Financial Data and Key Metrics Changes - Revenue for the first quarter of 2024 was $129.6 million, a slight increase from $128.2 million in the prior quarter and $128.4 million in the first quarter of the previous year, overcoming typical seasonal declines [20][43] - Operating income for the first quarter was $14.9 million with operating margins at 12%, flat compared to Q4 of 2023 [3][29] - Net income ex-items for the quarter was $8.9 million, relatively flat from the previous quarter and a slight increase from $8.8 million in the first quarter of last year [32] Business Line Data and Key Metrics Changes - Reservoir Description revenue was flat sequentially at $84.2 million, with operating income ex-items at $11.4 million and operating margins at 14%, down slightly from Q4 [66] - Production Enhancement revenue increased to $45.4 million, up approximately 4% sequentially, with operating income ex-items at $3.4 million and operating margins at 8%, up from 6% in Q4 [79][80] Market Data and Key Metrics Changes - U.S. land completion activity was down approximately 11% compared to Q4, but U.S. product sales increased by 7% sequentially, reflecting improved market penetration [44] - International growth is expected to continue, particularly in regions not affected by geopolitical conflicts, with double-digit growth anticipated in key areas [12][13] Company Strategy and Development Direction - The company aims to introduce new problem-solving products and services in key geographic markets while maintaining a lean organization and commitment to deleveraging [6][9] - Core Lab is focused on maximizing free cash flow, return on invested capital, and returning excess free cash to shareholders [48][91] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive outlook on international upstream projects for 2024, anticipating sustainable activity growth to support crude oil demand [10] - The geopolitical situations in Russia-Ukraine and the Middle East are creating volatility, impacting demand for lab services in those regions [11][14] Other Important Information - The company recorded a charge of $3.5 million for non-cash stock compensation and $2.6 million for costs associated with exiting and consolidating facilities [19] - Free cash flow generated during the quarter was primarily used to reduce debt, with a leverage ratio of 1.76 [36][47] Q&A Session Summary Question: What is the outlook for the R&D business and international growth? - Management acknowledged challenges due to geopolitical conflicts impacting crude oil trading and assay work, which may affect growth rates for Reservoir Description services [86] Question: How does the company view the competitive landscape, particularly regarding perforating businesses? - Management noted that the market is crowded, but Core Lab's technological advantages allow for innovation and competitiveness despite challenges in margin progression [90] Question: What are the expectations for cash generation relative to historical levels? - Management indicated that cash generation is influenced by macro market conditions and operational efficiencies, with expectations for improved margins and cash flow as activity levels increase [88][99]

Core Laboratories (CLB) reported first-quarter 2024 adjusted earnings of 19 cents per share, which beat the Zacks Consensus Estimate of 16 cents. This can be attributed to better-than-expected performance from the Reservoir Description segment. The bottom line was in line with the year-ago quarter’s reported figure.However, this oilfield service provider’s operating revenues of $129.6 million beat the Zacks Consensus Estimate of $124 million by 4.5%. The top line increased 0.9% from the year-ago quarter’s l ...

Financial Performance - First quarter 2024 revenue was $129.6 million, reflecting a modest increase both sequentially and year-over-year[2] - First quarter operating income was $8.6 million; ex-items operating income was $14.9 million, flat sequentially and up 3% year-over-year[2] - First quarter GAAP EPS was $0.07; ex-items EPS was $0.19, remaining flat sequentially and year-over-year[2] - Revenue for the three months ended March 31, 2024, was $129,637 million, a 1.1% increase compared to $128,210 million in Q4 2023[27] - Operating income decreased by 41.2% to $8,571 million from $14,581 million in the previous quarter[27] - Net income increased by 43.4% to $3,490 million compared to $2,434 million in Q4 2023[27] - Diluted earnings per share rose by 40.0% to $0.07 from $0.05 in the previous quarter[27] - GAAP reported net income for the three months ended March 31, 2024, was $3,220 million, an increase from $2,373 million in the same period last year[33] - Excluding specific items, net income was $8,949 million for the three months ended March 31, 2024, compared to $8,796 million for the same period in 2023[33] - The diluted earnings per share attributable to Core Laboratories Inc. for the three months ended March 31, 2024, was $0.07, up from $0.05 in the same period last year[33] Segment Performance - Reservoir Description segment revenue was $84.2 million, flat sequentially and up 5% year-over-year, with operating margins of 14%[3] - Production Enhancement segment revenue was $45.4 million, up over 4% sequentially, with operating margins improving by 200 basis points to 8%[10] - Core anticipates Reservoir Description's second quarter 2024 revenue to continue growing, projecting revenue between $85.5 million and $88.5 million[18] Cash Flow and Capital Management - Free cash flow for the first quarter was $2.5 million, with cash from operations impacted by a $5.7 million increase in accounts receivable[11] - Free cash flow for the three months ended March 31, 2024, was $2,478 thousand, after capital expenditures of $3,052 thousand[37] - The company reduced debt by $3 million in the first quarter, bringing total debt to $163 million, maintaining a leverage ratio of 1.76[12] - Long-term debt decreased to $160,370 million from $163,134 million in the previous quarter, a reduction of 1.7%[29] - Capital expenditures for the quarter were $(3,052 million), up from $(2,208 million) in Q1 2023[30] Asset and Equity Changes - Total current assets increased by 2.6% to $229,047 million from $223,136 million in Q4 2023[29] - Total equity increased by 3.3% to $237,417 million compared to $229,807 million in the previous quarter[29] Tax and Other Expenses - The effective tax rate for the quarter was 32%, a significant decrease from 78% in the previous quarter[27] - The company incurred stock compensation expenses of $3,458 million for the three months ended March 31, 2024, compared to $6,515 million in the same period last year[33] - Foreign exchange losses for the three months ended March 31, 2024, were $285 million, compared to gains of $144 million in the same period last year[33] - The company reported severance costs of $824 million for the three months ended March 31, 2024[33] - The loss on lease abandonment and assets write-down was $1,809 million for the three months ended March 31, 2024, compared to $1,656 million in the same period last year[33] Return on Investment - Core's return on invested capital (ROIC) for the first quarter of 2024 was 11.6%, remaining relatively flat compared to the prior quarter-end[15] - Return on Invested Capital (ROIC) was reported at 11.6%, calculated from a net operating profit after tax (NOPAT) of $46.9 million and average total invested capital of $403.0 million[40]

Core Laboratories (CLB) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Core Laboratories (CLB) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 24. ...

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Financial Performance - Total revenue for the year ended December 31, 2023, was $509.8 million, a 4.1% increase compared to $489.7 million in 2022[71] - Service revenue accounted for $371.9 million, representing 73.0% of total revenue, with a 7.2% increase from $347.0 million in 2022[71] - Product sales revenue decreased by 3% to $137.9 million, primarily due to a 21% decline in the U.S. land rig count[74] - Operating income rose to $54.6 million, a significant increase of 31.6% from $41.5 million in 2022[71] - Net income attributable to Core Laboratories Inc. was $36.7 million, an 88.5% increase compared to $19.5 million in 2022[71] - Diluted earnings per share increased to $0.78, reflecting an 85.7% rise from $0.42 in 2022[71] - Operating income for 2023 was $54.64 million, representing a 31.6% increase from $41.52 million in 2022[1] - Revenue from the Reservoir Description operating segment for the year ended December 31, 2023 was $333.3 million, an increase of 8% compared to 2022[144] Expenses and Costs - General and administrative expenses increased by 5.6% to $40.3 million, up from $38.1 million in 2022[71] - Cost of product sales for 2023 was $117.8 million, a 1% decrease from $119.4 million in 2022, with costs as a percentage of product sales revenue increasing to approximately 86%[102] - General and administrative expenses for 2023 were $40.3 million, a 6% increase from $38.1 million in 2022, primarily due to higher stock compensation expenses[103] Cash Flow and Debt - Cash provided by operating activities for 2023 was $24.8 million, slightly down from $25.0 million in 2022[117] - Free cash flow for the year ended December 31, 2023 was $14.2 million, compared to $14.7 million in 2022[120] - As of December 31, 2023, total long-term debt was $166.0 million, with a leverage ratio of 1.76 and an interest coverage ratio of 6.37[122] - Cash used in financing activities in 2023 was $18.4 million, primarily due to a net reduction in debt of $9.0 million[150] Market Conditions - The U.S. land-based rig count decreased approximately 21% at the end of 2023 compared to the end of 2022[96] - The geopolitical conflict between Russia and Ukraine caused significant volatility in crude oil prices during 2022 and into 2023, with average prices elevated in 2022 but decreasing in 2023[158] - The company expects crude-oil supply lines to remain more stable, although recent conflicts in the Middle East have caused some disruptions[158] Investments and Future Outlook - The company maintained annual capital expenditures between $10.0 million and $13.5 million for 2021, 2022, and 2023, significantly lower than pre-pandemic levels[69] - The company expects to continue investing in capital expenditures aligned with client demand, although the specific investment level for 2024 has not yet been determined[125] - The International Energy Agency reports that global demand for crude oil and natural gas remains high, but growth is expected to slow down in 2024 due to a weakening macroeconomic climate[126] Shareholder Returns - The company repurchased 113,792 shares of common stock for $2.2 million at an average price of $19.35 per share during 2023[91] - The company maintained a quarterly dividend of $0.01 per share throughout 2023[89] Tax and Compliance - Uncertain tax positions accrued as of December 31, 2023 amount to $3.5 million, with the timing of payment being uncertain[124] - The company had tax net operating loss carry-forwards in various jurisdictions of $32.8 million as of December 31, 2023[156] - The company has not recorded any material impairment charges related to long-lived assets during the years ended December 31, 2023, 2022, and 2021[133] Operational Insights - The inventory of drilled but uncompleted wells (DUC) in the U.S. declined from 4,577 at the end of 2022 to 4,374 at the end of 2023[95] - The company is involved in large-scale core analyses and reservoir fluids characterization studies in major oil-producing regions, including projects in Guyana, Suriname, and the Gulf of Mexico[128] - Revenue from the Production Enhancement segment for the year ended December 31, 2023 was $176.4 million, a decrease of 3% compared to 2022, primarily due to reduced drilling and completion activities in the U.S. land market[114] - Free cash flow decreased slightly by $0.5 million for the year ended December 31, 2023, primarily due to a slightly higher level of capital spending in 2023[151] - Revenue associated with certain customer contracts denominated in foreign currencies was adversely impacted by the devaluation of major currencies against the U.S. Dollar[144]

Financial Data and Key Metrics Changes - For the full year 2023, earnings per diluted share excluding items was $0.80, up 40% from the previous year, and on a GAAP basis, it was $0.86 [17] - Revenue for Q4 2023 was $128.2 million, up 2% compared to Q3 and flat year-over-year [50] - Operating income for Q4 was $15 million, with operating margins at 12%, slightly down from 13% in Q3 [27] - The leverage ratio improved to 1.76, the lowest since Q2 2019, as the company aims for a target of 1.5 times or lower [9] Business Line Data and Key Metrics Changes - Reservoir Description revenue for Q4 was $84.6 million, flat compared to Q3, with operating income at $12.3 million and margins at 15%, down from 17% in Q3 due to increased labor costs [79] - Production Enhancement revenue was $43.6 million, up approximately 8% sequentially, with operating income at $2.4 million and margins at 6%, up from 4% in Q3 [95] Market Data and Key Metrics Changes - Demand for Reservoir Description assay work was uneven due to geopolitical conflicts affecting maritime hydrocarbon cargo movement [11] - The company anticipates that international upstream projects will continue to grow, supporting crude oil demand and energy security [19] Company Strategy and Development Direction - The company remains focused on maximizing free cash flow and returns on invested capital while investing in growth opportunities through new technologies and market penetration [6][47] - Core Laboratories aims to strengthen its balance sheet by using free cash to reduce debt and maintain a lean organization [47][61] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical conflicts in Ukraine and the Middle East create volatility in trading patterns and demand for laboratory services [62] - The company projects first quarter 2024 revenue to range from $122 million to $128 million, with operating income of $11.8 million to $14.3 million [126] Other Important Information - The company recorded a net income of $6.5 million for Q4 on a GAAP basis, with net income excluding items at $8.9 million, down from $10.3 million in the prior quarter [39][40] - Interest expense increased to $3.6 million in Q4 compared to $3.1 million in the prior quarter due to maturing senior notes [37] Q&A Session Summary Question: Can you discuss margin progression in Reservoir Description and potential incrementals in the second half of 2024? - Management indicated that the segment is highly exposed to international activity, projecting low double-digit growth next year, with incremental margins expected to be around 50% to 60% on growth [103] Question: What is the competitive landscape for the US perforating market? - Management acknowledged a crowded market but emphasized Core Lab's strong competitive edge in shaped charge energetics and the quality of their products [110] Question: How are international projects progressing, particularly in Brazil and Guyana? - Management noted that the Middle East is leading, followed by the South Atlantic margin, with some bright spots in West Africa and Asia Pacific [109]

Core Laboratories (CLB) reported fourth-quarter 2023 adjusted earnings of 19 cents per share, which missed the Zacks Consensus Estimate of 20 cents. The bottom line was also lower than the year-ago quarter’s reported figure of 20 cents. This could be attributed to poor performance in the Production Enhancement segment.However, this oilfield service provider’s operating revenues of $128 million were in line with the Zacks Consensus Estimate. The top line increased 0.3% from the year-ago quarter’s level of $1 ...

For the quarter ended December 2023, Core Laboratories (CLB) reported revenue of $128.21 million, up 0.5% over the same period last year. EPS came in at $0.19, compared to $0.20 in the year-ago quarter.The reported revenue represents a surprise of +0.32% over the Zacks Consensus Estimate of $127.8 million. With the consensus EPS estimate being $0.20, the EPS surprise was -5.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...