Offshore Technology Conference

Houston, United States

Offshore Technology Conference

Houston, United States
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HOUSTON, Texas, May 11, 2017 /PRNewswire/ -- KERUI showcased several new products at the Offshore Technology Conference (OTC), one of the world's largest offshore technology events, held this year in Houston, Texas from the 1st to the 4th of May. KERUI's presence at the event focused on setting conversations with energy companies working in the production field. Most of them have showed interest in KERUI's new ecosystem which is an innovative and valuable one for the oil, gas and energy industries. At the exhibition, KERUI PETROLEUM displayed its mudline suspension systems, multistage fracturing systems and FalconView brand wellheads, products on big demand in North America. During the conference, interested buyers had the opportunity to better understand KERUI's products and services through VR interactive technology installed at the booth. The design and manufacture of the WEFIC® (MSW-I) mudline suspension system comply with API 6A, 17D and NACE standards, and can be used in water depths up to 150 meters (450 feet) and a pressure up to 15,000psi. The airtight multi-purpose system can be safe and left unattended for periods of time, providing buyers with an optimum price-quality ratio solution for maritime oil and gas exploration and drilling equipment. KERUI PETROLEUM has successfully integrated international oil and gas resources. The new build-out is an interconnected ecosystem for the oil and gas industry covering products, technology, services, human resources and finances. The ecosystem leverages the benefits of interactivity offered by the Internet at every step in the production chain and creates a cross-border e-business platform for the oil equipment industry.  ERUI International and the Victor International Institute of Petroleum Training (VIPT), both part of KERUI PETROLEUM, have joint efforts and have reset the scheme to optimize the global oil equipment sector establishing an industry-wide human resources service platform and a think tank specialized in engineering and technology. The ecosystem applies Big Data and cloud technology to oil and gas engineering technologies to build an online trading platform for dormant assets across the sector. It offers a professional one-stop service where idle capacity can be identified and put to use through a transaction with an interested party or the asset can be outright traded with the party. The platform also includes a financial component identifying access to financial resources and a mechanism for contacting resources' holders in order to meet investment and financing needs. KERUI PETROLEUM established operations in the United States in 2011, and later in Canada and Mexico, creating a network covering all markets across North America. At the same time, the company set up two companies in the US, Falconview Energy Products LLC and Escalate Oil Tools LLC, to develop and manufacture wellhead and downhole tools and equipment. These two companies meet the demands of buyers in the North American market and supply them with products that comply with American standards as well as provide a sustainable level of quality service and fast delivery due to having a local presence. With the new ecosystem for the oil, gas and energy industry in place, KERUI PETROLEUM and its partners work together and respond in a timely manner to new developments occurring across the sector and achieve a win-win relationship. KERUI PETROLEUM welcomes any firm with a presence in the oil and gas sector who would like to join the new ecosystem for the energy industry.


HOUSTON, Texas, 11 de mayo de 2017 /PRNewswire/ -- KERUI exhibió varios productos nuevos en la Offshore Technology Conference (OTC), uno de los eventos de tecnología offshore más grandes del mundo, que este año se celebró del 1 al 4 de mayo en Houston, Texas. La presencia de KERUI en el...


News Article | May 9, 2017
Site: globenewswire.com

• Liquidity of $83.1 million and no debt at the end of the first quarter, after funding approximately $1.1 million of payments for restructuring, $1.6 million for U.S. property taxes and $6 million of receivables growth • Reported U.S. GAAP diluted EPS was a loss of $(0.29) on a net loss of $13.7 million and adjusted EPS was a loss of $(0.29) on an adjusted net loss of $13.4 million, after $0.3 million in charges • Adjusted EBITDA loss was $4.7 million for the first quarter, compared to a loss of $4.4 million for the fourth quarter of 2016 HOUSTON, May 09, 2017 (GLOBE NEWSWIRE) -- Tesco Corporation ("TESCO" or the "Company") (NASDAQ:TESO) today reported first quarter 2017 financial and operating results. Fernando Assing, TESCO's President and Chief Executive Officer, commented, "While our first quarter results reflect the benefit of the stronger U.S. land market, the results also reflect the continued weakness in multiple international and offshore markets. We continue to deploy our new technologies and commercial innovation to be positioned to take advantage of opportunities in these markets as they begin to recover in subsequent quarters." TESCO reported revenue of $36.7 million in the first quarter of 2017, up from $35.3 million, or 4%, in the fourth quarter of 2016, and up from $35.5 million, or 3%, in the first quarter of 2016. The sequential increase in revenue was primarily from higher sales of new products and aftermarket services as well as land tubular services in the U.S. TESCO reported a U.S. GAAP net loss of $13.7 million, or $(0.29) per share, in the first quarter of 2017. Adjusted net loss for the quarter was $13.4 million, or $(0.29) per share, excluding special items, consisting primarily of charges related to restructuring costs. This compares to a U.S. GAAP net loss of $20.1 million, or $(0.43) per diluted share, in the fourth quarter of 2016, and a U.S. GAAP net loss of $56.8 million, or $(1.45) per diluted share, in the first quarter of 2016. Adjusted net loss in the fourth quarter of 2016 was $13.3 million, or $(0.28) per diluted share, and in the first quarter of 2016 was $17.9 million, or $(0.46) per diluted share. Adjusted EBITDA loss was $4.7 million in the first quarter of 2017 compared to an adjusted EBITDA loss of $4.4 million in the fourth quarter of 2016 on a 4% revenue increase. For the first quarter of 2017, U.S. GAAP operating loss was $12.9 million and adjusted operating loss was $12.1 million, which excludes the impact of $0.8 million of charges. This compares to the fourth quarter 2016 U.S. GAAP operating loss of $18.9 million and adjusted operating loss of $13.1 million, which excluded $5.8 million of charges. Cash and cash equivalents as of March 31, 2017 decreased from the fourth quarter of 2016 by $8.4 million to $83.1 million primarily due to restructuring payments of $1.1 million, U.S. property taxes of $1.6 million and higher receivables of $6.0 million. Free cash flow was a use of cash of $9.2 million before approximately $1.1 million of restructuring payments. The sequential decline was primarily caused by an increase in accounts receivable of over $6.0 million, driven by sequential revenue increase and nearly $4 million in international collection delays that have been substantially collected so far this quarter. • Revenue in the first quarter of 2017 was $20.1 million, a $1.3 million, or 7%, increase from the fourth quarter of 2016 and a $3.5 million, or 21%, increase from the first quarter of 2016. • U.S. GAAP operating loss before adjustments in the Products segment for the first quarter of 2017 was $0.9 million, or (4)% of revenue, a $4.4 million, or 83%, improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $0.7 million and (3)% respectively. This sequential increase in profitability was due to the volume and mix benefit from higher new product sales and aftermarket activity, partially offset by lower rental activity. • At March 31, 2017, the top drive backlog was 5 units with a total potential value of $4.1 million, compared to 10 units at December 31, 2016, with a potential value of $9.3 million. This compares to a backlog of 10 units at March 31, 2016, with a potential value of $9.5 million. The trend towards short delivery times and intra-quarter book-and-ship transactions continued in 2017. Most of the top drives expected to ship in the second quarter are likely to be booked and shipped intra-quarter. Today, our top drive backlog stands at 5 units with a potential value of $4.1 million, with several contracts signed but awaiting receipt of deposits. • Revenue in the first quarter of 2017 was $16.6 million, a slight increase from the fourth quarter of 2016 of $16.5 million and a decrease from the first quarter of 2016 of $18.9 million. This sequential increase was driven primarily by higher service activity in U.S. land, partially offset by lower international and offshore activity in multiple markets. • U.S. GAAP operating loss before adjustments in the Tubular Services segment in the first quarter of 2017 was $5.7 million, a $1.2 million improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $5.1 million and (31)%, respectively, compared to $5.3 million and (32)% in the fourth quarter of 2016. The sequential improvement was primarily driven by improved profitability in U.S. land, partially offset by the impact of lower offshore activity. • Research and Engineering U.S. GAAP costs for the first quarter of 2017 were $0.8 million, compared to $1.5 million in the fourth quarter of 2016 and $1.6 million in the first quarter of 2016. We continue to invest in the development, commercialization, and enhancement of our proprietary technologies. • Corporate and other U.S. GAAP costs for the first quarter of 2017 were $5.5 million, a $0.3 million, or 6%, increase from the fourth quarter of 2016 and a $2.5 million, or 31%, decrease from the first quarter of 2016. On an adjusted basis, the first quarter costs increased by $0.6 million compared to fourth quarter due to approximately $0.5 million higher employee-related costs. • Net foreign exchange gain in the first quarter of 2017 was $0.1 million, compared to net foreign exchange losses of $1.1 million in the fourth quarter of 2016 and $1.2 million in the first quarter of 2016. • The effective tax rate for the first quarter of 2017 was an 8% expense compared to a 1% benefit in the fourth quarter of 2016 and a 1% expense in the first quarter of 2016. Income tax expense increased sequentially as taxable income increased in certain international markets with limited loss carrybacks. • Capital expenditures were $0.7 million in the first quarter of 2017, primarily for tubular services equipment and infrastructure projects, a $1.9 million decrease from the fourth quarter of 2016 and a $0.1 million, or 13%, decrease from the first quarter of 2016. We anticipate U.S. rig count to continue to increase during the second quarter of 2017 but flatten in the second half of 2017. In addition, international and offshore markets are not expected to show much improvement in 2017. We have started to see some opportunities to increase pricing in U.S. land, however persistent overcapacity will likely limit our pricing power throughout 2017. We are also facing risks that cost escalation, which includes labor inflation and shortages, incremental logistics and equipment reactivation costs, will exceed price increases in the short term. In the second quarter of 2017; • Products revenue is expected to be higher sequentially, primarily from higher new and used product sales and some improvement in top drive rental utilization in various markets, as well as additional catwalk rentals. Products adjusted operating loss is expected to improve sequentially. • Tubular Services revenue is expected to increase sequentially from increased North America land activity and higher new and used CDS sales. Tubular Services adjusted operating loss is expected to improve sequentially but incrementals are expected to be impacted by the onshore/offshore mix and activation costs for planned third quarter activity increases. • Corporate and R&E expenses are expected to be slightly higher sequentially in the second quarter. • As a result, adjusted EBITDA loss is expected to improve sequentially in the second quarter. • Cash levels are expected to decline due to operating losses and certain tax payments, although at a reduced rate compared to the first quarter. "During the first quarter and through this quarter, we have made continued progress on several key initiatives, including CDS™ Evolution adoption and top drive performance upgrades. Customer interest in offerings that reduce cost and improve drilling performance continues to increase,” Mr. Assing said. “Within Products, we completed several top drive upgrade projects with more booked for delivery over the next few quarters. We sold one catwalk and mobilized additional rental units internationally. With ARC, the number of contracted installations increased in established markets with customer trials in new international markets ongoing. Finally, we completed the upgrade of our test rig in Houston and showcased many of our new technologies to customers during the Offshore Technology Conference in May. Not only will the rig upgrades improve our testing capability, but they also increase the marketability for third party rental.” “In Tubular Services, we continue to gain adoption of the CDS Evolution model in our targeted trial U.S. markets. For example, we recently converted a multi-rig U.S. client based on the service quality and cost efficiency of this offering. In addition, our new multi-plug launcher system completed several field jobs with positive results and we will continue to ramp up our capacity in the second quarter. Global markets are increasingly understanding the value proposition of our automated offerings, with CDS sales expected to increase in the second quarter.” “As the market recovers, we remain highly focused on returning to a quarterly breakeven EBITDA run rate while minimizing cash usage over the next several quarters. The key drivers to achieving this will be: 1) growing CDS land Evolution adoption and gaining market share, particularly in North America, 2) accelerating CDS and tubular accessories sales 3) Gaining offshore Tubular Services market share in our established markets, including the benefits from rig reactivations, and 4) accelerating all AMSS offerings including ARC, as rigs reactivate. At the same time, we must carefully manage the ramp-up risks related to safety, quality, cost escalation and working capital management. With available technologies and a strong balance sheet and cash position to fund growth, our priority is on executing on these market opportunities," Mr. Assing concluded. The Company will conduct a conference call to discuss its results for the first quarter 2017 on May 9 at 9:00 a.m. Central Time. To participate in the conference call, dial 1-844-356-6029 inside the U.S. or 1-209-905-5912 outside the U.S. approximately 10 minutes prior to the scheduled start time. The conference call and all questions and answers will be recorded and made available until May 16. To listen to the replay, call 1-855-859-2056 inside the U.S. or 1-404-537-3406 outside the U.S. and enter conference ID 10366353#. The conference call will be webcast live as well as by replay at the Company's web site, www.tescocorp.com. Listeners may access the call through the "Conference Calls" link in the "Investor Relations" section of the site. Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO® is a registered trademark in the United States, Canada and the European Union. Casing Drive System™, CDS™ is a trademark in the United States and Canada. This news release contains forward-looking statements within the meaning of Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995. From time to time, our public filings, press releases and other communications (such as conference calls and presentations) will contain forward-looking statements. Forward-looking information is often, but not always identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "target," "project," "may," "will," "should," "could," "estimate," "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to expectations of our prospects, future revenue, earnings, activities and technical results. Forward-looking statements and information are based on current beliefs as well as assumptions made by, and information currently available to, us concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements in this news release are made as of the date it was issued and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that outcomes implied by forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of: levels and volatility of oil and gas prices; cyclical nature of the energy industry and credit risks of our customers; fluctuations of our revenue and earnings; operating hazards inherent in our operations; changes in governmental regulations, including those related to the climate and hydraulic fracturing; consolidation or loss of our customers; the highly competitive nature of our business; technological advancements and trends in our industry, and improvements in our competitors’ products; global economic and political environment, and financial markets; terrorist attacks, natural disasters and pandemic diseases; our presence in international markets, including political or economic instability, currency restrictions and trade and economic sanctions; cybersecurity incidents; protecting and enforcing our intellectual property rights; changes in, or our failure to comply with, environmental regulations; failure of our manufactured products and claims under our product warranties; availability of raw materials, component parts and finished products to produce our products, and our ability deliver the products we manufacture in a timely manner; retention and recruitment of a skilled workforce and key employees; and ability to identify and complete acquisitions. These risks and uncertainties may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Copies of our Canadian public filings are available through www.tescocorp.com and on SEDAR at www.sedar.com. Our U.S. public filings are available at www.sec.gov and through www.tescocorp.com. The risks included here are not exhaustive. Refer to "Part I, Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K for further discussion regarding our exposure to risks. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such factors, nor to assess the impact such factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Our management reports our financial statements in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") but evaluates our performance based on non-GAAP measures as defined under the SEC's Regulation G. These measures may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Non-GAAP measures should not be considered in isolation or as substitutes for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. • to assess the performance of the Company’s operations; • as a method used to evaluate potential acquisitions; • in presentations to our Board of Directors to enable them to have the same consistent measurement basis of operating performance used by management; and • in communications with investors, analysts, lenders, and others concerning our financial performance. (1) Adjusted EBITDA consists of earnings (net income or loss) attributable to TESCO before interest expense, income tax expense (benefit), depreciation and amortization, severance and restructuring charges, foreign exchange gains or losses, noted income or charges from certain accounts, non-cash stock compensation, non-cash impairments and other non-cash items. We believe Adjusted EBITDA is useful to an investor in evaluating our operating performance because: • it is widely used by investors in our industry to measure a company's operating performance without regard to items such as interest expense, income tax expense (benefit), depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, severance and restructuring charges, financing methods, capital structure and the method by which assets were acquired; • it helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest), merger and acquisition transactions (primarily gains/losses on sale of a business), and asset base (primarily depreciation and amortization) and actions that do not affect liquidity (stock compensation expense and non-cash impairments) from our operating results; and • it helps investors identify items that are within our operational control. Depreciation and amortization charges, while a component of operating income, are fixed at the time of the asset purchase in accordance with the depreciable lives of the related asset and as such are not a directly controllable period operating charge. (2) Adjusted net income (loss) is a non-GAAP measure comprised of net income attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments, noted income or charges from certain accounts and certain tax-related charges. We believe adjusted net income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (3) Adjusted operating income (loss) is a non-GAAP measure comprised of operating income (loss) attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments and noted income or charges from certain accounts. Management uses adjusted operating income (loss) as a measure of the performance of the Company’s operations. We believe adjusted operating income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (4) Free cash flow is a non-GAAP measure comprised of cash flow from operations, capital expenditures and proceeds on asset sales. Adjusted free cash flow excludes the impact of severance and restructuring payments. We believe free cash flow is useful to an investor in evaluating our operating performance because: • it measures the Company's ability to generate cash; • it is widely used by investors in our industry to measure a company's cash flow performance; and • it helps investors identify and analyze underlying trends in the business. For further information please contact: Chris Boone (713) 359-7000 Tesco Corporation


News Article | May 9, 2017
Site: globenewswire.com

• Liquidity of $83.1 million and no debt at the end of the first quarter, after funding approximately $1.1 million of payments for restructuring, $1.6 million for U.S. property taxes and $6 million of receivables growth • Reported U.S. GAAP diluted EPS was a loss of $(0.29) on a net loss of $13.7 million and adjusted EPS was a loss of $(0.29) on an adjusted net loss of $13.4 million, after $0.3 million in charges • Adjusted EBITDA loss was $4.7 million for the first quarter, compared to a loss of $4.4 million for the fourth quarter of 2016 HOUSTON, May 09, 2017 (GLOBE NEWSWIRE) -- Tesco Corporation ("TESCO" or the "Company") (NASDAQ:TESO) today reported first quarter 2017 financial and operating results. Fernando Assing, TESCO's President and Chief Executive Officer, commented, "While our first quarter results reflect the benefit of the stronger U.S. land market, the results also reflect the continued weakness in multiple international and offshore markets. We continue to deploy our new technologies and commercial innovation to be positioned to take advantage of opportunities in these markets as they begin to recover in subsequent quarters." TESCO reported revenue of $36.7 million in the first quarter of 2017, up from $35.3 million, or 4%, in the fourth quarter of 2016, and up from $35.5 million, or 3%, in the first quarter of 2016. The sequential increase in revenue was primarily from higher sales of new products and aftermarket services as well as land tubular services in the U.S. TESCO reported a U.S. GAAP net loss of $13.7 million, or $(0.29) per share, in the first quarter of 2017. Adjusted net loss for the quarter was $13.4 million, or $(0.29) per share, excluding special items, consisting primarily of charges related to restructuring costs. This compares to a U.S. GAAP net loss of $20.1 million, or $(0.43) per diluted share, in the fourth quarter of 2016, and a U.S. GAAP net loss of $56.8 million, or $(1.45) per diluted share, in the first quarter of 2016. Adjusted net loss in the fourth quarter of 2016 was $13.3 million, or $(0.28) per diluted share, and in the first quarter of 2016 was $17.9 million, or $(0.46) per diluted share. Adjusted EBITDA loss was $4.7 million in the first quarter of 2017 compared to an adjusted EBITDA loss of $4.4 million in the fourth quarter of 2016 on a 4% revenue increase. For the first quarter of 2017, U.S. GAAP operating loss was $12.9 million and adjusted operating loss was $12.1 million, which excludes the impact of $0.8 million of charges. This compares to the fourth quarter 2016 U.S. GAAP operating loss of $18.9 million and adjusted operating loss of $13.1 million, which excluded $5.8 million of charges. Cash and cash equivalents as of March 31, 2017 decreased from the fourth quarter of 2016 by $8.4 million to $83.1 million primarily due to restructuring payments of $1.1 million, U.S. property taxes of $1.6 million and higher receivables of $6.0 million. Free cash flow was a use of cash of $9.2 million before approximately $1.1 million of restructuring payments. The sequential decline was primarily caused by an increase in accounts receivable of over $6.0 million, driven by sequential revenue increase and nearly $4 million in international collection delays that have been substantially collected so far this quarter. • Revenue in the first quarter of 2017 was $20.1 million, a $1.3 million, or 7%, increase from the fourth quarter of 2016 and a $3.5 million, or 21%, increase from the first quarter of 2016. • U.S. GAAP operating loss before adjustments in the Products segment for the first quarter of 2017 was $0.9 million, or (4)% of revenue, a $4.4 million, or 83%, improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $0.7 million and (3)% respectively. This sequential increase in profitability was due to the volume and mix benefit from higher new product sales and aftermarket activity, partially offset by lower rental activity. • At March 31, 2017, the top drive backlog was 5 units with a total potential value of $4.1 million, compared to 10 units at December 31, 2016, with a potential value of $9.3 million. This compares to a backlog of 10 units at March 31, 2016, with a potential value of $9.5 million. The trend towards short delivery times and intra-quarter book-and-ship transactions continued in 2017. Most of the top drives expected to ship in the second quarter are likely to be booked and shipped intra-quarter. Today, our top drive backlog stands at 5 units with a potential value of $4.1 million, with several contracts signed but awaiting receipt of deposits. • Revenue in the first quarter of 2017 was $16.6 million, a slight increase from the fourth quarter of 2016 of $16.5 million and a decrease from the first quarter of 2016 of $18.9 million. This sequential increase was driven primarily by higher service activity in U.S. land, partially offset by lower international and offshore activity in multiple markets. • U.S. GAAP operating loss before adjustments in the Tubular Services segment in the first quarter of 2017 was $5.7 million, a $1.2 million improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $5.1 million and (31)%, respectively, compared to $5.3 million and (32)% in the fourth quarter of 2016. The sequential improvement was primarily driven by improved profitability in U.S. land, partially offset by the impact of lower offshore activity. • Research and Engineering U.S. GAAP costs for the first quarter of 2017 were $0.8 million, compared to $1.5 million in the fourth quarter of 2016 and $1.6 million in the first quarter of 2016. We continue to invest in the development, commercialization, and enhancement of our proprietary technologies. • Corporate and other U.S. GAAP costs for the first quarter of 2017 were $5.5 million, a $0.3 million, or 6%, increase from the fourth quarter of 2016 and a $2.5 million, or 31%, decrease from the first quarter of 2016. On an adjusted basis, the first quarter costs increased by $0.6 million compared to fourth quarter due to approximately $0.5 million higher employee-related costs. • Net foreign exchange gain in the first quarter of 2017 was $0.1 million, compared to net foreign exchange losses of $1.1 million in the fourth quarter of 2016 and $1.2 million in the first quarter of 2016. • The effective tax rate for the first quarter of 2017 was an 8% expense compared to a 1% benefit in the fourth quarter of 2016 and a 1% expense in the first quarter of 2016. Income tax expense increased sequentially as taxable income increased in certain international markets with limited loss carrybacks. • Capital expenditures were $0.7 million in the first quarter of 2017, primarily for tubular services equipment and infrastructure projects, a $1.9 million decrease from the fourth quarter of 2016 and a $0.1 million, or 13%, decrease from the first quarter of 2016. We anticipate U.S. rig count to continue to increase during the second quarter of 2017 but flatten in the second half of 2017. In addition, international and offshore markets are not expected to show much improvement in 2017. We have started to see some opportunities to increase pricing in U.S. land, however persistent overcapacity will likely limit our pricing power throughout 2017. We are also facing risks that cost escalation, which includes labor inflation and shortages, incremental logistics and equipment reactivation costs, will exceed price increases in the short term. In the second quarter of 2017; • Products revenue is expected to be higher sequentially, primarily from higher new and used product sales and some improvement in top drive rental utilization in various markets, as well as additional catwalk rentals. Products adjusted operating loss is expected to improve sequentially. • Tubular Services revenue is expected to increase sequentially from increased North America land activity and higher new and used CDS sales. Tubular Services adjusted operating loss is expected to improve sequentially but incrementals are expected to be impacted by the onshore/offshore mix and activation costs for planned third quarter activity increases. • Corporate and R&E expenses are expected to be slightly higher sequentially in the second quarter. • As a result, adjusted EBITDA loss is expected to improve sequentially in the second quarter. • Cash levels are expected to decline due to operating losses and certain tax payments, although at a reduced rate compared to the first quarter. "During the first quarter and through this quarter, we have made continued progress on several key initiatives, including CDS™ Evolution adoption and top drive performance upgrades. Customer interest in offerings that reduce cost and improve drilling performance continues to increase,” Mr. Assing said. “Within Products, we completed several top drive upgrade projects with more booked for delivery over the next few quarters. We sold one catwalk and mobilized additional rental units internationally. With ARC, the number of contracted installations increased in established markets with customer trials in new international markets ongoing. Finally, we completed the upgrade of our test rig in Houston and showcased many of our new technologies to customers during the Offshore Technology Conference in May. Not only will the rig upgrades improve our testing capability, but they also increase the marketability for third party rental.” “In Tubular Services, we continue to gain adoption of the CDS Evolution model in our targeted trial U.S. markets. For example, we recently converted a multi-rig U.S. client based on the service quality and cost efficiency of this offering. In addition, our new multi-plug launcher system completed several field jobs with positive results and we will continue to ramp up our capacity in the second quarter. Global markets are increasingly understanding the value proposition of our automated offerings, with CDS sales expected to increase in the second quarter.” “As the market recovers, we remain highly focused on returning to a quarterly breakeven EBITDA run rate while minimizing cash usage over the next several quarters. The key drivers to achieving this will be: 1) growing CDS land Evolution adoption and gaining market share, particularly in North America, 2) accelerating CDS and tubular accessories sales 3) Gaining offshore Tubular Services market share in our established markets, including the benefits from rig reactivations, and 4) accelerating all AMSS offerings including ARC, as rigs reactivate. At the same time, we must carefully manage the ramp-up risks related to safety, quality, cost escalation and working capital management. With available technologies and a strong balance sheet and cash position to fund growth, our priority is on executing on these market opportunities," Mr. Assing concluded. The Company will conduct a conference call to discuss its results for the first quarter 2017 on May 9 at 9:00 a.m. Central Time. To participate in the conference call, dial 1-844-356-6029 inside the U.S. or 1-209-905-5912 outside the U.S. approximately 10 minutes prior to the scheduled start time. The conference call and all questions and answers will be recorded and made available until May 16. To listen to the replay, call 1-855-859-2056 inside the U.S. or 1-404-537-3406 outside the U.S. and enter conference ID 10366353#. The conference call will be webcast live as well as by replay at the Company's web site, www.tescocorp.com. Listeners may access the call through the "Conference Calls" link in the "Investor Relations" section of the site. Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO® is a registered trademark in the United States, Canada and the European Union. Casing Drive System™, CDS™ is a trademark in the United States and Canada. This news release contains forward-looking statements within the meaning of Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995. From time to time, our public filings, press releases and other communications (such as conference calls and presentations) will contain forward-looking statements. Forward-looking information is often, but not always identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "target," "project," "may," "will," "should," "could," "estimate," "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to expectations of our prospects, future revenue, earnings, activities and technical results. Forward-looking statements and information are based on current beliefs as well as assumptions made by, and information currently available to, us concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements in this news release are made as of the date it was issued and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that outcomes implied by forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of: levels and volatility of oil and gas prices; cyclical nature of the energy industry and credit risks of our customers; fluctuations of our revenue and earnings; operating hazards inherent in our operations; changes in governmental regulations, including those related to the climate and hydraulic fracturing; consolidation or loss of our customers; the highly competitive nature of our business; technological advancements and trends in our industry, and improvements in our competitors’ products; global economic and political environment, and financial markets; terrorist attacks, natural disasters and pandemic diseases; our presence in international markets, including political or economic instability, currency restrictions and trade and economic sanctions; cybersecurity incidents; protecting and enforcing our intellectual property rights; changes in, or our failure to comply with, environmental regulations; failure of our manufactured products and claims under our product warranties; availability of raw materials, component parts and finished products to produce our products, and our ability deliver the products we manufacture in a timely manner; retention and recruitment of a skilled workforce and key employees; and ability to identify and complete acquisitions. These risks and uncertainties may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Copies of our Canadian public filings are available through www.tescocorp.com and on SEDAR at www.sedar.com. Our U.S. public filings are available at www.sec.gov and through www.tescocorp.com. The risks included here are not exhaustive. Refer to "Part I, Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K for further discussion regarding our exposure to risks. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such factors, nor to assess the impact such factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Our management reports our financial statements in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") but evaluates our performance based on non-GAAP measures as defined under the SEC's Regulation G. These measures may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Non-GAAP measures should not be considered in isolation or as substitutes for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. • to assess the performance of the Company’s operations; • as a method used to evaluate potential acquisitions; • in presentations to our Board of Directors to enable them to have the same consistent measurement basis of operating performance used by management; and • in communications with investors, analysts, lenders, and others concerning our financial performance. (1) Adjusted EBITDA consists of earnings (net income or loss) attributable to TESCO before interest expense, income tax expense (benefit), depreciation and amortization, severance and restructuring charges, foreign exchange gains or losses, noted income or charges from certain accounts, non-cash stock compensation, non-cash impairments and other non-cash items. We believe Adjusted EBITDA is useful to an investor in evaluating our operating performance because: • it is widely used by investors in our industry to measure a company's operating performance without regard to items such as interest expense, income tax expense (benefit), depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, severance and restructuring charges, financing methods, capital structure and the method by which assets were acquired; • it helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest), merger and acquisition transactions (primarily gains/losses on sale of a business), and asset base (primarily depreciation and amortization) and actions that do not affect liquidity (stock compensation expense and non-cash impairments) from our operating results; and • it helps investors identify items that are within our operational control. Depreciation and amortization charges, while a component of operating income, are fixed at the time of the asset purchase in accordance with the depreciable lives of the related asset and as such are not a directly controllable period operating charge. (2) Adjusted net income (loss) is a non-GAAP measure comprised of net income attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments, noted income or charges from certain accounts and certain tax-related charges. We believe adjusted net income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (3) Adjusted operating income (loss) is a non-GAAP measure comprised of operating income (loss) attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments and noted income or charges from certain accounts. Management uses adjusted operating income (loss) as a measure of the performance of the Company’s operations. We believe adjusted operating income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (4) Free cash flow is a non-GAAP measure comprised of cash flow from operations, capital expenditures and proceeds on asset sales. Adjusted free cash flow excludes the impact of severance and restructuring payments. We believe free cash flow is useful to an investor in evaluating our operating performance because: • it measures the Company's ability to generate cash; • it is widely used by investors in our industry to measure a company's cash flow performance; and • it helps investors identify and analyze underlying trends in the business. For further information please contact: Chris Boone (713) 359-7000 Tesco Corporation


News Article | May 9, 2017
Site: globenewswire.com

• Liquidity of $83.1 million and no debt at the end of the first quarter, after funding approximately $1.1 million of payments for restructuring, $1.6 million for U.S. property taxes and $6 million of receivables growth • Reported U.S. GAAP diluted EPS was a loss of $(0.29) on a net loss of $13.7 million and adjusted EPS was a loss of $(0.29) on an adjusted net loss of $13.4 million, after $0.3 million in charges • Adjusted EBITDA loss was $4.7 million for the first quarter, compared to a loss of $4.4 million for the fourth quarter of 2016 HOUSTON, May 09, 2017 (GLOBE NEWSWIRE) -- Tesco Corporation ("TESCO" or the "Company") (NASDAQ:TESO) today reported first quarter 2017 financial and operating results. Fernando Assing, TESCO's President and Chief Executive Officer, commented, "While our first quarter results reflect the benefit of the stronger U.S. land market, the results also reflect the continued weakness in multiple international and offshore markets. We continue to deploy our new technologies and commercial innovation to be positioned to take advantage of opportunities in these markets as they begin to recover in subsequent quarters." TESCO reported revenue of $36.7 million in the first quarter of 2017, up from $35.3 million, or 4%, in the fourth quarter of 2016, and up from $35.5 million, or 3%, in the first quarter of 2016. The sequential increase in revenue was primarily from higher sales of new products and aftermarket services as well as land tubular services in the U.S. TESCO reported a U.S. GAAP net loss of $13.7 million, or $(0.29) per share, in the first quarter of 2017. Adjusted net loss for the quarter was $13.4 million, or $(0.29) per share, excluding special items, consisting primarily of charges related to restructuring costs. This compares to a U.S. GAAP net loss of $20.1 million, or $(0.43) per diluted share, in the fourth quarter of 2016, and a U.S. GAAP net loss of $56.8 million, or $(1.45) per diluted share, in the first quarter of 2016. Adjusted net loss in the fourth quarter of 2016 was $13.3 million, or $(0.28) per diluted share, and in the first quarter of 2016 was $17.9 million, or $(0.46) per diluted share. Adjusted EBITDA loss was $4.7 million in the first quarter of 2017 compared to an adjusted EBITDA loss of $4.4 million in the fourth quarter of 2016 on a 4% revenue increase. For the first quarter of 2017, U.S. GAAP operating loss was $12.9 million and adjusted operating loss was $12.1 million, which excludes the impact of $0.8 million of charges. This compares to the fourth quarter 2016 U.S. GAAP operating loss of $18.9 million and adjusted operating loss of $13.1 million, which excluded $5.8 million of charges. Cash and cash equivalents as of March 31, 2017 decreased from the fourth quarter of 2016 by $8.4 million to $83.1 million primarily due to restructuring payments of $1.1 million, U.S. property taxes of $1.6 million and higher receivables of $6.0 million. Free cash flow was a use of cash of $9.2 million before approximately $1.1 million of restructuring payments. The sequential decline was primarily caused by an increase in accounts receivable of over $6.0 million, driven by sequential revenue increase and nearly $4 million in international collection delays that have been substantially collected so far this quarter. • Revenue in the first quarter of 2017 was $20.1 million, a $1.3 million, or 7%, increase from the fourth quarter of 2016 and a $3.5 million, or 21%, increase from the first quarter of 2016. • U.S. GAAP operating loss before adjustments in the Products segment for the first quarter of 2017 was $0.9 million, or (4)% of revenue, a $4.4 million, or 83%, improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $0.7 million and (3)% respectively. This sequential increase in profitability was due to the volume and mix benefit from higher new product sales and aftermarket activity, partially offset by lower rental activity. • At March 31, 2017, the top drive backlog was 5 units with a total potential value of $4.1 million, compared to 10 units at December 31, 2016, with a potential value of $9.3 million. This compares to a backlog of 10 units at March 31, 2016, with a potential value of $9.5 million. The trend towards short delivery times and intra-quarter book-and-ship transactions continued in 2017. Most of the top drives expected to ship in the second quarter are likely to be booked and shipped intra-quarter. Today, our top drive backlog stands at 5 units with a potential value of $4.1 million, with several contracts signed but awaiting receipt of deposits. • Revenue in the first quarter of 2017 was $16.6 million, a slight increase from the fourth quarter of 2016 of $16.5 million and a decrease from the first quarter of 2016 of $18.9 million. This sequential increase was driven primarily by higher service activity in U.S. land, partially offset by lower international and offshore activity in multiple markets. • U.S. GAAP operating loss before adjustments in the Tubular Services segment in the first quarter of 2017 was $5.7 million, a $1.2 million improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $5.1 million and (31)%, respectively, compared to $5.3 million and (32)% in the fourth quarter of 2016. The sequential improvement was primarily driven by improved profitability in U.S. land, partially offset by the impact of lower offshore activity. • Research and Engineering U.S. GAAP costs for the first quarter of 2017 were $0.8 million, compared to $1.5 million in the fourth quarter of 2016 and $1.6 million in the first quarter of 2016. We continue to invest in the development, commercialization, and enhancement of our proprietary technologies. • Corporate and other U.S. GAAP costs for the first quarter of 2017 were $5.5 million, a $0.3 million, or 6%, increase from the fourth quarter of 2016 and a $2.5 million, or 31%, decrease from the first quarter of 2016. On an adjusted basis, the first quarter costs increased by $0.6 million compared to fourth quarter due to approximately $0.5 million higher employee-related costs. • Net foreign exchange gain in the first quarter of 2017 was $0.1 million, compared to net foreign exchange losses of $1.1 million in the fourth quarter of 2016 and $1.2 million in the first quarter of 2016. • The effective tax rate for the first quarter of 2017 was an 8% expense compared to a 1% benefit in the fourth quarter of 2016 and a 1% expense in the first quarter of 2016. Income tax expense increased sequentially as taxable income increased in certain international markets with limited loss carrybacks. • Capital expenditures were $0.7 million in the first quarter of 2017, primarily for tubular services equipment and infrastructure projects, a $1.9 million decrease from the fourth quarter of 2016 and a $0.1 million, or 13%, decrease from the first quarter of 2016. We anticipate U.S. rig count to continue to increase during the second quarter of 2017 but flatten in the second half of 2017. In addition, international and offshore markets are not expected to show much improvement in 2017. We have started to see some opportunities to increase pricing in U.S. land, however persistent overcapacity will likely limit our pricing power throughout 2017. We are also facing risks that cost escalation, which includes labor inflation and shortages, incremental logistics and equipment reactivation costs, will exceed price increases in the short term. In the second quarter of 2017; • Products revenue is expected to be higher sequentially, primarily from higher new and used product sales and some improvement in top drive rental utilization in various markets, as well as additional catwalk rentals. Products adjusted operating loss is expected to improve sequentially. • Tubular Services revenue is expected to increase sequentially from increased North America land activity and higher new and used CDS sales. Tubular Services adjusted operating loss is expected to improve sequentially but incrementals are expected to be impacted by the onshore/offshore mix and activation costs for planned third quarter activity increases. • Corporate and R&E expenses are expected to be slightly higher sequentially in the second quarter. • As a result, adjusted EBITDA loss is expected to improve sequentially in the second quarter. • Cash levels are expected to decline due to operating losses and certain tax payments, although at a reduced rate compared to the first quarter. "During the first quarter and through this quarter, we have made continued progress on several key initiatives, including CDS™ Evolution adoption and top drive performance upgrades. Customer interest in offerings that reduce cost and improve drilling performance continues to increase,” Mr. Assing said. “Within Products, we completed several top drive upgrade projects with more booked for delivery over the next few quarters. We sold one catwalk and mobilized additional rental units internationally. With ARC, the number of contracted installations increased in established markets with customer trials in new international markets ongoing. Finally, we completed the upgrade of our test rig in Houston and showcased many of our new technologies to customers during the Offshore Technology Conference in May. Not only will the rig upgrades improve our testing capability, but they also increase the marketability for third party rental.” “In Tubular Services, we continue to gain adoption of the CDS Evolution model in our targeted trial U.S. markets. For example, we recently converted a multi-rig U.S. client based on the service quality and cost efficiency of this offering. In addition, our new multi-plug launcher system completed several field jobs with positive results and we will continue to ramp up our capacity in the second quarter. Global markets are increasingly understanding the value proposition of our automated offerings, with CDS sales expected to increase in the second quarter.” “As the market recovers, we remain highly focused on returning to a quarterly breakeven EBITDA run rate while minimizing cash usage over the next several quarters. The key drivers to achieving this will be: 1) growing CDS land Evolution adoption and gaining market share, particularly in North America, 2) accelerating CDS and tubular accessories sales 3) Gaining offshore Tubular Services market share in our established markets, including the benefits from rig reactivations, and 4) accelerating all AMSS offerings including ARC, as rigs reactivate. At the same time, we must carefully manage the ramp-up risks related to safety, quality, cost escalation and working capital management. With available technologies and a strong balance sheet and cash position to fund growth, our priority is on executing on these market opportunities," Mr. Assing concluded. The Company will conduct a conference call to discuss its results for the first quarter 2017 on May 9 at 9:00 a.m. Central Time. To participate in the conference call, dial 1-844-356-6029 inside the U.S. or 1-209-905-5912 outside the U.S. approximately 10 minutes prior to the scheduled start time. The conference call and all questions and answers will be recorded and made available until May 16. To listen to the replay, call 1-855-859-2056 inside the U.S. or 1-404-537-3406 outside the U.S. and enter conference ID 10366353#. The conference call will be webcast live as well as by replay at the Company's web site, www.tescocorp.com. Listeners may access the call through the "Conference Calls" link in the "Investor Relations" section of the site. Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO® is a registered trademark in the United States, Canada and the European Union. Casing Drive System™, CDS™ is a trademark in the United States and Canada. This news release contains forward-looking statements within the meaning of Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995. From time to time, our public filings, press releases and other communications (such as conference calls and presentations) will contain forward-looking statements. Forward-looking information is often, but not always identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "target," "project," "may," "will," "should," "could," "estimate," "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to expectations of our prospects, future revenue, earnings, activities and technical results. Forward-looking statements and information are based on current beliefs as well as assumptions made by, and information currently available to, us concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements in this news release are made as of the date it was issued and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that outcomes implied by forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of: levels and volatility of oil and gas prices; cyclical nature of the energy industry and credit risks of our customers; fluctuations of our revenue and earnings; operating hazards inherent in our operations; changes in governmental regulations, including those related to the climate and hydraulic fracturing; consolidation or loss of our customers; the highly competitive nature of our business; technological advancements and trends in our industry, and improvements in our competitors’ products; global economic and political environment, and financial markets; terrorist attacks, natural disasters and pandemic diseases; our presence in international markets, including political or economic instability, currency restrictions and trade and economic sanctions; cybersecurity incidents; protecting and enforcing our intellectual property rights; changes in, or our failure to comply with, environmental regulations; failure of our manufactured products and claims under our product warranties; availability of raw materials, component parts and finished products to produce our products, and our ability deliver the products we manufacture in a timely manner; retention and recruitment of a skilled workforce and key employees; and ability to identify and complete acquisitions. These risks and uncertainties may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Copies of our Canadian public filings are available through www.tescocorp.com and on SEDAR at www.sedar.com. Our U.S. public filings are available at www.sec.gov and through www.tescocorp.com. The risks included here are not exhaustive. Refer to "Part I, Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K for further discussion regarding our exposure to risks. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such factors, nor to assess the impact such factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Our management reports our financial statements in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") but evaluates our performance based on non-GAAP measures as defined under the SEC's Regulation G. These measures may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Non-GAAP measures should not be considered in isolation or as substitutes for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. • to assess the performance of the Company’s operations; • as a method used to evaluate potential acquisitions; • in presentations to our Board of Directors to enable them to have the same consistent measurement basis of operating performance used by management; and • in communications with investors, analysts, lenders, and others concerning our financial performance. (1) Adjusted EBITDA consists of earnings (net income or loss) attributable to TESCO before interest expense, income tax expense (benefit), depreciation and amortization, severance and restructuring charges, foreign exchange gains or losses, noted income or charges from certain accounts, non-cash stock compensation, non-cash impairments and other non-cash items. We believe Adjusted EBITDA is useful to an investor in evaluating our operating performance because: • it is widely used by investors in our industry to measure a company's operating performance without regard to items such as interest expense, income tax expense (benefit), depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, severance and restructuring charges, financing methods, capital structure and the method by which assets were acquired; • it helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest), merger and acquisition transactions (primarily gains/losses on sale of a business), and asset base (primarily depreciation and amortization) and actions that do not affect liquidity (stock compensation expense and non-cash impairments) from our operating results; and • it helps investors identify items that are within our operational control. Depreciation and amortization charges, while a component of operating income, are fixed at the time of the asset purchase in accordance with the depreciable lives of the related asset and as such are not a directly controllable period operating charge. (2) Adjusted net income (loss) is a non-GAAP measure comprised of net income attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments, noted income or charges from certain accounts and certain tax-related charges. We believe adjusted net income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (3) Adjusted operating income (loss) is a non-GAAP measure comprised of operating income (loss) attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments and noted income or charges from certain accounts. Management uses adjusted operating income (loss) as a measure of the performance of the Company’s operations. We believe adjusted operating income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (4) Free cash flow is a non-GAAP measure comprised of cash flow from operations, capital expenditures and proceeds on asset sales. Adjusted free cash flow excludes the impact of severance and restructuring payments. We believe free cash flow is useful to an investor in evaluating our operating performance because: • it measures the Company's ability to generate cash; • it is widely used by investors in our industry to measure a company's cash flow performance; and • it helps investors identify and analyze underlying trends in the business. For further information please contact: Chris Boone (713) 359-7000 Tesco Corporation


News Article | May 9, 2017
Site: globenewswire.com

• Liquidity of $83.1 million and no debt at the end of the first quarter, after funding approximately $1.1 million of payments for restructuring, $1.6 million for U.S. property taxes and $6 million of receivables growth • Reported U.S. GAAP diluted EPS was a loss of $(0.29) on a net loss of $13.7 million and adjusted EPS was a loss of $(0.29) on an adjusted net loss of $13.4 million, after $0.3 million in charges • Adjusted EBITDA loss was $4.7 million for the first quarter, compared to a loss of $4.4 million for the fourth quarter of 2016 HOUSTON, May 09, 2017 (GLOBE NEWSWIRE) -- Tesco Corporation ("TESCO" or the "Company") (NASDAQ:TESO) today reported first quarter 2017 financial and operating results. Fernando Assing, TESCO's President and Chief Executive Officer, commented, "While our first quarter results reflect the benefit of the stronger U.S. land market, the results also reflect the continued weakness in multiple international and offshore markets. We continue to deploy our new technologies and commercial innovation to be positioned to take advantage of opportunities in these markets as they begin to recover in subsequent quarters." TESCO reported revenue of $36.7 million in the first quarter of 2017, up from $35.3 million, or 4%, in the fourth quarter of 2016, and up from $35.5 million, or 3%, in the first quarter of 2016. The sequential increase in revenue was primarily from higher sales of new products and aftermarket services as well as land tubular services in the U.S. TESCO reported a U.S. GAAP net loss of $13.7 million, or $(0.29) per share, in the first quarter of 2017. Adjusted net loss for the quarter was $13.4 million, or $(0.29) per share, excluding special items, consisting primarily of charges related to restructuring costs. This compares to a U.S. GAAP net loss of $20.1 million, or $(0.43) per diluted share, in the fourth quarter of 2016, and a U.S. GAAP net loss of $56.8 million, or $(1.45) per diluted share, in the first quarter of 2016. Adjusted net loss in the fourth quarter of 2016 was $13.3 million, or $(0.28) per diluted share, and in the first quarter of 2016 was $17.9 million, or $(0.46) per diluted share. Adjusted EBITDA loss was $4.7 million in the first quarter of 2017 compared to an adjusted EBITDA loss of $4.4 million in the fourth quarter of 2016 on a 4% revenue increase. For the first quarter of 2017, U.S. GAAP operating loss was $12.9 million and adjusted operating loss was $12.1 million, which excludes the impact of $0.8 million of charges. This compares to the fourth quarter 2016 U.S. GAAP operating loss of $18.9 million and adjusted operating loss of $13.1 million, which excluded $5.8 million of charges. Cash and cash equivalents as of March 31, 2017 decreased from the fourth quarter of 2016 by $8.4 million to $83.1 million primarily due to restructuring payments of $1.1 million, U.S. property taxes of $1.6 million and higher receivables of $6.0 million. Free cash flow was a use of cash of $9.2 million before approximately $1.1 million of restructuring payments. The sequential decline was primarily caused by an increase in accounts receivable of over $6.0 million, driven by sequential revenue increase and nearly $4 million in international collection delays that have been substantially collected so far this quarter. • Revenue in the first quarter of 2017 was $20.1 million, a $1.3 million, or 7%, increase from the fourth quarter of 2016 and a $3.5 million, or 21%, increase from the first quarter of 2016. • U.S. GAAP operating loss before adjustments in the Products segment for the first quarter of 2017 was $0.9 million, or (4)% of revenue, a $4.4 million, or 83%, improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $0.7 million and (3)% respectively. This sequential increase in profitability was due to the volume and mix benefit from higher new product sales and aftermarket activity, partially offset by lower rental activity. • At March 31, 2017, the top drive backlog was 5 units with a total potential value of $4.1 million, compared to 10 units at December 31, 2016, with a potential value of $9.3 million. This compares to a backlog of 10 units at March 31, 2016, with a potential value of $9.5 million. The trend towards short delivery times and intra-quarter book-and-ship transactions continued in 2017. Most of the top drives expected to ship in the second quarter are likely to be booked and shipped intra-quarter. Today, our top drive backlog stands at 5 units with a potential value of $4.1 million, with several contracts signed but awaiting receipt of deposits. • Revenue in the first quarter of 2017 was $16.6 million, a slight increase from the fourth quarter of 2016 of $16.5 million and a decrease from the first quarter of 2016 of $18.9 million. This sequential increase was driven primarily by higher service activity in U.S. land, partially offset by lower international and offshore activity in multiple markets. • U.S. GAAP operating loss before adjustments in the Tubular Services segment in the first quarter of 2017 was $5.7 million, a $1.2 million improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $5.1 million and (31)%, respectively, compared to $5.3 million and (32)% in the fourth quarter of 2016. The sequential improvement was primarily driven by improved profitability in U.S. land, partially offset by the impact of lower offshore activity. • Research and Engineering U.S. GAAP costs for the first quarter of 2017 were $0.8 million, compared to $1.5 million in the fourth quarter of 2016 and $1.6 million in the first quarter of 2016. We continue to invest in the development, commercialization, and enhancement of our proprietary technologies. • Corporate and other U.S. GAAP costs for the first quarter of 2017 were $5.5 million, a $0.3 million, or 6%, increase from the fourth quarter of 2016 and a $2.5 million, or 31%, decrease from the first quarter of 2016. On an adjusted basis, the first quarter costs increased by $0.6 million compared to fourth quarter due to approximately $0.5 million higher employee-related costs. • Net foreign exchange gain in the first quarter of 2017 was $0.1 million, compared to net foreign exchange losses of $1.1 million in the fourth quarter of 2016 and $1.2 million in the first quarter of 2016. • The effective tax rate for the first quarter of 2017 was an 8% expense compared to a 1% benefit in the fourth quarter of 2016 and a 1% expense in the first quarter of 2016. Income tax expense increased sequentially as taxable income increased in certain international markets with limited loss carrybacks. • Capital expenditures were $0.7 million in the first quarter of 2017, primarily for tubular services equipment and infrastructure projects, a $1.9 million decrease from the fourth quarter of 2016 and a $0.1 million, or 13%, decrease from the first quarter of 2016. We anticipate U.S. rig count to continue to increase during the second quarter of 2017 but flatten in the second half of 2017. In addition, international and offshore markets are not expected to show much improvement in 2017. We have started to see some opportunities to increase pricing in U.S. land, however persistent overcapacity will likely limit our pricing power throughout 2017. We are also facing risks that cost escalation, which includes labor inflation and shortages, incremental logistics and equipment reactivation costs, will exceed price increases in the short term. In the second quarter of 2017; • Products revenue is expected to be higher sequentially, primarily from higher new and used product sales and some improvement in top drive rental utilization in various markets, as well as additional catwalk rentals. Products adjusted operating loss is expected to improve sequentially. • Tubular Services revenue is expected to increase sequentially from increased North America land activity and higher new and used CDS sales. Tubular Services adjusted operating loss is expected to improve sequentially but incrementals are expected to be impacted by the onshore/offshore mix and activation costs for planned third quarter activity increases. • Corporate and R&E expenses are expected to be slightly higher sequentially in the second quarter. • As a result, adjusted EBITDA loss is expected to improve sequentially in the second quarter. • Cash levels are expected to decline due to operating losses and certain tax payments, although at a reduced rate compared to the first quarter. "During the first quarter and through this quarter, we have made continued progress on several key initiatives, including CDS™ Evolution adoption and top drive performance upgrades. Customer interest in offerings that reduce cost and improve drilling performance continues to increase,” Mr. Assing said. “Within Products, we completed several top drive upgrade projects with more booked for delivery over the next few quarters. We sold one catwalk and mobilized additional rental units internationally. With ARC, the number of contracted installations increased in established markets with customer trials in new international markets ongoing. Finally, we completed the upgrade of our test rig in Houston and showcased many of our new technologies to customers during the Offshore Technology Conference in May. Not only will the rig upgrades improve our testing capability, but they also increase the marketability for third party rental.” “In Tubular Services, we continue to gain adoption of the CDS Evolution model in our targeted trial U.S. markets. For example, we recently converted a multi-rig U.S. client based on the service quality and cost efficiency of this offering. In addition, our new multi-plug launcher system completed several field jobs with positive results and we will continue to ramp up our capacity in the second quarter. Global markets are increasingly understanding the value proposition of our automated offerings, with CDS sales expected to increase in the second quarter.” “As the market recovers, we remain highly focused on returning to a quarterly breakeven EBITDA run rate while minimizing cash usage over the next several quarters. The key drivers to achieving this will be: 1) growing CDS land Evolution adoption and gaining market share, particularly in North America, 2) accelerating CDS and tubular accessories sales 3) Gaining offshore Tubular Services market share in our established markets, including the benefits from rig reactivations, and 4) accelerating all AMSS offerings including ARC, as rigs reactivate. At the same time, we must carefully manage the ramp-up risks related to safety, quality, cost escalation and working capital management. With available technologies and a strong balance sheet and cash position to fund growth, our priority is on executing on these market opportunities," Mr. Assing concluded. The Company will conduct a conference call to discuss its results for the first quarter 2017 on May 9 at 9:00 a.m. Central Time. To participate in the conference call, dial 1-844-356-6029 inside the U.S. or 1-209-905-5912 outside the U.S. approximately 10 minutes prior to the scheduled start time. The conference call and all questions and answers will be recorded and made available until May 16. To listen to the replay, call 1-855-859-2056 inside the U.S. or 1-404-537-3406 outside the U.S. and enter conference ID 10366353#. The conference call will be webcast live as well as by replay at the Company's web site, www.tescocorp.com. Listeners may access the call through the "Conference Calls" link in the "Investor Relations" section of the site. Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO® is a registered trademark in the United States, Canada and the European Union. Casing Drive System™, CDS™ is a trademark in the United States and Canada. This news release contains forward-looking statements within the meaning of Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995. From time to time, our public filings, press releases and other communications (such as conference calls and presentations) will contain forward-looking statements. Forward-looking information is often, but not always identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "target," "project," "may," "will," "should," "could," "estimate," "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to expectations of our prospects, future revenue, earnings, activities and technical results. Forward-looking statements and information are based on current beliefs as well as assumptions made by, and information currently available to, us concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements in this news release are made as of the date it was issued and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that outcomes implied by forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of: levels and volatility of oil and gas prices; cyclical nature of the energy industry and credit risks of our customers; fluctuations of our revenue and earnings; operating hazards inherent in our operations; changes in governmental regulations, including those related to the climate and hydraulic fracturing; consolidation or loss of our customers; the highly competitive nature of our business; technological advancements and trends in our industry, and improvements in our competitors’ products; global economic and political environment, and financial markets; terrorist attacks, natural disasters and pandemic diseases; our presence in international markets, including political or economic instability, currency restrictions and trade and economic sanctions; cybersecurity incidents; protecting and enforcing our intellectual property rights; changes in, or our failure to comply with, environmental regulations; failure of our manufactured products and claims under our product warranties; availability of raw materials, component parts and finished products to produce our products, and our ability deliver the products we manufacture in a timely manner; retention and recruitment of a skilled workforce and key employees; and ability to identify and complete acquisitions. These risks and uncertainties may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Copies of our Canadian public filings are available through www.tescocorp.com and on SEDAR at www.sedar.com. Our U.S. public filings are available at www.sec.gov and through www.tescocorp.com. The risks included here are not exhaustive. Refer to "Part I, Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K for further discussion regarding our exposure to risks. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such factors, nor to assess the impact such factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Our management reports our financial statements in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") but evaluates our performance based on non-GAAP measures as defined under the SEC's Regulation G. These measures may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Non-GAAP measures should not be considered in isolation or as substitutes for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. • to assess the performance of the Company’s operations; • as a method used to evaluate potential acquisitions; • in presentations to our Board of Directors to enable them to have the same consistent measurement basis of operating performance used by management; and • in communications with investors, analysts, lenders, and others concerning our financial performance. (1) Adjusted EBITDA consists of earnings (net income or loss) attributable to TESCO before interest expense, income tax expense (benefit), depreciation and amortization, severance and restructuring charges, foreign exchange gains or losses, noted income or charges from certain accounts, non-cash stock compensation, non-cash impairments and other non-cash items. We believe Adjusted EBITDA is useful to an investor in evaluating our operating performance because: • it is widely used by investors in our industry to measure a company's operating performance without regard to items such as interest expense, income tax expense (benefit), depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, severance and restructuring charges, financing methods, capital structure and the method by which assets were acquired; • it helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest), merger and acquisition transactions (primarily gains/losses on sale of a business), and asset base (primarily depreciation and amortization) and actions that do not affect liquidity (stock compensation expense and non-cash impairments) from our operating results; and • it helps investors identify items that are within our operational control. Depreciation and amortization charges, while a component of operating income, are fixed at the time of the asset purchase in accordance with the depreciable lives of the related asset and as such are not a directly controllable period operating charge. (2) Adjusted net income (loss) is a non-GAAP measure comprised of net income attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments, noted income or charges from certain accounts and certain tax-related charges. We believe adjusted net income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (3) Adjusted operating income (loss) is a non-GAAP measure comprised of operating income (loss) attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments and noted income or charges from certain accounts. Management uses adjusted operating income (loss) as a measure of the performance of the Company’s operations. We believe adjusted operating income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (4) Free cash flow is a non-GAAP measure comprised of cash flow from operations, capital expenditures and proceeds on asset sales. Adjusted free cash flow excludes the impact of severance and restructuring payments. We believe free cash flow is useful to an investor in evaluating our operating performance because: • it measures the Company's ability to generate cash; • it is widely used by investors in our industry to measure a company's cash flow performance; and • it helps investors identify and analyze underlying trends in the business. For further information please contact: Chris Boone (713) 359-7000 Tesco Corporation


News Article | May 9, 2017
Site: globenewswire.com

• Liquidity of $83.1 million and no debt at the end of the first quarter, after funding approximately $1.1 million of payments for restructuring, $1.6 million for U.S. property taxes and $6 million of receivables growth • Reported U.S. GAAP diluted EPS was a loss of $(0.29) on a net loss of $13.7 million and adjusted EPS was a loss of $(0.29) on an adjusted net loss of $13.4 million, after $0.3 million in charges • Adjusted EBITDA loss was $4.7 million for the first quarter, compared to a loss of $4.4 million for the fourth quarter of 2016 HOUSTON, May 09, 2017 (GLOBE NEWSWIRE) -- Tesco Corporation ("TESCO" or the "Company") (NASDAQ:TESO) today reported first quarter 2017 financial and operating results. Fernando Assing, TESCO's President and Chief Executive Officer, commented, "While our first quarter results reflect the benefit of the stronger U.S. land market, the results also reflect the continued weakness in multiple international and offshore markets. We continue to deploy our new technologies and commercial innovation to be positioned to take advantage of opportunities in these markets as they begin to recover in subsequent quarters." TESCO reported revenue of $36.7 million in the first quarter of 2017, up from $35.3 million, or 4%, in the fourth quarter of 2016, and up from $35.5 million, or 3%, in the first quarter of 2016. The sequential increase in revenue was primarily from higher sales of new products and aftermarket services as well as land tubular services in the U.S. TESCO reported a U.S. GAAP net loss of $13.7 million, or $(0.29) per share, in the first quarter of 2017. Adjusted net loss for the quarter was $13.4 million, or $(0.29) per share, excluding special items, consisting primarily of charges related to restructuring costs. This compares to a U.S. GAAP net loss of $20.1 million, or $(0.43) per diluted share, in the fourth quarter of 2016, and a U.S. GAAP net loss of $56.8 million, or $(1.45) per diluted share, in the first quarter of 2016. Adjusted net loss in the fourth quarter of 2016 was $13.3 million, or $(0.28) per diluted share, and in the first quarter of 2016 was $17.9 million, or $(0.46) per diluted share. Adjusted EBITDA loss was $4.7 million in the first quarter of 2017 compared to an adjusted EBITDA loss of $4.4 million in the fourth quarter of 2016 on a 4% revenue increase. For the first quarter of 2017, U.S. GAAP operating loss was $12.9 million and adjusted operating loss was $12.1 million, which excludes the impact of $0.8 million of charges. This compares to the fourth quarter 2016 U.S. GAAP operating loss of $18.9 million and adjusted operating loss of $13.1 million, which excluded $5.8 million of charges. Cash and cash equivalents as of March 31, 2017 decreased from the fourth quarter of 2016 by $8.4 million to $83.1 million primarily due to restructuring payments of $1.1 million, U.S. property taxes of $1.6 million and higher receivables of $6.0 million. Free cash flow was a use of cash of $9.2 million before approximately $1.1 million of restructuring payments. The sequential decline was primarily caused by an increase in accounts receivable of over $6.0 million, driven by sequential revenue increase and nearly $4 million in international collection delays that have been substantially collected so far this quarter. • Revenue in the first quarter of 2017 was $20.1 million, a $1.3 million, or 7%, increase from the fourth quarter of 2016 and a $3.5 million, or 21%, increase from the first quarter of 2016. • U.S. GAAP operating loss before adjustments in the Products segment for the first quarter of 2017 was $0.9 million, or (4)% of revenue, a $4.4 million, or 83%, improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $0.7 million and (3)% respectively. This sequential increase in profitability was due to the volume and mix benefit from higher new product sales and aftermarket activity, partially offset by lower rental activity. • At March 31, 2017, the top drive backlog was 5 units with a total potential value of $4.1 million, compared to 10 units at December 31, 2016, with a potential value of $9.3 million. This compares to a backlog of 10 units at March 31, 2016, with a potential value of $9.5 million. The trend towards short delivery times and intra-quarter book-and-ship transactions continued in 2017. Most of the top drives expected to ship in the second quarter are likely to be booked and shipped intra-quarter. Today, our top drive backlog stands at 5 units with a potential value of $4.1 million, with several contracts signed but awaiting receipt of deposits. • Revenue in the first quarter of 2017 was $16.6 million, a slight increase from the fourth quarter of 2016 of $16.5 million and a decrease from the first quarter of 2016 of $18.9 million. This sequential increase was driven primarily by higher service activity in U.S. land, partially offset by lower international and offshore activity in multiple markets. • U.S. GAAP operating loss before adjustments in the Tubular Services segment in the first quarter of 2017 was $5.7 million, a $1.2 million improvement from the fourth quarter of 2016. First quarter operating loss and operating margin after adjustments were $5.1 million and (31)%, respectively, compared to $5.3 million and (32)% in the fourth quarter of 2016. The sequential improvement was primarily driven by improved profitability in U.S. land, partially offset by the impact of lower offshore activity. • Research and Engineering U.S. GAAP costs for the first quarter of 2017 were $0.8 million, compared to $1.5 million in the fourth quarter of 2016 and $1.6 million in the first quarter of 2016. We continue to invest in the development, commercialization, and enhancement of our proprietary technologies. • Corporate and other U.S. GAAP costs for the first quarter of 2017 were $5.5 million, a $0.3 million, or 6%, increase from the fourth quarter of 2016 and a $2.5 million, or 31%, decrease from the first quarter of 2016. On an adjusted basis, the first quarter costs increased by $0.6 million compared to fourth quarter due to approximately $0.5 million higher employee-related costs. • Net foreign exchange gain in the first quarter of 2017 was $0.1 million, compared to net foreign exchange losses of $1.1 million in the fourth quarter of 2016 and $1.2 million in the first quarter of 2016. • The effective tax rate for the first quarter of 2017 was an 8% expense compared to a 1% benefit in the fourth quarter of 2016 and a 1% expense in the first quarter of 2016. Income tax expense increased sequentially as taxable income increased in certain international markets with limited loss carrybacks. • Capital expenditures were $0.7 million in the first quarter of 2017, primarily for tubular services equipment and infrastructure projects, a $1.9 million decrease from the fourth quarter of 2016 and a $0.1 million, or 13%, decrease from the first quarter of 2016. We anticipate U.S. rig count to continue to increase during the second quarter of 2017 but flatten in the second half of 2017. In addition, international and offshore markets are not expected to show much improvement in 2017. We have started to see some opportunities to increase pricing in U.S. land, however persistent overcapacity will likely limit our pricing power throughout 2017. We are also facing risks that cost escalation, which includes labor inflation and shortages, incremental logistics and equipment reactivation costs, will exceed price increases in the short term. In the second quarter of 2017; • Products revenue is expected to be higher sequentially, primarily from higher new and used product sales and some improvement in top drive rental utilization in various markets, as well as additional catwalk rentals. Products adjusted operating loss is expected to improve sequentially. • Tubular Services revenue is expected to increase sequentially from increased North America land activity and higher new and used CDS sales. Tubular Services adjusted operating loss is expected to improve sequentially but incrementals are expected to be impacted by the onshore/offshore mix and activation costs for planned third quarter activity increases. • Corporate and R&E expenses are expected to be slightly higher sequentially in the second quarter. • As a result, adjusted EBITDA loss is expected to improve sequentially in the second quarter. • Cash levels are expected to decline due to operating losses and certain tax payments, although at a reduced rate compared to the first quarter. "During the first quarter and through this quarter, we have made continued progress on several key initiatives, including CDS™ Evolution adoption and top drive performance upgrades. Customer interest in offerings that reduce cost and improve drilling performance continues to increase,” Mr. Assing said. “Within Products, we completed several top drive upgrade projects with more booked for delivery over the next few quarters. We sold one catwalk and mobilized additional rental units internationally. With ARC, the number of contracted installations increased in established markets with customer trials in new international markets ongoing. Finally, we completed the upgrade of our test rig in Houston and showcased many of our new technologies to customers during the Offshore Technology Conference in May. Not only will the rig upgrades improve our testing capability, but they also increase the marketability for third party rental.” “In Tubular Services, we continue to gain adoption of the CDS Evolution model in our targeted trial U.S. markets. For example, we recently converted a multi-rig U.S. client based on the service quality and cost efficiency of this offering. In addition, our new multi-plug launcher system completed several field jobs with positive results and we will continue to ramp up our capacity in the second quarter. Global markets are increasingly understanding the value proposition of our automated offerings, with CDS sales expected to increase in the second quarter.” “As the market recovers, we remain highly focused on returning to a quarterly breakeven EBITDA run rate while minimizing cash usage over the next several quarters. The key drivers to achieving this will be: 1) growing CDS land Evolution adoption and gaining market share, particularly in North America, 2) accelerating CDS and tubular accessories sales 3) Gaining offshore Tubular Services market share in our established markets, including the benefits from rig reactivations, and 4) accelerating all AMSS offerings including ARC, as rigs reactivate. At the same time, we must carefully manage the ramp-up risks related to safety, quality, cost escalation and working capital management. With available technologies and a strong balance sheet and cash position to fund growth, our priority is on executing on these market opportunities," Mr. Assing concluded. The Company will conduct a conference call to discuss its results for the first quarter 2017 on May 9 at 9:00 a.m. Central Time. To participate in the conference call, dial 1-844-356-6029 inside the U.S. or 1-209-905-5912 outside the U.S. approximately 10 minutes prior to the scheduled start time. The conference call and all questions and answers will be recorded and made available until May 16. To listen to the replay, call 1-855-859-2056 inside the U.S. or 1-404-537-3406 outside the U.S. and enter conference ID 10366353#. The conference call will be webcast live as well as by replay at the Company's web site, www.tescocorp.com. Listeners may access the call through the "Conference Calls" link in the "Investor Relations" section of the site. Tesco Corporation is a global leader in the design, manufacture and service of technology based solutions for the upstream energy industry. The Company's strategy is to change the way people drill wells by delivering safer and more efficient solutions that add real value by reducing the costs of drilling for and producing oil and natural gas. TESCO® is a registered trademark in the United States, Canada and the European Union. Casing Drive System™, CDS™ is a trademark in the United States and Canada. This news release contains forward-looking statements within the meaning of Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995. From time to time, our public filings, press releases and other communications (such as conference calls and presentations) will contain forward-looking statements. Forward-looking information is often, but not always identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "target," "project," "may," "will," "should," "could," "estimate," "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to expectations of our prospects, future revenue, earnings, activities and technical results. Forward-looking statements and information are based on current beliefs as well as assumptions made by, and information currently available to, us concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements in this news release are made as of the date it was issued and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that outcomes implied by forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to, the impact of: levels and volatility of oil and gas prices; cyclical nature of the energy industry and credit risks of our customers; fluctuations of our revenue and earnings; operating hazards inherent in our operations; changes in governmental regulations, including those related to the climate and hydraulic fracturing; consolidation or loss of our customers; the highly competitive nature of our business; technological advancements and trends in our industry, and improvements in our competitors’ products; global economic and political environment, and financial markets; terrorist attacks, natural disasters and pandemic diseases; our presence in international markets, including political or economic instability, currency restrictions and trade and economic sanctions; cybersecurity incidents; protecting and enforcing our intellectual property rights; changes in, or our failure to comply with, environmental regulations; failure of our manufactured products and claims under our product warranties; availability of raw materials, component parts and finished products to produce our products, and our ability deliver the products we manufacture in a timely manner; retention and recruitment of a skilled workforce and key employees; and ability to identify and complete acquisitions. These risks and uncertainties may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Copies of our Canadian public filings are available through www.tescocorp.com and on SEDAR at www.sedar.com. Our U.S. public filings are available at www.sec.gov and through www.tescocorp.com. The risks included here are not exhaustive. Refer to "Part I, Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K for further discussion regarding our exposure to risks. Additionally, new risk factors emerge from time to time and it is not possible for us to predict all such factors, nor to assess the impact such factors might have on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Our management reports our financial statements in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") but evaluates our performance based on non-GAAP measures as defined under the SEC's Regulation G. These measures may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Non-GAAP measures should not be considered in isolation or as substitutes for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. • to assess the performance of the Company’s operations; • as a method used to evaluate potential acquisitions; • in presentations to our Board of Directors to enable them to have the same consistent measurement basis of operating performance used by management; and • in communications with investors, analysts, lenders, and others concerning our financial performance. (1) Adjusted EBITDA consists of earnings (net income or loss) attributable to TESCO before interest expense, income tax expense (benefit), depreciation and amortization, severance and restructuring charges, foreign exchange gains or losses, noted income or charges from certain accounts, non-cash stock compensation, non-cash impairments and other non-cash items. We believe Adjusted EBITDA is useful to an investor in evaluating our operating performance because: • it is widely used by investors in our industry to measure a company's operating performance without regard to items such as interest expense, income tax expense (benefit), depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, severance and restructuring charges, financing methods, capital structure and the method by which assets were acquired; • it helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest), merger and acquisition transactions (primarily gains/losses on sale of a business), and asset base (primarily depreciation and amortization) and actions that do not affect liquidity (stock compensation expense and non-cash impairments) from our operating results; and • it helps investors identify items that are within our operational control. Depreciation and amortization charges, while a component of operating income, are fixed at the time of the asset purchase in accordance with the depreciable lives of the related asset and as such are not a directly controllable period operating charge. (2) Adjusted net income (loss) is a non-GAAP measure comprised of net income attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments, noted income or charges from certain accounts and certain tax-related charges. We believe adjusted net income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (3) Adjusted operating income (loss) is a non-GAAP measure comprised of operating income (loss) attributable to TESCO excluding the impact of severance and restructuring charges, non-cash impairments and noted income or charges from certain accounts. Management uses adjusted operating income (loss) as a measure of the performance of the Company’s operations. We believe adjusted operating income (loss) is useful to an investor in evaluating our operating performance because: • it is a consistent measure of the underlying results of the Company’s business by excluding items that could mask the Company's operating performance; • it is widely used by investors in our industry to measure a company's operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluding items to be outside of the Company's normal operating results; and • it helps investors identify and analyze underlying trends in the business. (4) Free cash flow is a non-GAAP measure comprised of cash flow from operations, capital expenditures and proceeds on asset sales. Adjusted free cash flow excludes the impact of severance and restructuring payments. We believe free cash flow is useful to an investor in evaluating our operating performance because: • it measures the Company's ability to generate cash; • it is widely used by investors in our industry to measure a company's cash flow performance; and • it helps investors identify and analyze underlying trends in the business. For further information please contact: Chris Boone (713) 359-7000 Tesco Corporation


HOUSTON, Texas, 11. Mai 2017 /PRNewswire/ -- KERUI hat auf der Offshore Technology Conference (OTC), einer der weltweit größten Konferenzen für Offshore-Technologie, die dieses Jahr vom 1.-4. Mai in Houston (Texas) stattfand, verschiedene neue Produkte vorgestellt. KERUI hat auf der Konferenz in erster Linie das Gespräch mit Energieunternehmen im Produktionsbereich gesucht. Die meisten zeigten sich interessiert an KERUIs neuem Ökosystem, einer innovativen und nutzbringenden Lösung für die Öl-, Gas- und Energieindustrie.


News Article | December 19, 2016
Site: www.businesswire.com

WASHINGTON, United States--(BUSINESS WIRE)--The Marketing Department at Trelleborg’s (STO:TRELB) offshore operation has taken home the Award of Excellence at this year’s Business Marketing Association (BMA) Houston Lantern Awards of Texas for its Tradeshow Campaign: Driving Innovation Engagement at OTC 2016. The team worked for nine months developing a multi-channel marketing campaign, to reach and engage as many of the industry professionals and customers before the Offshore Technology Conference, Houston in May 2016. Trelleborg’s focus was around capturing new innovation ideas from the industry. Jo Shailes, Vice President of Marketing for Trelleborg’s offshore operation states: “We are excited to win our first award as a team. The overall campaign increased engagement with our audience before, during and after the exhibition in Houston. ‘We really made our mark at this year’s OTC by having a well thought out and comprehensive campaign to showcase Trelleborg as a thought leader who listens to the industry.” Rachel Bonnette, President for the BMA Houston Chapter states: “The judges for the BMA Lantern Awards focused essentially on the results of each campaign in order to pick the winner in each category. Trelleborg earned the 2016 Award of Excellence for their OTC tradeshow campaign because their marketing team was clearly able to outline the results that were achieved from this campaign and the positive impact it had on their business objectives.” BMA Houston created the Lantern Awards of Texas more than two decades ago to highlight top-quality creative and strategic B2B communications. As Texas’ premier awards event, the annual gala recognizes the year’s finest B2B work. Using advanced polymer material technology, Trelleborg’s offshore operation provides high integrity solutions for the harshest and most demanding offshore environments. As part of the Trelleborg Offshore & Construction Business Area of Trelleborg Group, Trelleborg’s offshore operation specializes in the development and production of polymer and syntactic foam based seismic, marine, buoyancy, cable protection and thermal insulation products, as well as rubber-based passive and active fire protection solutions for the offshore industry. Within its portfolio are some long established and respected brands including, CRP, OCP, Viking and Emerson & Cuming. Trelleborg’s offshore operation has been providing innovative solutions to the industry for over 30 years. www.trelleborg.com/offshore Trelleborg is a world leader in engineered polymer solutions that seal, damp and protect critical applications in demanding environments. Its innovative solutions accelerate performance for customers in a sustainable way. The Trelleborg Group has annual sales of SEK 30 billion (EUR 3.25 billion, USD 3.60 billion) in over 40 countries. The Group comprises five business areas: Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, Trelleborg Sealing Solutions and Trelleborg Wheel Systems, and the operations of Rubena and Savatech. The Trelleborg share has been listed on the Stock Exchange since 1964 and is listed on Nasdaq Stockholm, Large Cap. www.trelleborg.com. This information was brought to you by Cision http://news.cision.com


News Article | May 3, 2016
Site: www.realwire.com

Recent Management Appointment Of Cristiano Tortelli To Lead The New Oil&Gas Business Area First OTC For Prysmian After The Acquisition Of GCDT Milan, 03 May 2016 – Prysmian Group, world leader in the energy and telecom cable systems industry, will showcase at Offshore Technology Conference 2016 in Houston, TX (USA) from May 2 to 5 (booth 4353). The Group will present its comprehensive product portfolio specifically designed for the Oil and Gas industry. OTC 2016 comes at very important time for Prysmian. The Group has recently appointed Cristiano Tortelli - who joined the Group as Senior Vice President - to lead the newly created Oil & Gas Business Area, incorporating all of the Group’s activities in the industry, including umbilicals and flexible systems, down-hole technologies and core cables, and that will operate across the entire Oil & Gas supply chain. Technology will play a key role in meeting the new industry challenges, supported by a strong project management organization. Prysmian Group’s product portfolio at OTC 2016 will focus on a wide range of connection solutions. Complex and integrated power, control and instrumentation systems for topside, FPSO and shipyard applications, innovative cable solutions for drilling applications such as Bostdrive™ Service Loops and exclusive specialties specially designed for critical environments will be on display. Prysmian’s showcase will be complemented by the available portfolio of umbilicals products - both Steel and Thermoplastic, flexible pipes for Oil & Gas production application and submarine power cables. OTC 2016 follows the Group’s acquisition of Gulf Coast Downhole Technologies (GCDT) last year. GCDT fits fully into the Group’s Down Hole Technology strategy and complements its Draka-branded DHT offered product range including TEC (Tubing Encapsulated Cable) solutions, specialty tubing and specialty optical fibre. The acquisition of GCDT allows a further increased differentiation of the product offer, namely thanks to an enhanced portfolio of protectors and the patented Safety-Strip® technology for faster and safer installation of intelligent completion systems. Prysmian Group Prysmian Group is world leader in the energy and telecom cables and systems industry. With almost 140 years of experience, sales of about €7.5 billion in 2015, over 19,000 employees across 50 countries and 88 plants, the Group is strongly positioned in high-tech markets and offers the widest possible range of products, services, technologies and know-how. It operates in the businesses of underground and submarine cables and systems for power transmission and distribution, of special cables for applications in many different industries and of medium and low voltage cables for the construction and infrastructure sectors. For the telecommunications industry, the Group manufactures cables and accessories for voice, video and data transmission, offering a comprehensive range of optical fibres, optical and copper cables and connectivity systems. Prysmian is a public company, listed on the Italian Stock Exchange in the FTSE MIB index.

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