Tesco Corp. (NASDAQ:TESO) filed Quarterly Report for the period ended 2010-03-31.
Tesco Corp. has a market cap of $405.9 million; its shares were traded at around $10.75 with a P/E ratio of 56.5 and P/S ratio of 1.1. TESO is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Revenues for the three months ended March 31, 2010 were $86.0 million, compared to $110.2 million in the same period in 2009, a decrease of $24.2 million, or 22%. This decrease is due to a $16.0 million decrease in the Top Drive segment, a $5.7 million decrease in the Tubular Services segment and a $2.5 million decrease in the CASING DRILLING segment. Each segment is discussed in further detail below.
Operating Income for the three months ended March 31, 2010 was $2.9 million, compared to $4.5 million in the three months ended March 31, 2009, a decrease of $1.6 million, or 36%. This decrease is primarily due to lower revenues in all of our segments, as discussed further below.
Net Income for the three months ended March 31, 2010 was $2.2 million, compared to income of $7.5 million in the same period in 2009, a decrease of $5.3 million, or 71%. This decrease is primarily due to decreased operating income as discussed above and a one-time tax benefit of approximately $4.5 million recorded during the three months ended March 31, 2009 to increase the Company s deferred tax assets as a result of a change in Canadian tax law, as discussed below.
Revenues—Revenues for the three months ended March 31, 2010 decreased $16.0 million, or 24%, compared to the same period in 2009, primarily driven by a $11.6 million decrease in top drive sales and a $4.9 million decrease in after-market sales and service, offset by a $0.5 million increase in top drive rental operations.
Revenues—Revenues for the three months ended March 31, 2010 decreased $5.7 million, or 15%, to $31.3 million as compared to the same period in 2009. This was primarily due to a $4.1 million decrease in our conventional Tubular Services business and a $4.6 million decrease in our proprietary equipment sales, partially offset by increased proprietary services revenue. The decrease in our revenues is due to the decline in available work as the global market recovers from last year s depressed economic conditions. We continue to shift our customers to our proprietary product offerings. We completed 797 jobs during the three months ended March 31, 2010, up 41% compared to 562 jobs during the three months ended March 31, 2009. While the number of jobs performed has increased, revenue per job has been negatively impacted by pricing pressures resulting from decreased drilling activity.
Corporate and Other expenses primarily consist of the corporate level general and administrative expenses and certain operating level selling and marketing expenses. Corporate and Other operating expenses for the three months ended March 31, 2010 decreased $2.6 million to $8.4 million, compared to $11.0 million for the same period in 2009. This decrease is primarily due to a $2.2 legal settlement and $0.6 million in severance costs incurred during the prior year s period.
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