Superior Energy Services-North America Services, Inc

CIK:0001340041|SEC Filings

Earnings per share

9 Months Ended

Sep. 30, 2011

9. Earnings per share:

We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common share includes the weighted average of additional shares associated with the incremental effect of dilutive employee stock options and non-vested restricted stock, as determined using the treasury stock method prescribed by the Financial Accounting Standards Board (“FASB”) guidance on earnings per share. The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share for the quarters and nine months ended September 30, 2011 and 2010:


	Quarter Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(In thousands)
Weighted average basic common shares outstanding		78,004		76,130		77,578		75,957
Effect of dilutive securities:
Employee stock options		998		751		1,052		628
Non-vested restricted stock		443		911		450		810

Weighted average diluted common and potential common shares outstanding		79,445		77,792		79,080		77,395

We excluded the impact of anti-dilutive potential common shares from the calculation of diluted weighted average shares for the quarter and nine months ended September 30, 2011 and 2010. If these potential common shares were included in the calculation, the impact would have been a decrease in diluted weighted average shares outstanding of 34,563 shares and 47,870 shares for the quarters ended September 30, 2011 and 2010, respectively, and 35,156 shares and 257,781 shares for the nine months ended September 30, 2011 and 2010, respectively.

Condensed Consolidated Statement of Cash Flows (Detail) (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash provided by:
Net income (loss)	$ 152,625	$ 45,939
Items not affecting cash:
Depreciation and amortization	147,308	135,596
Other	81,644	19,038
Changes in operating assets and liabilities	(54,874)	(29,803)
Net cash provided by (used in) operating activities	326,703	170,770
Investing activities:
Additions to property, plant and equipment	(259,925)	(89,855)
Acquisitions	(15,576)	(21,332)
Proceeds from the sale of disposal group	19,300
Proceeds from the disposal of capital assets	6,333	4,436
Other	169
Net cash provided by (used for) investing activities	(249,699)	(106,751)
Financing activities:
Repayments of long-term debt		(141)
Repayments of notes payable		(1,069)
Proceeds from issuances of common stock	15,952	3,106
Purchase of treasury shares	(5,643)	(1,418)
Other	2,513	612
Net cash provided by (used in) financing activities	12,822	1,090
Effect of exchange rate changes on cash	(680)	126
Change in cash and cash equivalents	89,146	65,235
Cash and cash equivalents, beginning of period	119,135	71,770
Cash and cash equivalents, end of period	208,281	137,005
Parent
Cash provided by:
Net income (loss)	152,625	45,939
Items not affecting cash:
Equity in earnings of consolidated affiliates	(197,463)	(90,456)
Depreciation and amortization	1,254	1,011
Other	6,556	12,173
Changes in operating assets and liabilities	103,877	50,829
Net cash provided by (used in) operating activities	66,849	19,496
Investing activities:
Additions to property, plant and equipment	(104)	(1,041)
Inter-company receipts	(14,159)	48,273
Other	169
Net cash provided by (used for) investing activities	(14,094)	47,232
Financing activities:
Repayments of notes payable		(1,069)
Proceeds from issuances of common stock	15,952	3,106
Purchase of treasury shares	(5,643)	(1,418)
Other	2,513	612
Net cash provided by (used in) financing activities	12,822	1,231
Change in cash and cash equivalents	65,577	67,959
Cash and cash equivalents, beginning of period	111,834	64,871
Cash and cash equivalents, end of period	177,411	132,830
Guarantor Subsidiaries
Cash provided by:
Net income (loss)	197,463	90,456
Items not affecting cash:
Equity in earnings of consolidated affiliates	(9,567)	(7,948)
Depreciation and amortization	137,147	125,186
Other	75,074	7,316
Changes in operating assets and liabilities	(147,727)	(68,475)
Net cash provided by (used in) operating activities	252,390	146,535
Investing activities:
Additions to property, plant and equipment	(253,671)	(85,682)
Acquisitions	(15,576)	(21,332)
Proceeds from the disposal of capital assets	6,090	4,311
Net cash provided by (used for) investing activities	(263,157)	(102,703)
Financing activities:
Repayments of long-term debt		(139)
Inter-company borrowings	12,975	(43,243)
Net cash provided by (used in) financing activities	12,975	(43,382)
Change in cash and cash equivalents	2,208	450
Cash and cash equivalents, beginning of period	569	519
Cash and cash equivalents, end of period	2,777	969
Non-Guarantor Subsidiaries
Cash provided by:
Net income (loss)	9,567	7,948
Items not affecting cash:
Depreciation and amortization	8,907	9,399
Other	14	(451)
Changes in operating assets and liabilities	(12,958)	(5,912)
Net cash provided by (used in) operating activities	5,530	10,984
Investing activities:
Additions to property, plant and equipment	(6,150)	(3,132)
Inter-company receipts	525
Proceeds from the sale of disposal group	19,300
Proceeds from the disposal of capital assets	243	125
Net cash provided by (used for) investing activities	13,918	(3,007)
Financing activities:
Repayments of long-term debt		(2)
Inter-company borrowings	659	(4,388)
Net cash provided by (used in) financing activities	659	(4,390)
Effect of exchange rate changes on cash	(680)	126
Change in cash and cash equivalents	19,427	3,713
Cash and cash equivalents, beginning of period	23,500	11,411
Cash and cash equivalents, end of period	42,927	15,124
Eliminations/Reclassifications
Cash provided by:
Net income (loss)	(207,030)	(98,404)
Items not affecting cash:
Equity in earnings of consolidated affiliates	207,030	98,404
Changes in operating assets and liabilities	1,934	(6,245)
Net cash provided by (used in) operating activities	1,934	(6,245)
Investing activities:
Inter-company receipts	13,634	(48,273)
Net cash provided by (used for) investing activities	13,634	(48,273)
Financing activities:
Inter-company borrowings	(13,634)	47,631
Net cash provided by (used in) financing activities	(13,634)	47,631
Change in cash and cash equivalents	1,934	(6,887)
Cash and cash equivalents, beginning of period	(16,768)	(5,031)
Cash and cash equivalents, end of period	$ (14,834)	$ (11,918)

Consolidated Balance Sheets (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 208,281	$ 119,135
Accounts receivable, net	435,595	341,984
Inventory, net	36,286	28,389
Prepaid expenses	33,378	18,357
Income tax receivable	22,724	23,462
Current deferred tax assets	15,462	2,499
Other current assets		1,384
Current assets of discontinued operations		16,700
Total current assets	751,726	551,910
Property, plant and equipment, net	1,073,825	950,932
Intangible assets, net of accumulated amortization of $25,180 and $21,293, respectively	9,802	9,209
Deferred financing costs, net of accumulated amortization of $11,242 and $9,316, respectively	10,246	9,694
Goodwill	252,137	247,675
Restricted cash	17,000	17,000
Other long-term assets	6,226	5,259
Long-term assets of discontinued operations		8,897
Total assets	2,120,962	1,800,576
Current liabilities:
Accounts payable	104,262	74,502
Accrued liabilities	51,878	42,047
Accrued payroll and payroll burdens	36,113	26,568
Accrued interest	15,668	2,446
Income taxes payable	2,200
Current liabilities of discontinued operations		2,841
Total current liabilities	210,121	148,404
Long-term debt	650,000	650,000
Deferred income taxes	275,784	190,389
Other long-term liabilities	4,512	5,916
Long-term liabilities of discontinued operations		33
Total liabilities	1,140,417	994,742
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value per share, 200,000,000 shares authorized, 78,012,457 (2010 - 76,443,926) issued	780	764
Preferred stock, $0.01 par value per share, 5,000,000 shares authorized, no shares issued and outstanding
Additional paid-in capital	688,709	657,993
Retained earnings	278,790	126,165
Treasury stock, 372,341 (2010 - 167,643) shares at cost	(7,408)	(1,765)
Accumulated other comprehensive income	19,674	22,677
Total stockholders' equity	980,545	805,834
Total liabilities and stockholders' equity	$ 2,120,962	$ 1,800,576