Wednesday February 25, 7:58 pm Eastern Time
Company Press Release
SOURCE: Core Laboratories
Core Laboratories More Than Doubles Earnings
HOUSTON, Feb. 25 /PRNewswire/ -- Core Laboratories (Nasdaq: CRLBF - news)
more than doubled revenues and earnings during the fourth quarter of 1997 when
compared to the similar period from 1996. These significant increases were due to
increased demand for reservoir description, production enhancement, and reservoir
management services and from the benefits of recent acquisitions. Record 1997 fourth
quarter revenues of $68,451,000 increased by 140% from the $28,485,000 posted in
the fourth quarter of 1996. Net income for the quarter rose to $5,614,000 from
$2,056,000 while diluted fourth quarter 1997 earnings per share increased to $0.23
from $0.10 from the year earlier period. Total average shares outstanding increased to
over 24,000,000, primarily as a result of the Company's secondary stock offering
completed in November 1997 and the December 1997 two-for-one stock split.
For all of 1997, revenues reached $214,851,000, an increase of 104% over 1996
revenues of $105,368,000. Net income for the year more than doubled to $15,439,000
from $7,677,000 in 1996 while 1997 diluted earnings per share increased over 80% to
$0.65 from $0.36 per share in 1996. The 1997 revenue total exceeded -- by almost
$100,000,000 -- Core's previous revenue high of $116,665,000 recorded in 1982.
''Our fourth quarter results capped a great year for Core Laboratories,'' said President
and CEO David M. Demshur. ''Demand for our proprietary reservoir description and
production enhancement technologies exceeded our own internal growth targets while
the continued addition of complementary technologies by acquisition bodes well for our
future growth.''
During the fourth quarter of 1997, strong demand for reservoir description services led
to strong operating performances in Canada, Europe, Africa, the Middle East, as well
as Asia-Pacific. In addition, several large projects commenced in Asia-Pacific near the
end of the year as Asian countries are attempting to increase oil production that will
yield more dollar-based exports. These production enhancement projects should
provide for a very strong 1998 for Asia-Pacific operations, which the Company plans to
expand by adding more reservoir management services.
Worldwide demand for Core's fracture diagnostic services also remained strong. This
was especially the case in deepwater Gulf of Mexico where the Company's
ZeroWash(R) tracer technology was utilized to maximize oil production in this extremely
high cost operating area. The Company also was awarded new contracts for
completion and fracture diagnostics services for additional deepwater drilling in early
1998. Crews also worked on projects in Australia, Indonesia, Malaysia, Algeria,
Venezuela, Mexico and Canada as the Company continues to leverage its worldwide
operating base.
''The addition of Stim-Lab in December 1997 will further strengthen our production
enhancement services line,'' said Demshur. ''As we did with ProTechnics and fracture
diagnostics, we plan to add Stim-Lab services internationally where demand should be
very high. Their proprietary and unique technologies are very complementary and we
expect immediate market acceptance -- especially in the Middle East where carbonate
reservoirs predominate. The continued execution of our growth strategies produced a
record setting year for Core and we are very excited about our prospects for continued
growth in 1998,'' Demshur said in closing.
CORE LABORATORIES N.V. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except share and per share data)
(UNAUDITED)
Three Months Year Ended
Ended December 31, Ended December 31,
1997 1996 1997 1996
REVENUE $68,451 $28,485 $214,851 $105,368
OPERATING EXPENSES:
Costs of services and sales 53,692 22,856 170,671 84,643
General and administrative
expenses 1,615 842 5,974 3,559
Depreciation and amortization 3,589 1,260 10,822 4,600
Transaction costs associated
with merger --- 355 --- 355
Other income, net (848) (197) (1,056) (603)
INCOME BEFORE INTEREST EXPENSE
AND INCOME TAXES 10,403 3,369 28,440 12,814
INTEREST EXPENSE 2,226 314 6,384 1,418
INCOME BEFORE INCOME TAXES 8,177 3,055 22,056 11,396
INCOME TAX EXPENSE 2,563 999 6,617 3,719
NET INCOME $5,614 $2,056 $15,439 $7,677
DILUTED EARNINGS PER SHARE $0.23 $0.10 $0.65 $0.36
WEIGHTED AVERAGE SHARES
OUTSTANDING 24,232,951 21,448,070 23,936,325 21,381,804
Core Laboratories N.V. is a leading provider of proprietary and patented reservoir
description, production enhancement and reservoir management services. The
Company has over 70 offices in more than 50 countries and is located in every major oil
producing province in the world. In addition, Core Laboratories manufactures and sells
petroleum reservoir rock and fluid analysis instrumentation and other integrated
systems. The Company's outlook is subject to various important cautionary factors as
more fully described in the 1996 Core Laboratories Annual Report to Shareholders and
in other securities filings.
SOURCE: Core Laboratories
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