e Laboratories (US:CLB)2024-04-24 20:35Financial 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]