e Laboratories (CLB)

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e Laboratories (CLB) - 2020 Q3 - Earnings Call Transcript
2020-10-22 18:10
Core Laboratories N.V. (NYSE:CLB) Q3 2020 Earnings Conference Call October 22, 2020 8:30 AM ET Company Participants Larry Bruno – President and Chief Executive Officer Gwen Schreffler – Senior Vice President and Head-Investor Relations Chris Hill – Chief Financial Officer Conference Call Participants Blake Gendron – Wolfe Research Sean Meakim – JP Morgan George O'Leary – Tudor, Pickering, Holt & Company Scott Gruber – Citigroup Mike Sabella – Bank of America Andrew Tierney – AKO Capital Operator Good mornin ...
e Laboratories (CLB) - 2020 Q2 - Earnings Call Transcript
2020-07-23 17:03
Financial Data and Key Metrics Changes - Revenue from continuing operations was $115.7 million in Q2 2020, down approximately 24% from $152.4 million in the prior quarter [22] - Free cash flow generated was almost $24 million, marking the 75th consecutive quarter of positive free cash flow [11][30] - Net debt was reduced by approximately $23 million, ending the quarter with a leverage ratio of 2.21 [18][29] - Income from continuing operations excluding items was $6.1 million, down 55% sequentially from $13.7 million last quarter [27] Business Line Data and Key Metrics Changes - Service revenue was $91 million for the quarter, down from $110 million last quarter, impacted by a significant decrease in drilling and completion of U.S. onshore wells [22] - Product sales were $24.7 million, a decrease of 42% from $42.4 million last quarter, with U.S. onshore market sales down over 60% [23] - Cost of services for the quarter was 74% of service revenue, consistent with the prior quarter, while cost of sales was 96% of revenue, up from 81% last quarter [24] Market Data and Key Metrics Changes - North America experienced a sharper decline of 44% in revenue compared to a 10% decrease in international revenue [22] - International activity is projected to be down approximately 10% to 15% year-over-year [35] - The company expects delays in project work and international shipment of projects to improve somewhat during the second half of 2020 [35] Company Strategy and Development Direction - Core Laboratories focuses on maximizing free cash flow, maximizing return on invested capital, and returning excess free cash to shareholders [10] - The company is committed to introducing new technologies and maintaining a strong internal pipeline for technological offerings [13] - Cost reduction initiatives are expected to benefit future financial performance significantly, with projected savings of over $9.3 million per quarter for Reservoir Description and over $5.9 million for Production Enhancement [37] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by COVID-19, including reduced oil demand and operational disruptions [9] - There is cautious optimism for recovery in client activity as economies emerge from COVID-19-related restrictions [34] - Management expects that the cost reductions implemented will benefit financial performance in both segments moving forward [37] Other Important Information - The company executed an amendment to its revolving credit facility, increasing the maximum leverage ratio permitted from 2.5x to 3x through June 30, 2021 [18] - The company recorded charges of $13.3 million in Q2, primarily associated with inventory write-downs and severance [21] Q&A Session Summary Question: How do RD margins progress in the second half? - Management indicated that while current margins are strong, future margins could see fluctuations due to operational activity volatility [47][49] Question: Can you help size the impact of budget reductions versus COVID disruptions? - Management noted that most of the recent revenue shifts were largely COVID-19 related, with capital budget adjustments expected to manifest over a longer term [52][55] Question: What is required for Production Enhancement to reach breakeven margins? - Management stated that a slight improvement in activity could lead to breakeven EBIT, but sustained activity recovery is necessary [70][72] Question: Can you quantify the incremental benefit of cost savings moving forward? - Management explained that cost reductions were implemented earlier in Reservoir Description, while Production Enhancement would see more benefits in Q3 [68][72] Question: What changes have occurred in the organization to sustain fixed costs? - Management highlighted ongoing lab automation efforts and technology development as key strategies to maintain sustainable fixed costs [88]
e Laboratories (CLB) - 2020 Q1 - Earnings Call Transcript
2020-04-23 18:55
Start Time: 08:30 January 1, 0000 9:31 AM ET Core Laboratories N.V. (NYSE:CLB) Q1 2020 Earnings Conference Call April 23, 2020, 08:30 AM ET Company Participants David Demshur - Chairman and CEO Chris Hill - SVP and CFO Larry Bruno - President and COO Gwen Schreffler - SVP, Corporate Development & IR Conference Call Participants George OÂ'Leary - Tudor, Pickering, Holt & Co. Sean Meakim - JPMorgan Scott Gruber - Citigroup Chase Mulvehill - Bank of America Merrill Lynch Blake Gendron - Wolfe Research Kurt Hal ...
e Laboratories (CLB) - 2019 Q4 - Earnings Call Transcript
2020-01-30 20:17
Core Laboratories N.V. (NYSE:CLB) Q4 2019 Results Conference Call January 30, 2020 8:30 AM ET Company Participants David Demshur - Chairman and CEO Chris Hill - CFO Gwen Schreffler - Head, IR Larry Bruno - President and COO Conference Call Participants Chase Mulvehill - Bank of America Sean Meakim - JP Morgan Marc Bianchi - Cowen Kurt Hallead - RBC Blake Gendron - Wolfe Research Byron Pope - Tudor, Pickering, Holt Ian Macpherson - Simmons Samantha Hoh - Evercore ISI Stephen Gengaro - Stifel Operator Good mo ...
Core Laboratories N.V. (CLB) Presents At Cowen 9th Annual Energy Conference - Slideshow
2019-12-11 14:01
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------------------|-------|-------|-------|-------|------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Energy Conference | | | | | 9th Annual | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ...
e Laboratories (CLB) - 2019 Q3 - Earnings Call Transcript
2019-10-24 17:41
Core Laboratories NV (NYSE:CLB) Q3 2019 Earnings Conference Call October 24, 2019 8:30 AM ET Company Participants David Demshur - CEO & Chairman Gwendolyn Schreffler - SVP, Corporate Development & IR Christopher Hill - SVP & CFO Lawrence Bruno - COO, President & Supervisory Director Conference Call Participants Byron Pope - Tudor, Pickering, Holt & Co. Ian MacPherson - Simmons & Company International Chase Mulvehill - Bank of America Merrill Lynch Blake Gendron - Wolfe Research Sean Meakim - JPMorgan Chase ...
e Laboratories (CLB) - 2019 Q2 - Earnings Call Transcript
2019-07-25 19:53
Financial Data and Key Metrics Changes - Revenue from continuing operations was $169 million in Q2 2019, comparable to the previous quarter but below the same quarter last year [18] - Service revenue was $117.9 million, down 2% sequentially, impacted by lower activity in North America [18] - Product sales were $51.2 million, up 5% from the previous quarter, led by a 18% increase in US energetic product sales [19] - Free cash flow for Q2 was $10.1 million, marking the 71st consecutive quarter of positive free cash flow [24] - GAAP income from continuing operations was $19.5 million, with earnings per diluted share at $0.43 [21] Business Line Data and Key Metrics Changes - The Reservoir Description segment is expected to benefit from increased client spending in international crude oil markets, with international revenue up 8% year-over-year [29][94] - The Production Enhancement segment saw a decline in discretionary services, which represent about a third of the segment [53] - The company anticipates that US onshore completion activity will be flat sequentially, while US energetic sales are expected to exceed the rate of completion activity [29] Market Data and Key Metrics Changes - The international offshore rig count increased by 26% year-over-year, while the overall international rig count increased by 14.5% year-over-year [27] - The decline curve is prevailing in mature crude oil fields, indicating a future supply gap [28] - The company remains bullish on crude oil, noting that non-US and non-OPEC production has fallen for seven consecutive years [14] Company Strategy and Development Direction - The company is focused on building long-term shareholder value through three financial tenets, including generating free cash flow and maintaining dividends [15] - Core Laboratories is expanding its technological capabilities, including the commissioning of the Reservoir Optimized Completions laboratory [37] - The company is reviewing divestment opportunities for non-core, low-margin businesses to streamline operations [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the international recovery and expects improved margins in the third quarter [48] - The company anticipates that free cash flow will improve in the second half of the year, driven by international activity and growth from the Reservoir Description group [72] - Management highlighted the importance of optimizing well completions to enhance field investment returns while managing capital budgets [29] Other Important Information - The company has no plans to cut its dividend, viewing it as important to its investor base [15] - The company is experiencing challenges in scaling up to meet gun demand, having turned down a $7 million order for over 13,000 guns [12] Q&A Session Summary Question: 3Q outlook for production enhancement - Management expects revenues for production enhancement to be somewhat flattish, with energetic sales outperforming due to penetration with existing and new customers [45] Question: Market share and differentiation of GoGun - Management indicated that it is still early in the introduction of GoGun, with the differentiator being the efficiency and effectiveness of the energetics [46] Question: Reservoir Description growth and EBIT margins - Management is cautious but sees potential for high-single digits growth in Reservoir Description, with EBIT margins potentially reaching 20% by year-end [48][50] Question: Discretionary services in production enhancement - Management noted a decline in discretionary services, which represent about a third of the production enhancement segment, but sees opportunities in offshore field development [53][55] Question: International growth prospects - Management ranks growth prospects with the Middle East as the top region, followed by Latin America and Asia-Pacific [58] Question: Free cash flow and dividend coverage - Management is confident that free cash flow will improve in the second half of the year, driven by international activity and growth from the Reservoir Description group [72] Question: Domestic frac market trends - Management noted that while the total number of wells might be down, revenue opportunities from increased energetic utilization in completions should remain flattish [78]
e Laboratories (CLB) - 2019 Q1 - Earnings Call Transcript
2019-04-25 18:44
Core Laboratories N.V. (NYSE:CLB) Q1 2019 Results Earnings Conference Call April 25, 2019 8:30 AM ET Company Participants David Demshur - Chairman and CEO Chris Hill - CFO Gwen Schreffler - Head of Investor Relations Larry Bruno - President Conference Call Participants Byron Pope - Tudor, Pickering, Holt Chase Mulvehill - Bank of America Stephen Gengaro - Stifel Sean Meakim - JPMorgan Connor Lynagh - Morgan Stanley Scott Gruber - Citigroup Marc Bianchi - Cowen Kurt Hallead - RBC Operator Good day and welcom ...
e Laboratories (CLB) - 2018 Q4 - Earnings Call Transcript
2019-01-31 19:51
Core Laboratories NV (NYSE:CLB) Q4 2018 Earnings Conference Call January 31, 2019 8:30 AM ET Company Participants David Demshur – Chairman and Chief Executive Officer Gwen Schreffler – Head-Investor Relations Chris Hill – Chief Financial Officer Larry Bruno – President Conference Call Participants Byron Pope – Tudor, Pickering, Holt Ian Macpherson – Simmons Operator Good morning, and welcome to the Fourth Quarter Core Laboratories 2018 Earnings Conference Call and Webcast. All participants will be in listen ...