UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-Q
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(Mark One)
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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended March 31, 2011
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OR
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from ________________ to ______________
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Commission File Number: 001-14273
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CORE LABORATORIES N.V.
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(Exact name of registrant as specified in its charter)
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The Netherlands
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Not Applicable
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(State of other jurisdiction of
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(I.R.S. Employer Identification No.)
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incorporation or organization)
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Herengracht 424
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1017 BZ Amsterdam
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The Netherlands
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Not Applicable
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(Address of principal executive offices)
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(Zip Code)
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(31-20) 420-3191
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(Registrant's telephone number, including area code)
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None
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(Former name, former address and former fiscal year, if changed since last report)
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Large accelerated filer ý
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Accelerated filer ¨
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Non-accelerated filer ¨
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Smaller reporting company ¨
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(Do not check if a smaller reporting company)
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CORE LABORATORIES N.V.
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FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2011
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Page
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PART I - FINANCIAL INFORMATION
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Item 1.
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Financial Statements
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PART II - OTHER INFORMATION
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March 31,
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December 31,
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2011
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2010
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ASSETS
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(Unaudited)
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 80,011 | $ | 133,880 | ||||
Accounts receivable, net of allowance for doubtful accounts of $3,537 and
$3,396 at 2011 and 2010, respectively
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158,312 | 154,726 | ||||||
Inventories, net
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38,493 | 33,979 | ||||||
Prepaid expenses and other current assets
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27,903 | 26,735 | ||||||
TOTAL CURRENT ASSETS
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304,719 | 349,320 | ||||||
PROPERTY, PLANT AND EQUIPMENT, net
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103,061 | 104,223 | ||||||
INTANGIBLES, net
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8,399 | 8,660 | ||||||
GOODWILL
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154,217 | 154,217 | ||||||
DEFERRED TAX ASSETS, net
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5,646 | - | ||||||
OTHER ASSETS
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21,232 | 19,622 | ||||||
TOTAL ASSETS
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$ | 597,274 | $ | 636,042 | ||||
LIABILITIES AND EQUITY
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CURRENT LIABILITIES:
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Accounts payable
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$ | 48,749 | $ | 44,710 | ||||
Accrued payroll and related costs
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25,949 | 28,621 | ||||||
Taxes other than payroll and income
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7,878 | 7,796 | ||||||
Unearned revenue
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28,855 | 20,181 | ||||||
Income tax payable
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25,143 | 21,004 | ||||||
Short-term debt – Senior Exchangeable Notes
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105,316 | 147,543 | ||||||
Other accrued expenses
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10,621 | 9,498 | ||||||
TOTAL CURRENT LIABILITIES
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252,511 | 279,353 | ||||||
DEFERRED COMPENSATION
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22,941 | 21,241 | ||||||
DEFERRED TAX LIABILITIES, net
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- | 2,198 | ||||||
OTHER LONG-TERM LIABILITIES
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34,283 | 32,046 | ||||||
COMMITMENTS AND CONTINGENCIES
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- | - | ||||||
EQUITY COMPONENT OF SHORT-TERM DEBT – SENIOR EXCHANGEABLE NOTES
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4,523 | 8,864 | ||||||
EQUITY:
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||||||||
Preference shares, EUR 0.02 par value; 6,000,000 shares authorized,
none issued or outstanding
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- | - | ||||||
Common shares, EUR 0.02 par value;
200,000,000 shares authorized, 49,739,912 issued and 45,575,376 outstanding at 2011 and
49,739,912 issued and 45,521,186 outstanding at 2010
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1,397 | 1,397 | ||||||
Additional paid-in capital
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- | - | ||||||
Retained earnings
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546,372 | 536,991 | ||||||
Accumulated other comprehensive income (loss)
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(6,131 | ) | (6,207 | ) | ||||
Treasury shares (at cost), 4,164,536 at 2011 and 4,218,726 at 2010
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(261,368 | ) | (242,690 | ) | ||||
Total Core Laboratories N.V. shareholders' equity
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280,270 | 289,491 | ||||||
Non-controlling interest
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2,746 | 2,849 | ||||||
TOTAL EQUITY
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283,016 | 292,340 | ||||||
TOTAL LIABILITIES AND EQUITY
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$ | 597,274 | $ | 636,042 |
Three Months Ended
March 31,
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2011
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2010
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(Unaudited)
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REVENUE:
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Services
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$ | 153,114 | $ | 143,442 | ||||
Product sales
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53,619 | 44,895 | ||||||
Total Revenue
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206,733 | 188,337 | ||||||
OPERATING EXPENSES:
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Cost of services, exclusive of depreciation expense shown below
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100,732 | 95,357 | ||||||
Cost of product sales, exclusive of depreciation expense shown below
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36,018 | 30,231 | ||||||
General and administrative expenses
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9,524 | 6,380 | ||||||
Depreciation
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5,540 | 5,419 | ||||||
Amortization
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291 | 335 | ||||||
Other (income), net
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(1,871 | ) | (798 | ) | ||||
OPERATING INCOME
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56,499 | 51,413 | ||||||
Loss on exchange of Senior Exchangeable Notes
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629 | - | ||||||
Interest expense
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2,360 | 4,059 | ||||||
Income before income tax expense
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53,510 | 47,354 | ||||||
Income tax expense
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7,518 | 15,068 | ||||||
Net income
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45,992 | 32,286 | ||||||
Net income (loss) attributable to non-controlling interest
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(298 | ) | 81 | |||||
Net income attributable to Core Laboratories N.V.
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$ | 46,290 | $ | 32,205 | ||||
EARNINGS PER SHARE INFORMATION:
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Basic earnings per share attributable to Core Laboratories N.V.
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$ | 1.02 | $ | 0.72 | ||||
Diluted earnings per share attributable to Core Laboratories N.V.
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$ | 0.94 | $ | 0.69 | ||||
Cash dividends per share
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$ | 0.25 | $ | 0.06 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
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Basic
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45,225 | 44,836 | ||||||
Diluted
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49,141 | 46,820 | ||||||
Three Months Ended
March 31,
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2011
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2010
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(Unaudited)
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net income
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$ | 45,992 | $ | 32,286 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Net (recovery) provision for doubtful accounts
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(202 | ) | 752 | |||||
Provisions for inventory obsolescence
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230 | 222 | ||||||
Equity in earnings of affiliates
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(27 | ) | (113 | ) | ||||
Stock-based compensation
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2,522 | 1,613 | ||||||
Depreciation and amortization
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5,831 | 5,754 | ||||||
Non-cash interest expense
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2,223 | 3,839 | ||||||
Gain on sale of assets
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(63 | ) | (30 | ) | ||||
Gain on insurance recovery
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(710 | ) | - | |||||
Loss on exchange of Senior Exchangeable Notes
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629 | - | ||||||
Realization of pension obligation
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76 | 85 | ||||||
Increase in value of life insurance policies
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(889 | ) | (513 | ) | ||||
Deferred income taxes
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(6,831 | ) | 428 | |||||
Changes in assets and liabilities:
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Accounts receivable
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(3,151 | ) | 2,020 | |||||
Inventories
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(4,744 | ) | (690 | ) | ||||
Prepaid expenses and other current assets
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(2,182 | ) | 9,587 | |||||
Other assets
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(4 | ) | (263 | ) | ||||
Accounts payable
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4,039 | 3,517 | ||||||
Accrued expenses
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11,346 | 5,969 | ||||||
Other long-term liabilities
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3,937 | (2,097 | ) | |||||
Net cash provided by operating activities
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58,022 | 62,366 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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Capital expenditures
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(4,379 | ) | (6,155 | ) | ||||
Patents and other intangibles
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(30 | ) | (84 | ) | ||||
Business Acquisitions
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- | (9,000 | ) | |||||
Proceeds from sale of assets
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64 | 66 | ||||||
Proceeds from insurance recovery
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477 | - | ||||||
Premiums on life insurance
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(756 | ) | (441 | ) | ||||
Net cash used in investing activities
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(4,624 | ) | (15,614 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
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Repayment of debt borrowings
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(46,568 | ) | - | |||||
Stock options exercised
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217 | 274 | ||||||
Excess tax benefits from stock-based compensation
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- | (140 | ) | |||||
Debt financing costs
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(2 | ) | - | |||||
Non-controlling interest - contributions
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435 | - | ||||||
Non-controlling interest - dividend
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(240 | ) | - | |||||
Dividends paid
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(11,304 | ) | (2,696 | ) | ||||
Repurchase of common shares
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(49,805 | ) | (86,467 | ) | ||||
Net cash used in financing activities
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(107,267 | ) | (89,029 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS
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(53,869 | ) | (42,277 | ) | ||||
CASH AND CASH EQUIVALENTS, beginning of period
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133,880 | 181,045 | ||||||
CASH AND CASH EQUIVALENTS, end of period
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$ | 80,011 | $ | 138,768 | ||||
March 31,
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December 31,
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2011
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2010
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(Unaudited)
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Finished goods
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$ | 28,839 | $ | 24,476 | ||||
Parts and materials
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7,268 | 6,727 | ||||||
Work in progress
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2,386 | 2,776 | ||||||
Total inventories, net
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$ | 38,493 | $ | 33,979 |
March 31,
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December 31,
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2011
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2010
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(Unaudited)
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Senior exchangeable notes
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$ | 109,839 | $ | 156,407 | ||||
Discount on senior exchangeable notes
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(4,523 | ) | (8,864 | ) | ||||
Net senior exchangeable notes
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$ | 105,316 | $ | 147,543 |
Three Months Ended March 31,
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2011
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2010
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(Unaudited)
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Service cost
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$ | 335 | $ | 323 | ||||
Interest cost
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432 | 376 | ||||||
Expected return on plan assets
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(201 | ) | (119 | ) | ||||
Amortization of transition asset
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(22 | ) | (22 | ) | ||||
Amortization of prior service cost
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40 | 40 | ||||||
Amortization of net loss
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84 | 94 | ||||||
Net periodic pension cost
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$ | 668 | $ | 692 |
(Unaudited)
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Fair Value Measurement at March 31, 2011
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Total
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Level 1
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Level 2
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Level 3
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Assets:
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Deferred compensation plan trust assets
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$ | 9,806 | $ | - | $ | 9,806 | $ | - | ||||||||
Liabilities:
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Deferred compensation plan
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$ | 14,440 | $ | 2,618 | $ | 11,822 | $ | - |
Fair Value Measurement at December 31, 2010
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Total
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Level 1
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Level 2
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Level 3
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Assets:
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Deferred compensation plan trust assets
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$ | 8,802 | $ | - | $ | 8,802 | $ | - | ||||||||
Liabilities:
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Deferred compensation plan
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$ | 13,063 | $ | 2,275 | $ | 10,788 | $ | - |
Accumulated
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||||||||||||||||||||||||||||
Additional
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Other
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Non-
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Common
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Paid-In
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Retained
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Comprehensive
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Treasury
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Controlling
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Total
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(Unaudited)
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Shares
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Capital
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Earnings
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Income (Loss)
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Stock
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Interest
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Equity
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|||||||||||||||||||||
December 31, 2010
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$ | 1,397 | $ | - | $ | 536,991 | $ | (6,207 | ) | $ | (242,690 | ) | $ | 2,849 | $ | 292,340 | ||||||||||||
Stock options exercised
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- | (1,146 | ) | - | - | 1,363 | - | 217 | ||||||||||||||||||||
Stock based-awards
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- | 1,531 | - | - | 991 | - | 2,522 | |||||||||||||||||||||
Repurchase of common shares
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- | - | - | - | (49,805 | ) | - | (49,805 | ) | |||||||||||||||||||
Dividends paid
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- | - | (11,304 | ) | - | - | - | (11,304 | ) | |||||||||||||||||||
Equity component of short-term debt
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- | 4,341 | - | - | - | - | 4,341 | |||||||||||||||||||||
Exchange of Senior Exchangeable Notes
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- | (4,726 | ) | (25,605 | ) | - | 28,773 | - | (1,558 | ) | ||||||||||||||||||
Non-controlling interest contribution
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- | - | - | - | - | 435 | 435 | |||||||||||||||||||||
Non-controlling interest dividends
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- | - | - | - | - | (240 | ) | (240 | ) | |||||||||||||||||||
Comprehensive income:
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||||||||||||||||||||||||||||
Amortization of deferred pension costs, net of tax
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- | - | - | 76 | - | - | 76 | |||||||||||||||||||||
Net income (loss)
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- | - | 46,290 | - | - | (298 | ) | 45,992 | ||||||||||||||||||||
Total comprehensive income
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46,068 | |||||||||||||||||||||||||||
March 31, 2011
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$ | 1,397 | $ | - | $ | 546,372 | $ | (6,131 | ) | $ | (261,368 | ) | $ | 2,746 | $ | 283,016 |
Three months ended
March 31,
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2011
|
2010
|
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(Unaudited)
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Net income
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$ | 45,992 | $ | 32,286 | ||||
Amortization of deferred pension costs, net of tax
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76 | 85 | ||||||
Total comprehensive income
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$ | 46,068 | $ | 32,371 |
March 31,
|
December 31,
|
|||||||
2011
|
2010
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(Unaudited)
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Prior service cost
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$ | (823 | ) | $ | (853 | ) | ||
Transition asset
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308 | 324 | ||||||
Unrecognized net actuarial loss
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(5,616 | ) | (5,678 | ) | ||||
Total accumulated other comprehensive income (loss)
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$ | (6,131 | ) | $ | (6,207 | ) |
Three Months Ended March 31,
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||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
Weighted average basic common shares outstanding
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45,225 | 44,836 | ||||||
Effect of dilutive securities:
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Stock options
|
27 | 58 | ||||||
Contingent shares
|
57 | 29 | ||||||
Restricted stock and other
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318 | 524 | ||||||
Senior exchangeable notes
|
1,257 | 1,345 | ||||||
Warrants
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2,257 | 28 | ||||||
Weighted average diluted common and potential common shares outstanding
|
49,141 | 46,820 |
Three Months Ended March 31,
|
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2011
|
2010
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|||||||
(Unaudited)
|
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(Gain) loss on sale of assets
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$ | (63 | ) | $ | (31 | ) | ||
Foreign exchange (gain) loss
|
(512 | ) | (91 | ) | ||||
Interest income
|
(55 | ) | (12 | ) | ||||
Rents and royalties
|
(451 | ) | (473 | ) | ||||
Gain on insurance recovery
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(710 | ) | - | |||||
Other, net
|
(80 | ) | (191 | ) | ||||
Total other (income), net
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$ | (1,871 | ) | $ | (798 | ) |
Three Months Ended March 31,
|
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2011
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2010
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|||||||
(Unaudited)
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||||||||
British Pound
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$ | (91 | ) | $ | 258 | |||
Canadian Dollar
|
(419 | ) | (385 | ) | ||||
Euro
|
(66 | ) | (30 | ) | ||||
Mexican Peso
|
106 | 108 | ||||||
Russian Ruble
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(195 | ) | 54 | |||||
Other currencies, net
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153 | (96 | ) | |||||
Total (gain)
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$ | (512 | ) | $ | (91 | ) |
*
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Reservoir Description: Encompasses the characterization of petroleum reservoir rock, fluid and gas samples. We provide analytical and field services to characterize properties of crude oil and petroleum products to the oil and gas industry.
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*
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Production Enhancement: Includes products and services relating to reservoir well completions, perforations, stimulations and production. We provide integrated services to evaluate the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.
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*
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Reservoir Management: Combines and integrates information from reservoir description and production enhancement services to increase production and improve recovery of oil and gas from our clients' reservoirs.
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(Unaudited)
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Reservoir Description
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Production Enhancement
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Reservoir Management
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Corporate & Other 1
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Consolidated
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|||||||||||||||
Three Months Ended March 31, 2011
|
||||||||||||||||||||
Revenues from unaffiliated customers
|
$ | 107,621 | $ | 82,098 | $ | 17,014 | $ | - | $ | 206,733 | ||||||||||
Inter-segment revenues
|
369 | 308 | 359 | (1,036 | ) | - | ||||||||||||||
Segment operating income
|
26,438 | 23,262 | 6,664 | 135 | 56,499 | |||||||||||||||
Total assets
|
271,875 | 201,970 | 24,967 | 98,462 | 597,274 | |||||||||||||||
Capital expenditures
|
3,303 | 804 | 107 | 165 | 4,379 | |||||||||||||||
Depreciation and amortization
|
3,482 | 1,639 | 180 | 530 | 5,831 | |||||||||||||||
Three Months Ended March 31, 2010
|
||||||||||||||||||||
Revenues from unaffiliated customers
|
$ | 104,093 | $ | 68,844 | $ | 15,400 | $ | - | $ | 188,337 | ||||||||||
Inter-segment revenues
|
300 | 294 | 288 | (882 | ) | - | ||||||||||||||
Segment operating income (loss)
|
25,084 | 20,943 | 5,620 | (234 | ) | 51,413 | ||||||||||||||
Total assets
|
257,184 | 182,943 | 18,216 | 155,807 | 614,150 | |||||||||||||||
Capital expenditures
|
5,329 | 672 | 38 | 116 | 6,155 | |||||||||||||||
Depreciation and amortization
|
3,507 | 1,623 | 158 | 466 | 5,754 | |||||||||||||||
(1) "Corporate & Other" represents those items that are not directly related to a particular segment and eliminations.
|
Condensed Consolidating Balance Sheets (Unaudited)
|
||||||||||||||||||||
(In thousands)
|
March 31, 2011
|
|||||||||||||||||||
Core Laboratories N.V. (Parent/ Guarantor)
|
Core Laboratories LP (Issuer)
|
Other Subsidiaries (Non- Guarantors)
|
Consolidating Adjustments
|
Consolidated Total
|
||||||||||||||||
ASSETS
|
||||||||||||||||||||
CURRENT ASSETS:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 7,154 | $ | 24,156 | $ | 48,701 | $ | - | $ | 80,011 | ||||||||||
Accounts receivable, net
|
85 | 37,732 | 120,495 | - | 158,312 | |||||||||||||||
Inventories, net
|
- | 3,986 | 34,507 | - | 38,493 | |||||||||||||||
Prepaid expenses and other current assets
|
6,922 | 6,662 | 14,319 | - | 27,903 | |||||||||||||||
Total current assets
|
14,161 | 72,536 | 218,022 | - | 304,719 | |||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, net
|
- | 20,499 | 82,562 | - | 103,061 | |||||||||||||||
GOODWILL AND INTANGIBLES, net
|
46,986 | 15,647 | 99,983 | - | 162,616 | |||||||||||||||
INTERCOMPANY RECEIVABLES
|
20,819 | 142,320 | 274,860 | (437,999 | ) | - | ||||||||||||||
INVESTMENT IN AFFILIATES
|
536,140 | - | 1,560,354 | (2,095,772 | ) | 722 | ||||||||||||||
DEFERRED TAX ASSET
|
2,801 | - | 7,261 | (4,416 | ) | 5,646 | ||||||||||||||
OTHER ASSETS
|
3,380 | 14,202 | 2,928 | - | 20,510 | |||||||||||||||
TOTAL ASSETS
|
$ | 624,287 | $ | 265,204 | $ | 2,245,970 | $ | (2,538,187 | ) | $ | 597,274 | |||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
CURRENT LIABILITIES:
|
||||||||||||||||||||
Accounts payable
|
$ | 330 | $ | 6,976 | $ | 41,443 | $ | - | $ | 48,749 | ||||||||||
Short-term debt
|
- | 105,316 | - | - | 105,316 | |||||||||||||||
Other accrued expenses
|
1,879 | 34,303 | 62,264 | - | 98,446 | |||||||||||||||
Total current liabilities
|
2,209 | 146,595 | 103,707 | - | 252,511 | |||||||||||||||
LONG-TERM DEBT
|
- | - | - | - | - | |||||||||||||||
DEFERRED COMPENSATION
|
6,318 | 16,520 | 103 | - | 22,941 | |||||||||||||||
DEFERRED TAX LIABILITY
|
- | 3,519 | 897 | (4,416 | ) | - | ||||||||||||||
INTERCOMPANY PAYABLES
|
321,320 | 71,483 | 45,196 | (437,999 | ) | - | ||||||||||||||
OTHER LONG-TERM LIABILITIES
|
14,170 | 703 | 19,410 | - | 34,283 | |||||||||||||||
Equity Component of Short-term Debt -Senior Exchangeable Notes
|
- | 4,523 | - | - | 4,523 | |||||||||||||||
SHAREHOLDERS' EQUITY
|
280,270 | 21,861 | 2,073,911 | (2,095,772 | ) | 280,270 | ||||||||||||||
NON-CONTROLLING INTEREST
|
- | - | 2,746 | - | 2,746 | |||||||||||||||
TOTAL EQUITY
|
280,270 | 21,861 | 2,076,657 | (2,095,772 | ) | 283,016 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 624,287 | $ | 265,204 | $ | 2,245,970 | $ | (2,538,187 | ) | $ | 597,274 |
Condensed Consolidating Balance Sheets
|
||||||||||||||||||||
(In thousands)
|
December 31, 2010
|
|||||||||||||||||||
Core Laboratories N.V. (Parent/ Guarantor)
|
Core Laboratories LP (Issuer)
|
Other Subsidiaries (Non- Guarantors)
|
Consolidating Adjustments
|
Consolidated Total
|
||||||||||||||||
ASSETS
|
||||||||||||||||||||
CURRENT ASSETS:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 11,162 | $ | 88,612 | $ | 34,106 | $ | - | $ | 133,880 | ||||||||||
Accounts receivable, net
|
10 | 33,637 | 121,079 | - | 154,726 | |||||||||||||||
Inventories, net
|
- | 4,127 | 29,852 | - | 33,979 | |||||||||||||||
Prepaid expenses and other current assets
|
5,641 | 9,437 | 11,657 | - | 26,735 | |||||||||||||||
16,813 | 135,813 | 196,694 | - | 349,320 | ||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, net
|
- | 21,139 | 83,084 | - | 104,223 | |||||||||||||||
GOODWILL AND INTANGIBLES, net
|
46,986 | 15,838 | 100,053 | - | 162,877 | |||||||||||||||
INTERCOMPANY RECEIVABLES
|
21,749 | 164,945 | 242,754 | (429,448 | ) | - | ||||||||||||||
INVESTMENT IN AFFILIATES
|
553,693 | - | 1,567,416 | (2,120,414 | ) | 695 | ||||||||||||||
DEFERRED TAX ASSET
|
2,810 | - | 6,436 | (9,246 | ) | - | ||||||||||||||
OTHER ASSETS
|
3,209 | 13,099 | 2,619 | - | 18,927 | |||||||||||||||
TOTAL ASSETS
|
$ | 645,260 | $ | 350,834 | $ | 2,199,056 | $ | (2,559,108 | ) | $ | 636,042 | |||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
CURRENT LIABILITIES:
|
||||||||||||||||||||
Accounts payable
|
$ | 336 | $ | 5,144 | $ | 39,230 | $ | - | $ | 44,710 | ||||||||||
Short-term debt
|
- | 147,543 | - | - | 147,543 | |||||||||||||||
Other accrued expenses
|
2,291 | 29,250 | 55,559 | - | 87,100 | |||||||||||||||
2,627 | 181,937 | 94,789 | - | 279,353 | ||||||||||||||||
DEFERRED COMPENSATION
|
6,159 | 14,981 | 101 | - | 21,241 | |||||||||||||||
DEFERRED TAX LIABILITY
|
- | 11,444 | - | (9,246 | ) | 2,198 | ||||||||||||||
INTERCOMPANY PAYABLES
|
333,651 | - | 95,797 | (429,448 | ) | - | ||||||||||||||
OTHER LONG-TERM LIABILITIES
|
13,332 | 1,099 | 17,615 | - | 32,046 | |||||||||||||||
Equity Component of Short-term Debt -Senior Exchangeable Notes
|
- | 8,864 | - | - | 8,864 | |||||||||||||||
SHAREHOLDERS' EQUITY
|
289,491 | 132,509 | 1,987,905 | (2,120,414 | ) | 289,491 | ||||||||||||||
NON-CONTROLLING INTEREST
|
- | - | 2,849 | - | 2,849 | |||||||||||||||
TOTAL EQUITY
|
289,491 | 132,509 | 1,990,754 | (2,120,414 | ) | 292,340 | ||||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 645,260 | $ | 350,834 | $ | 2,199,056 | $ | (2,559,108 | ) | $ | 636,042 |
Condensed Consolidating Statements of Operations (Unaudited)
|
||||||||||||||||||||
(In thousands)
|
Three Months Ended March 31, 2011
|
|||||||||||||||||||
Core Laboratories N.V. (Parent/ Guarantor)
|
Core Laboratories LP (Issuer)
|
Other Subsidiaries (Non- Guarantors)
|
Consolidating Adjustments
|
Consolidated Total
|
||||||||||||||||
REVENUE
|
||||||||||||||||||||
Operating revenue
|
$ | - | $ | 47,800 | $ | 158,933 | $ | - | $ | 206,733 | ||||||||||
Intercompany revenue
|
360 | 5,381 | 40,056 | (45,797 | ) | - | ||||||||||||||
Earnings (loss) from consolidated affiliates
|
38,694 | - | (19,704 | ) | (18,990 | ) | - | |||||||||||||
Total revenue
|
39,054 | 53,181 | 179,285 | (64,787 | ) | 206,733 | ||||||||||||||
OPERATING EXPENSES
|
||||||||||||||||||||
Operating costs
|
294 | 25,299 | 111,157 | - | 136,750 | |||||||||||||||
General and administrative expenses
|
2,644 | 6,870 | 10 | - | 9,524 | |||||||||||||||
Depreciation and amortization
|
- | 1,630 | 4,201 | - | 5,831 | |||||||||||||||
Other (income) expense, net
|
129 | 2,945 | 26,427 | (31,372 | ) | (1,871 | ) | |||||||||||||
Operating income
|
35,987 | 16,437 | 37,490 | (33,415 | ) | 56,499 | ||||||||||||||
Loss on exchange of Senior Exchangeable Notes
|
- | 629 | - | - | 629 | |||||||||||||||
Interest expense
|
- | 58,753 | - | (56,393 | ) | 2,360 | ||||||||||||||
Income (loss) before income tax expense
|
35,987 | (42,945 | ) | 37,490 | 22,978 | 53,510 | ||||||||||||||
Income tax expense (benefit)
|
(10,303 | ) | 19,427 | (1,606 | ) | - | 7,518 | |||||||||||||
Net income
|
46,290 | (62,372 | ) | 39,096 | 22,978 | 45,992 | ||||||||||||||
Net income (loss) attributable to non-controlling interest
|
- | - | (298 | ) | - | (298 | ) | |||||||||||||
Net income (loss) attributable to Core Laboratories
|
$ | 46,290 | $ | (62,372 | ) | $ | 39,394 | $ | 22,978 | $ | 46,290 |
Condensed Consolidating Statements of Cash Flows (Unaudited)
|
||||||||||||||||||||
(In thousands)
|
Three Months Ended March 31, 2011
|
|||||||||||||||||||
Core Laboratories N.V. (Parent/ Guarantor)
|
Core Laboratories LP (Issuer)
|
Other Subsidiaries (Non- Guarantors)
|
Consolidating Adjustments
|
Consolidated Total
|
||||||||||||||||
Net cash provided by (used in) operating activities
|
$ | 56,884 | $ | (16,361 | ) | $ | 17,499 | $ | - | $ | 58,022 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||||||
Capital expenditures
|
- | (782 | ) | (3,597 | ) | - | (4,379 | ) | ||||||||||||
Patents and other intangibles
|
- | (16 | ) | (14 | ) | - | (30 | ) | ||||||||||||
Proceeds from sale of assets
|
- | 29 | 35 | - | 64 | |||||||||||||||
Proceeds from insurance recovery
|
- | - | 477 | - | 477 | |||||||||||||||
Premiums on life insurance
|
- | (756 | ) | - | - | (756 | ) | |||||||||||||
Net cash used in investing activities
|
- | (1,525 | ) | (3,099 | ) | - | (4,624 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||||||
Repayment of debt borrowings
|
- | (46,568 | ) | - | - | (46,568 | ) | |||||||||||||
Stock options exercised
|
217 | - | - | - | 217 | |||||||||||||||
Debt financing costs
|
- | (2 | ) | - | - | (2 | ) | |||||||||||||
Non-controlling interest - contributions
|
- | - | 435 | - | 435 | |||||||||||||||
Non-controlling interest - dividends
|
- | - | (240 | ) | - | (240 | ) | |||||||||||||
Dividends paid
|
(11,304 | ) | - | - | - | (11,304 | ) | |||||||||||||
Repurchase of common shares
|
(49,805 | ) | - | - | - | (49,805 | ) | |||||||||||||
Net cash provided by (used in) financing activities
|
(60,892 | ) | (46,570 | ) | 195 | - | (107,267 | ) | ||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(4,008 | ) | (64,456 | ) | 14,595 | - | (53,869 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS, beginning of period
|
11,162 | 88,612 | 34,106 | - | 133,880 | |||||||||||||||
CASH AND CASH EQUIVALENTS, end of period
|
$ | 7,154 | $ | 24,156 | $ | 48,701 | $ | - | $ | 80,011 |
Condensed Consolidating Statements of Operations (Unaudited)
|
||||||||||||||||||||
(In thousands)
|
Three Months Ended March 31, 2010
|
|||||||||||||||||||
Core Laboratories N.V. (Parent/ Guarantor)
|
Core Laboratories LP (Issuer)
|
Other Subsidiaries (Non- Guarantors)
|
Consolidating Adjustments
|
Consolidated Total
|
||||||||||||||||
REVENUE
|
||||||||||||||||||||
Operating revenue
|
$ | - | $ | 45,161 | $ | 143,176 | $ | - | $ | 188,337 | ||||||||||
Intercompany revenue
|
288 | 4,587 | 35,509 | (40,384 | ) | - | ||||||||||||||
Earnings from consolidated affiliates
|
35,189 | - | 100,759 | (135,948 | ) | - | ||||||||||||||
Total revenue
|
35,477 | 49,748 | 279,444 | (176,332 | ) | 188,337 | ||||||||||||||
OPERATING EXPENSES
|
||||||||||||||||||||
Operating costs
|
390 | 24,984 | 100,214 | - | 125,588 | |||||||||||||||
General and administrative expenses
|
2,167 | 4,210 | 3 | - | 6,380 | |||||||||||||||
Depreciation and amortization
|
- | 1,558 | 4,196 | - | 5,754 | |||||||||||||||
Other (income) expense, net
|
(135 | ) | 1,591 | 28,308 | (30,562 | ) | (798 | ) | ||||||||||||
Operating income
|
33,055 | 17,405 | 146,723 | (145,770 | ) | 51,413 | ||||||||||||||
Interest expense
|
- | 4,055 | 4 | - | 4,059 | |||||||||||||||
Income before income tax expense
|
33,055 | 13,350 | 146,719 | (145,770 | ) | 47,354 | ||||||||||||||
Income tax expense (benefit)
|
850 | 5,482 | 8,736 | - | 15,068 | |||||||||||||||
Net income
|
32,205 | 7,868 | 137,983 | (145,770 | ) | 32,286 | ||||||||||||||
Net income attributable to non-controlling interest
|
- | - | 81 | - | 81 | |||||||||||||||
Net income attributable to Core Laboratories
|
$ | 32,205 | $ | 7,868 | $ | 137,902 | $ | (145,770 | ) | $ | 32,205 |
Condensed Consolidating Statements of Cash Flows (Unaudited)
|
||||||||||||||||||||
(In thousands)
|
Three Months Ended March 31, 2010
|
|||||||||||||||||||
Core Laboratories N.V. (Parent/ Guarantor)
|
Core Laboratories LP (Issuer)
|
Other Subsidiaries (Non- Guarantors)
|
Consolidating Adjustments
|
Consolidated Total
|
||||||||||||||||
Net cash provided by operating activities
|
$ | 32,036 | $ | 25,991 | $ | 4,339 | $ | - | $ | 62,366 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||||||
Capital expenditures
|
- | (2,520 | ) | (3,635 | ) | - | (6,155 | ) | ||||||||||||
Patents and other intangibles
|
- | (20 | ) | (64 | ) | - | (84 | ) | ||||||||||||
Acquisitions, net of cash
|
- | (9,000 | ) | - | - | (9,000 | ) | |||||||||||||
Proceeds from sale of assets
|
- | 9 | 57 | - | 66 | |||||||||||||||
Premiums on life insurance
|
- | (441 | ) | - | - | (441 | ) | |||||||||||||
Net cash used in investing activities
|
- | (11,972 | ) | (3,642 | ) | - | (15,614 | ) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||||||
Stock options exercised
|
274 | - | - | - | 274 | |||||||||||||||
Excess tax benefit from stock-based payments
|
(140 | ) | - | - | - | (140 | ) | |||||||||||||
Dividends paid
|
(2,696 | ) | - | - | - | (2,696 | ) | |||||||||||||
Repurchase of common shares
|
(86,467 | ) | - | - | - | (86,467 | ) | |||||||||||||
Net cash used in financing activities
|
(89,029 | ) | - | - | - | (89,029 | ) | |||||||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(56,993 | ) | 14,019 | 697 | - | (42,277 | ) | |||||||||||||
CASH AND CASH EQUIVALENTS, beginning of period
|
73,998 | 95,048 | 11,999 | - | 181,045 | |||||||||||||||
CASH AND CASH EQUIVALENTS, end of period
|
$ | 17,005 | $ | 109,067 | $ | 12,696 | $ | - | $ | 138,768 |
-
|
Increases the aggregate borrowing commitment under the existing credit facility from $125 million to $300 million;
|
-
|
In addition, the Amended Credit Agreement provides an option to increase the commitment under the credit facility to $350 million, if certain conditions are met.
|
*
|
Reservoir Description: Encompasses the characterization of petroleum reservoir rock, fluid and gas samples. We provide analytical and field services to characterize properties of crude oil and petroleum products to the oil and gas industry.
|
*
|
Production Enhancement: Includes products and services relating to reservoir well completions, perforations, stimulations and production. We provide integrated services to evaluate the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects.
|
*
|
Reservoir Management: Combines and integrates information from reservoir description and production enhancement services to increase production and improve recovery of oil and gas from our clients' reservoirs.
|
-
|
general and economic business conditions;
|
-
|
market prices of oil and gas and expectations about future prices;
|
-
|
cost of producing oil and natural gas;
|
-
|
the level of drilling and production activity;
|
-
|
mergers, consolidations and downsizing among our clients;
|
-
|
coordination by OPEC;
|
-
|
the impact of commodity prices on the expenditure levels of our clients;
|
-
|
financial condition of our client base and their ability to fund capital expenditures;
|
-
|
the physical effects of climatic change, including adverse weather or geologic/geophysical conditions;
|
-
|
the adoption of legal requirements or taxation relating to climate change that lower the demand for petroleum-based fuels;
|
-
|
civil unrest or political uncertainty in oil producing or consuming countries;
|
-
|
level of consumption of oil, gas and petrochemicals by consumers;
|
-
|
changes in existing laws, regulations, or other governmental actions;
|
-
|
the business opportunities (or lack thereof) that may be presented to and pursued by us; and
|
-
|
availability of services and materials for our clients to grow their capital expenditures.
|
(Unaudited)
|
Three Months Ended March 31,
|
% Change
|
||||||||||||||||||
2011
|
2010
|
2011/2010 | ||||||||||||||||||
REVENUE:
|
||||||||||||||||||||
Services
|
$ | 153,114 | 74 | % | $ | 143,442 | 76 | % | 7 | % | ||||||||||
Product sales
|
53,619 | 26 | % | 44,895 | 24 | % | 19 | % | ||||||||||||
Total revenue
|
206,733 | 100 | % | 188,337 | 100 | % | 10 | % | ||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||
Cost of services*
|
100,732 | 66 | % | 95,357 | 66 | % | 6 | % | ||||||||||||
Cost of product sales*
|
36,018 | 67 | % | 30,231 | 67 | % | 19 | % | ||||||||||||
Total cost of services and product sales
|
136,750 | 66 | % | 125,588 | 67 | % | 9 | % | ||||||||||||
General and administrative expenses
|
9,524 | 5 | % | 6,380 | 3 | % | 49 | % | ||||||||||||
Depreciation and amortization
|
5,831 | 3 | % | 5,754 | 3 | % | 1 | % | ||||||||||||
Other (income), net
|
(1,871 | ) | (1 | %) | (798 | ) | - | 134 | % | |||||||||||
Operating income
|
56,499 | 27 | % | 51,413 | 27 | % | 10 | % | ||||||||||||
Loss on exchange of Senior Exchangeable Notes
|
629 | - | - | - | 100 | % | ||||||||||||||
Interest expense
|
2,360 | 1 | % | 4,059 | 2 | % | (42 | %) | ||||||||||||
Income before income tax expense
|
53,510 | 26 | % | 47,354 | 25 | % | 13 | % | ||||||||||||
Income tax expense
|
7,518 | 4 | % | 15,068 | 8 | % | (50 | %) | ||||||||||||
Net income
|
45,992 | 22 | % | 32,286 | 17 | % | 42 | % | ||||||||||||
Net income (loss) attributable to non-controlling interest
|
(298 | ) | - | 81 | - | (468 | %) | |||||||||||||
Net income attributable to Core Laboratories N.V.
|
$ | 46,290 | 22 | % | $ | 32,205 | 17 | % | 44 | % | ||||||||||
*Exclusive of depreciation and amortization expense, percentage based on applicable revenue rather than total revenue
|
Three Months Ended March 31,
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
(Gain) on sale of assets
|
$ | (63 | ) | $ | (31 | ) | ||
Foreign exchange (gain)
|
(512 | ) | (91 | ) | ||||
Interest income
|
(55 | ) | (12 | ) | ||||
Rents and royalties
|
(451 | ) | (473 | ) | ||||
Gain on insurance recovery
|
(710 | ) | - | |||||
Other, net
|
(80 | ) | (191 | ) | ||||
Total other (income), net
|
$ | (1,871 | ) | $ | (798 | ) |
Three Months Ended March 31,
|
||||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
British Pound
|
$ | (91 | ) | $ | 258 | |||
Canadian Dollar
|
(419 | ) | (385 | ) | ||||
Euro
|
(66 | ) | (30 | ) | ||||
Mexican Peso
|
106 | 108 | ||||||
Russian Ruble
|
(195 | ) | 54 | |||||
Other currencies, net
|
153 | (96 | ) | |||||
Total (gain)
|
$ | (512 | ) | $ | (91 | ) |
Three Months Ended
March 31,
|
% Change
|
|||||||||||
2011
|
2010
|
2011/2010 | ||||||||||
Revenues:
|
(Unaudited)
|
|||||||||||
Reservoir Description
|
$ | 107,621 | $ | 104,093 | 3 | % | ||||||
Production Enhancement
|
82,098 | 68,844 | 19 | % | ||||||||
Reservoir Management
|
17,014 | 15,400 | 10 | % | ||||||||
Consolidated
|
$ | 206,733 | $ | 188,337 | 10 | % | ||||||
Operating income (loss):
|
||||||||||||
Reservoir Description
|
$ | 26,438 | $ | 25,084 | 5 | % | ||||||
Production Enhancement
|
23,262 | 20,943 | 11 | % | ||||||||
Reservoir Management
|
6,664 | 5,620 | 19 | % | ||||||||
Corporate and Other1
|
135 | (234 | ) |
NM
|
||||||||
Consolidated
|
$ | 56,499 | $ | 51,413 | 10 | % | ||||||
(1) "Corporate and Other" represents those items that are not directly related to a particular segment
|
||||||||||||
"NM" means not meaningful
|
Three Months Ended
March 31,
|
% Change
|
|||||||||||
2011
|
2010
|
2011/2010 | ||||||||||
Free cash flow calculation:
|
(Unaudited)
|
|||||||||||
Net cash provided by operating activities
|
$ | 58,022 | $ | 62,366 | (7 | %) | ||||||
Less: capital expenditures
|
4,379 | 6,155 | (29 | %) | ||||||||
Free cash flow
|
$ | 53,643 | $ | 56,211 | (5 | %) |
Three Months Ended
March 31,
|
% Change
|
|||||||||||
2011
|
2010
|
2011/2010 | ||||||||||
Cash provided by/(used in):
|
(Unaudited)
|
|||||||||||
Operating activities
|
$ | 58,022 | $ | 62,366 | (7 | %) | ||||||
Investing activities
|
(4,624 | ) | (15,614 | ) | (70 | %) | ||||||
Financing activities
|
(107,267 | ) | (89,029 | ) | 20 | % | ||||||
Net change in cash and cash equivalents
|
$ | (53,869 | ) | $ | (42,277 | ) | 27 | % |
Period
|
Total Number of Shares Purchased
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of a Publicly Announced Program
|
Maximum Number of Shares That May Yet be Purchased Under the Program (3)
|
||||||||||||
January 1-31, 2011
|
378,545 | $ | 88.12 | 378,545 | 8,136,146 | |||||||||||
February 1-28, 2011 (1)
|
76,285 | 91.53 | 76,285 | 8,061,461 | ||||||||||||
March 1-31, 2011 (2)
|
95,935 | 98.66 | 95,935 | 8,568,881 | ||||||||||||
Total
|
550,765 | $ | 90.43 | 550,765 |
Exhibit No.
|
Incorporated by reference from the following documents
|
||
3.1
|
-
|
Articles of Association of Core Laboratories N.V., as amended (including English translation)
|
Exhibit 3.1 filed on
July 26, 2010 with 10-Q
(File No. 001-14273)
|
10.1
|
-
|
Form of Amendment to Core Laboratories 2008 Non-Employee Director Restricted Performance Share Award Agreement (ROE Based) 1
|
Filed herewith
|
10.2
|
-
|
Form of Amendment to Core Laboratories 2009 Non-Employee Director Restricted Performance Share Award Agreement (ROE Based) 1
|
Filed herewith
|
10.3
|
-
|
Form of Amendment to Core Laboratories 2010 Non-Employee Director Restricted Performance Share Award Agreement (ROIC Based) 1
|
Filed herewith
|
10.4
|
-
|
Form of Core Laboratories 2011 Non-Employee Director Restricted Share Award Program Agreement1
|
Filed herewith
|
10.5
|
-
|
Form of Core Laboratories 2011 Performance Share Award Program Agreement (ROIC Based) 1
|
Filed herewith
|
10.6
|
-
|
Form of Core Laboratories 2010 Performance Share Award Program Agreement (ROIC Based) 1
|
Filed herewith
|
10.7
|
-
|
Amendment executed April 21, 2011 to Restated Employment Agreement dated December 31, 2007, between Core Laboratories N.V. and Monty L. Davis1
|
Filed herewith
|
10.8
|
-
|
Amendment executed April 21, 2011 to Restated Employment Agreement dated December 31, 2007, between Core Laboratories N.V. and David M. Demshur1
|
Filed herewith
|
10.9
|
-
|
Amendment executed April 21, 2011 to Restated Employment Agreement dated December 31, 2007, between Core Laboratories N.V. and Richard L. Bergmark1
|
Filed herewith
|
10.10
|
-
|
Core Laboratories N.V. Board Succession Plan, dated March 2, 2011
|
Form 8-K, March 7, 2011
(File No. 001-14273)
|
31.1
|
-
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
Filed herewith
|
31.2
|
-
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
Filed herewith
|
32.1
|
-
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
Furnished herewith
|
32.2
|
-
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
Furnished herewith
|
1) Management contracts or compensatory plans or arrangements.
|
CORE LABORATORIES N.V.
|
|||
By:
|
Core Laboratories International B.V., its
|
||
Managing Director
|
|||
Date:
|
April 21, 2011
|
By:
|
/s/ Richard L. Bergmark
|
Richard L. Bergmark
|
|||
Chief Financial Officer
|
|||
(Duly Authorized Officer and
|
|||
Principal Financial Officer)
|
(1)
|
“Agreement” means this Performance Share Award Restricted Share Agreement (ROE Based) between Participant and the Company.
|
(2)
|
“Board Succession Plan” means that Plan as filed by the Company on Form 8-K on March 7, 2011, wherein it was described that the six Directors serving as of March 2, 2011 would rotate off of the Board on a schedule of one per year, beginning effective as of the 2011 annual meeting. Departure by Directors pursuant to such Plan will not deprive the Directors of the right to have the Restricted Shares Vest.
|
(3)
|
“Date of Grant” means, with respect to each grant of Restricted Performance Shares, the applicable Date of Grant set forth on Appendix A of this Agreement.
|
(4)
|
“EBIT” means, with respect to a Performance Period, the aggregate operating earnings from continuing operations of the Company and its consolidated subsidiaries during such Performance Period, determined prior to the charges, costs, and expenses associated with interest and income taxes, such aggregate amount divided by the duration, in years, of the Performance Period. EBIT shall be determined based on the regularly prepared and publicly available consolidated statements of operations of the Company prepared in accordance with GAAP.
|
(5)
|
“Ending Shareholders’ Equity” means, with respect to a Performance Period, the total shareholders’ equity in the Company as of the last day of such Performance Period. Ending Shareholders’ Equity shall be determined based on the regularly prepared and publicly available consolidated balance sheet of the Company and its consolidated subsidiaries prepared in accordance with GAAP.
|
(6)
|
“Forfeiture Restrictions” means the Forfeiture Restrictions as set forth in Section 3.1 herein.
|
(7)
|
“Full Vesting ROE Percentage” means, with respect to each grant of Restricted Performance Shares, the Return on Equity set forth on Appendix A of this Agreement with respect to such grant that must be achieved in order for Participant to Vest 100% in such Restricted Performance Shares in accordance with the schedule set forth in Section 4.1(a) herein.
|
(8)
|
“GAAP” means United States generally accepted accounting principles, consistently applied.
|
(9)
|
“Incremental Percentage” means, with respect to each grant of Restricted Performance Shares, the amount (expressed as a percentage) equal to A divided by B, where:
|
|
A
|
equals 80%;
|
|
B
|
equals 10 multiplied by C; and
|
|
C
|
equals (i) the Full Vesting ROE Percentage applicable to such Restricted Performance Shares minus (ii) the Threshold Vesting ROE Percentage applicable to such Restricted Performance Shares.
|
(10)
|
“Performance Period” means, with respect to each grant of Restricted Performance Shares, the three-year period ending on the date set forth on Appendix A of this Agreement that commences on the Date of Grant.
|
(11)
|
“Restricted Performance Shares” means the right to acquire Common Shares issued in Participant’s name pursuant to this Agreement, subject to the Forfeiture Restrictions, and as the context may require, any such Common Shares so issued in Participant’s name.
|
(12)
|
“Return on Equity” means, with respect to a Performance Period, the amount (expressed as a percentage rounded to one decimal place) determined by dividing (i) the EBIT for such Performance Period by (ii) the Ending Shareholders’ Equity for such Performance Period.
|
(13)
|
“Service” means Participant’s status as a non-employee supervisory director of the Company.
|
(14)
|
“Succession Termination” means termination from the Supervisory Board pursuant to the schedule described in the Board Succession Plan.
|
(15)
|
“Threshold Vesting ROE Percentage” means, with respect to each grant of Restricted Performance Shares, the Return on Equity set forth on Appendix A of this Agreement with respect to such grant that must be achieved in order for Participant to Vest 20% in such Restricted Performance Shares in accordance with the schedule set forth in Section 4.1(a) herein.
|
(16)
|
“Vest” means the lapse of the Forfeiture Restrictions with respect to all or a portion of the Restricted Performance Shares.
|
Return on Equity for the
Performance Period
|
Percentage of Restricted Performance Shares Vesting
|
At or above the Full Vesting ROE Percentage
|
100%
|
Above the Threshold Vesting ROE Percentage but
less than the Full Vesting ROE Percentage
|
Interpolated percentage between 20% and 100%
|
At the Threshold Vesting ROE Percentage
|
20%
|
Below the Threshold Vesting ROE Percentage
|
0%
|
By: ______________________________________
|
Name: Jan Willem Sodderland
|
Title: Managing Director of Core Laboratories International B.V.
|
|
PARTICIPANT
|
|
By: ______________________________________
|
|
Name:
|
Date of
Grant
|
Number of Restricted Performance
Shares
|
Performance
Period
Begins
|
Performance
Period Ends
|
Full Vesting ROE Percentage
|
Threshold Vesting ROE Percentage
|
Initial
|
|
July 15, 2008
|
$100,000 divided by the closing price of the stock on July 15, 2008 (rounded up to the nearest whole share). The closing stock price on July 15, 2008 was $134.84 resulting in an award of 742 shares.
|
July 15, 2008
|
July 15, 2011
|
200.0%
|
160.0%
|
_____
_____
|
|
(1)
|
“Agreement” means this Performance Share Award Restricted Share Agreement (ROE Based) between Participant and the Company.
|
(2)
|
“Board Succession Plan” means that Plan as filed by the Company on Form 8-K on March 7, 2011, wherein it was described that the six Directors serving as of March 2, 2011 would rotate off of the Board on a schedule of one per year, beginning effective as of the 2011 annual meeting. Departure by Directors pursuant to such Plan will not deprive the Directors of the right to have the Restricted Shares Vest.
|
(3)
|
“Date of Grant” means, with respect to each grant of Restricted Performance Shares, the applicable Date of Grant set forth on Appendix A of this Agreement.
|
(4)
|
“EBIT” means, with respect to a Performance Period, the aggregate operating earnings from continuing operations of the Company and its consolidated subsidiaries during such Performance Period, determined prior to the charges, costs, and expenses associated with interest and income taxes, such aggregate amount divided by the duration, in years, of the Performance Period. EBIT shall be determined based on the regularly prepared and publicly available consolidated statements of operations of the Company prepared in accordance with GAAP.
|
(5)
|
“Ending Shareholders’ Equity” means, with respect to a Performance Period, the total shareholders’ equity in the Company as of the last day of such Performance Period. Ending Shareholders’ Equity shall be determined based on the regularly prepared and publicly available consolidated balance sheet of the Company and its consolidated subsidiaries prepared in accordance with GAAP.
|
(6)
|
“Forfeiture Restrictions” means the Forfeiture Restrictions as set forth in Section 3.1 herein.
|
(7)
|
“Full Vesting ROE Percentage” means, with respect to each grant of Restricted Performance Shares, the Return on Equity Percentile set forth on Appendix A of this Agreement with respect to such grant that must be achieved in order for Participant to Vest 100% in such Restricted Performance Shares in accordance with the schedule set forth in Section 4.1(a) herein.
|
(8)
|
“GAAP” means United States generally accepted accounting principles, consistently applied.
|
(9)
|
“Incremental Percentage” means, with respect to each grant of Restricted Performance Shares, the amount (expressed as a percentage) pro rata between the Threshold Vesting ROE Percentage and the Full Vesting ROE Percentage
|
(10)
|
“Performance Period” means, with respect to each grant of Restricted Performance Shares, the three-year period ending on the date set forth on Appendix A of this Agreement that commences on the Date of Grant.
|
(11)
|
“Restricted Performance Shares” means the right to acquire Common Shares issued in Participant’s name pursuant to this Agreement, subject to the Forfeiture Restrictions, and as the context may require, any such Common Shares so issued in Participant’s name.
|
(12)
|
“Return on Equity” means, with respect to a Performance Period, the amount (expressed as a percentage rounded to one decimal place) determined by dividing (i) the EBIT for such Performance Period by (ii) the Ending Shareholders’ Equity for such Performance Period.
|
(13)
|
“Return on Equity (ROE) Percentile” means, with respect to the Performance Period, the Company’s Return on Equity compared to the returns on equity earned by members of the S&P 500 Oil & Gas Equipment & Services Index expressed as a percentile on Appendix A.
|
(14)
|
“Service” means Participant’s status as a non-employee supervisory director of the Company.
|
(15)
|
“Succession Termination” means termination from the Supervisory Board pursuant to the schedule described in the Board Succession Plan.
|
(16)
|
“Threshold Vesting ROE Percentage” means, with respect to each grant of Restricted Performance Shares, the Return on Equity Percentile set forth on Appendix A of this Agreement with respect to such grant that must be achieved in order for Participant to Vest 50% in such Restricted Performance Shares in accordance with the schedule set forth in Section 4.1(a) herein.
|
(17)
|
“Vest” means the lapse of the Forfeiture Restrictions with respect to all or a portion of the Restricted Performance Shares.
|
Return on Equity Percentile for the
Performance Period
|
Percentage of Restricted Performance Shares Vesting
|
At or above the Full Vesting ROE Percentage
|
100%
|
Above the Threshold Vesting ROE Percentage but
less than the Full Vesting ROE Percentage
|
Interpolated percentage between 50% and 100%
|
At the Threshold Vesting ROE Percentage
|
50%
|
Below the Threshold Vesting ROE Percentage
|
0%
|
By: ______________________________________
|
Name: Jan Willem Sodderland
|
Title: Managing Director of Core Laboratories International B.V.
|
|
PARTICIPANT
|
|
By: ______________________________________
|
|
Name:
|
Date of
Grant
|
Number of Restricted Performance
Shares
|
Performance
Period
Begins
|
Performance
Period Ends
|
Full Vesting ROE Percentage
|
Threshold Vesting ROE Percentage
|
Initial
|
|
July 15, 2009
|
$100,000 divided by the closing price of the stock on July 15, 2009 (rounded up to the nearest whole share). The closing stock price on July 15, 2009 was $86.49 resulting in an award of 1157 shares.
|
July 15, 2009
|
July 15, 2012
|
75th percentile
|
50th percentile
|
_____(Company)
_____(Director)
|
|
(1)
|
“Agreement” means this Performance Share Award Restricted Share Agreement (ROIC Based) between Participant and the Company.
|
By: ______________________________________
|
Name: Jan Willem Sodderland
|
Title: Managing Director of Core Laboratories International B.V.
|
|
PARTICIPANT
|
|
By: ______________________________________
|
|
Name:
|
Date of
Grant
|
Number of Restricted Performance
Shares
|
Performance
Period
Begins
|
Performance
Period Ends
|
Full Vesting Performance Criteria
|
Initial
|
||
April 1, 2010
|
$100,000 divided by the closing price of the stock on March 31, 2010 (rounded up to the nearest whole share). The closing stock price on March 31, 2010 was $130.80 resulting in an award of 765 shares
|
January 1, 2010
|
December 31, 2012
|
Company’s Return on Invested Capital being in the top decile of Bloomberg Peer Group at the end of the Performance Period
|
_____(Company)
_____(Director)
|
||
By: ______________________________________
|
Name: Jan Willem Sodderland
|
Title: Managing Director of Core Laboratories International B.V.
|
|
PARTICIPANT
|
|
By: ______________________________________
|
Effective Date of
Grant
|
Number of Restricted
Shares
|
Restricted
Period
Begins
|
Restricted
Period Ends
|
Initial
|
|||
April 1, 2011
|
$150,000 divided by the closing price of the stock on March 31, 2011 (rounded up to the nearest whole share). The closing stock price on March 31, 2011 was $102.17 resulting in an award of 1,469 shares
|
April 1, 2011
|
March 31, 2014
|
_____(Company)
_____(Director)
|
|||
By: ______________________________________
|
Name: Jan Willem Sodderland
|
Title: Managing Director of Core Laboratories International B.V.
|
|
PARTICIPANT
|
|
By: ______________________________________
|
|
Printed Name: _____________________________
|
Date of
Grant
|
Number of Restricted Performance
Shares
|
Performance
Period
Begins
|
Performance
Period Ends
|
Full Vesting Performance Criteria
|
Initial
|
||
April 1, 2011
|
_______
|
January 1, 2011
|
December 31, 2013
|
Company’s Return on Invested Capital being in the top decile of Bloomberg Peer Group at the end of the Performance Period
|
_____(Company)
_____(Participant)
|
||
By: ______________________________________
|
Name: Jan Willem Sodderland
|
Title: Managing Director of Core Laboratories International B.V.
|
|
PARTICIPANT
|
|
By: ______________________________________
|
|
Name:
|
Date of
Grant
|
Number of Restricted Performance
Shares
|
Performance
Period
Begins
|
Performance
Period Ends
|
Full Vesting Performance Criteria
|
Initial
|
||
April 1, 2010
|
_________
|
January 1, 2010
|
December 31, 2012
|
Company’s Return on Invested Capital being in the top decile of Bloomberg Peer Group at the end of the Performance Period
|
_____(Company)
_____(Participant)
|
||
CORE LABORATORIES N.V.
|
|
By:
|
Core Laboratories International B.V.,
its sole managing director
|
By:
|
/s/ Jan Willem Sodderland
|
Name:
|
Jan Willem Sodderland
|
Title:
|
Managing Director of Core Laboratories International B.V.
|
/s/ Monty L. Davis
|
|
Monty L. Davis
|
CORE LABORATORIES N.V.
|
|
By:
|
Core Laboratories International B.V.,
its sole managing director
|
By:
|
/s/ Jan Willem Sodderland
|
Name:
|
Jan Willem Sodderland
|
Title:
|
Managing Director of Core Laboratories International B.V.
|
/s/ David M. Demshur
|
|
David M. Demshur
|
CORE LABORATORIES N.V.
|
|
By:
|
Core Laboratories International B.V.,
its sole managing director
|
By:
|
/s/ Jan Willem Sodderland
|
Name:
|
Jan Willem Sodderland
|
Title:
|
Managing Director of Core Laboratories International B.V.
|
/s/ Richard L. Bergmark
|
|
Richard L. Bergmark
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
|
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
|
Date: April 21, 2011
|
By:
|
/s/ David M. Demshur
|
David M. Demshur
|
||
Chief Executive Officer
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) Evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and
|
|
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.
|
Date: April 21, 2011
|
By:
|
/s/ Richard L. Bergmark
|
Richard L. Bergmark
|
||
Chief Financial Officer
|
Date: April 21, 2011
|
/s/ David M. Demshur
|
Name: David M. Demshur
|
|
Title: Chief Executive Officer
|
|
Date: April 21, 2011
|
/s/ Richard L. Bergmark
|
Name: Richard L. Bergmark
|
|
Title: Chief Financial Officer
|
|
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