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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 ...

Core Laboratories (CLB) came out with quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5%. A quarter ago, it was expected that this energy services company would post earnings of $0.23 per share when it actually produced earnings of $0.22, delivering a surprise of -4.35%.Over the last four quarters ...

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $125.3 million, down 2% sequentially and flat year-over-year [14] - Operating income, ex-items, was $16 million, up 2% sequentially and up 20% year-over-year [8][19] - Earnings per share, ex-items, was $0.22, up from $0.21 in Q2 2023 and $0.18 in Q3 2022 [19] - Operating margins improved to 13%, up from 12% in Q2 2023 and 11% in Q3 2022 [9] Business Line Data and Key Metrics Changes - Reservoir description revenue was $85.1 million, up 2% sequentially and 8% year-over-year, with operating margins at 17%, the highest since Q2 2020 [34] - Production enhancement revenue was $40.2 million, down approximately 10% sequentially and 14% year-over-year, with operating margins at 4% [37] Market Data and Key Metrics Changes - U.S. land completion activity was down 10% sequentially, impacting production enhancement [10] - International upstream project activity continued to expand, but U.S. activity was lower than expected [14][26] Company Strategy and Development Direction - The company aims to introduce new products and services in key geographic markets, maintain a lean organization, and focus on de-leveraging [10][11] - Core Laboratories is focused on maximizing free cash flow, return on invested capital, and returning excess free cash to shareholders [11] Management Comments on Operating Environment and Future Outlook - Management noted ongoing geopolitical uncertainties affecting demand for laboratory services, particularly due to the Russia-Ukraine conflict and Middle East tensions [10][27] - The company maintains a constructive outlook on international upstream activity for 2024 and beyond, anticipating increased investment in hydrocarbon production [29] Other Important Information - The company retired $75 million in senior notes and used $71 million of its bank credit facility to fund this maturity [21] - Cash flow used in operating activities was approximately $200,000, with free cash flow negative $3.7 million due to a build in working capital [22] Q&A Session Summary - No questions were posed during the Q&A session, leading to a wrap-up by management [43]

Financial Performance - Total revenue for Q3 2023 was $125.3 million, a decrease of 2% from $127.9 million in Q2 2023[115] - Net income for Q3 2023 was $9.2 million, down 60% from $22.9 million in Q2 2023[115] - Operating income for Q3 2023 was $14.7 million, a decline of 22% compared to $18.9 million in Q2 2023[115] - For the nine months ended September 30, 2023, total revenue was $381.6 million, a 5% increase from $362.2 million in the same period of 2022[116] - Net income attributable to Core Laboratories Inc. for the nine months ended September 30, 2023, was $34.5 million, a significant increase of 171% from $12.7 million in the same period of 2022[116] - For the three months ended September 30, 2023, service revenue was $92.9 million, an increase of 6% year-over-year[139] - Total revenue for the same period was $125.3 million, showing a slight decrease of 0% compared to $125.9 million in the previous year[134] - Operating income for the three months ended September 30, 2023, was $14.7 million, remaining relatively flat compared to $14.6 million in the previous year[134] - Net income attributable to Core Laboratories Inc. for the three months ended September 30, 2023, was $9.3 million, representing a 23% increase from $7.5 million in the prior year[134] Revenue Breakdown - Services revenue accounted for 74% of total revenue in Q3 2023, while product sales made up 26%[115] - Cost of product sales was $27.6 million for the three months ended September 30, 2023, a decrease of 12% year-over-year[142] - Revenue from the Reservoir Description segment was $85.1 million for the three months ended September 30, 2023, an increase of 8% year-over-year[178] - Revenue from the Production Enhancement segment was $40.2 million for the three months ended September 30, 2023, a decrease of 14% year-over-year[181] - For the nine months ended September 30, 2023, product sales revenue totaled $104.4 million, remaining relatively flat compared to the same period in the prior year[166] Expenses and Margins - Cost of services for Q3 2023 was $69.0 million, representing 74% of service revenue, an improvement from 77% in the same period last year[119] - General and administrative expenses for Q3 2023 were $9.5 million, an increase of 63% sequentially from $5.8 million in Q2 2023[120] - General and Administrative (G&A) expense for the nine months ended September 30, 2023, was $31.6 million, an increase of $2.2 million from $29.4 million in the same period in 2022, mainly due to higher stock compensation expenses[169] - Operating margins improved to 12% for the nine months ended September 30, 2023, up from 7% in the same period of 2022[151] - Operating margins for the three months ended September 30, 2023, were 4%, down from 9% in the same period last year[183] Cash Flow and Financing - Cash flows provided by operating activities for the three months ended September 30, 2023, were $5.4 million, a decrease of 54% from $11.7 million in the same period in 2022[187] - Free cash flow for the nine months ended September 30, 2023, was $(2.5) million, compared to $3.6 million in the same period in 2022[190] - Cash flows used in financing activities for the nine months ended September 30, 2023, were nominal, driven by a $6.0 million net increase in long-term debt[188] Ratios and Financial Health - The current ratio improved to 2.71:1 in Q3 2023 from 2.23:1 in the previous quarter[114] - The debt to EBITDA ratio decreased to 2.26:1 in Q3 2023 from 2.81:1 in Q2 2023[114] - The current ratio improved to 2.71:1 from 2.45:1 year-over-year[136] - The debt to EBITDA ratio increased slightly to 2.26:1 from 2.18:1 year-over-year[136] Tax and Interest - The effective tax rate for the three months ended September 30, 2023, was 20%, compared to 33.5% for the same period in 2022[147] - Interest expense for the nine months ended September 30, 2023, was $9.8 million, up from $8.5 million in the same period of 2022, primarily due to rising interest rates[146] Market Conditions and Outlook - The geopolitical conflict between Russia and Ukraine has caused significant volatility in crude oil prices, impacting trading patterns and supply chains[130] - The company anticipates that crude oil commodity prices will remain stable or increase due to high global demand for crude oil and natural gas[129] - The company expects client activities related to increasing oil and gas reserves and production levels to continue to rise in the coming years[131] Shareholder Actions - The company repurchased 17,041 shares of common stock for an aggregate purchase price of $0.4 million during the nine months ended September 30, 2023[159] - The company continues to maintain a quarterly dividend of $0.01 per share[157]

Core Laboratories N.V. (NYSE:CLB) Q2 2023 Earnings Conference Call July 27, 2023 8:30 AM ET Company Participants Larry Bruno - Chairman and CEO Chris Hill - CFO Gwen Gresham - SVP and Head, IR Conference Call Participants Stephen Gengaro - Stifel John Daniel - Daniel Energy Partners Don Crist - Johnson Rice Operator Good morning, and welcome to the Core Lab Q2 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today's presentation, there will an opp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |---------------------------------------------------------------------------------------|--------------------------------------------------------------------------------- ...