|
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2012
|
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
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Delaware
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76-0476605
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|
(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
|
|
Three Allen Center, 333 Clay Street, Suite 4620,
|
|
|
Houston, Texas
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77002
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(Address of principal executive offices)
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(Zip Code)
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(713) 652-0582
|
||
(Registrant’s telephone number, including area code) | ||
None | ||
(Former name, former address and former fiscal year, if changed since last report)
|
Large Accelerated Filer [X] | Accelerated Filer [ ] | ||
Non-Accelerated Filer [ ] (Do not check if a smaller reporting company) | Smaller Reporting Company [ ] |
|
Page No.
|
|
Part I -- FINANCIAL INFORMATION
|
||
Item 1. |
Financial Statements:
|
|
Condensed Consolidated Financial Statements
|
||
Unaudited Condensed Consolidated Statements of Income for the Three and Nine Month Periods Ended September 30, 2012 and 2011
|
3
|
|
Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Month Periods Ended September 30, 2012 and 2011
|
4
|
|
Consolidated Balance Sheets – September 30, 2012 (unaudited) and December 31, 2011
|
5
|
|
Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2012 and 2011 | 6 | |
Notes to Unaudited Condensed Consolidated Financial Statements
|
7 – 26
|
|
Cautionary Statement Regarding Forward-Looking Statements |
27
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
27 – 39
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Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
39 – 40
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Item 4. |
Controls and Procedures
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40
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Part II -- OTHER INFORMATION
|
||
Item 1. |
Legal Proceedings
|
40 – 41
|
Item 1A. |
Risk Factors
|
41
|
Item 2. |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
|
42
|
Item 6. |
Exhibits
|
42
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(a) Index of Exhibits
|
42 – 43
|
|
Signature Page |
44
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THREE MONTHS ENDED
SEPTEMBER 30,
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenues
|
$ | 1,080,673 | $ | 902,621 | $ | 3,270,752 | $ | 2,483,379 | ||||||||
Costs and expenses:
|
||||||||||||||||
Cost of sales and services
|
814,034 | 665,855 | 2,428,994 | 1,857,031 | ||||||||||||
Selling, general and administrative expenses
|
51,308 | 45,430 | 147,901 | 131,902 | ||||||||||||
Depreciation and amortization expense
|
59,440 | 46,929 | 164,323 | 137,318 | ||||||||||||
Other operating (income) expense
|
1,566 | (57 | ) | 1,703 | 2,724 | |||||||||||
926,348 | 758,157 | 2,742,921 | 2,128,975 | |||||||||||||
Operating income
|
154,325 | 144,464 | 527,831 | 354,404 | ||||||||||||
Interest expense, net of capitalized interest
|
(15,736 | ) | (16,760 | ) | (51,617 | ) | (39,541 | ) | ||||||||
Interest income
|
440 | 174 | 979 | 1,422 | ||||||||||||
Equity in earnings of unconsolidated affiliates
|
30 | (204 | ) | 671 | (151 | ) | ||||||||||
Other income
|
2,486 | 885 | 8,530 | 1,515 | ||||||||||||
Income before income taxes
|
141,545 | 128,559 | 486,394 | 317,649 | ||||||||||||
Income tax expense
|
(37,436 | ) | (36,487 | ) | (135,337 | ) | (88,757 | ) | ||||||||
Net income
|
104,109 | 92,072 | 351,057 | 228,892 | ||||||||||||
Less: Net income attributable to noncontrolling interest
|
317 | 221 | 967 | 721 | ||||||||||||
Net income attributable to Oil States International, Inc.
|
$ | 103,792 | $ | 91,851 | $ | 350,090 | $ | 228,171 | ||||||||
Net income per share attributable to Oil States International, Inc. common stockholders
|
||||||||||||||||
Basic
|
$ | 1.92 | $ | 1.79 | $ | 6.69 | $ | 4.46 | ||||||||
Diluted
|
$ | 1.87 | $ | 1.67 | $ | 6.32 | $ | 4.15 | ||||||||
Weighted average number of common shares outstanding:
|
||||||||||||||||
Basic
|
53,975 | 51,264 | 52,347 | 51,144 | ||||||||||||
Diluted
|
55,365 | 54,960 | 55,391 | 55,028 |
THREE MONTHS ENDED
SEPTEMBER 30,
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net income
|
$ | 104,109 | $ | 92,072 | $ | 351,057 | $ | 228,892 | ||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Foreign currency translation adjustment
|
43,564 | (127,085 | ) | 40,527 | (61,370 | ) | ||||||||||
Unrealized loss on forward contracts, net of tax
|
(434 | ) | -- | (434 | ) | -- | ||||||||||
Total other comprehensive income (loss)
|
43,130 | (127,085 | ) | 40,093 | (61,370 | ) | ||||||||||
Comprehensive income (loss)
|
147,239 | (35,013 | ) | 391,150 | 167,522 | |||||||||||
Comprehensive income attributable to noncontrolling interest
|
(357 | ) | (148 | ) | (996 | ) | (685 | ) | ||||||||
Comprehensive income (loss) attributable to Oil States International, Inc.
|
$ | 146,882 | $ | (35,161 | ) | $ | 390,154 | $ | 166,837 |
SEPTEMBER 30,
2012
|
DECEMBER 31,
2011
|
|||||||
(UNAUDITED)
|
||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 163,551 | $ | 71,721 | ||||
Accounts receivable, net
|
811,270 | 732,240 | ||||||
Inventories, net
|
807,317 | 653,698 | ||||||
Prepaid expenses and other current assets
|
18,853 | 32,000 | ||||||
Total current assets
|
1,800,991 | 1,489,659 | ||||||
Property, plant, and equipment, net
|
1,760,309 | 1,557,088 | ||||||
Goodwill, net
|
489,405 | 467,450 | ||||||
Other intangible assets, net
|
134,395 | 127,602 | ||||||
Other noncurrent assets
|
66,439 | 61,842 | ||||||
Total assets
|
$ | 4,251,539 | $ | 3,703,641 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 328,029 | $ | 252,209 | ||||
Accrued liabilities
|
113,291 | 96,748 | ||||||
Income taxes
|
31,688 | 10,395 | ||||||
Current portion of long-term debt and capitalized leases
|
32,605 | 34,435 | ||||||
Deferred revenue
|
65,158 | 75,497 | ||||||
Other current liabilities
|
1,761 | 5,665 | ||||||
Total current liabilities
|
572,532 | 474,949 | ||||||
Long-term debt and capitalized leases
|
1,154,167 | 1,142,505 | ||||||
Deferred income taxes
|
112,905 | 97,377 | ||||||
Other noncurrent liabilities
|
27,761 | 25,538 | ||||||
Total liabilities
|
1,867,365 | 1,740,369 | ||||||
Stockholders’ equity:
|
||||||||
Oil States International, Inc. stockholders’ equity:
|
||||||||
Common stock, $.01 par value, 200,000,000 shares authorized, 58,458,892 shares and 54,803,539 shares issued, respectively, and 54,893,645 shares and 51,288,750 shares outstanding, respectively
|
585 | 548 | ||||||
Additional paid-in capital
|
580,479 | 545,730 | ||||||
Retained earnings
|
1,800,676 | 1,450,586 | ||||||
Accumulated other comprehensive income
|
114,464 | 74,371 | ||||||
Treasury stock, at cost, 3,565,247 and 3,514,789 shares, respectively
|
(113,246 | ) | (109,079 | ) | ||||
Total Oil States International, Inc. stockholders’ equity
|
2,382,958 | 1,962,156 | ||||||
Noncontrolling interest
|
1,216 | 1,116 | ||||||
Total stockholders’ equity
|
2,384,174 | 1,963,272 | ||||||
Total liabilities and stockholders’ equity
|
$ | 4,251,539 | $ | 3,703,641 |
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
|||||||
|
2012
|
2011
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 351,057 | $ | 228,892 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
164,323 | 137,318 | ||||||
Deferred income tax provision
|
5,122 | 16,281 | ||||||
Excess tax benefits from share-based payment arrangements
|
(7,739 | ) | (7,966 | ) | ||||
Gains on disposals of assets
|
(7,131 | ) | (1,650 | ) | ||||
Non-cash compensation charge
|
13,934 | 10,829 | ||||||
Accretion of debt discount
|
4,106 | 5,787 | ||||||
Amortization of deferred financing costs
|
5,249 | 4,699 | ||||||
Other, net
|
(9 | ) | (16 | ) | ||||
Changes in operating assets and liabilities, net of effect from acquired businesses:
|
||||||||
Accounts receivable
|
(62,688 | ) | (109,415 | ) | ||||
Inventories
|
(140,408 | ) | (104,421 | ) | ||||
Accounts payable and accrued liabilities
|
84,449 | 28,137 | ||||||
Taxes payable
|
38,035 | 11,343 | ||||||
Other current assets and liabilities, net
|
(2,337 | ) | 3,256 | |||||
Net cash flows provided by operating activities
|
445,963 | 223,074 | ||||||
Cash flows from investing activities:
|
||||||||
Capital expenditures, including capitalized interest
|
(331,750 | ) | (371,165 | ) | ||||
Acquisitions of businesses, net of cash acquired
|
(48,000 | ) | (212 | ) | ||||
Proceeds from disposition of property, plant and equipment
|
9,609 | 2,778 | ||||||
Other, net
|
(1,668 | ) | (3,601 | ) | ||||
Net cash flows used in investing activities
|
(371,809 | ) | (372,200 | ) | ||||
Cash flows from financing activities:
|
||||||||
Revolving credit borrowings and (repayments), net
|
201,837 | (395,908 | ) | |||||
6 1/2% senior notes issued
|
-- | 600,000 | ||||||
Payment of principal on 2 3/8% Notes conversion
|
(174,990 | ) | -- | |||||
Term loan repayments
|
(22,510 | ) | (11,246 | ) | ||||
Debt and capital lease repayments
|
(2,453 | ) | (966 | ) | ||||
Issuance of common stock from share-based payment arrangements
|
13,108 | 11,559 | ||||||
Purchase of treasury stock
|
-- | (12,632 | ) | |||||
Excess tax benefits from share-based payment arrangements
|
7,739 | 7,966 | ||||||
Payment of financing costs
|
(3,264 | ) | (13,152 | ) | ||||
Tax withholdings related to net share settlements of restricted stock
|
(4,167 | ) | (2,540 | ) | ||||
Other, net
|
3 | (11 | ) | |||||
Net cash flows provided by (used in) financing activities
|
15,303 | 183,070 | ||||||
Effect of exchange rate changes on cash
|
2,802 | (11,325 | ) | |||||
Net increase in cash and cash equivalents from continuing operations
|
92,259 | 22,619 | ||||||
Net cash used in discontinued operations – operating activities
|
(429 | ) | (118 | ) | ||||
Cash and cash equivalents, beginning of period
|
71,721 | 96,350 | ||||||
Cash and cash equivalents, end of period
|
$ | 163,551 | $ | 118,851 | ||||
|
||||||||
Non-cash financing activities:
|
||||||||
Value of common stock issued in payment of 2 3/8% Notes conversion
|
$ | 220,597 | $ | -- |
SEPTEMBER 30,
2012
|
DECEMBER 31,
2011
|
|||||||
Accounts receivable, net:
|
||||||||
Trade
|
$ | 585,579 | $ | 553,481 | ||||
Unbilled revenue
|
229,113 | 180,273 | ||||||
Other
|
1,460 | 2,449 | ||||||
Total accounts receivable
|
816,152 | 736,203 | ||||||
Allowance for doubtful accounts
|
(4,882 | ) | (3,963 | ) | ||||
$ | 811,270 | $ | 732,240 |
SEPTEMBER 30,
2012
|
DECEMBER 31,
2011
|
|||||||
Inventories, net:
|
||||||||
Tubular goods
|
$ | 523,718 | $ | 420,519 | ||||
Other finished goods and purchased products
|
93,015 | 80,184 | ||||||
Work in process
|
84,807 | 76,353 | ||||||
Raw materials
|
118,511 | 86,672 | ||||||
Total inventories
|
820,051 | 663,728 | ||||||
Allowance for obsolescence
|
(12,734 | ) | (10,030 | ) | ||||
$ | 807,317 | $ | 653,698 |
|
ESTIMATED
USEFUL LIFE
|
SEPTEMBER 30,
2012
|
DECEMBER 31,
2011
|
|||||||||
Property, plant and equipment, net:
|
||||||||||||
Land
|
$ | 54,725 | $ | 48,989 | ||||||||
Accommodations assets (1)
|
2 | - | 15 | years | 1,378,366 | 1,160,661 | ||||||
Buildings and leasehold improvements (1)
|
1 | - | 40 | years | 174,606 | 154,233 | ||||||
Machinery and equipment
|
1 | - |
29
|
years | 386,891 | 355,798 | ||||||
Rental tools
|
4 | - |
10
|
years | 243,082 | 199,084 | ||||||
Office furniture and equipment
|
1 | - |
10
|
years | 54,999 | 48,081 | ||||||
Vehicles
|
2 | - |
10
|
years | 117,648 | 100,554 | ||||||
Construction in progress
|
179,076 | 166,371 | ||||||||||
Total property, plant and equipment
|
2,589,393 | 2,233,771 | ||||||||||
Accumulated depreciation
|
(829,084 | ) | (676,683 | ) | ||||||||
$ | 1,760,309 | $ | 1,557,088 |
|
SEPTEMBER 30,
2012
|
DECEMBER 31,
2011
|
||||||
Accrued liabilities:
|
||||||||
Accrued compensation
|
$ | 57,899 | $ | 61,394 | ||||
Accrued interest
|
13,474 | 6,035 | ||||||
Insurance liabilities
|
13,078 | 12,396 | ||||||
Accrued taxes, other than income taxes
|
14,738 | 5,889 | ||||||
Liabilities related to discontinued operations
|
1,696 | 2,125 | ||||||
Other
|
12,406 | 8,909 | ||||||
$ | 113,291 | $ | 96,748 |
THREE MONTHS ENDED
SEPTEMBER 30,
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Basic earnings per share:
|
||||||||||||||||
Net income attributable to Oil States International, Inc.
|
$ | 103,792 | $ | 91,851 | $ | 350,090 | $ | 228,171 | ||||||||
Weighted average number of shares outstanding
|
53,975 | 51,264 | 52,347 | 51,144 | ||||||||||||
Basic earnings per share
|
$ | 1.92 | $ | 1.79 | $ | 6.69 | $ | 4.46 | ||||||||
Diluted earnings per share:
|
||||||||||||||||
Net income attributable to Oil States International, Inc.
|
$ | 103,792 | $ | 91,851 | $ | 350,090 | $ | 228,171 | ||||||||
Weighted average number of shares outstanding
|
53,975 | 51,264 | 52,347 | 51,144 | ||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Options on common stock
|
477 | 592 | 513 | 666 | ||||||||||||
2 3/8% Contingent Convertible Senior Subordinated Notes
|
782 | 2,944 | 2,391 | 3,044 | ||||||||||||
Restricted stock awards and other
|
131 | 160 | 140 | 174 | ||||||||||||
Total shares and dilutive securities
|
55,365 | 54,960 | 55,391 | 55,028 | ||||||||||||
Diluted earnings per share
|
$ | 1.87 | $ | 1.67 | $ | 6.32 | $ | 4.15 |
Well Site Services
|
||||||||||||||||||||||||||||
Rental
Tools and Services
|
Drilling Services
|
Subtotal
|
Accommodations
|
Offshore
Products
|
Tubular
Services
|
Total
|
||||||||||||||||||||||
Balance as of December 31, 2010
|
||||||||||||||||||||||||||||
Goodwill
|
$ | 170,034 | $ | 22,767 | $ | 192,801 | $ | 299,062 | $ | 100,654 | $ | 62,863 | $ | 655,380 | ||||||||||||||
Accumulated Impairment Losses
|
(94,528 | ) | (22,767 | ) | (117,295 | ) | -- | -- | (62,863 | ) | (180,158 | ) | ||||||||||||||||
75,506 | -- | 75,506 | 299,062 | 100,654 | -- | 475,222 | ||||||||||||||||||||||
Goodwill acquired and purchase price adjustments
|
-- | -- | -- | (9,826 | ) | 315 | -- | (9,511 | ) | |||||||||||||||||||
Foreign currency translation and other changes
|
(323 | ) | -- | (323 | ) | 2,087 | (25 | ) | -- | 1,739 | ||||||||||||||||||
75,183 | -- | 75,183 | 291,323 | 100,944 | -- | 467,450 | ||||||||||||||||||||||
Balance as of December 31, 2011
|
||||||||||||||||||||||||||||
Goodwill
|
169,711 | 22,767 | 192,478 | 291,323 | 100,944 | 62,863 | 647,608 | |||||||||||||||||||||
Accumulated Impairment Losses
|
(94,528 | ) | (22,767 | ) | (117,295 | ) | -- | -- | (62,863 | ) | (180,158 | ) | ||||||||||||||||
|
75,183 | -- | 75,183 | 291,323 | 100,944 | -- | 467,450 | |||||||||||||||||||||
Goodwill acquired
|
-- | -- | -- | -- | 17,175 | -- | 17,175 | |||||||||||||||||||||
Foreign currency translation and other changes
|
482 | -- | 482 | 4,094 | 204 | -- | 4,780 | |||||||||||||||||||||
75,665 | -- | 75,665 | 295,417 | 118,323 | -- | 489,405 | ||||||||||||||||||||||
Balance as of September 30, 2012
|
||||||||||||||||||||||||||||
Goodwill
|
170,193 | 22,767 | 192,960 | 295,417 | 118,323 | 62,863 | 669,563 | |||||||||||||||||||||
Accumulated Impairment Losses
|
(94,528 | ) | (22,767 | ) | (117,295 | ) | -- | -- | (62,863 | ) | (180,158 | ) | ||||||||||||||||
$ | 75,665 | $ | -- | $ | 75,665 | $ | 295,417 | $ | 118,323 | $ | -- | $ | 489,405 |
September 30,
2012 |
December 31,
2011 |
|||||||
(Unaudited)
|
||||||||
U.S. revolving credit facility, which matures December 10, 2015, with available commitments up to $500 million and with a weighted average interest rate of 2.7% for the nine month period ended September 30, 2012
|
$ | 276,320 | $ | 68,065 | ||||
U.S. term loan, which matures December 10, 2015, of $200 million; 2.5% of aggregate principal repayable per quarter; weighted average interest rate of 2.4% for the nine month period ended September 30, 2012
|
175,000 | 190,000 | ||||||
Canadian revolving credit facility, which matures on December 10, 2015, with available commitments up to $250 million and with a weighted average interest rate of 4.3% for the nine month period ended September 30, 2012
|
-- | -- | ||||||
Canadian term loan, which matures December 10, 2015, of $100 million; 2.5% of aggregate principal repayable per quarter; weighted average interest rate of 3.4% for the nine month period ended September 30, 2012
|
89,315 | 93,795 | ||||||
Australian revolving credit facility, which was replaced September 18, 2012, with available commitments up to AUD$150 million and with a weighted average interest rate of 6.2% for the nine month period ended September 30, 2012
|
-- | 43,050 | ||||||
Australian revolving credit facility, which matures December 10, 2015, with available commitments up to AUD$300 million and with a weighted average interest rate of 5.6% for the nine month period ended September 30, 2012
|
37,397 | -- | ||||||
6 1/2% senior unsecured notes - due June 2019
|
600,000 | 600,000 | ||||||
2 3/8% contingent convertible senior subordinated notes, net
|
-- | 170,884 | ||||||
Subordinated unsecured notes payable to sellers of businesses, fixed interest rate of 6%, which mature in December 2012
|
2,000 | 4,000 | ||||||
Capital lease obligations and other debt
|
6,740 | 7,146 | ||||||
Total debt
|
1,186,772 | 1,176,940 | ||||||
Less: Current portion
|
32,605 | 34,435 | ||||||
Total long-term debt and capitalized leases
|
$ | 1,154,167 | $ | 1,142,505 |
Twelve Month Period Beginning June 1,
|
% of Principal Amount
|
|||
2014
|
104.875 | % | ||
2015
|
103.250 | % | ||
2016
|
101.625 | % | ||
2017
|
100.000 | % |
December 31,
2011
|
||||
Carrying amount of the equity component in additional paid-in capital
|
$ | 28,434 | ||
Principal amount of the liability component
|
$ | 174,990 | ||
Less: Unamortized discount
|
4,106 | |||
Net carrying amount of the liability component
|
$ | 170,884 |
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Interest expense
|
$ | -- | $ | 3,003 | $ | 6,185 | $ | 8,904 |
September 30, 2012
|
December 31, 2011
|
|||||||||||||||
Carrying
Value |
Fair
Value |
Carrying
Value |
Fair
Value |
|||||||||||||
2 3/8% Notes
|
||||||||||||||||
Principal amount
|
$ | - | $ | - | $ | 174,990 | $ | 411,396 | ||||||||
Less: unamortized discount
|
- | - | 4,106 | - | ||||||||||||
Net value
|
$ | - | $ | - | $ | 170,884 | $ | 411,396 | ||||||||
6 1/2% Notes
|
||||||||||||||||
Principal amount due 2019
|
$ | 600,000 | $ | 639,000 | $ | 600,000 | $ | 625,128 |
Foreign Currency Forward Contracts
|
September 30,
2012
|
|||
Assets
|
||||
Derivatives designated as hedging instruments
|
||||
Other current assets
|
$ | - | ||
Derivatives not designated as hedging instruments
|
||||
Other current assets
|
- | |||
Total assets
|
$ | - | ||
Liabilities
|
||||
Derivatives designated as hedging instruments
|
||||
Other current liabilities
|
$ | 612 | ||
Derivatives not designated as hedging instruments
|
||||
Other current liabilities
|
- | |||
Total liabilities
|
$ | 612 |
Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative
|
||||||||||||||||
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Derivatives in Cash Flow Hedging Relationships:
|
||||||||||||||||
Foreign currency forward contracts
|
$ | (696 | ) | $ | - | $ | (696 | ) | $ | - |
Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income | |||||||||||||||||
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||||||
Location
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Derivatives in Cash Flow Hedging Relationships:
|
|||||||||||||||||
Foreign currency forward contracts
|
Net sales
|
$ | (4 | ) | $ | - | $ | (4 | ) | $ | - |
Gain (Loss) on Ineffective Portion of Derivative Recognized in Income
|
|||||||||||||||||
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
Location
|
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Derivatives in Cash Flow Hedging Relationships:
|
|||||||||||||||||
Foreign currency forward contracts
|
Net sales
|
$ | (22 | ) | $ | - | $ | (22 | ) | $ | - |
Shares of common stock outstanding – January 1, 2012
|
51,288,750 | |||
Shares issued upon conversion of 2 3/8% Notes
|
3,012,380 | |||
Shares issued upon exercise of stock options and vesting of restricted stock awards
|
644,075 | |||
Shares withheld for taxes on vesting of restricted stock awards and transferred to treasury
|
(51,560 | ) | ||
Shares of common stock outstanding – September 30, 2012
|
54,893,645 |
Revenues from unaffiliated customers
|
Depreciation and amortization
|
Operating income (loss)
|
Equity in
earnings (loss) of
unconsolidated
affiliates
|
Capital expenditures
|
Total assets
|
|||||||||||||||||||
Three months ended September 30, 2012
|
||||||||||||||||||||||||
Well site services –
|
||||||||||||||||||||||||
Rental tools and services
|
$ | 130,752 | $ | 12,746 | $ | 32,218 | $ | -- | $ | 27,251 | $ | 521,756 | ||||||||||||
Drilling services
|
50,995 | 5,793 | 9,943 | -- | 10,102 | 136,278 | ||||||||||||||||||
Total well site services
|
181,747 | 18,539 | 42,161 | -- | 37,353 | 658,034 | ||||||||||||||||||
Accommodations
|
273,315 | 36,246 | 85,132 | -- | 82,046 | 2,055,964 | ||||||||||||||||||
Offshore products
|
189,450 | 3,807 | 28,026 | (103 | ) | 9,846 | 781,483 | |||||||||||||||||
Tubular services
|
436,161 | 569 | 10,515 | 133 | 2,423 | 718,350 | ||||||||||||||||||
Corporate and eliminations
|
-- | 279 | (11,509 | ) | -- | 98 | 37,708 | |||||||||||||||||
Total
|
$ | 1,080,673 | $ | 59,440 | $ | 154,325 | $ | 30 | $ | 131,766 | $ | 4,251,539 |
Revenues from unaffiliated customers
|
Depreciation and amortization
|
Operating income (loss)
|
Equity in
earnings (loss) of
unconsolidated
affiliates
|
Capital expenditures
|
Total assets
|
|||||||||||||||||||
Three months ended September 30, 2011
|
||||||||||||||||||||||||
Well site services –
|
||||||||||||||||||||||||
Rental tools and services
|
$ | 127,217 | $ | 10,364 | $ | 32,939 | $ | -- | $ | 24,155 | $ | 435,281 | ||||||||||||
Drilling services
|
45,550 | 5,033 | 7,973 | -- | 8,890 | 124,610 | ||||||||||||||||||
Total well site services
|
172,767 | 15,397 | 40,912 | -- | 33,045 | 559,891 | ||||||||||||||||||
Accommodations
|
227,783 | 27,395 | 71,727 | -- | 101,604 | 1,662,776 | ||||||||||||||||||
Offshore products
|
139,525 | 3,421 | 24,854 | (487 | ) | 4,416 | 602,636 | |||||||||||||||||
Tubular services
|
362,546 | 515 | 17,934 | 283 | 1,709 | 527,964 | ||||||||||||||||||
Corporate and eliminations
|
-- | 201 | (10,963 | ) | -- | 138 | 83,745 | |||||||||||||||||
Total
|
$ | 902,621 | $ | 46,929 | $ | 144,464 | $ | (204 | ) | $ | 140,912 | $ | 3,437,012 |
Revenues from unaffiliated customers
|
Depreciation and amortization
|
Operating income (loss)
|
Equity in
earnings (loss) of
unconsolidated
affiliates
|
Capital expenditures
|
Total assets
|
|||||||||||||||||||
Nine months ended September 30, 2012
|
||||||||||||||||||||||||
Well site services –
|
||||||||||||||||||||||||
Rental tools and services
|
$ | 391,385 | $ | 36,619 | $ | 94,986 | $ | -- | $ | 65,125 | $ | 521,756 | ||||||||||||
Drilling services
|
149,857 | 16,814 | 25,760 | -- | 23,626 | 136,278 | ||||||||||||||||||
Total well site services
|
541,242 | 53,433 | 120,746 | -- | 88,751 | 658,034 | ||||||||||||||||||
Accommodations
|
836,101 | 97,805 | 287,364 | -- | 208,171 | 2,055,964 | ||||||||||||||||||
Offshore products
|
566,808 | 10,659 | 97,116 | 150 | 30,809 | 781,483 | ||||||||||||||||||
Tubular services
|
1,326,601 | 1,713 | 56,990 | 521 | 2,720 | 718,350 | ||||||||||||||||||
Corporate and eliminations
|
-- | 713 | (34,385 | ) | -- | 1,299 | 37,708 | |||||||||||||||||
Total
|
$ | 3,270,752 | $ | 164,323 | $ | 527,831 | $ | 671 | $ | 331,750 | $ | 4,251,539 |
Revenues from unaffiliated customers
|
Depreciation and amortization
|
Operating income (loss)
|
Equity in
earnings (loss) of
unconsolidated
affiliates
|
Capital expenditures
|
Total assets
|
|||||||||||||||||||
Nine months ended September 30, 2011
|
||||||||||||||||||||||||
Well site services –
|
||||||||||||||||||||||||
Rental tools and services
|
$ | 347,406 | $ | 30,459 | $ | 82,432 | $ | -- | $ | 59,650 | $ | 435,281 | ||||||||||||
Drilling services
|
119,653 | 14,773 | 16,578 | -- | 21,812 | 124,610 | ||||||||||||||||||
Total well site services
|
467,059 | 45,232 | 99,010 | -- | 81,462 | 559,891 | ||||||||||||||||||
Accommodations
|
627,824 | 80,143 | 178,451 | 2 | 270,519 | 1,662,776 | ||||||||||||||||||
Offshore products
|
399,709 | 10,112 | 60,374 | (715 | ) | 11,990 | 602,636 | |||||||||||||||||
Tubular services
|
988,787 | 1,243 | 47,936 | 562 | 6,860 | 527,964 | ||||||||||||||||||
Corporate and eliminations
|
-- | 588 | (31,367 | ) | -- | 334 | 83,745 | |||||||||||||||||
Total
|
$ | 2,483,379 | $ | 137,318 | $ | 354,404 | $ | (151 | ) | $ | 371,165 | $ | 3,437,012 |
Three Months Ended September 30, 2012
|
||||||||||||||||||||
Oil States
International, |
Guarantor
Subsidiaries |
Other
Subsidiaries |
Consolidating
Adjustments |
Consolidated Oil
States |
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
REVENUES
|
||||||||||||||||||||
Operating revenues
|
$
|
—
|
$
|
730,981
|
$
|
349,692
|
$
|
—
|
$
|
1,080,673
|
||||||||||
Intercompany revenues
|
—
|
6,849
|
5,799
|
(12,648)
|
—
|
|||||||||||||||
Total revenues
|
—
|
737,830
|
355,491
|
(12,648)
|
1,080,673
|
|||||||||||||||
OPERATING EXPENSES
|
||||||||||||||||||||
Cost of sales and services
|
—
|
621,732
|
194,234
|
(1,932)
|
814,034
|
|||||||||||||||
Intercompany cost of sales and services
|
—
|
4,864
|
5,515
|
(10,379)
|
—
|
|||||||||||||||
Selling, general and administrative expenses
|
461
|
33,017
|
17,830
|
—
|
51,308
|
|||||||||||||||
Depreciation and amortization expense
|
279
|
23,678
|
35,488
|
(5)
|
59,440
|
|||||||||||||||
Other operating (income) expense
|
(478)
|
828
|
1,216
|
—
|
1,566
|
|||||||||||||||
Operating income (loss)
|
(262)
|
53,711
|
101,208
|
(332)
|
154,325
|
|||||||||||||||
Interest expense, net of capitalized interest
|
(14,143)
|
(210)
|
(18,375)
|
16,992
|
(15,736)
|
|||||||||||||||
Interest income
|
5,166
|
22
|
12,244
|
(16,992)
|
440
|
|||||||||||||||
Equity in earnings (loss) of unconsolidated affiliates
|
113,030
|
73,548
|
(103)
|
(186,445)
|
30
|
|||||||||||||||
Other income
|
—
|
576
|
1,910
|
—
|
2,486
|
|||||||||||||||
Income before income taxes
|
103,791
|
127,647
|
96,884
|
(186,777)
|
141,545
|
|||||||||||||||
Income tax provision
|
—
|
(14,509)
|
(22,927)
|
—
|
(37,436)
|
|||||||||||||||
Net income
|
103,791
|
113,138
|
73,957
|
(186,777)
|
104,109
|
|||||||||||||||
Other comprehensive income:
|
||||||||||||||||||||
Foreign currency translation adjustment
|
43,564
|
30,976
|
30,976
|
(61,952)
|
43,564
|
|||||||||||||||
Unrealized loss on forward contracts
|
—
|
(434)
|
—
|
—
|
(434)
|
|||||||||||||||
Total other comprehensive income
|
43,564
|
30,542
|
30,976
|
(61,952)
|
43,130
|
|||||||||||||||
Comprehensive income
|
147,355
|
143,680
|
104,933
|
(248,729)
|
147,239
|
|||||||||||||||
Comprehensive income attributable to noncontrolling interest
|
—
|
—
|
(353)
|
(4)
|
(357)
|
|||||||||||||||
Comprehensive income attributable to Oil States International, Inc.
|
$
|
147,355
|
$
|
143,680
|
$
|
104,580
|
$
|
(248,733)
|
$
|
146,882
|
Three Months Ended September 30, 2011
|
||||||||||||||||||||
Oil States
International, |
Guarantor Subsidiaries
|
Other Subsidiaries (Non-Guarantors)
|
Consolidating Adjustments
|
Consolidated Oil States International, Inc.
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
REVENUES
|
||||||||||||||||||||
Operating revenues
|
$
|
—
|
$
|
630,169
|
$
|
272,640
|
$
|
(188)
|
$
|
902,621
|
||||||||||
Intercompany revenues
|
—
|
9,399
|
56
|
(9,455)
|
—
|
|||||||||||||||
Total revenues
|
—
|
639,568
|
272,696
|
(9,643)
|
902,621
|
|||||||||||||||
OPERATING EXPENSES
|
||||||||||||||||||||
Cost of sales and services
|
—
|
514,381
|
153,080
|
(1,606)
|
665,855
|
|||||||||||||||
Intercompany cost of sales and services
|
—
|
7,842
|
58
|
(7,900)
|
—
|
|||||||||||||||
Selling, general and administrative expenses
|
366
|
30,809
|
14,255
|
—
|
45,430
|
|||||||||||||||
Depreciation and amortization expense
|
200
|
19,846
|
26,888
|
(5)
|
46,929
|
|||||||||||||||
Other operating (income)expense
|
—
|
648
|
(705)
|
—
|
(57)
|
|||||||||||||||
Operating income (loss)
|
(566)
|
66,042
|
79,120
|
(132)
|
144,464
|
|||||||||||||||
Interest expense
|
(16,337)
|
(286)
|
(18,087)
|
17,950
|
(16,760)
|
|||||||||||||||
Interest income
|
5,071
|
7
|
13,047
|
(17,951)
|
174
|
|||||||||||||||
Equity in earnings of unconsolidated affiliates
|
103,017
|
56,066
|
(487)
|
(158,800)
|
(204)
|
|||||||||||||||
Other income (expense)
|
—
|
245
|
640
|
—
|
885
|
|||||||||||||||
Income before income taxes
|
91,185
|
122,074
|
74,233
|
(158,933)
|
128,559
|
|||||||||||||||
Income tax provision
|
667
|
(18,941)
|
(18,213)
|
—
|
(36,487)
|
|||||||||||||||
Net income
|
91,852
|
103,133
|
56,020
|
(158,933)
|
92,072
|
|||||||||||||||
Other comprehensive income:
|
||||||||||||||||||||
Foreign currency translation adjustment
|
(127,085)
|
(99,873)
|
(99,922)
|
199,795
|
(127,085)
|
|||||||||||||||
Total other comprehensive income
|
(127,085)
|
(99,873)
|
(99,922)
|
199,795
|
(127,085)
|
|||||||||||||||
Comprehensive income
|
(35,233)
|
3,260
|
(43,902)
|
40,862
|
(35,013)
|
|||||||||||||||
Comprehensive income attributable to noncontrolling interest
|
—
|
—
|
(142)
|
(6)
|
(148)
|
|||||||||||||||
Comprehensive income attributable to Oil States International, Inc.
|
$
|
(35,233)
|
$
|
3,260
|
$
|
(44,044)
|
$
|
40,856
|
$
|
(35,161)
|
Nine Months Ended September 30, 2012
|
||||||||||||||||||||
Oil States International, Inc. (Parent/Guarantor)
|
Guarantor Subsidiaries
|
Other Subsidiaries (Non-Guarantors)
|
Consolidating Adjustments
|
Consolidated Oil States International, Inc.
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
REVENUES
|
||||||||||||||||||||
Operating revenues
|
$
|
—
|
$
|
2,258,519
|
$
|
1,012,233
|
$
|
—
|
$
|
3,270,752
|
||||||||||
Intercompany revenues
|
—
|
19,403
|
9,242
|
(28,645)
|
—
|
|||||||||||||||
Total revenues
|
—
|
2,277,922
|
1,021,475
|
(28,645)
|
3,270,752
|
|||||||||||||||
OPERATING EXPENSES
|
||||||||||||||||||||
Cost of sales and services
|
—
|
1,878,276
|
556,602
|
(5,884)
|
2,428,994
|
|||||||||||||||
Intercompany cost of sales and services
|
—
|
13,393
|
8,644
|
(22,037)
|
—
|
|||||||||||||||
Selling, general and administrative expenses
|
1,287
|
95,432
|
51,182
|
—
|
147,901
|
|||||||||||||||
Depreciation and amortization expense
|
713
|
67,845
|
95,779
|
(14)
|
164,323
|
|||||||||||||||
Other operating (income) expense
|
(503)
|
182
|
2,024
|
—
|
1,703
|
|||||||||||||||
Operating income (loss)
|
(1,497)
|
222,794
|
307,244
|
(710)
|
527,831
|
|||||||||||||||
Interest expense, net of capitalized interest
|
(47,782)
|
(645)
|
(54,489)
|
51,299
|
(51,617)
|
|||||||||||||||
Interest income
|
15,271
|
100
|
36,907
|
(51,299)
|
979
|
|||||||||||||||
Equity in earnings (loss) of unconsolidated affiliates
|
382,702
|
222,508
|
149
|
(604,688)
|
671
|
|||||||||||||||
Other income
|
—
|
6,175
|
2,355
|
—
|
8,530
|
|||||||||||||||
Income before income taxes
|
348,694
|
450,932
|
292,166
|
(605,398)
|
486,394
|
|||||||||||||||
Income tax provision
|
1,396
|
(67,703)
|
(69,030)
|
—
|
(135,337)
|
|||||||||||||||
Net income
|
350,090
|
383,229
|
223,136
|
(605,398)
|
351,057
|
|||||||||||||||
Other comprehensive income:
|
||||||||||||||||||||
Foreign currency translation adjustment
|
40,527
|
28,282
|
28,293
|
(56,575)
|
40,527
|
|||||||||||||||
Unrealized loss on forward contracts
|
—
|
(434)
|
—
|
—
|
(434)
|
|||||||||||||||
Total other comprehensive income
|
40,527
|
27,848
|
28,293
|
(56,575)
|
40,093
|
|||||||||||||||
Comprehensive income
|
390,617
|
411,077
|
251,429
|
(661,973)
|
391,150
|
|||||||||||||||
Comprehensive income attributable to noncontrolling interest
|
—
|
—
|
(988)
|
(8)
|
(996)
|
|||||||||||||||
Comprehensive income attributable to Oil States International, Inc.
|
$
|
390,617
|
$
|
411,077
|
$
|
250,441
|
$
|
(661,981)
|
$
|
390,154
|
Nine Months Ended September 30, 2011
|
||||||||||||||||||||
Oil States
International, |
Guarantor
Subsidiaries |
Other Subsidiaries (Non-Guarantors)
|
Consolidating Adjustments
|
Consolidated Oil States International, Inc.
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
REVENUES
|
||||||||||||||||||||
Operating revenues
|
$
|
—
|
$
|
1,736,401
|
$
|
747,166
|
$
|
(188)
|
$
|
2,483,379
|
||||||||||
Intercompany revenues
|
—
|
12,699
|
588
|
(13,287)
|
—
|
|||||||||||||||
Total revenues
|
—
|
1,749,100
|
747,754
|
(13,475)
|
2,483,379
|
|||||||||||||||
OPERATING EXPENSES
|
||||||||||||||||||||
Cost of sales and services
|
—
|
1,427,703
|
432,534
|
(3,206)
|
1,857,031
|
|||||||||||||||
Intercompany cost of sales and services
|
—
|
9,693
|
440
|
(10,133)
|
—
|
|||||||||||||||
Selling, general and administrative expenses
|
1,121
|
88,337
|
42,444
|
—
|
131,902
|
|||||||||||||||
Depreciation and amortization expense
|
588
|
60,652
|
76,086
|
(8)
|
137,318
|
|||||||||||||||
Other operating (income)expense
|
742
|
830
|
1,150
|
2
|
2,724
|
|||||||||||||||
Operating income (loss)
|
(2,451)
|
161,885
|
195,100
|
(130)
|
354,404
|
|||||||||||||||
Interest expense
|
(35,809)
|
(974)
|
(58,523)
|
55,765
|
(39,541)
|
|||||||||||||||
Interest income
|
10,288
|
32
|
46,866
|
(55,764)
|
1,422
|
|||||||||||||||
Equity in earnings of unconsolidated affiliates
|
254,181
|
139,019
|
(713)
|
(392,638)
|
(151)
|
|||||||||||||||
Other income (expense)
|
—
|
669
|
846
|
—
|
1,515
|
|||||||||||||||
Income before income taxes
|
226,209
|
300,631
|
183,576
|
(392,767)
|
317,649
|
|||||||||||||||
Income tax provision
|
1,963
|
(46,275)
|
(44,445)
|
—
|
(88,757)
|
|||||||||||||||
Net income
|
228,172
|
254,356
|
139,131
|
(392,767)
|
228,892
|
|||||||||||||||
Other comprehensive income:
|
||||||||||||||||||||
Foreign currency translation adjustment
|
(61,370)
|
(12,057)
|
(55,852)
|
67,909
|
(61,370)
|
|||||||||||||||
Total other comprehensive income
|
(61,370)
|
(12,057)
|
(55,852)
|
67,909
|
(61,370)
|
|||||||||||||||
Comprehensive income
|
166,802
|
242,299
|
83,279
|
(324,858)
|
167,522
|
|||||||||||||||
Comprehensive income attributable to noncontrolling interest
|
—
|
—
|
(657)
|
(28)
|
(685)
|
|||||||||||||||
Comprehensive income attributable to Oil States International, Inc.
|
$
|
166,802
|
$
|
242,299
|
$
|
82,622
|
$
|
(324,886)
|
$
|
166,837
|
September 30, 2012
|
||||||||||||||||||||
Oil States
International, |
Guarantor
Subsidiaries |
Other
Subsidiaries |
Consolidating
Adjustments |
Consolidated
Oil States |
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
205
|
$
|
1,821
|
$
|
161,525
|
$
|
—
|
$
|
163,551
|
||||||||||
Accounts receivable, net
|
—
|
483,214
|
328,056
|
—
|
811,270
|
|||||||||||||||
Inventories, net
|
—
|
661,478
|
146,755
|
(916)
|
807,317
|
|||||||||||||||
Prepaid expenses and other current assets
|
1,349
|
5,753
|
11,751
|
—
|
18,853
|
|||||||||||||||
Total current assets
|
1,554
|
1,152,266
|
648,087
|
(916)
|
1,800,991
|
|||||||||||||||
Property, plant and equipment, net
|
2,116
|
534,914
|
1,223,432
|
(153)
|
1,760,309
|
|||||||||||||||
Goodwill, net
|
—
|
189,773
|
299,632
|
—
|
489,405
|
|||||||||||||||
Other intangible assets, net
|
—
|
44,164
|
90,231
|
—
|
134,395
|
|||||||||||||||
Investments in unconsolidated affiliates
|
2,512,635
|
1,548,748
|
3,570
|
(4,054,810)
|
10,143
|
|||||||||||||||
Long-term intercompany receivables (payables)
|
808,304
|
(422,244)
|
(386,063)
|
3
|
—
|
|||||||||||||||
Other noncurrent assets
|
37,758
|
508
|
18,030
|
—
|
56,296
|
|||||||||||||||
Total assets
|
$
|
3,362,367
|
$
|
3,048,129
|
$
|
1,896,919
|
$
|
(4,055,876)
|
$
|
4,251,539
|
||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||
Accounts payable
|
$
|
17,153
|
$
|
223,800
|
$
|
87,076
|
$
|
—
|
$
|
328,029
|
||||||||||
Accrued liabilities
|
25,257
|
52,736
|
35,295
|
3
|
113,291
|
|||||||||||||||
Income taxes
|
(128,727)
|
130,162
|
30,253
|
—
|
31,688
|
|||||||||||||||
Current portion of long-term debt and capitalized leases
|
20,018
|
2,318
|
10,269
|
—
|
32,605
|
|||||||||||||||
Deferred revenue
|
—
|
50,496
|
14,662
|
—
|
65,158
|
|||||||||||||||
Other current liabilities
|
—
|
1,474
|
287
|
—
|
1,761
|
|||||||||||||||
Total current liabilities
|
(66,299)
|
460,986
|
177,842
|
3
|
572,532
|
|||||||||||||||
Long-term debt and capitalized leases
|
1,031,326
|
6,248
|
116,593
|
—
|
1,154,167
|
|||||||||||||||
Deferred income taxes
|
1,981
|
58,378
|
52,546
|
—
|
112,905
|
|||||||||||||||
Other noncurrent liabilities
|
12,401
|
8,813
|
6,996
|
(449)
|
27,761
|
|||||||||||||||
Total liabilities
|
979,409
|
534,425
|
353,977
|
(446)
|
1,867,365
|
|||||||||||||||
Stockholders’ equity
|
2,382,958
|
2,513,704
|
1,541,943
|
(4,055,647)
|
2,382,958
|
|||||||||||||||
Non-controlling interest
|
—
|
—
|
999
|
217
|
1,216
|
|||||||||||||||
Total stockholders’ equity
|
2,382,958
|
2,513,704
|
1,542,942
|
(4,055,430)
|
2,384,174
|
|||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
3,362,367
|
$
|
3,048,129
|
$
|
1,896,919
|
$
|
(4,055,876)
|
$
|
4,251,539
|
December 31, 2011
|
||||||||||||||||||||
Oil States
International, |
Guarantor
Subsidiaries |
Other
Subsidiaries |
Consolidating
Adjustments |
Consolidated
Oil States |
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
ASSETS
|
||||||||||||||||||||
Current assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
(295)
|
$
|
1,736
|
$
|
70,280
|
$
|
—
|
$
|
71,721
|
||||||||||
Accounts receivable, net
|
974
|
461,097
|
270,170
|
(1)
|
732,240
|
|||||||||||||||
Inventories, net
|
—
|
539,067
|
114,823
|
(192)
|
653,698
|
|||||||||||||||
Prepaid expenses and other current assets
|
10,143
|
8,538
|
13,319
|
—
|
32,000
|
|||||||||||||||
Total current assets
|
10,822
|
1,010,438
|
468,592
|
(193)
|
1,489,659
|
|||||||||||||||
Property, plant and equipment, net
|
1,530
|
459,414
|
1,096,310
|
(166)
|
1,557,088
|
|||||||||||||||
Goodwill, net
|
—
|
172,598
|
294,852
|
—
|
467,450
|
|||||||||||||||
Other intangible assets, net
|
—
|
31,372
|
96,230
|
—
|
127,602
|
|||||||||||||||
Investments in unconsolidated affiliates
|
2,088,062
|
1,269,457
|
1,710
|
(3,351,468)
|
7,761
|
|||||||||||||||
Long-term intercompany receivables (payables)
|
836,853
|
(453,156)
|
(383,697)
|
—
|
—
|
|||||||||||||||
Other noncurrent assets
|
41,235
|
457
|
12,389
|
—
|
54,081
|
|||||||||||||||
Total assets
|
$
|
2,978,502
|
$
|
2,490,580
|
$
|
1,586,386
|
$
|
(3,351,827)
|
$
|
3,703,641
|
||||||||||
LIABILITIES AND EQUITY
|
||||||||||||||||||||
Current liabilities:
|
||||||||||||||||||||
Accounts payable
|
$
|
19,418
|
$
|
162,762
|
$
|
70,029
|
$
|
—
|
$
|
252,209
|
||||||||||
Accrued liabilities
|
17,804
|
48,819
|
30,125
|
—
|
96,748
|
|||||||||||||||
Income taxes
|
(59,396)
|
61,060
|
8,731
|
—
|
10,395
|
|||||||||||||||
Current portion of long-term debt and capitalized leases
|
20,018
|
4,404
|
10,013
|
—
|
34,435
|
|||||||||||||||
Deferred revenue
|
—
|
47,227
|
28,270
|
—
|
75,497
|
|||||||||||||||
Other current liabilities
|
—
|
5,382
|
283
|
—
|
5,665
|
|||||||||||||||
Total current liabilities
|
(2,156)
|
329,654
|
147,451
|
—
|
474,949
|
|||||||||||||||
Long-term debt and capitalized leases
|
1,008,969
|
6,437
|
127,099
|
—
|
1,142,505
|
|||||||||||||||
Deferred income taxes
|
(1,072)
|
57,677
|
40,772
|
—
|
97,377
|
|||||||||||||||
Other noncurrent liabilities
|
10,605
|
8,635
|
6,747
|
(449)
|
25,538
|
|||||||||||||||
Total liabilities
|
1,016,346
|
402,403
|
322,069
|
(449)
|
1,740,369
|
|||||||||||||||
Stockholders’ equity
|
1,962,156
|
2,088,177
|
1,263,410
|
(3,351,587)
|
1,962,156
|
|||||||||||||||
Non-controlling interest
|
—
|
—
|
907
|
209
|
1,116
|
|||||||||||||||
Total stockholders’ equity
|
1,962,156
|
2,088,177
|
1,264,317
|
(3,351,378)
|
1,963,272
|
|||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
2,978,502
|
$
|
2,490,580
|
$
|
1,586,386
|
$
|
(3,351,827)
|
$
|
3,703,641
|
Nine Months Ended September 30, 2012
|
||||||||||||||||||||
Oil States
International, |
Guarantor
Subsidiaries |
Other
Subsidiaries |
Consolidating
Adjustments |
Consolidated
Oil States |
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
|
$
|
(108,585)
|
$
|
259,004
|
$
|
295,544
|
$
|
—
|
$
|
445,963
|
||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||||||
Capital expenditures, including capitalized interest
|
(1,299)
|
(137,792)
|
(192,659)
|
—
|
(331,750)
|
|||||||||||||||
Acquisitions of businesses, net of cash acquired
|
—
|
(48,000)
|
—
|
—
|
(48,000)
|
|||||||||||||||
Proceeds from disposition of property, plant and equipment
|
—
|
5,944
|
3,665
|
—
|
9,609
|
|||||||||||||||
Other, net
|
—
|
(9,957)
|
8,289
|
—
|
(1,668)
|
|||||||||||||||
Net cash provided by (used in) investing activities
|
(1,299)
|
(189,805)
|
(180,705)
|
—
|
(371,809)
|
|||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||||||
Revolving credit borrowings (repayments), net
|
208,254
|
—
|
(6,417)
|
—
|
201,837
|
|||||||||||||||
Payment of principal on 2 3/8% Notes conversion
|
(174,990)
|
—
|
—
|
—
|
(174,990)
|
|||||||||||||||
Term loan repayments
|
(15,000)
|
—
|
(7,510)
|
—
|
(22,510)
|
|||||||||||||||
Debt and capital lease payments
|
(15)
|
(2,314)
|
(124)
|
—
|
(2,453)
|
|||||||||||||||
Issuance of common stock from share-based payment arrangements
|
13,108
|
—
|
—
|
—
|
13,108
|
|||||||||||||||
Excess tax benefits from share-based payment arrangements
|
7,739
|
—
|
—
|
—
|
7,739
|
|||||||||||||||
Payment of financing costs
|
(23)
|
—
|
(3,241)
|
—
|
(3,264)
|
|||||||||||||||
Proceeds from (funding of) accounts and notes with affiliates, net
|
75,478
|
(66,372)
|
(9,106)
|
—
|
—
|
|||||||||||||||
Tax withholdings related to net share settlements of restricted stock
|
(4,167)
|
—
|
—
|
—
|
(4,167)
|
|||||||||||||||
Other, net
|
—
|
1
|
2
|
—
|
3
|
|||||||||||||||
Net cash provided by (used in) financing activities
|
110,384
|
(68,685)
|
(26,396)
|
—
|
15,303
|
|||||||||||||||
Effect of exchange rate changes on cash
|
—
|
—
|
2,802
|
—
|
2,802
|
|||||||||||||||
Net change in cash and cash equivalents from continuing operations
|
500
|
514
|
91,245
|
—
|
92,259
|
|||||||||||||||
Net cash used in discontinued operations operating activities
|
—
|
(429)
|
—
|
—
|
(429)
|
|||||||||||||||
Cash and cash equivalents, beginning of period
|
(295)
|
1,736
|
70,280
|
—
|
71,721
|
|||||||||||||||
Cash and cash equivalents, end of period
|
$
|
205
|
$
|
1,821
|
$
|
161,525
|
$
|
—
|
$
|
163,551
|
Nine Months Ended September 30, 2011
|
||||||||||||||||||||
Oil States
International, |
Guarantor
Subsidiaries |
Other
Subsidiaries |
Consolidating
Adjustments |
Consolidated
Oil States |
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
|
$
|
(46,432)
|
$
|
133,885
|
$
|
135,731
|
$
|
(110)
|
$
|
223,074
|
||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||||||
Capital expenditures, including capitalized interest
|
(334)
|
(98,697)
|
(272,244)
|
110
|
(371,165)
|
|||||||||||||||
Acquisitions of businesses, net of cash acquired
|
—
|
(212)
|
—
|
—
|
(212)
|
|||||||||||||||
Proceeds from disposition of property, plant and equipment
|
—
|
1,840
|
938
|
—
|
2,778
|
|||||||||||||||
Other, net
|
2
|
(182)
|
(3,421)
|
—
|
(3,601)
|
|||||||||||||||
Net cash used in investing activities
|
(332)
|
(97,251)
|
(274,727)
|
110
|
(372,200)
|
|||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||||||
Revolving credit borrowings and (repayments), net
|
(346,742)
|
—
|
(49,166)
|
—
|
(395,908)
|
|||||||||||||||
6 1/2% senior notes issued
|
600,000
|
—
|
—
|
—
|
600,000
|
|||||||||||||||
Term loan repayments
|
(7,500)
|
—
|
(3,746)
|
—
|
(11,246)
|
|||||||||||||||
Debt and capital lease payments
|
(14)
|
(344)
|
(608)
|
—
|
(966)
|
|||||||||||||||
Issuance of common stock from share-based payment arrangements
|
11,559
|
—
|
—
|
—
|
11,559
|
|||||||||||||||
Purchase of treasury stock
|
(12,632)
|
—
|
—
|
—
|
(12,632)
|
|||||||||||||||
Excess tax benefits from share-based payment arrangements
|
7,966
|
—
|
—
|
—
|
7,966
|
|||||||||||||||
Payment of financing costs
|
(13,129)
|
—
|
(23)
|
—
|
(13,152)
|
|||||||||||||||
Proceeds from (funding of) accounts and notes with affiliates, net
|
(159,673)
|
(26,625)
|
186,298
|
—
|
—
|
|||||||||||||||
Tax withholdings related to net share settlements of restricted stock
|
(2,540)
|
—
|
—
|
—
|
(2,540)
|
|||||||||||||||
Other, net
|
(11)
|
1
|
(1)
|
—
|
(11)
|
|||||||||||||||
Net cash provided by financing activities
|
77,284
|
(26,968)
|
132,754
|
—
|
183,070
|
|||||||||||||||
Effect of exchange rate changes on cash
|
—
|
—
|
(11,325)
|
—
|
(11,325)
|
|||||||||||||||
Net change in cash and cash equivalents from continuing operations
|
30,520
|
9,666
|
(17,567)
|
—
|
22,619
|
|||||||||||||||
Net cash used in discontinued operations operating activities
|
—
|
(118)
|
—
|
—
|
(118)
|
|||||||||||||||
Cash and cash equivalents, beginning of period
|
(227)
|
1,216
|
95,361
|
—
|
96,350
|
|||||||||||||||
Cash and cash equivalents, end of period
|
$
|
30,293
|
$
|
10,764
|
$
|
77,794
|
$
|
—
|
$
|
118,851
|
Average Price (per bbl)
|
||||||||
WTI
|
Brent Crude
|
|||||||
Quarter ended
|
||||||||
9/30/2012
|
$ | 92.17 | $ | 109.63 | ||||
6/30/2012
|
93.38 | 108.90 | ||||||
3/31/2012
|
102.85 | 118.54 | ||||||
12/31/2011
|
94.03 | 109.31 | ||||||
9/30/2011
|
89.71 | 112.47 | ||||||
6/30/2011
|
102.51 | 117.12 | ||||||
3/31/2011
|
93.93 | 104.90 | ||||||
12/31/2010
|
85.10 | 86.80 | ||||||
9/30/2010
|
76.01 | 76.41 |
Natural Gas Average Price
(per mcf)
|
||||
Quarter ended
|
||||
9/30/2012
|
$ | 2.88 | ||
6/30/2012
|
2.29 | |||
3/31/2012
|
2.44 | |||
12/31/2011
|
3.32 | |||
9/30/2011
|
4.12 | |||
6/30/2011
|
4.37 | |||
3/31/2011
|
4.18 | |||
12/31/2010
|
3.81 | |||
9/30/2010
|
4.28 |
Average Drilling Rig Count for
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
2012
|
September 30,
2011
|
September 30,
2012
|
September 30,
2011
|
|||||||||||||
U.S. Land – Oil
|
1,391 | 1,024 | 1,329 | 923 | ||||||||||||
U.S. Land – Natural gas and other
|
464 | 887 | 579 | 877 | ||||||||||||
U.S. Offshore
|
51 | 34 | 47 | 30 | ||||||||||||
Total U.S.
|
1,906 | 1,945 | 1,955 | 1,830 | ||||||||||||
Canada
|
325 | 443 | 362 | 406 | ||||||||||||
Total North America
|
2,231 | 2,388 | 2,317 | 2,236 |
THREE MONTHS ENDED
SEPTEMBER 30,
|
NINE MONTHS ENDED
SEPTEMBER 30,
|
|||||||||||||||||||||||||||||||
Variance
2012 vs. 2011
|
Variance
2012 vs. 2011
|
|||||||||||||||||||||||||||||||
2012
|
2011
|
$ | % | 2012 | 2011 | $ | % | |||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||
Well site services -
|
||||||||||||||||||||||||||||||||
Rental tools and services
|
$ | 130.7 | $ | 127.2 | $ | 3.5 | 3 | % | $ | 391.4 | $ | 347.4 | $ | 44.0 | 13 | % | ||||||||||||||||
Drilling services
|
51.0 | 45.6 | 5.4 | 12 | % | 149.9 | 119.7 | 30.2 | 25 | % | ||||||||||||||||||||||
Total well site services
|
181.7 | 172.8 | 8.9 | 5 | % | 541.3 | 467.1 | 74.2 | 16 | % | ||||||||||||||||||||||
Accommodations
|
273.3 | 227.8 | 45.5 | 20 | % | 836.1 | 627.8 | 208.3 | 33 | % | ||||||||||||||||||||||
Offshore products
|
189.5 | 139.5 | 50.0 | 36 | % | 566.8 | 399.7 | 167.1 | 42 | % | ||||||||||||||||||||||
Tubular services
|
436.2 | 362.5 | 73.7 | 20 | % | 1,326.6 | 988.8 | 337.8 | 34 | % | ||||||||||||||||||||||
Total
|
$ | 1,080.7 | $ | 902.6 | $ | 178.1 | 20 | % | $ | 3,270.8 | $ | 2,483.4 | $ | 787.4 | 32 | % | ||||||||||||||||
Product costs; service and other costs (“Cost of sales and service”)
|
||||||||||||||||||||||||||||||||
Well site services -
|
||||||||||||||||||||||||||||||||
Rental tools and services
|
$ | 80.5 | $ | 77.2 | $ | 3.3 | 4 | % | $ | 243.4 | $ | 214.9 | $ | 28.5 | 13 | % | ||||||||||||||||
Drilling services
|
34.4 | 31.8 | 2.6 | 8 | % | 104.9 | 86.1 | 18.8 | 22 | % | ||||||||||||||||||||||
Total well site services
|
114.9 | 109.0 | 5.9 | 5 | % | 348.3 | 301.0 | 47.3 | 16 | % | ||||||||||||||||||||||
Accommodations
|
136.5 | 117.0 | 19.5 | 17 | % | 408.7 | 333.8 | 74.9 | 22 | % | ||||||||||||||||||||||
Offshore products
|
142.2 | 100.1 | 42.1 | 42 | % | 417.2 | 294.9 | 122.3 | 41 | % | ||||||||||||||||||||||
Tubular services
|
420.4 | 339.8 | 80.6 | 24 | % | 1,254.8 | 927.3 | 327.5 | 35 | % | ||||||||||||||||||||||
Total
|
$ | 814.0 | $ | 665.9 | $ | 148.1 | 22 | % | $ | 2,429.0 | $ | 1,857.0 | $ | 572.0 | 31 | % | ||||||||||||||||
Gross margin
|
||||||||||||||||||||||||||||||||
Well site services -
|
||||||||||||||||||||||||||||||||
Rental tools and services
|
$ | 50.2 | $ | 50.0 | $ | 0.2 | 0 | % | $ | 148.0 | $ | 132.5 | $ | 15.5 | 12 | % | ||||||||||||||||
Drilling services
|
16.6 | 13.8 | 2.8 | 20 | % | 45.0 | 33.6 | 11.4 | 34 | % | ||||||||||||||||||||||
Total well site services
|
66.8 | 63.8 | 3.0 | 5 | % | 193.0 | 166.1 | 26.9 | 16 | % | ||||||||||||||||||||||
Accommodations
|
136.8 | 110.8 | 26.0 | 23 | % | 427.4 | 294.0 | 133.4 | 45 | % | ||||||||||||||||||||||
Offshore products
|
47.3 | 39.4 | 7.9 | 20 | % | 149.6 | 104.8 | 44.8 | 43 | % | ||||||||||||||||||||||
Tubular services
|
15.8 | 22.7 | (6.9 | ) | (30 | %) | 71.8 | 61.5 | 10.3 | 17 | % | |||||||||||||||||||||
Total
|
$ | 266.7 | $ | 236.7 | $ | 30.0 | 13 | % | $ | 841.8 | $ | 626.4 | $ | 215.4 | 34 | % | ||||||||||||||||
Gross margin as a percentage of revenues
|
||||||||||||||||||||||||||||||||
Well site services -
|
||||||||||||||||||||||||||||||||
Rental tools and services
|
38 | % | 39 | % | 38 | % | 38 | % | ||||||||||||||||||||||||
Drilling services
|
33 | % | 30 | % | 30 | % | 28 | % | ||||||||||||||||||||||||
Total well site services
|
37 | % | 37 | % | 36 | % | 36 | % | ||||||||||||||||||||||||
Accommodations
|
50 | % | 49 | % | 51 | % | 47 | % | ||||||||||||||||||||||||
Offshore products
|
25 | % | 28 | % | 26 | % | 26 | % | ||||||||||||||||||||||||
Tubular services
|
4 | % | 6 | % | 5 | % | 6 | % | ||||||||||||||||||||||||
Total
|
25 | % | 26 | % | 26 | % | 25 | % |
Twelve Month Period Beginning June 1,
|
% of Principal Amount
|
|||
2014
|
104.875 | % | ||
2015
|
103.250 | % | ||
2016
|
101.625 | % | ||
2017
|
100.000 | % |
Period
|
Total Number of Shares Purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased
as Part of Publicly Announced Program
|
Approximate
Dollar Value of Shares That May Yet Be Purchased Under the Program (1)
|
||
July 1, 2012
|
– |
July 31, 2012
|
243(2)
|
$68.12(3)
|
--
|
$ 87,367,801
|
August 1, 2012
|
– |
August 31, 2012
|
132(2)
|
$78.78(4)
|
--
|
$ 200,000,000
|
September 1, 2012
|
– |
September 30, 2012
|
--
|
--
|
--
|
$ 200,000,000
|
Total
|
375
|
$71.87
|
--
|
$ 200,000,000
|
|
(1)
|
On August 27, 2010, we announced a share repurchase program of up to $100,000,000, expiring on September 1, 2012. On August 23, 2012, we announced a share repurchase program of up to $200,000,000 to replace the prior share repurchase authorization, which was set to expire on September 1, 2012. The current share repurchase program expires on September 1, 2014.
|
|
(2)
|
Shares surrendered to us by participants in our 2001 Equity Participation Plan to settle the participants’ personal tax liabilities that resulted from the lapsing of restrictions on shares awarded to the participants under the plan.
|
|
(3)
|
The price paid per share was based on the weighted average closing price of our Company’s common stock on July 7, 2012 and July 11, 2012, which represent the dates the restrictions lapsed on such shares.
|
|
(4)
|
The price paid per share was based on the weighted average closing price of our Company’s common stock on August 13, 2012, which represents the date the restrictions lapsed on such shares.
|
(a)
|
INDEX OF EXHIBITS
|
Exhibit No.
|
|
Description
|
3.1
|
—
|
Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the Commission on March 30, 2001 (File No. 001-16337)).
|
3.2
|
—
|
Third Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, as filed with the Commission on March 13, 2009 (File No. 001-16337)).
|
3.3
|
—
|
Certificate of Designations of Special Preferred Voting Stock of Oil States International, Inc. (incorporated by reference to Exhibit 3.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the Commission on March 30, 2001 (File No. 001-16337)).
|
4.1
|
—
|
First Supplemental Indenture, dated as of September 10, 2012, among Oil States Energy Services, L.L.C., Oil States International, Inc. (together with its successors and assigns), each other then-existing Guarantor under the Indenture, and Wells Fargo Bank, N.A., as Trustee, paying agent and registrar under such Indenture (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, as filed with the Commission on September 18, 2012 (File No. 001-16337)).
|
10.1
|
—
|
Syndicated Facility Agreement, dated as of September 18, 2012, among The MAC Services Group Pty Limited, as Borrower, the Lenders named therein, J.P. Morgan Australia Limited, as Australian Agent and Security Trustee, JPMorgan Chase Bank, N.A., as U.S. Agent, JPMorgan Chase Bank, N.A., as Issuing Bank and JPMorgan Chase Bank, N.A., as Swing Line Lender (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed with the Commission on September 18, 2012 (File No. 001-16337)).
|
10.2
|
—
|
Amendment No. 1, dated as of September 18, 2012, to the Credit Agreement among Oil States International, Inc., PTI Group Inc., PTI Premium Camp Services Ltd., each of the Guarantors, the Lenders party hereto and Wells Fargo Bank, N.A., as administrative agent for the Lenders (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, as filed with the Commission on September 18, 2012 (File No. 001-16337)).
|
31.1*
|
—
|
Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
|
31.2*
|
—
|
Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
|
32.1***
|
—
|
Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.
|
32.2***
|
—
|
Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.
|
101.INS*
|
—
|
XBRL Instance Document
|
101.SCH*
|
—
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
—
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
—
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB*
|
—
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
—
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed herewith.
|
**
|
Management contracts or compensatory plans or arrangements.
|
***
|
Furnished herewith.
|
Date: November 2, 2012
|
By |
/s/ BRADLEY J. DODSON
|
Bradley J. Dodson
|
||
Senior Vice President, Chief Financial Officer and
|
||
Treasurer (Duly Authorized Officer and Principal Financial Officer)
|
||
Date: November 2, 2012
|
By |
/s/ ROBERT W. HAMPTON
|
Robert W. Hampton
|
||
Senior Vice President -- Accounting and
|
||
Secretary (Duly Authorized Officer and Chief Accounting Officer)
|
Exhibit No.
|
|
Description
|
3.1
|
—
|
Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the Commission on March 30, 2001 (File No. 001-16337)).
|
3.2
|
—
|
Third Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, as filed with the Commission on March 13, 2009 (File No. 001-16337)).
|
3.3
|
—
|
Certificate of Designations of Special Preferred Voting Stock of Oil States International, Inc. (incorporated by reference to Exhibit 3.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2000, as filed with the Commission on March 30, 2001 (File No. 001-16337)).
|
4.1
|
—
|
First Supplemental Indenture, dated as of September 10, 2012, among Oil States Energy Services, L.L.C., Oil States International, Inc. (together with its successors and assigns), each other then-existing Guarantor under the Indenture, and Wells Fargo Bank, N.A., as Trustee, paying agent and registrar under such Indenture (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, as filed with the Commission on September 18, 2012 (File No. 001-16337)).
|
10.1
|
—
|
Syndicated Facility Agreement, dated as of September 18, 2012, among The MAC Services Group Pty Limited, as Borrower, the Lenders named therein, J.P. Morgan Australia Limited, as Australian Agent and Security Trustee, JPMorgan Chase Bank, N.A., as U.S. Agent, JPMorgan Chase Bank, N.A., as Issuing Bank and JPMorgan Chase Bank, N.A., as Swing Line Lender (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, as filed with the Commission on September 18, 2012 (File No. 001-16337)).
|
10.2
|
—
|
Amendment No. 1, dated as of September 18, 2012, to the Credit Agreement among Oil States International, Inc., PTI Group Inc., PTI Premium Camp Services Ltd., each of the Guarantors, the Lenders party hereto and Wells Fargo Bank, N.A., as administrative agent for the Lenders (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, as filed with the Commission on September 18, 2012 (File No. 001-16337)).
|
31.1*
|
—
|
Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
|
31.2*
|
—
|
Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.
|
32.1***
|
—
|
Certification of Chief Executive Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.
|
32.2***
|
—
|
Certification of Chief Financial Officer of Oil States International, Inc. pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.
|
101.INS*
|
—
|
XBRL Instance Document
|
101.SCH*
|
—
|
XBRL Taxonomy Extension Schema Document
|
101.CAL*
|
—
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
—
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB*
|
—
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
—
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed herewith.
|
**
|
Management contracts or compensatory plans or arrangements.
|
***
|
Furnished herewith.
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Oil States International, Inc. (Registrant);
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
|
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the Registrant and have:
|
|
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
|
|
5.
|
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):
|
|
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.
|
/s/ Cindy B. Taylor
|
|
Cindy B. Taylor
|
|
President and Chief Executive Officer
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Oil States International, Inc. (Registrant);
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
|
4.
|
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the Registrant and have:
|
|
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
|
|
5.
|
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions):
|
|
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.
|
/s/ Bradley J. Dodson
|
|
Bradley J. Dodson
|
|
Senior Vice President, Chief Financial Officer and Treasurer
|
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Cindy B. Taylor | ||
Name: Cindy B. Taylor
Date: November 2, 2012
|
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Bradley J. Dodson | ||
Name: Bradley J. Dodson
Date: November 2, 2012
|
Note 5 - Business Acquisitions and Goodwill (Detail) (USD $)
In Millions, unless otherwise specified |
Jul. 02, 2012
|
---|---|
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 48.0 |
Note 8 - Derivative Instruments and Hedging Activities (Detail)
|
3 Months Ended | 9 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2012
USD ($)
|
Sep. 30, 2011
USD ($)
|
Sep. 30, 2012
USD ($)
|
Sep. 30, 2011
USD ($)
|
Sep. 30, 2012
EUR (€)
|
Sep. 30, 2012
Minimum [Member]
|
Sep. 30, 2012
Maximum [Member]
|
|
Derivative, Notional Amount | $ 12,400,000 | $ 12,400,000 | € 10,000,000 | ||||
Derivative Maturity Dates Range | 4 months | 25 months | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 700,000 | ||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 0 | $ 0 | $ 0 | $ 0 |
Note 11 - Income Taxes (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Income Tax Expense (Benefit) (in Dollars) | $ 37,436 | $ 36,487 | $ 135,337 | $ 88,757 |
Effective Income Tax Rate, Continuing Operations | 26.40% | 28.40% | 27.80% | 27.90% |
Approximation [Member]
|
||||
Income Tax Expense (Benefit) (in Dollars) | $ 36,500 | $ 88,800 |
Note 6 - Debt (Detail) - Interest Expense Excluding Amortization of Debt Issue Costs (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Interest expense | $ 0 | $ 3,003 | $ 6,185 | $ 8,904 |
Note 3 - Details of Selected Balance Sheet Accounts (Detail) - Accounts Receivable (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Accounts receivable | $ 816,152 | $ 736,203 |
Allowance for doubtful accounts | (4,882) | (3,963) |
811,270 | 732,240 | |
Trade Accounts Receivable [Member]
|
||
Accounts receivable | 585,579 | 553,481 |
Unbilled Revenue [Member]
|
||
Accounts receivable | 229,113 | 180,273 |
Other Receivables [Member]
|
||
Accounts receivable | $ 1,460 | $ 2,449 |
Note 12 - Segment and Related Information (Detail) - Financial Information by Business Segment (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Revenues from unaffiliated customers | $ 1,080,673 | $ 902,621 | $ 3,270,752 | $ 2,483,379 | |
Depreciation and amortization | 59,440 | 46,929 | 164,323 | 137,318 | |
Operating income (loss) | 154,325 | 144,464 | 527,831 | 354,404 | |
Equity in earnings of unconsolidated affiliates | 30 | (204) | 671 | (151) | |
Capital expenditures | 131,766 | 140,912 | 331,750 | 371,165 | |
Total assets | 4,251,539 | 3,437,012 | 4,251,539 | 3,437,012 | 3,703,641 |
Well Site Services - Rental Tools and Services [Member]
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Revenues from unaffiliated customers | 130,752 | 127,217 | 391,385 | 347,406 | |
Depreciation and amortization | 12,746 | 10,364 | 36,619 | 30,459 | |
Operating income (loss) | 32,218 | 32,939 | 94,986 | 82,432 | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Capital expenditures | 27,251 | 24,155 | 65,125 | 59,650 | |
Total assets | 521,756 | 435,281 | 521,756 | 435,281 | |
Well Site Services - Drilling Services [Member]
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Revenues from unaffiliated customers | 50,995 | 45,550 | 149,857 | 119,653 | |
Depreciation and amortization | 5,793 | 5,033 | 16,814 | 14,773 | |
Operating income (loss) | 9,943 | 7,973 | 25,760 | 16,578 | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Capital expenditures | 10,102 | 8,890 | 23,626 | 21,812 | |
Total assets | 136,278 | 124,610 | 136,278 | 124,610 | |
Total Well Site Services [Member]
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Revenues from unaffiliated customers | 181,747 | 172,767 | 541,242 | 467,059 | |
Depreciation and amortization | 18,539 | 15,397 | 53,433 | 45,232 | |
Operating income (loss) | 42,161 | 40,912 | 120,746 | 99,010 | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Capital expenditures | 37,353 | 33,045 | 88,751 | 81,462 | |
Total assets | 658,034 | 559,891 | 658,034 | 559,891 | |
Accommodations [Member]
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Revenues from unaffiliated customers | 273,315 | 227,783 | 836,101 | 627,824 | |
Depreciation and amortization | 36,246 | 27,395 | 97,805 | 80,143 | |
Operating income (loss) | 85,132 | 71,727 | 287,364 | 178,451 | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 2 | |
Capital expenditures | 82,046 | 101,604 | 208,171 | 270,519 | |
Total assets | 2,055,964 | 1,662,776 | 2,055,964 | 1,662,776 | |
Offshore Products [Member]
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Revenues from unaffiliated customers | 189,450 | 139,525 | 566,808 | 399,709 | |
Depreciation and amortization | 3,807 | 3,421 | 10,659 | 10,112 | |
Operating income (loss) | 28,026 | 24,854 | 97,116 | 60,374 | |
Equity in earnings of unconsolidated affiliates | (103) | (487) | 150 | (715) | |
Capital expenditures | 9,846 | 4,416 | 30,809 | 11,990 | |
Total assets | 781,483 | 602,636 | 781,483 | 602,636 | |
Tubular Services [Member]
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Revenues from unaffiliated customers | 436,161 | 362,546 | 1,326,601 | 988,787 | |
Depreciation and amortization | 569 | 515 | 1,713 | 1,243 | |
Operating income (loss) | 10,515 | 17,934 | 56,990 | 47,936 | |
Equity in earnings of unconsolidated affiliates | 133 | 283 | 521 | 562 | |
Capital expenditures | 2,423 | 1,709 | 2,720 | 6,860 | |
Total assets | 718,350 | 527,964 | 718,350 | 527,964 | |
Corporate And Eliminations [Member]
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Revenues from unaffiliated customers | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 279 | 201 | 713 | 588 | |
Operating income (loss) | (11,509) | (10,963) | (34,385) | (31,367) | |
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | |
Capital expenditures | 98 | 138 | 1,299 | 334 | |
Total assets | $ 37,708 | $ 83,745 | $ 37,708 | $ 83,745 |
Note 6 - Debt (Tables)
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Schedule of Long-term Debt Instruments [Table Text Block] |
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Redemption Date and Percentage of Principal Amount [Table Text Block] |
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Carrying Amount Of Notes In Condensed Consolidated Balance Sheet [Table Text Block] |
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Interest Expense Excluding Amortization of Debt Issue Costs [Table Text Block] |
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Note 8 - Derivative Instruments and Hedging Activities (Detail) - Pretax Recognized Gain (Loss) on Derivative Instruments (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended |
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Sep. 30, 2012
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Sep. 30, 2012
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Foreign currency forward contracts | $ (696) | $ (696) |
Note 6 - Debt (Detail) - Long-term Debt (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
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Dec. 31, 2011
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Total debt | $ 0 | $ 170,884 |
Less: Current portion | 32,605 | 34,435 |
Total long-term debt and capitalized leases | 1,154,167 | 1,142,505 |
AUD 150 Million [Member] | National Austrailian Bank Limited [Member]
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Total debt | 43,050 | |
AUD 300 Million [Member] | National Austrailian Bank Limited [Member]
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Total debt | 37,397 | |
Domestic Term Loan [Member]
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Total debt | 175,000 | 190,000 |
Foreign Term Loan [Member]
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Total debt | 89,315 | 93,795 |
6 1/2% Senior Notes [Member]
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Total debt | 600,000 | 600,000 |
2 3/8% Senior Subordinated Notes [Member]
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Total debt | 170,884 | |
Subordinated Unsecured [Member]
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Total debt | 2,000 | 4,000 |
Capital Lease Obligations And Other Debt [Member]
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Total debt | 6,740 | 7,146 |
Gross [Member]
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Total debt | 1,186,772 | 1,176,940 |
Domestic Line of Credit [Member]
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Total debt | 276,320 | 68,065 |
Foreign Line of Credit [Member]
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Total debt | $ 0 | $ 0 |
Note 4 - Earnings Per Share (Detail)
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3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 303,833 | 184,529 | 424,299 | 179,977 |
Note 8 - Derivative Instruments and Hedging Activities (Detail) - Gain (Loss) on Ineffective Portion of Derivative (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2012
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Sep. 30, 2012
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Foreign currency forward contracts | $ (22) | $ (22) |
Note 7 - Fair Value Measurements (Detail) - Carrying Values and Fair Values of Notes (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
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Dec. 31, 2011
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Fair Value | $ 0 | $ 411,396 |
Less: unamortized discount | 4,106 | |
Net value | 0 | 170,884 |
Net value | 0 | 411,396 |
2 3/8% Senior Subordinated Notes [Member]
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Carrying Value | 0 | 174,990 |
Fair Value | 0 | 411,396 |
Less: unamortized discount | 4,106 | |
Net value | 170,884 | |
Net value | 0 | 411,396 |
6 1/2% Senior Notes [Member]
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Carrying Value | 600,000 | 600,000 |
Fair Value | 639,000 | 625,128 |
Net value | 600,000 | 600,000 |
Net value | $ 639,000 | $ 625,128 |
Note 3 - Details of Selected Balance Sheet Accounts
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Supplemental Balance Sheet Disclosures [Text Block] |
3.
DETAILS
OF SELECTED BALANCE SHEET ACCOUNTS
Additional
information regarding selected balance sheet accounts is
presented below (in thousands):
(1)
As
of December 31, 2011, we have reclassified $54.7 million in
buildings and leasehold improvements to accommodations
assets for comparability purposes.
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