CORE LAB REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS
Core Laboratories (CLB) reported Q4 2024 revenue of $129.2M, down 4% sequentially but slightly up year-over-year, with operating income of $14.2M. Q4 GAAP EPS was $0.15, while EPS ex-items reached $0.22. The company generated strong free cash flow of $16.2M, up over 50% sequentially.
For full year 2024, revenue increased 3% to $523.8M, with operating income ex-items of $65.3M, up 7%. Full year EPS ex-items grew 9% to $0.87. The company reduced its net debt by $42M during 2024, achieving a debt leverage ratio of 1.31.
The Reservoir Description segment, representing 80% of international revenue, posted Q4 revenue of $86.8M, while Production Enhancement recorded $42.4M. During Q4, CLB repurchased 264,982 shares for $4.9M and maintained its quarterly dividend of $0.01 per share.
Core Laboratories (CLB) ha riportato un fatturato del Q4 2024 di $129.2M, in calo del 4% rispetto al trimestre precedente ma leggermente in aumento rispetto all'anno precedente, con un reddito operativo di $14.2M. L'EPS GAAP del Q4 è stato di $0.15, mentre l'EPS al netto degli elementi straordinari ha raggiunto $0.22. L'azienda ha generato un forte flusso di cassa libero di $16.2M, in aumento di oltre il 50% rispetto al trimestre precedente.
Per l'intero anno 2024, il fatturato è cresciuto del 3% a $523.8M, con un reddito operativo al netto degli elementi straordinari di $65.3M, in aumento del 7%. L'EPS annuale al netto degli elementi straordinari è cresciuto del 9% a $0.87. L'azienda ha ridotto il suo debito netto di $42M durante il 2024, raggiungendo un rapporto di indebitamento di 1.31.
Il segmento di Descrizione del Bacino, che rappresenta l'80% del fatturato internazionale, ha registrato un fatturato del Q4 di $86.8M, mentre il segmento di Potenziamento della Produzione ha contabilizzato $42.4M. Durante il Q4, CLB ha riacquistato 264.982 azioni per $4.9M e ha mantenuto il suo dividendo trimestrale di $0.01 per azione.
Core Laboratories (CLB) reportó ingresos del Q4 2024 por $129.2M, una disminución del 4% secuencialmente, pero ligeramente arriba en comparación con el año anterior, con un ingreso operativo de $14.2M. El EPS GAAP del Q4 fue de $0.15, mientras que el EPS sin ítems alcanzó $0.22. La compañía generó un fuerte flujo de caja libre de $16.2M, un incremento de más del 50% secuencialmente.
Para el año completo 2024, los ingresos aumentaron un 3% a $523.8M, con un ingreso operativo sin ítems de $65.3M, un aumento del 7%. El EPS anual sin ítems creció un 9% a $0.87. La compañía redujo su deuda neta en $42M durante 2024, alcanzando una relación de apalancamiento de 1.31.
El segmento de Descripción de Reservorios, que representa el 80% de los ingresos internacionales, reportó ingresos del Q4 de $86.8M, mientras que el segmento de Mejora de Producción registró $42.4M. Durante el Q4, CLB recompró 264.982 acciones por $4.9M y mantuvo su dividendo trimestral de $0.01 por acción.
코어 랩투리 (CLB)는 2024년 4분기 수익이 $129.2M으로, 이전 분기 대비 4% 감소했지만 전년 대비 약간 증가했으며, 운영 소득은 $14.2M이었다고 보고했다. 4분기 GAAP EPS는 $0.15였으며, 항목 제외 EPS는 $0.22에 도달했다. 이 회사는 4분기에 $16.2M의 강력한 자유 현금을 창출했으며, 이는 이전 분기 대비 50% 이상 증가했다.
2024년 전체 수익은 3% 증가한 $523.8M으로, 항목 제외 운영 소득은 $65.3M이었으며, 이는 7% 증가한 수치다. 연간 항목 제외 EPS는 9% 성장하여 $0.87에 도달했다. 이 회사는 2024년 동안 순부채를 $42M 줄여 부채 비율을 1.31로 줄였다.
국제 수익의 80%를 차지하는 저수지 설명 부문은 4분기 수익이 $86.8M으로 보고되었으며, 생산 증대 부문은 $42.4M을 기록했다. 4분기 동안 CLB는 $4.9M에 264,982주를 재매입하였고, 주당 $0.01의 분기 배당금을 유지하였다.
Core Laboratories (CLB) a annoncé un chiffre d'affaires de $129.2M pour le Q4 2024, en baisse de 4% par rapport au trimestre précédent mais légèrement en hausse par rapport à l'année précédente, avec un revenu opérationnel de $14.2M. Le bénéfice par action GAAP du Q4 était de $0.15, tandis que le BPA hors éléments exceptionnels a atteint $0.22. La société a généré un solide flux de trésorerie disponible de $16.2M, en hausse de plus de 50% par rapport au trimestre précédent.
Pour l'année entière 2024, le chiffre d'affaires a augmenté de 3% pour atteindre $523.8M, avec un revenu opérationnel hors éléments exceptionnels de $65.3M, en hausse de 7%. Le BPA annuel hors éléments exceptionnels a augmenté de 9% pour atteindre $0.87. La société a réduit sa dette nette de $42M en 2024, atteignant un ratio de levier d'endettement de 1.31.
Le segment de Description des Réservoirs, représentant 80% des revenus internationaux, a affiché un chiffre d'affaires de $86.8M au Q4, tandis que l'Amélioration de la Production a enregistré $42.4M. Au cours du Q4, CLB a racheté 264,982 actions pour $4.9M et a maintenu son dividende trimestriel de $0.01 par action.
Core Laboratories (CLB) berichtete für das Q4 2024 einen Umsatz von $129.2M, was einem Rückgang von 4% im Vergleich zum vorherigen Quartal entspricht, aber im Jahresvergleich leicht gestiegen ist, mit einem operativen Einkommen von $14.2M. Das GAAP-EPS für das Q4 lag bei $0.15, während das EPS ohne Einmalposten $0.22 erreichte. Das Unternehmen generierte einen starken freien Cashflow von $16.2M, was einem Anstieg von über 50% im Quartalsvergleich entspricht.
Für das gesamte Jahr 2024 stieg der Umsatz um 3% auf $523.8M, mit einem operativen Einkommen ohne Einmalposten von $65.3M, was einem Anstieg von 7% entspricht. Das EPS für das Gesamtjahr ohne Einmalposten wuchs um 9% auf $0.87. Das Unternehmen verringerte seine Nettoverschuldung um $42M im Jahr 2024 und erreichte ein Verschuldungsverhältnis von 1.31.
Das Segment der Reservoirbeschreibung, das 80% des internationalen Umsatzes ausmacht, erzielte im Q4 einen Umsatz von $86.8M, während die Produktionssteigerung $42.4M verzeichnete. Im Q4 kaufte CLB 264.982 Aktien für $4.9M zurück und hielt seine vierteljährliche Dividende von $0.01 pro Aktie aufrecht.
- Free cash flow increased over 200% to $43.4M for full year 2024
- Net debt reduced by $42M during 2024
- Full year revenue grew 3% to $523.8M
- EPS ex-items increased 9% to $0.87 for full year 2024
- Debt leverage ratio improved to 1.31, lowest in eight years
- Q4 revenue declined 4% sequentially to $129.2M
- Q4 operating income ex-items decreased 14% sequentially
- Production Enhancement segment posted operating loss of $2.6M in Q4
- Lower U.S. onshore completion activity impacting performance
- Expanded sanctions affecting maritime operations and laboratory work
Insights
Core Laboratories' Q4 2024 results reveal a company effectively navigating challenging market conditions while strengthening its financial foundation. The
Segment analysis shows diverging trends: Reservoir Description, representing
The company's guidance for Q1 2025 suggests near-term challenges, with projected revenue of
- Reduced leverage ratio to 1.31, the lowest in 8 years
- Expanding Middle East capabilities yielding returns
- Strong ROIC at
10.3% - Asset-light business model enabling rapid adaptation to market conditions
Looking ahead, Core Labs is well-positioned to benefit from projected global oil demand growth of 1.1-1.4 million barrels per day in 2025, particularly through its international project exposure. The company's focus on technology investments and strategic market positioning should support resilient performance despite near-term volatility.
- FOURTH QUARTER REVENUE OF
$129.2 MILLION 4% SEQUENTIALLY AND UP SLIGHTLY YEAR-OVER-YEAR - FOURTH QUARTER OPERATING INCOME OF
$14.2 MILLION $15.7 MILLION 14% SEQUENTIALLY, UP4% YEAR-OVER-YEAR - FOURTH QUARTER OPERATING MARGINS, EX-ITEMS, OF
12% - FOURTH QUARTER GAAP EPS OF
$0.15 $0.22 12% SEQUENTIALLY, UP16% YEAR-OVER-YEAR - FOURTH QUARTER FREE CASH FLOW OF
$16.2 MILLION 50% SEQUENTIALLY - DEBT LEVERAGE RATIO REDUCED TO 1.31, AND NET DEBT REDUCED BY
$11.7 MILLION - COMPANY REPURCHASED 264,982 SHARES OF COMMON STOCK, A VALUE OF
$4.9 MILLION - COMPANY ANNOUNCES Q1 2025 QUARTERLY DIVIDEND
- FULL YEAR REVENUE OF
$523.8 MILLION 3% - FULL YEAR OPERATING INCOME OF
$58.6 MILLION $65.3 MILLION 7% - FULL YEAR GAAP EPS OF
$0.66 $0.87 9% - FULL YEAR FREE CASH FLOW OF
$43.4 MILLION 200% COMPARED TO 2023
Core's CEO, Larry Bruno stated, "Our full year financial results delivered improvements in revenue, operating income, operating margins, free cash flow and earnings per share. Our performance was driven by resilient demand for our Reservoir Description services which continued to grow across our international laboratory network despite headwinds from reduced
Reservoir Description
Reservoir Description operations are closely correlated with trends in international and offshore activity levels, with approximately
In the fourth quarter of 2024, Core Lab completed a laboratory study for a Middle Eastern National Oil Company ("NOC") that utilized Core's proprietary Nuclear Magnetic Resonance ("NMR") technologies. The study combined 2D High Frequency and Low Frequency NMR instrumentation to investigate the reservoir rocks at varying temperatures. By utilizing multiple NMR frequencies and other proprietary technologies, Core's scientists were able to differentiate liquid (potentially movable) from solid (immovable) hydrocarbon phases in the rock samples. This critical distinction is often very difficult to determine from traditional down-hole log analysis techniques. Without the analytical results and interpretations provided by Core Lab, the NOC might have overestimated recoverable reserves in the target stratigraphic horizon.
Production Enhancement
Production Enhancement operations, which are focused on complex completions in unconventional oil and gas reservoirs in the
In the fourth quarter of 2024, Core Lab collaborated with a leading oilfield services company operating in
Also in the fourth quarter of 2024, Core Lab was engaged by an operator in
Liquidity, Free Cash Flow, Share Repurchases, and Dividend
Core continues to focus on maximizing free cash flow ("FCF"), a non-GAAP financial measure defined as cash from operations less capital expenditures. For the fourth quarter of 2024, cash from operations was
In the fourth quarter, Core Lab used a portion of this FCF to repurchase 264,982 shares at an aggregate purchase price of
As of December 31, 2024, Core's net debt (defined as long-term debt less cash and cash equivalents) was
Core expects to continue generating positive FCF in future quarters. The Company will remain focused on executing its strategic business initiatives while also further reducing its leverage ratio. In addition, Core Lab will continue to evaluate allocation of capital and other uses of free cash.
On October 23, 2024, Core's Board of Directors ("Board") announced a quarterly cash dividend of
On January 29, 2025, the Board approved a cash dividend of
Return On Invested Capital
The Board and the Company's Executive Management continue to focus on strategies that maximize return on invested capital ("ROIC") and FCF, factors that have high correlation to total shareholder return. Core's commitment to an asset-light business model and disciplined capital stewardship promote capital efficiency and are designed to produce more predictable and superior long-term ROIC.
The Board has established an internal metric to demonstrate ROIC performance relative to the oilfield service companies listed as Core's Comp Group by Bloomberg, as the Company continues to believe superior ROIC will result in higher total shareholder return. Using Bloomberg's formula, the Company's ROIC for the fourth quarter of 2024 improved to
Industry and Core Lab Outlook and Guidance
As 2025 unfolds, Core will continue to execute its strategic plan of technology investments targeted to both solve client problems and capitalize on Core's growth opportunities. A cautious near-term approach was adopted by operators in the back half of 2024, driven by concerns over a potential imbalance between crude oil supply and demand. However, Core maintains its constructive long-term outlook on international upstream projects for 2025 and beyond. The IEA, EIA and OPEC+ continue to forecast growth in crude oil demand between approximately 1.1 and 1.4 million barrels per day for 2025, which is in addition to the natural decline of production from existing fields. As such, continued investment in the development of onshore and offshore crude oil fields will be required to meet demand.
In the near term, the Company expects that crude oil markets will remain volatile due to global economic uncertainties and geopolitical risks. In January of 2025, expanded sanctions 1) impacted the maritime movement and trading of crude oil and derived products, along with the demand for necessary laboratory assay work, and 2) prohibited product sales and services to a broader group of entities.
In alignment with this outlook, Core will remain well-engaged on long-cycle international projects. Looking ahead, as international project activity is expected to be steady, committed long-term upstream projects from the South Atlantic Margin, North and
In addition to the geopolitical risks and recently expanded sanctions, Core expects typical sequential seasonal industry patterns will cause activity in the first quarter of 2025 to decline in some regions. Severe weather in the
The Company's first quarter 2025 revenue is projected to range from
The Company's first quarter 2025 guidance is based on projections for underlying operations and excludes gains and losses in foreign exchange.
Earnings Call Scheduled
The Company has scheduled a conference call to discuss Core's fourth quarter and full year 2024 earnings announcement. The call will begin at 7:30 a.m. CDT / 8:30 a.m. EDT on Thursday, January 30, 2025. To register for the listen-only webcast, log on to www.corelab.com 15 minutes before the start of the call. For those not available to listen to the live webcast, a replay and transcript will be available on the Company's website shortly after the call. Analysts may contact jenna.palfrey@corelab.com for conference call dial-in information.
Core Laboratories Inc. is a leading provider of proprietary and patented reservoir description and production enhancement services and products used to optimize petroleum reservoir performance. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. This release, as well as other statements we make, includes forward-looking statements regarding the Company's future revenue, profitability, business strategies and developments, demand for the Company's products and services and for products and services of the oil and gas industry generally, made in reliance upon the safe harbor provisions of Federal securities law. The Company's outlook is subject to various important cautionary factors, including risks and uncertainties related to the oil and natural gas industry, business and general economic conditions, including inflationary pressures, the ability to achieve the benefits of the redomestication of the parent company from
The Company undertakes no obligation to publicly update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this press release, except as required by law.
Visit the Company's website at www.corelab.com.
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||||||||||
Quarter Ended | % Variance | |||||||||||||||
December 31, | September 30, | December 31, | vs. Q3-2024 | vs. Q4-2023 | ||||||||||||
REVENUE | $ | 129,237 | $ | 134,397 | $ | 128,210 | (3.8) % | 0.8 % | ||||||||
OPERATING EXPENSES: | ||||||||||||||||
Costs of services and product sales | 106,199 | 106,805 | 101,517 | (0.6) % | 4.6 % | |||||||||||
General and administrative expense | 9,080 | 8,642 | 8,665 | 5.1 % | 4.8 % | |||||||||||
Depreciation and amortization | 3,664 | 3,676 | 3,874 | (0.3) % | (5.4) % | |||||||||||
Other (income) expense, net | (3,880) | (4,529) | (427) | NM | NM | |||||||||||
Total operating expenses | 115,063 | 114,594 | 113,629 | 0.4 % | 1.3 % | |||||||||||
OPERATING INCOME | 14,174 | 19,803 | 14,581 | (28.4) % | (2.8) % | |||||||||||
Interest expense | 2,629 | 3,108 | 3,618 | (15.4) % | (27.3) % | |||||||||||
Income before income taxes | 11,545 | 16,695 | 10,963 | (30.8) % | 5.3 % | |||||||||||
Income tax expense | 4,076 | 4,691 | 8,529 | (13.1) % | (52.2) % | |||||||||||
Net income | 7,469 | 12,004 | 2,434 | (37.8) % | 206.9 % | |||||||||||
Net income attributable to non- | 66 | 259 | 235 | NM | NM | |||||||||||
Net income attributable to Core | $ | 7,403 | $ | 11,745 | $ | 2,199 | (37.0) % | 236.7 % | ||||||||
Diluted earnings per share | $ | 0.16 | $ | 0.25 | $ | 0.05 | (36.0) % | 220.0 % | ||||||||
Diluted earnings per share | $ | 0.15 | $ | 0.25 | $ | 0.05 | (40.0) % | 200.0 % | ||||||||
Diluted weighted average common | 47,773 | 47,820 | 47,557 | (0.1) % | 0.5 % | |||||||||||
Effective tax rate | 35 | % | 28 | % | 78 | % | NM | NM | ||||||||
SEGMENT INFORMATION: | ||||||||||||||||
Revenue: | ||||||||||||||||
Reservoir Description | $ | 86,793 | $ | 88,840 | $ | 84,628 | (2.3) % | 2.6 % | ||||||||
Production Enhancement | 42,444 | 45,557 | 43,582 | (6.8) % | (2.6) % | |||||||||||
Total | $ | 129,237 | $ | 134,397 | $ | 128,210 | (3.8) % | 0.8 % | ||||||||
Operating income: | ||||||||||||||||
Reservoir Description | $ | 16,643 | $ | 16,487 | $ | 12,259 | 0.9 % | 35.8 % | ||||||||
Production Enhancement | (2,597) | 3,232 | 2,195 | (180.4) % | (218.3) % | |||||||||||
Corporate and Other | 128 | 84 | 127 | NM | NM | |||||||||||
Total | $ | 14,174 | $ | 19,803 | $ | 14,581 | (28.4) % | (2.8) % | ||||||||
"NM" means not meaningful | ||||||||||||||||
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||||
Year Ended December 31, | % Variance | |||||||||
2024 | 2023 | |||||||||
REVENUE | $ | 523,848 | $ | 509,790 | 2.8 % | |||||
OPERATING EXPENSES: | ||||||||||
Costs of services and product sales | 420,522 | 399,957 | 5.1 % | |||||||
General and administrative expense | 39,770 | 40,259 | (1.2) % | |||||||
Depreciation and amortization | 14,953 | 15,784 | (5.3) % | |||||||
Other (income) expense, net | (9,953) | (850) | NM | |||||||
Total operating expenses | 465,292 | 455,150 | 2.2 % | |||||||
OPERATING INCOME | 58,556 | 54,640 | 7.2 % | |||||||
Interest expense | 12,369 | 13,430 | (7.9) % | |||||||
Income before income taxes | 46,187 | 41,210 | 12.1 % | |||||||
Income tax expense | 14,034 | 4,185 | 235.3 % | |||||||
Net income | 32,153 | 37,025 | (13.2) % | |||||||
Net income attributable to non-controlling interest | 753 | 350 | NM | |||||||
Net income attributable to Core Laboratories Inc. | $ | 31,400 | $ | 36,675 | (14.4) % | |||||
Diluted earnings per share | $ | 0.67 | $ | 0.78 | (14.1) % | |||||
Diluted earnings per share attributable to Core Laboratories Inc. | $ | 0.66 | $ | 0.77 | (14.3) % | |||||
Diluted weighted average common shares outstanding | 47,685 | 47,523 | 0.3 % | |||||||
Effective tax rate | 30 | % | 10 | % | NM | |||||
SEGMENT INFORMATION: | ||||||||||
Revenue: | ||||||||||
Reservoir Description | $ | 346,146 | $ | 333,345 | 3.8 % | |||||
Production Enhancement | 177,702 | 176,445 | 0.7 % | |||||||
Total | $ | 523,848 | $ | 509,790 | 2.8 % | |||||
Operating income: | ||||||||||
Reservoir Description | $ | 51,466 | $ | 41,039 | 25.4 % | |||||
Production Enhancement | 6,612 | 12,519 | (47.2) % | |||||||
Corporate and Other | 478 | 1,082 | (55.8) % | |||||||
Total | $ | 58,556 | $ | 54,640 | 7.2 % | |||||
"NM" means not meaningful | ||||||||||
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||||||||||
% Variance | ||||||||||||||||
ASSETS: | December 31, | September 30, | December 31, | vs. Q3-2024 | vs. Q4-2023 | |||||||||||
Cash and cash equivalents | $ | 19,157 | $ | 21,474 | $ | 15,120 | (10.8) % | 26.7 % | ||||||||
Accounts receivable, net | 111,761 | 117,591 | 109,352 | (5.0) % | 2.2 % | |||||||||||
Inventories | 59,402 | 65,490 | 71,702 | (9.3) % | (17.2) % | |||||||||||
Other current assets | 36,286 | 30,672 | 26,962 | 18.3 % | 34.6 % | |||||||||||
Total current assets | 226,606 | 235,227 | 223,136 | (3.7) % | 1.6 % | |||||||||||
Property, plant and equipment, net | 97,063 | 97,606 | 99,626 | (0.6) % | (2.6) % | |||||||||||
Right of use assets | 56,488 | 56,650 | 53,842 | (0.3) % | 4.9 % | |||||||||||
Intangibles, goodwill and other long- | 210,249 | 210,983 | 209,791 | (0.3) % | 0.2 % | |||||||||||
Total assets | $ | 590,406 | $ | 600,466 | $ | 586,395 | (1.7) % | 0.7 % | ||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||
Accounts payable | $ | 34,549 | $ | 33,627 | $ | 33,506 | 2.7 % | 3.1 % | ||||||||
Operating lease liabilities | 10,690 | 11,435 | 10,175 | (6.5) % | 5.1 % | |||||||||||
Other current liabilities | 52,347 | 49,876 | 44,416 | 5.0 % | 17.9 % | |||||||||||
Total current liabilities | 97,586 | 94,938 | 88,097 | 2.8 % | 10.8 % | |||||||||||
Long-term debt, net | 126,111 | 139,872 | 163,134 | (9.8) % | (22.7) % | |||||||||||
Long-term operating lease liabilities | 43,343 | 43,727 | 42,076 | (0.9) % | 3.0 % | |||||||||||
Other long-term liabilities | 65,629 | 65,508 | 63,281 | 0.2 % | 3.7 % | |||||||||||
Total equity | 257,737 | 256,421 | 229,807 | 0.5 % | 12.2 % | |||||||||||
Total liabilities and equity | $ | 590,406 | $ | 600,466 | $ | 586,395 | (1.7) % | 0.7 % | ||||||||
CORE LABORATORIES INC. & SUBSIDIARIES | ||||||||
Year Ended December 31, | ||||||||
2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 32,153 | $ | 37,025 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Stock-based compensation | 3,755 | 13,971 | ||||||
Depreciation and amortization | 14,953 | 15,784 | ||||||
Deferred income taxes | 674 | (10,811) | ||||||
Accounts receivable | (3,612) | (2,618) | ||||||
Inventories | 9,367 | (12,976) | ||||||
Accounts payable | 519 | (12,878) | ||||||
Other adjustments to net income | (1,421) | (2,708) | ||||||
Net cash provided by operating activities | 56,388 | 24,789 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital expenditures | (13,028) | (10,579) | ||||||
Net proceeds from life insurance policies and from insurance recovery | 4,878 | 3,375 | ||||||
Other investing activities | 1,756 | 552 | ||||||
Net cash used in investing activities | (6,394) | (6,652) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Repayment of long-term debt | (82,000) | (211,000) | ||||||
Proceeds from long-term debt | 44,000 | 202,000 | ||||||
Equity related transaction costs | (756) | (4,068) | ||||||
Dividends paid | (1,876) | (1,868) | ||||||
Repurchase of common stock | (5,306) | (2,202) | ||||||
Other financing activities | (19) | (1,307) | ||||||
Net cash used in financing activities | (45,957) | (18,445) | ||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 4,037 | (308) | ||||||
CASH AND CASH EQUIVALENTS, beginning of year | 15,120 | 15,428 | ||||||
CASH AND CASH EQUIVALENTS, end of year | $ | 19,157 | $ | 15,120 | ||||
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 Operating Income, Net Income and Diluted Earnings Per Share Attributable to | ||||||||||||
(In thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Operating Income | ||||||||||||
Quarter Ended | ||||||||||||
December 31, | September 30, | December 31, | ||||||||||
GAAP reported | $ | 14,174 | $ | 19,803 | $ | 14,581 | ||||||
Stock compensation (1) | (771) | (1,364) | — | |||||||||
Inventory and asset write-downs, lease abandonment and severance (2) | 4,115 | — | — | |||||||||
Gain on insurance recovery (3) | (2,572) | — | — | |||||||||
Foreign exchange losses (gains) | 761 | (239) | 468 | |||||||||
Excluding specific items | $ | 15,707 | $ | 18,200 | $ | 15,049 | ||||||
Net Income Attributable to Core Laboratories Inc. | ||||||
Quarter Ended | ||||||
December 31, | September 30, | December 31, | ||||
GAAP reported | ||||||
Stock compensation (1) | (617) | (1,091) | — | |||
Inventory and asset write-downs, lease abandonment and severance (2) | 3,292 | — | — | |||
Gain on insurance recovery (3) | (2,058) | — | — | |||
Foreign exchange losses (gains) | 610 | (191) | 374 | |||
Reversal of net deferred tax liabilities and effect of higher (lower) tax rate (4) | 1,766 | 1,351 | 6,336 | |||
Excluding specific items | ||||||
Diluted Earnings Per Share Attributable to Core Laboratories Inc. | ||||||||||||||||
Quarter Ended | Year ended | |||||||||||||||
December 31, | September 30, | December 31, | December 31, | |||||||||||||
GAAP reported | $ | 0.15 | $ | 0.25 | $ | 0.05 | $ | 0.66 | ||||||||
Stock compensation (1) | (0.01) | (0.02) | — | 0.02 | ||||||||||||
Inventory and asset write-downs, lease abandonment | 0.07 | — | — | 0.11 | ||||||||||||
Gain on insurance recovery (3) | (0.04) | — | — | (0.04) | ||||||||||||
Foreign exchange losses (gains) | 0.01 | (0.01) | 0.01 | 0.02 | ||||||||||||
Reversal of net deferred tax liabilities and effect of | 0.04 | 0.03 | 0.13 | 0.10 | ||||||||||||
Excluding specific items | $ | 0.22 | $ | 0.25 | $ | 0.19 | $ | 0.87 | ||||||||
(1) The quarters ended September 30, 2024 and December 31, 2024 include reversals of stock compensation expense previously recognized | ||||||||||||||||
(2) Includes the write-down of leasehold improvements, right of use assets and/or other assets and exit costs associated with consolidation of | ||||||||||||||||
(3) Includes gain on insurance recovery associated with the fire incident in one of the Company's | ||||||||||||||||
(4) The quarters ended September 30, 2024 and December 31, 2024, and the year ended December 31, 2024, includes the effect to reflect tax | ||||||||||||||||
Segment Information | ||||||||||||
Operating Income | ||||||||||||
Quarter Ended December 31, 2024 | ||||||||||||
Reservoir | Production | Corporate and | ||||||||||
GAAP reported | $ | 16,643 | $ | (2,597) | $ | 128 | ||||||
Stock compensation (1) | (489) | (282) | — | |||||||||
Inventory and asset write-downs, lease abandonment and severance (2) | — | 4,115 | — | |||||||||
Gain on insurance recovery (3) | (2,572) | — | — | |||||||||
Foreign exchange losses (gains) | 549 | 271 | (59) | |||||||||
Excluding specific items | $ | 14,131 | $ | 1,507 | $ | 69 | ||||||
Return on Invested Capital
Return on Invested Capital ("ROIC") is presented based on management's belief that this non-GAAP measure is useful information to investors and management when comparing profitability and the efficiency with which capital has been employed over time relative to other companies. The Board has established an internal metric to demonstrate ROIC performance relative to the oilfield service companies listed as Core's Comp Group by Bloomberg. ROIC is not a measure of financial performance under GAAP and should not be considered as an alternative to net income.
ROIC of
Free Cash Flow
Core uses the non-GAAP financial measure of free cash flow to evaluate its cash flows and results of operations. Free cash flow is defined as net cash provided by operating activities (which is the most directly comparable GAAP measure) less cash paid for capital expenditures. Management believes that free cash flow provides useful information to investors regarding the cash available in the period in excess of Core's needs to fund its capital expenditures and operating activities. Free cash flow is not a measure of operating performance under GAAP and should not be considered in isolation nor construed as an alternative to operating income, net income, or cash flows from operating, investing, or financing activities, each as determined in accordance with GAAP. Free cash does not represent residual cash available for distribution because Core may have other non-discretionary expenditures that are not deducted from the measure. Moreover, since free cash flow is not a measure determined in accordance with GAAP and thus is susceptible to varying interpretations and calculations, free cash flow as presented may not be comparable to similarly titled measures presented by other companies.
Computation of Free Cash Flow | ||||||||
Quarter Ended | Year Ended | |||||||
December 31, 2024 | December 31, 2024 | |||||||
Net cash provided by operating activities | $ | 20,615 | $ | 56,388 | ||||
Capital expenditures | (4,381) | (13,028) | ||||||
Free cash flow | $ | 16,234 | $ | 43,360 | ||||
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SOURCE Core Laboratories Inc
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