EX-99.1 2 clb-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

Revised Financial Information

 

On January 31, 2024, Core Laboratories, Inc. (the “Company”) issued a press release that reported the Company’s financial results of the Company for the quarter and year ended December 31, 2023 (the “Earnings Release”). A copy of the Earnings Release was attached as Exhibit 99.1 to the Company’s Current Report on Form 8-K that was furnished to the Securities and Exchange Commission (the “SEC”) on January 31, 2024.

Revised versions of the condensed consolidated balance sheets, condensed consolidated statement of operations and condensed consolidated statements of cash flows, as well as the non-GAAP reconciliation of net income and diluted earnings per share attributable to Core Laboratories Inc. appearing in the Earnings Release are provided below (with the revised information identified by a “^”):

 

 


 

CORE LABORATORIES INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

Quarter Ended

 

 

% Variance

 

 

 

December 31, 2023

 

 

September 30, 2023

 

 

December 31, 2022

 

 

vs. Q3-2023

 

vs. Q4-2022

 

REVENUE

 

$

128,210

 

 

$

125,343

 

 

$

127,571

 

 

2.3%

 

0.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of services and product sales

 

 

101,517

 

 

 

96,617

 

 

 

99,816

 

 

5.1%

 

1.7%

 

General and administrative expense

 

 

8,665

 

 

 

9,452

 

 

 

8,724

 

 

(8.3)%

 

(0.7)%

 

Depreciation and amortization

 

 

3,874

 

 

 

3,929

 

 

 

4,073

 

 

(1.4)%

 

(4.9)%

 

Other (income) expense, net

 

 

(427

)

 

 

673

 

 

 

(660

)

 

NM

 

NM

 

Total operating expenses

 

 

113,629

 

 

 

110,671

 

 

 

111,953

 

 

2.7%

 

1.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

14,581

 

 

 

14,672

 

 

 

15,618

 

 

(0.6)%

 

(6.6)%

 

Interest expense

 

 

3,618

 

 

 

3,147

 

 

 

3,081

 

 

15.0%

 

17.4%

 

Income before income taxes

 

 

10,963

 

 

 

11,525

 

 

 

12,537

 

 

(4.9)%

 

(12.6)%

 

Income tax expense

 

 

8,529

 

 ^

 

2,305

 

 

 

5,847

 

 

270.0%

 

45.9%

 

Net income

 

 

2,434

 

 ^

 

9,220

 

 

 

6,690

 

 

(73.6)%

 

(63.6)%

 

Net income (loss) attributable to non-
   controlling interest

 

 

235

 

 

 

(37

)

 

 

(61

)

 

NM

 

NM

 

Net income attributable to Core
   Laboratories Inc.

 

$

2,199

 

 ^

$

9,257

 

 

$

6,751

 

 

(76.2)%

 

(67.4)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.05

 

 ^

$

0.19

 

 

$

0.14

 

 

(73.7)%

 

(64.3)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to Core Laboratories Inc.

 

$

0.05

 

 ^

$

0.19

 

 

$

0.14

 

 

(73.7)%

 

(64.3)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

 

47,557

 

 

 

47,604

 

 

 

46,826

 

 

(0.1)%

 

1.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

78

%

^

 

20

%

 

 

47

%

 

NM

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

84,628

 

 

$

85,145

 

 

$

78,124

 

 

(0.6)%

 

8.3%

 

Production Enhancement

 

 

43,582

 

 

 

40,198

 

 

 

49,447

 

 

8.4%

 

(11.9)%

 

Total

 

$

128,210

 

 

$

125,343

 

 

$

127,571

 

 

2.3%

 

0.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reservoir Description

 

$

12,259

 

 

$

12,992

 

 

$

6,817

 

 

(5.6)%

 

79.8%

 

Production Enhancement

 

 

2,195

 

 

 

1,544

 

 

 

7,904

 

 

42.2%

 

(72.2)%

 

Corporate and Other

 

 

127

 

 

 

136

 

 

 

897

 

 

NM

 

NM

 

Total

 

$

14,581

 

 

$

14,672

 

 

$

15,618

 

 

(0.6)%

 

(6.6)%

 

 

 

 

 

 

 

 

 

 

 

 

 

"NM" means not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

CORE LABORATORIES INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

Year Ended December 31,

 

% Variance

 

 

 

2023

 

2022

 

 

 

REVENUE

 

$509,790

 

$489,735

 

4.1%

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

Costs of services and product sales

 

399,957

 

393,655

 

1.6%

 

General and administrative expense

 

40,259

 

38,117

 

5.6%

 

Depreciation and amortization

 

15,784

 

17,161

 

(8.0)%

 

Other (income) expense, net

 

(850)

 

(722)

 

NM

 

Total operating expenses

 

455,150

 

448,211

 

1.5%

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

54,640

 

41,524

 

31.6%

 

Interest expense

 

13,430

 

11,570

 

16.1%

 

Income before income taxes

 

41,210

 

29,954

 

37.6%

 

Income tax expense

 

4,185

 ^

10,296

 

(59.4)%

 

Net income

 

37,025

 ^

19,658

 

88.3%

 

Net income attributable to non-controlling interest

 

350

 

205

 

NM

 

Net income attributable to Core Laboratories Inc.

 

$36,675

 ^

$19,453

 

88.5%

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$0.78

^

$0.42

 

85.7%

 

 

 

 

 

 

 

 

 

Diluted earnings per share attributable to Core Laboratories Inc.

 

$0.77

^

$0.42

 

83.3%

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

47,523

 

46,813

 

1.5%

 

 

 

 

 

 

 

 

 

Effective tax rate

 

10%

^

34%

 

NM

 

 

 

 

 

 

 

 

 

SEGMENT INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Reservoir Description

 

$333,345

 

$307,691

 

8.3%

 

Production Enhancement

 

176,445

 

182,044

 

(3.1)%

 

Total

 

$509,790

 

$489,735

 

4.1%

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

Reservoir Description

 

$41,039

 

$22,902

 

79.2%

 

Production Enhancement

 

12,519

 

16,351

 

(23.4)%

 

Corporate and Other

 

1,082

 

2,271

 

(52.4)%

 

Total

 

$54,640

 

$41,524

 

31.6%

 

 

 

 

 

 

 

 

 

"NM" means not meaningful

 

 

 

 

 

 

 

 

 

 


 

CORE LABORATORIES INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

% Variance

 

ASSETS:

 

December 31, 2023

 

 

September 30, 2023

 

 

December 31, 2022

 

 

vs. Q3-2023

 

vs. Q4-2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

15,120

 

 

$

16,616

 

 

$

15,428

 

 

(9.0)%

 

(2.0)%

 

Accounts receivable, net

 

 

109,352

 

 

 

104,053

 

 

 

106,913

 

 

5.1%

 

2.3%

 

Inventories

 

 

71,702

 

 

 

75,060

 

 

 

60,445

 

 

(4.5)%

 

18.6%

 

Other current assets

 

 

26,962

 

 ^

 

32,815

 

 

 

28,916

 

 

(17.8)%

 

(6.8)%

 

Total current assets

 

 

223,136

 

 ^

 

228,544

 

 

 

211,702

 

 

(2.4)%

 

5.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

99,626

 

 

 

99,499

 

 

 

105,028

 

 

0.1%

 

(5.1)%

 

Right of use assets

 

 

53,842

 

 

 

53,101

 

 

 

52,379

 

 

1.4%

 

2.8%

 

Intangibles, goodwill and other long-term assets, net

 

 

209,791

 

 ^

 

211,270

 

 

 

209,245

 

 

(0.7)%

 

0.3%

 

Total assets

 

$

586,395

 

 ^

$

592,414

 

 

$

578,354

 

 

(1.0)%

 

1.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

33,506

 

 

$

34,097

 

 

$

45,847

 

 

(1.7)%

 

(26.9)%

 

Operating lease liabilities

 

 

10,175

 

 

 

9,794

 

 

 

11,699

 

 

3.9%

 

(13.0)%

 

Other current liabilities

 

 

44,416

 

 ^

 

40,359

 

 

 

45,589

 

 

10.1%

 

(2.6)%

 

Total current liabilities

 

 

88,097

 

 ^

 

84,250

 

 

 

103,135

 

 

4.6%

 

(14.6)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, net

 

 

163,134

 

 

 

177,863

 

 

 

172,386

 

 

(8.3)%

 

(5.4)%

 

Long-term operating lease liabilities

 

 

42,076

 

 

 

40,903

 

 

 

38,305

 

 

2.9%

 

9.8%

 

Other long-term liabilities

 

 

63,281

 

 ^

 

59,948

 

 

 

75,574

 

 

5.6%

 

(16.3)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

229,807

 

 ^

 

229,450

 

 

 

188,954

 

 

0.2%

 

21.6%

 

Total liabilities and equity

 

$

586,395

 

 ^

$

592,414

 

 

$

578,354

 

 

(1.0)%

 

1.4%

 

 

 

 

 


 

CORE LABORATORIES INC. & SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

$

37,025

 

 ^

$

19,658

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Stock-based compensation

 

 

13,971

 

 

 

7,756

 

Depreciation and amortization

 

 

15,784

 

 

 

17,161

 

Deferred income taxes

 

 

(10,811

)

 ^

 

433

 

Accounts receivable

 

 

(2,618

)

 

 

(10,078

)

Inventories

 

 

(12,976

)

 

 

(14,860

)

Accounts payable

 

 

(12,878

)

 

 

15,374

 

Other adjustments to net income

 

 

(2,708

)

 ^

 

(10,488

)

Net cash provided by operating activities

 

 

24,789

 

 

 

24,956

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Capital expenditures

 

 

(10,579

)

 

 

(10,216

)

Net proceeds from life insurance policies and from insurance recovery

 

 

3,375

 

 

 

4,260

 

Other investing activities

 

 

552

 

 

 

2,100

 

Net cash used in investing activities

 

 

(6,652

)

 

 

(3,856

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Repayment of long-term debt

 

 

(211,000

)

 

 

(131,000

)

Proceeds from long-term debt

 

 

202,000

 

 

 

116,000

 

Equity related transaction costs

 

 

(4,068

)

 

 

(411

)

Dividends paid

 

 

(1,868

)

 

 

(1,853

)

Repurchase of common stock

 

 

(2,202

)

 

 

(3,903

)

Other financing activities

 

 

(1,307

)

 

 

(2,208

)

Net cash used in financing activities

 

 

(18,445

)

 

 

(23,375

)

 

 

 

 

 

 

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

 

(308

)

 

 

(2,275

)

CASH AND CASH EQUIVALENTS, beginning of year

 

 

15,428

 

 

 

17,703

 

CASH AND CASH EQUIVALENTS, end of year

 

$

15,120

 

 

$

15,428

 

 

 

 


 

Non-GAAP Information

Management believes that the exclusion of certain income and expenses enables it to evaluate more effectively the Company's operations period-over-period and to identify operating trends that could otherwise be masked by the excluded Items. For this reason, management uses certain non-GAAP measures that exclude these Items and believes that this presentation provides a clearer comparison with the results reported in prior periods. The non-GAAP financial measures should be considered in addition to, and not as a substitute for, the financial results prepared in accordance with GAAP, as more fully discussed in the Company's financial statements and filings with the Securities and Exchange Commission.

 

Reconciliation of Net Income and Diluted Earnings Per Share Attributable to Core Laboratories Inc.

(In thousands, except per share data)

(Unaudited)

 

 

 

Net Income Attributable to Core Laboratories Inc.

 

 

Quarter Ended

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

GAAP reported

 

$2,199

 ^

$9,257

 

$6,751

Stock compensation (1)

 

 

 

(1,494)

Loss on lease abandonment and assets write-down (2)

 

 

505

 

ATM termination costs (3)

 

 

364

 

Redomestication costs

 

 

 

197

Foreign exchange losses (gains)

 

374

 

190

 

552

Reversal of net deferred tax liabilities and effect of higher (lower) tax rate (5)

 

6,336

 ^

 

3,341

Excluding specific items

 

$8,909

 

$10,316

 

$9,347

 

 

 

 

Diluted Earnings Per Share Attributable to Core Laboratories Inc.

 

 

 

Quarter Ended

 

Year ended

 

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

 

December 31, 2023

 

GAAP reported

 

$0.05

 ^

$0.19

 

$0.14

 

$0.77

^

Stock compensation (1)

 

 

 

(0.03)

 

0.09

 

Loss on lease abandonment and assets write-down (2)

 

 

0.01

 

 

0.04

 

ATM termination costs (3)

 

 

0.01

 

 

0.01

 

Gain on life insurance policies (4)

 

 

 

 

(0.03)

 

Redomestication costs

 

 

 

 

 

Foreign exchange losses (gains)

 

0.01

 

0.01

 

0.02

 

 

Reversal of net deferred tax liabilities and effect of higher (lower) tax rate (5)

 

0.13

 ^

 

0.07

 

(0.08)

^

Excluding specific items

 

$0.19

 

$0.22

 

$0.20

 

$0.80

 

 

 

 

 

 

 

 

 

 

 

(1) The year ended December 31, 2023 includes reversals of stock compensation expense previously recognized due to a change in probability of performance condition for certain executive's share awards and the acceleration of stock compensation expense associated with employees reaching eligible retirement age. The quarter ended December 31, 2022 includes adjustments associated with certain performance share awards that vested during the quarter.

 

(2) Includes the write-down of right of use assets and leasehold improvements and other exit costs associated with consolidation of certain facilities.

 

(3) Includes the write off of previously deferred costs upon termination of our "at-the-market offering" program ("ATM Program").

 

(4) Includes gain on life insurance policies death benefit proceeds.

 

(5) The quarter and year ended December 31, 2023 includes the reversal of certain net deferred tax liabilities which will not be realized as a result of the Redomestication Transaction and the effect to reflect tax expense at a normalized rate of 20%. The quarter ended December 31, 2022 includes the effect to reflect tax expense at a normalized rate of 20%.