Core Laboratories Reports Record First Quarter Earnings and Revenues
HOUSTON, 23 April /PRNewswire/ -- Core Laboratories (Nasdaq: CRLBF - news) reported record first quarter earnings
and revenues in 1998 as it benefited from increased demand of reservoir description and production enhancement services and
the leveraging of recent acquisitions. Year over year first quarter income from continuing operations increased 143% to
$4,470,000 while diluted earnings per share from continuing operations increased 89% to $0.17 per share. The Company sold
its process analyzer facilities to ABB Process Analytics early in the second quarter of 1998. As such, the Company recorded a
loss of $217,000 from discontinued operations for first quarter 1998. Revenues from continuing operations reached record
first quarter levels of $57,435,000, an increase of 118% over 1997 first quarter totals. Revenues of discontinued operations
for quarter ended March 1998 were approximately $1,404,000.
''Core Laboratories continues to benefit from the increased demand for the unique technologies that we provide to the
petroleum industry,'' said David M. Demshur, President and CEO. ''More than 80% of our first quarter revenues were related
to production and production enhancement projects and more than 50% of our revenue came from the reservoir fluids side of
our business. These trends parallel our own internal business model which should bode well for continued growth in 1998,''
Demshur added.
First quarter results were bolstered by significant increases in demand for proprietary services related to the prevention,
mitigation or elimination of reservoir formation damage. Formation damage can occur during the drilling, completion,
stimulation or production of a well and leads to reduced hydrocarbon flow. This damage can be particularly severe during the
perforating phase of the completion process and the company is currently developing technology to lessen or eliminate damage
during the perforation phase. Industry experts estimate that formation damage costs the industry billions of dollars in lost
production every year.
''As the industry leader in formation damage solutions, Core is well placed to benefit from oil companies' increased attention to
increasing their cash flow by preventing or reducing impaired hydrocarbon flow,'' said John W. Chisholm, President of Core's
ProTechnics division.
Strong results were posted by operations in Canada, South America, Europe, the Middle East and Asia-Pacific. In particular,
operations in Venezuela, Abu Dhabi, Malaysia and China reported significant increases in demand for production enhancement
services. North Sea related operations in the United Kingdom recorded excellent revenue growth from several large reservoir
studies that will assist in the production management of fields located both in the U.K. and Norwegian sectors.
The Company has restated its consolidated statement of income to reflect the process analyzer unit as discontinued operations.
The discontinued operations wre sold for $4.1 million in April and the proceeds were used to reduce debt. ''The sale of our
process analyzer systems group will enable Core to focus on our higher growth, higher margin service lines related to reservoir
description, production enhancement and reservoir management,'' quoted David M. Demshur. ''To this end Core will continue
to develop proprietary production enhancing technologies, leverage these new services through our worldwide operational
network, and continue to evaluate the acquisitions of parallel businesses. The execution of these business strategies has served
us well and they should continue to provide excellent growth possibilities in 1998 and beyond.''
CORE LABORATORIES N.V. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except share and per share data)
Unaudited
Three Months Ended March 31,
1998 1997
REVENUE $ 57,435 $ 26,299
OPERATING EXPENSES:
Costs of services and sales 45,156 20,815
General and administrative expenses 1,882 1,024
Depreciation and amortization 3,234 1,428
Other expense (income), net (590) 40
INCOME FROM CONTINUING OPERATIONS BEFORE
INTEREST EXPENSE AND INCOME TAXES 7,753 2,992
INTEREST EXPENSE 1,368 296
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES 6,385 2,696
INCOME TAX EXPENSE 1,915 763
INCOME FROM CONTINUING OPERATIONS 4,470 1,933
INCOME (LOSS) FROM DISCONTINUED OPERATIONS (217) 117
NET INCOME $ 4,253 $ 2,050
DILUTED EARNINGS PER SHARE:
Income from continuing operations $ 0.17 $ 0.09
Income (loss) from discontinued operations -- --
Net income $ 0.17 $ 0.09
WEIGHTED AVERAGE DILUTED COMMON SHARES
OUTSTANDING 25,604,255 21,990,168
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 Company's reports on Form 10K filed 31 March, 1998, and in other securities filings.
SOURCE: Core Laboratories |
