Core Laboratories N.V. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the First Quarter and Full Year of 2014
Jan 29 14
Core Laboratories N.V. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported revenue of $276,279,000 compared to revenue of $254,455,000 for the same period a year ago. Operating income was $87,917,000 compared to $75,868,000 last year. Income before income tax expense was $85,434,000 compared to $73,576,000 last year. Net income was $64,716,000 compared to $55,182,000 last year. Net income attributable to the company was $64,724,000 or $1.42 per diluted share compared to $54,801,000 or $1.17 per diluted share last year. Operating income excluding specific items was $88,480,000. Net income excluding specific items was $64,936,000 or $1.43 per diluted share. The company reported net cash provided by operating activities of $87,489,000, capital expenditures of $8,428,000 and free cash flow of $79,061,000.
For the year, the company reported revenue of $1,073,508,000 compared to revenue of $981,080,000 for the same period a year ago. Operating income was $333,419,000 compared to $297,280,000 last year. Income before income tax expense was $324,102,000 compared to $288,460,000 last year. Net income was $243,194,000 compared to $216,612,000 last year. Net income attributable to the company was $242,811,000 or $5.28 per diluted share compared to $216,071,000 or $4.54 per diluted share last year. Operating income excluding specific items was $336,147,000 compared to $295,573,000 last year. Cash flows from operating activities were $298,137,000. Net income excluding specific items was $244,857,000 or $5.32 per diluted share compared to $214,789,000 or $4.52 per diluted share last year. Capital expenditures were $35,416,000 and free cash flow of $262,721,000.
The company anticipates that first quarter 2014 North American activity levels will ramp up slightly from fourth quarter 2013 levels, while international activity will continue to experience moderate increases. Therefore, Core expects first quarter 2014 revenue to range between $280,000,000 and $286,000,000. Using the midpoint of revenue guidance and applying year-over-year quarterly incremental margins of 40% to 45%, first quarter 2014 EPS guidance would range from $1.43 to $1.45. Free cash flow (FCF) for the quarter is expected to be approximately $70,000,000 or greater, once again exceeding net income for the period. This operational guidance excludes any foreign currency translations or any shares that may be repurchased in the first quarter, other than those previously disclosed. A 24.0% effective tax rate is assumed for the first quarter.
Based on the anticipated increases in worldwide activity levels, Core believes that full-year 2014 revenue will range between approximately $1,160,000,000 and $1,181,000,000, with full-year EPS ranging from approximately $6.00, applying 40% full year-over-year incremental margins to the lower projected revenue level, to approximately $6.25, applying 45% full year-over-year incremental margins to the higher projected revenue level. Operating income margins are expected to expand to 32%, increasing approximately 100 basis points over 2013 levels. Core expects FCF totals to exceed $300,000,000 in 2014, with the company's client-directed capex program to be slightly greater than in 2013 and to be more than offset by continued improvements in working capital efficiencies. The company expects effective tax rate for the full year to be approximately 24%. CapEx program in 2014 to be approximately $37 million as a result of an expected continued improvement in industry activity, particularly in the markets in which the company operate.