Quarterly report pursuant to Section 13 or 15(d)

Reportable Segments

v2.4.0.6
Reportable Segments
9 Months Ended
Sep. 30, 2012
Reportable Segments
4. Reportable Segments

We report our business activities in six business segments: (1) Rental Tools, (2) U.S. Barge Drilling, (3) U.S. Drilling, (4) International Drilling, (5) Technical Services, and (6) Construction Contract. We eliminate inter-segment revenues and expenses. The following table represents the results of operations by reportable segment:

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 

Operations by Reportable Industry Segment

   2012     2011     2012     2011  
     (Dollars in Thousands)     (Dollars in Thousands)  

Revenues:

    

Rental Tools

   $ 59,947      $ 62,388      $ 191,233      $ 173,197   

U.S. Barge Drilling

     33,142        28,895        94,269        70,876   

U.S. Drilling(2)

     —          —          —          —     

International Drilling

     68,503        79,591        224,176        229,250   

Technical Services

     3,709        5,715        11,117        22,619   

Construction Contract

     —          —          —          9,638   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     165,301        176,589        520,795        505,580   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating gross margin:

        

Rental Tools(1)

     27,032        33,389        91,885        88,052   

U.S. Barge Drilling(1)

     11,042        6,732        29,215        8,502   

U.S. Drilling(1)

     (4,712     (1,334     (7,881     (2,015

International Drilling(1)

     783        10,017        21,395        12,141   

Technical Services(1)

     (107     1,162        (118     4,518   

Construction Contract(1)

     —          —          —          771   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating gross margin

     34,038        49,966        134,496        111,969   

General and administrative expense

     (8,905     (8,630     (21,822     (23,384

Gain on disposition of assets, net

     606        623        2,466        1,993   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating income

     25,739        41,959        115,140        90,578   

Interest expense

     (8,171     (5,591     (25,133     (17,208

Interest income

     30        29        109        208   

Changes in fair value of derivative positions

     19        (49     8        (186

Loss on extinguishment of debt

     (117     —          (1,766     —     

Other

     26        (657     62        (522
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

   $ 17,526      $ 35,691      $ 88,420      $ 72,870   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Operating gross margin is calculated as revenues less direct operating expenses, including depreciation and amortization expense.
(2) As of September 30, 2012, this segment had not begun generating revenue.