Core Laboratories N.V. Common SharesNLG (CLB, Financial) filed Annual Report for the period ended 2011-12-31.
Core Laboratories N.v. Common Sharesnlg has a market cap of $5.6 billion; its shares were traded at around $119.86 with a P/E ratio of 33 and P/S ratio of 6.2. The dividend yield of Core Laboratories N.v. Common Sharesnlg stocks is 0.9%. Core Laboratories N.v. Common Sharesnlg had an annual average earning growth of 28.7% over the past 10 years. GuruFocus rated Core Laboratories N.v. Common Sharesnlg the business predictability rank of 4.5-star.
Cost of product sales increased to $198.1 million for 2011 from $157.2 million for 2010 and $124.2 million for 2009. As a percentage of product sale revenue, cost of sales decreased to 69.3% for 2011 compared to 69.4% for 2010 and 74.8% for 2009. The decrease in cost of sales as a percentage of product sale revenue in 2011, as compared to 2010, was primarily due to the growing demand for our new technologies which led to an overall increase in sales, which improved absorption of our fixed cost structure. The decrease in cost of sales as a percentage of product sale revenue in 2010, as compared to 2009, was primarily due to the growing demand for our new technologies, which are our higher margin products.
General and administrative expenses include corporate management and centralized administrative services that benefit our operations. General and administrative expenses were $41.1 million for 2011, which represents 4.5% of revenue, a slight increase compared to 4.2% of revenue in 2010 due to facility repairs and additional compensation expenses. General and administrative expenses as a percent of revenue were 4.4% in 2009.
Income tax expense decreased $9.5 million in 2011 compared to 2010 due primarily to the reversal of $10.4 million in tax liabilities provided over the period 2007-2010 as a result of recently concluded audits of prior year returns. Income tax expense increased $6.6 million in 2010 compared to 2009 commensurate with the overall increase in income before income tax expense. The effective tax rate was 22.7% for 2011, 30.5% for 2010 and 33.4% for 2009. The lower tax rate for 2011 was due primarily to the reversal of $10.4 million in tax liability noted above and was partially offset by changes in our estimate of unrecognized tax benefits in certain jurisdictions. The lower tax rate for 2010 was the result of a change in the earnings mix in the various jurisdictions in which we operate.
We forecast client demand, considering changes in technology which could result in obsolescence. Our valuation reserve for obsolete inventory is based on historical regional sales trends, and various other assumptions and judgments including future demand for this inventory. Our industry is subject to technological change and new product development that could result in obsolete inventory. Our valuation reserve for obsolete inventory at December 31, 2011 was $2.9 million compared to $1.9 million at December 31, 2010. If we overestimate demand for inventory, it could result in a material adverse effect upon our financial position and results of operations.
Read the The complete Report
Core Laboratories N.v. Common Sharesnlg has a market cap of $5.6 billion; its shares were traded at around $119.86 with a P/E ratio of 33 and P/S ratio of 6.2. The dividend yield of Core Laboratories N.v. Common Sharesnlg stocks is 0.9%. Core Laboratories N.v. Common Sharesnlg had an annual average earning growth of 28.7% over the past 10 years. GuruFocus rated Core Laboratories N.v. Common Sharesnlg the business predictability rank of 4.5-star.
Highlight of Business Operations:
Increases in activity levels in 2010 by our clients combined with greater market share, led to higher revenue over 2009 across all of our business segments. Given this higher revenue in conjunction with the lower cost structure attained during the global economic recession, we were able to generate operating income that was 21% higher in 2010 than the prior year. This increase was driven primarily by our Production Enhancement and Reservoir Management segments with operating income increases of 56% and 35%, respectively. The ongoing increases in our clients' activity in 2011 led to our revenue increase of 14% over 2010, again primarily in our Production Enhancement and Reservoir Management segments with operating income for each of these segments increasing by 11%.Cost of product sales increased to $198.1 million for 2011 from $157.2 million for 2010 and $124.2 million for 2009. As a percentage of product sale revenue, cost of sales decreased to 69.3% for 2011 compared to 69.4% for 2010 and 74.8% for 2009. The decrease in cost of sales as a percentage of product sale revenue in 2011, as compared to 2010, was primarily due to the growing demand for our new technologies which led to an overall increase in sales, which improved absorption of our fixed cost structure. The decrease in cost of sales as a percentage of product sale revenue in 2010, as compared to 2009, was primarily due to the growing demand for our new technologies, which are our higher margin products.
General and administrative expenses include corporate management and centralized administrative services that benefit our operations. General and administrative expenses were $41.1 million for 2011, which represents 4.5% of revenue, a slight increase compared to 4.2% of revenue in 2010 due to facility repairs and additional compensation expenses. General and administrative expenses as a percent of revenue were 4.4% in 2009.
Income tax expense decreased $9.5 million in 2011 compared to 2010 due primarily to the reversal of $10.4 million in tax liabilities provided over the period 2007-2010 as a result of recently concluded audits of prior year returns. Income tax expense increased $6.6 million in 2010 compared to 2009 commensurate with the overall increase in income before income tax expense. The effective tax rate was 22.7% for 2011, 30.5% for 2010 and 33.4% for 2009. The lower tax rate for 2011 was due primarily to the reversal of $10.4 million in tax liability noted above and was partially offset by changes in our estimate of unrecognized tax benefits in certain jurisdictions. The lower tax rate for 2010 was the result of a change in the earnings mix in the various jurisdictions in which we operate.
We forecast client demand, considering changes in technology which could result in obsolescence. Our valuation reserve for obsolete inventory is based on historical regional sales trends, and various other assumptions and judgments including future demand for this inventory. Our industry is subject to technological change and new product development that could result in obsolete inventory. Our valuation reserve for obsolete inventory at December 31, 2011 was $2.9 million compared to $1.9 million at December 31, 2010. If we overestimate demand for inventory, it could result in a material adverse effect upon our financial position and results of operations.
Read the The complete Report
