TESCO CORP

CIK:0001022705|SEC Filings

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Products	$ 14,798	$ 10,236	$ 45,033	$ 35,680
Services	25,716	20,179	72,368	63,774
Total revenue	40,514	30,415	117,401	99,454
Cost of sales and services
Products	13,471	16,965	43,440	47,068
Services	30,567	27,363	87,928	87,783
Total cost of sales and services	44,038	44,328	131,368	134,851
Selling, general and administrative	8,391	6,725	20,745	20,691
Long-lived asset impairments	0	0	0	35,514
Research and engineering	788	1,248	2,401	4,258
Total operating expenses	53,217	52,301	154,514	195,314
Operating loss	(12,703)	(21,886)	(37,113)	(95,860)
Other expense (income)
Interest expense	165	196	287	850
Interest income	(37)	(42)	(141)	(471)
Foreign exchange loss (gain)	(127)	352	186	1,537
Other expense (income)	241	233	(85)	260
Total other expense	242	739	247	2,176
Loss before income taxes	(12,945)	(22,625)	(37,360)	(98,036)
Income tax provision (benefit)	83	(556)	1,468	(257)
Net loss	$ (13,028)	$ (22,069)	$ (38,828)	$ (97,779)
Loss per share:
Basic (in usd per share)	$ (0.28)	$ (0.48)	$ (0.83)	$ (2.33)
Diluted (in usd per share)	$ (0.28)	$ (0.48)	$ (0.83)	$ (2.33)
Weighted average number of shares:
Basic (in shares)	46,755	46,382	46,733	42,039
Diluted (in shares)	46,755	46,382	46,733	42,039

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating Activities
Net loss	$ (38,828)	$ (97,779)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	17,159	22,516
Stock compensation expense	3,726	3,247
Bad debt expense (recovery)	(688)	514
Deferred income taxes	(81)	152
Amortization of financial items	0	406
Gain on sale of operating assets	(2,121)	(616)
Long-lived asset impairments	0	35,514
Changes in the fair value of contingent earn-out obligations	0	(74)
Changes in operating assets and liabilities:
Accounts receivable trade, net	(9,055)	24,780
Inventories, net	(1,344)	14,919
Prepaid and other current assets	602	3,164
Accounts payable and accrued liabilities	1,012	(12,668)
Income taxes payable	1,939	608
Other non-current assets and liabilities, net	595	(228)
Net cash used in operating activities	(27,084)	(5,545)
Investing Activities
Additions to property, plant, equipment and intangibles	(2,911)	(4,529)
Proceeds on sale of operating assets	2,439	2,865
Other, net	0	226
Net cash used in investing activities	(472)	(1,438)
Financing Activities
Proceeds from stock issuance	0	47,918
Stock issuance costs	0	364
Changes in restricted cash	648	(1,951)
Net cash provided by financing activities	648	45,603
Change in cash and cash equivalents	(26,908)	38,620
Cash and cash equivalents, beginning of period	91,489	51,507
Cash and cash equivalents, end of period	64,581	90,127
Supplemental cash flow information
Cash payments for interest	0	355
Cash payments for income taxes, net of refunds	(730)	1,350
Property, plant and equipment accrued in accounts payable	$ 398	$ 2,329

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 64,581	$ 91,489
Accounts receivable trade, net of allowance for doubtful accounts of $8,199 and $9,134 as of September 30, 2017 and December 31, 2016, respectively	44,577	33,320
Inventories, net	77,569	76,226
Income taxes recoverable	2,726	4,906
Prepaid and other current assets	13,784	15,034
Total current assets	203,237	220,975
Property, plant and equipment, net	106,842	120,743
Intangible and other assets, net	2,811	2,561
Total assets	312,890	344,279
Current liabilities
Accounts payable	15,571	13,492
Deferred revenue	3,370	4,369
Income taxes payable	1,774	2,120
Accrued payroll and benefits	6,672	6,293
Accrued taxes other than income taxes	4,131	4,301
Other current liabilities	4,976	2,135
Total current liabilities	36,494	32,710
Deferred income taxes	326	406
Other liabilities	1,589	1,580
Total liabilities	38,409	34,696
Commitments and contingencies
Shareholders’ equity
Common shares; no par value; unlimited shares authorized; 46,756 and 46,688 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	268,666	264,940
Retained earnings (deficit)	(29,686)	9,142
Accumulated other comprehensive income	35,501	35,501
Total shareholders’ equity	274,481	309,583
Total liabilities and shareholders’ equity	$ 312,890	$ 344,279