Sequential performance was associated with improved U.S. client activity and some improvement on longer-cycle international project activity. Operating margins were impacted by continued COVID-19 disruptions that included project and logistical delays in various international markets; however, the implemented cost controls in the segment helped mitigate the impact on operating margins.

During the fourth quarter of 2020, Core continued to perform highly specialized core and reservoir fluid analytical programs on samples originating from the offshore South Atlantic Margin.  Additional opportunities along the South Atlantic Margin are unfolding.  Several international oil companies have obtained licenses for pre-salt exploration and appraisal in Brazil, signaling that this region will be a focus of near, mid and long-term capital deployment. To support current and future programs, Core is in the final stages of commissioning a new facility in Rio de Janeiro. This laboratory will offer a wide range of testing capabilities, including many of the proprietary and patented technologies that are in high demand throughout Core’s global client base. These proprietary offerings include Core’s full visualization,

 


 

pressure-volume-temperature (“PVT”) cell instrumentation and Core’s Dual Energy CT rock evaluation technologies. This new laboratory secures Core’s position as the leading provider of advanced reservoir description services in the region and satisfies the growing demand for Core’s patented and proprietary laboratory technologies in this growing market.

Also, in the fourth quarter of 2020, Core continued analytical programs on a variety of CO2 injection projects for both carbon capture and sequestration (“CCS”) and for enhanced oil recovery (“EOR”) efforts. Under the direction of The CarbonNet Project, Core continued its laboratory analysis of conventional core from the Gular-1 appraisal well, offshore southeast Australia. Data generated by Core is providing insight into seal capacity, storage capacity, geomechanical properties and the pore system properties of the target injection zones.  Additionally, in the fourth quarter of 2020, Core was engaged by a national oil company in the Asia-Pacific region to evaluate CO2 injection opportunities as part of an EOR program in tight oil reservoirs. Core Lab combined its proprietary high frequency nuclear magnetic resonance technology with physical laboratory core flooding experiments to determine in-situ hydrocarbon saturations during and after CO2 injection.  This comprehensive dataset is providing the operator with an understanding of fluid displacement and fluid interactions throughout the CO2 flooding process. For these EOR applications, CO2 purity, injection parameters, fluid compatibility, and rock properties all need to be measured and evaluated. These two projects are representative of the various CO2 subsurface injection opportunities that exist for Core and its clients.  

Production Enhancement

Production Enhancement operations, which are focused on complex completions in unconventional, tight-oil reservoirs in the U.S., as well as conventional offshore projects across the globe, posted fourth quarter 2020 revenue of $29,900,000, up 18% sequentially. The revenue increase was primarily driven by U.S. land energetic product sales, which improved 65%, sequentially. This compares very favorably with sequential U.S. land well completion activity. Operating income on a GAAP basis was $4,500,000, and $1,170,000 ex-items, both up sequentially. Additionally, operating margins improved sequentially from near break-even to 4% for the quarter.

Core’s clients are always seeking innovative technological solutions to optimize their completion techniques.    Recently, several of Core’s technologically sophisticated clients in North America pursued an oriented downhole perforating technology which would align the perforations in the direction of maximum principal stress. To meet this objective, Core’s Production Enhancement engineering team developed the patent pending Oriented GoGunTM. Providing both very high alignment accuracy and wellsite efficiency, this technological advancement is designed to allow the frac energy to be focused in a manner that maximizes the frac while minimizing tortuosity.  Core’s Oriented GoGunTM also eliminates the need for orientation subassemblies, minimizing the number of connections and saving time by not having to recapture and redress orienting subs. During the fourth quarter of 2020, one of the largest E&P operators in North America conducted field trials, including various offerings from competitor’s oriented systems.  During the field trails, downhole cameras were used by the operator to verify orientation accuracy. Core Lab’s Oriented GoGunTM proved to have the highest level of accuracy, both from perforation to perforation and from stage to stage. As a result of Core’s superior product performance, the operator has adopted the Oriented GoGunTM as their preferred perforating system.

Also, during the fourth quarter of 2020, Core’s proprietary completion diagnostic services were utilized in a major Gulf Coast natural gas storage project. Core was engaged by the operator to assess the effectiveness of frac pack completions performed on a number of wells in this gas storage field. Core

 


 

utilized its PackScan® density logging technology to determine the competency of the annular packs that had been placed in these wells. In one of the wells, Core’s PackScan® density log revealed insufficient coverage of the perforated interval and a completely uncovered sand control screen. Core’s engineers identified these potential failure points and recommended a proppant “top-off” treatment to remediate the interval of concern. The operator agreed, and within a week a successful “top-off” treatment was performed, resulting in 14 feet of proppant coverage above the top of the sand control screen. It is critical that these gas storage wells be effectively fracked and the annulus competently packed in order to ensure their long-term functionality for both injecting and withdrawing natural gas. Core Labs’ PackScan® technology and the resultant top-off treatment avoided a costly completion remediation program.

Return On Invested Capital

Core’s Board of Supervisory Directors ("Board") and the Company’s Executive Management continue to focus on strategies that maximize return on invested capital ("ROIC") and FCF, factors that have high correlation to total shareholder return.  Core’s commitment to an asset-light business model and disciplined capital stewardship promote capital efficiency and are designed to produce more predictable and superior long-term ROIC.

Events associated with the COVID-19 pandemic have caused significant disruptions in global markets and economies, with adverse effects throughout the energy sector. These adverse effects have triggered significant asset impairments for goodwill, intangible assets, inventory and other fixed assets, which further distort underlying financial performance and performance metrics, such as ROIC.

The Board has established an internal performance metric of demonstrating superior ROIC performance relative to the oilfield service companies listed as Core's Comp Group by Bloomberg. In 2020, Core Lab recorded $133 million in non-cash charges associated with impairment of goodwill, intangible assets and inventory.  Excluding these adjustments, Core’s calculation of ROIC using Bloomberg’s formula was 4.7%.  

Industry and Core Lab Outlook

For 2021, Core will continue to focus on executing its strategic plan of generating free cash and reducing net debt, while maximizing ROIC. Additionally, as part of the Company’s 2021 strategic focus, the Company will continue to invest in targeted, client-driven technologies that aim to both solve client problems and capitalize on Core’s growth opportunities.  

Core is optimistic about its international growth opportunities as the second half of 2021 unfolds and COVID-19 disruptions are expected to abate. With Core Lab having more than 70% of its revenue exposed to international activity, the Company remains active on international projects already underway. International markets are expected to drive growth opportunities for the Company in the second half of 2021 and beyond; these areas include: Brazil, Mexico, Qatar and various other areas of the Middle East. Unpredictable project and logistical disruptions related to COVID-19 are expected to persist in the near to mid-term. For the first quarter of 2021, and consistent with historical trends, Core Lab expects lower client activity due to seasonality. This seasonal pattern typically results in a decline in first quarter revenue by mid-single digits.  Core anticipates typical seasonal effects and COVID-19 restrictions to impact the first quarter of 2021, with first quarter revenue projected to be flat to down by low single digits, sequentially.  The projected decline in first quarter revenue is slightly less pronounced, compared to historical trends, as the Company expects momentum in U.S. land activity to continue.

 


 

Within Reservoir Description, Core expects reservoir fluid analysis, which accounts for more than 65% of the segment’s revenue, to remain resilient as this work is diversified across the life of the reservoir and less reliant on drilling and completion of new wells.  However, given Reservoir Description’s strong international exposure, COVID-19 disruptions present uncertainties for near to mid-term client activity levels as travel restrictions fluctuate due to virus trends.

Core sees continued, gradual sequential improvement in U.S. land activity into 2021.  As a result, Core Lab projects Production Enhancement first quarter 2021 revenue to increase sequentially. Core expects Production Enhancement to continue to track or outperform activity levels in U.S. land completions.

In summary, despite the near-term international challenges related to COVID-19 restrictions, Core Lab sees activity levels improving as 2021 unfolds, with higher incremental margins emerging in the second half of the year. Core’s growth opportunities are directly related to expanding client activity and new market penetration, particularly internationally. Within that context, Core remains focused on the on-going development of new client driven technologies and market penetration, as well as the continued focus on digitization and automation throughout Core’s business.  

The Company’s first quarter 2021 guidance is based on projections for the underlying operations and exclude gains and losses in foreign exchange.  This initial first quarter 2021 guidance also assumes an effective tax rate of 20%.

Earnings Call Scheduled

The Company has scheduled a conference call to discuss Core's fourth quarter 2020 earnings announcement. The call will begin at 7:30 a.m. CST / 2:30 p.m. CET on Thursday, 28 January 2021. To listen to the call, please go to Core's website at www.corelab.com.

Core Laboratories N.V. is a leading provider of proprietary and patented reservoir description and production enhancement services and products used to optimize petroleum reservoir performance.  The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. This release, as well as other statements we make, includes forward-looking statements regarding the future revenue, profitability, business strategies and developments of the Company made in reliance upon the safe harbor provisions of Federal securities law.  The Company's outlook is subject to various important cautionary factors, including risks and uncertainties related to the oil and natural gas industry, business conditions, international markets, international political climates, public health crises, such as the COVID-19 pandemic, and any related actions taken by businesses and governments, and other factors as more fully described in the Company's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. These important factors could cause the Company's actual results to differ materially from those described in these forward-looking statements. Such statements are based on current expectations of the Company's performance and are subject to a variety of factors, some of which are not under the control of the Company. Because the information herein is based solely on data currently available, and because it is subject to change as a result of changes in conditions over which the Company has no control or influence, such forward-looking statements should not be viewed as assurance regarding the Company's future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this press release, except as required by law.

 


 

Visit the Company's website at www.corelab.com. Connect with Core Lab on Facebook, LinkedIn and YouTube.

For more information, contact:

Gwen Schreffler - SVP Corporate Development and Investor Relations, +1 713 328 6210

 

 


 

 

CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

 

 

Three Months Ended

 

 

% Variance

 

 

 

 

December 31, 2020

 

 

September 30, 2020

 

 

December 31, 2019

 

 

vs. Q3-20

 

 

vs. Q4-19

 

 

REVENUE

 

$

113,749

 

 

$

105,382

 

 

$

156,778

 

 

7.9%

 

 

(27.4)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of services and sales

 

 

87,918

 

 

 

81,038

 

 

 

117,749

 

 

8.5%

 

 

(25.3)%

 

 

General and administrative expenses 1

 

 

(3,692

)

 

 

8,937

 

 

 

9,773

 

 

NM

 

 

NM

 

 

Depreciation and amortization

 

 

4,837

 

 

 

5,164

 

 

 

5,535

 

 

(6.3)%

 

 

(12.6)%

 

 

Inventory write-down

 

 

443

 

 

 

 

 

 

 

 

NM

 

 

NM

 

 

Other (income) expense, net

 

 

839

 

 

 

(1,088

)

 

 

2,666

 

 

NM

 

 

(12.6)%

 

 

Total operating expenses

 

 

90,345

 

 

 

94,051

 

 

 

135,723

 

 

(3.9)%

 

 

(33.4)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

23,404

 

 

 

11,331

 

 

 

21,055

 

 

106.5%

 

 

11.2%

 

 

Interest expense

 

 

2,920

 

 

 

4,672

 

 

 

3,588

 

 

(37.5)%

 

 

(18.6)%

 

 

Income from continuing operations

   before income tax expense

 

 

20,484

 

 

 

6,659

 

 

 

17,467

 

 

207.6%

 

 

17.3%

 

 

Income tax expense

 

 

6,540

 

 

 

3,663

 

 

 

7,177

 

 

78.5%

 

 

(8.9)%

 

 

Income from continuing operations

 

 

13,944

 

 

 

2,996

 

 

 

10,290

 

 

365.4%

 

 

35.5%

 

 

Income (loss) from discontinued

   operations, net of income taxes

 

 

(424

)

 

 

 

 

 

 

 

NM

 

 

NM

 

 

Net income

 

 

13,520

 

 

 

2,996

 

 

 

10,290

 

 

351.3%

 

 

31.4%

 

 

Net income attributable to non-

   controlling interest

 

 

(17

)

 

 

33

 

 

 

(40

)

 

NM

 

 

NM

 

 

Net income attributable to Core

   Laboratories N.V.

 

$

13,537

 

 

$

2,963

 

 

$

10,330

 

 

356.9%

 

 

31.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing

   operations

 

$

0.31

 

 

$

0.07

 

 

$

0.23

 

 

342.9%

 

 

34.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS attributable to Core

   Laboratories N.V.

 

$

0.30

 

 

$

0.07

 

 

$

0.23

 

 

328.6%

 

 

30.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common

   shares outstanding

 

 

44,958

 

 

 

44,899

 

 

 

44,634

 

 

0.1%

 

 

0.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

32

%

 

 

55

%

 

 

41

%

 

NM

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

83,838

 

 

$

80,060

 

 

$

102,617

 

 

4.7%

 

 

(18.3)%

 

 

Production Enhancement

 

 

29,911

 

 

 

25,322

 

 

 

54,161

 

 

18.1%

 

 

(44.8)%

 

 

Total

 

$

113,749

 

 

$

105,382

 

 

$

156,778

 

 

7.9%

 

 

(27.4)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

19,426

 

 

$

11,022

 

 

$

14,248

 

 

76.2%

 

 

36.3%

 

 

Production Enhancement

 

 

4,495

 

 

 

(321

)

 

 

6,586

 

 

NM

 

 

(31.7)%

 

 

Corporate and Other

 

 

(517

)

 

 

630

 

 

 

221

 

 

NM

 

 

NM

 

 

Total

 

$

23,404

 

 

$

11,331

 

 

$

21,055

 

 

106.5%

 

 

11.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"NM" means not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) For the quarter ending December 31, 2020, General and administrative expenses include an adjustment to reverse $11.3

        million of stock compensation that had been previously recognized.

 

 


 


 

CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)

(Unaudited)

 

 

 

Twelve Months ended

 

 

% Variance

 

 

 

 

December 31, 2020

 

 

December 31, 2019

 

 

 

 

 

 

REVENUE

 

$

487,267

 

 

$

668,210

 

 

(27.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of services and sales

 

 

374,767

 

 

 

495,579

 

 

(24.4)%

 

 

General and administrative expenses

 

 

34,033

 

 

 

48,023

 

 

(29.1)%

 

 

Depreciation and amortization

 

 

20,867

 

 

 

22,605

 

 

(7.7)%

 

 

Impairments and other charges

 

 

122,204

 

 

 

 

 

NM

 

 

Inventory write-down

 

 

10,375

 

 

 

 

 

NM

 

 

Other (income) expense, net

 

 

1,826

 

 

 

5,319

 

 

NM

 

 

Total operating expenses

 

 

564,072

 

 

 

571,526

 

 

(1.3)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

(76,805

)

 

 

96,684

 

 

NM

 

 

Interest expense

 

 

14,372

 

 

 

14,690

 

 

(2.2)%

 

 

Income (loss) from continuing operations before income tax expense

 

 

(91,177

)

 

 

81,994

 

 

NM

 

 

Income tax expense (benefit)

 

 

5,896

 

 

 

(12,290

)

 

NM

 

 

Income (loss) from continuing operations

 

 

(97,073

)

 

 

94,284

 

 

NM

 

 

Income (loss) from discontinued operations, net of income taxes

 

 

(424

)

 

 

7,833

 

 

NM

 

 

Net income (loss)

 

 

(97,497

)

 

 

102,117

 

 

NM

 

 

Net income attributable to non-controlling interest

 

 

140

 

 

 

134

 

 

NM

 

 

Net income (loss) attributable to Core Laboratories N.V.

 

$

(97,637

)

 

$

101,983

 

 

(195.7)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing operations

 

$

(2.18

)

 

$

2.11

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS attributable to Core Laboratories N.V.

 

$

(2.20

)

 

$

2.28

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding

 

 

44,477

 

 

 

44,646

 

 

(0.4)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

(6

)%

 

 

(15

)%

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

355,041

 

 

$

420,897

 

 

(15.6)%

 

 

Production Enhancement

 

 

132,226

 

 

 

247,313

 

 

(46.5)%

 

 

Total

 

$

487,267

 

 

$

668,210

 

 

(27.1)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

55,044

 

 

$

55,140

 

 

(0.2)%

 

 

Production Enhancement

 

 

(133,449

)

 

 

38,378

 

 

NM

 

 

Corporate and Other

 

 

1,600

 

 

 

3,166

 

 

NM

 

 

Total

 

$

(76,805

)

 

$

96,684

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"NM" means not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 

 

CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(amounts in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Variance

 

 

ASSETS:

 

December 31, 2020

 

 

September 30, 2020

 

 

December 31, 2019

 

 

vs. Q3-20

 

 

vs. Q4-19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

13,806

 

 

$

15,146

 

 

$

11,092

 

 

(8.8)%

 

 

24.5%

 

 

Accounts receivable, net

 

 

83,192

 

 

 

85,366

 

 

 

131,579

 

 

(2.5)%

 

 

(36.8)%

 

 

Inventory

 

 

38,151

 

 

 

42,908

 

 

 

50,163

 

 

(11.1)%

 

 

(23.9)%

 

 

Other current assets

 

 

30,699

 

 

 

26,469

 

 

 

28,403

 

 

16.0%

 

 

8.1%

 

 

Total Current Assets

 

 

165,848

 

 

 

169,889

 

 

 

221,237

 

 

(2.4)%

 

 

(25.0)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

115,293

 

 

 

117,123

 

 

 

123,506

 

 

(1.6)%

 

 

(6.6)%

 

 

Right-of-use assets

 

 

66,385

 

 

 

69,228

 

 

 

75,697

 

 

(4.1)%

 

 

(12.3)%

 

 

Intangibles, goodwill and other long-term assets, net

 

 

221,053

 

 

 

234,574

 

 

 

354,233

 

 

(5.8)%

 

 

(37.6)%

 

 

Total assets

 

$

568,579

 

 

$

590,814

 

 

$

774,673

 

 

(3.8)%

 

 

(26.6)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

 

 

$

75,000

 

 

$

 

 

NM

 

 

NM

 

 

Accounts payable

 

 

23,028

 

 

 

22,806

 

 

 

35,611

 

 

1.0%

 

 

(35.3)%

 

 

Short-term operating lease obligations

 

 

11,437

 

 

 

11,807

 

 

 

11,841

 

 

(3.1)%

 

 

(3.4)%

 

 

Other current liabilities

 

 

55,285

 

 

 

62,523

 

 

 

64,142

 

 

(11.6)%

 

 

(13.8)%

 

 

Total current liabilities

 

 

89,750

 

 

 

172,136

 

 

 

111,594

 

 

(47.9)%

 

 

(19.6)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

 

259,433

 

 

 

189,566

 

 

 

305,283

 

 

36.9%

 

 

(15.0)%

 

 

Long-term operating lease obligations

 

 

56,108

 

 

 

56,649

 

 

 

64,660

 

 

(1.0)%

 

 

(13.2)%

 

 

Other long-term liabilities

 

 

87,715

 

 

 

100,754

 

 

 

110,996

 

 

(12.9)%

 

 

(21.0)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

75,573

 

 

 

71,709

 

 

 

182,140

 

 

5.4%

 

 

(58.5)%

 

 

Total liabilities and equity

 

$

568,579

 

 

$

590,814

 

 

$

774,673

 

 

(3.8)%

 

 

(26.6)%

 

 

 

“NM” means not meaningful


 


 

CORE LABORATORIES N.V. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

(Unaudited)

 

 

Three Months Ended

 

 

Twelve Months ended

 

 

 

December 31, 2020

 

 

December 31, 2020

 

 

December 31, 2019

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

13,944

 

 

$

(97,073

)

 

$

94,284

 

Income (loss) from discontinued operations

 

 

(424

)

 

 

(424

)

 

 

7,833

 

Net income (loss)

 

$

13,520

 

 

$

(97,497