Tesco Corp. (TESO, Financial) filed Quarterly Report for the period ended 2009-11-02.
Tesco Corp. has a market cap of $373.8 million; its shares were traded at around $9.94 with a P/E ratio of 11.1 and P/S ratio of 0.7.
Operating Income for the three months ended September 30, 2009 was $1.7 million, compared to $25.4 million in the three months ended September 30, 2008, a decrease of $23.7 million, or 93%. This decrease is primarily due to lower revenues in all of our segments, decreased margins due to ongoing pricing pressures associated with depressed drilling activity and $0.3 million in severance costs, partially offset by a $1.6 million gain on the sale of operating equipment, as discussed further below.
Net Loss for the three months ended September 30, 2009 was $0.3 million, compared to income of $17.6 million in the same period in 2008, a decrease of $17.9 million, or 102%. This decrease is primarily due to decreased operating income as discussed above and a $0.4 million increase in foreign exchange losses and an increase in our effective tax rate during the current year s period, partially offset by a $0.6 million decrease in interest expense and a $0.8 million increase in interest income, as discussed below.
Revenues from top drive sales decreased $31.6 million to $14.3 million for the three months ended September 30, 2009 as compared to the same period in 2008. This decrease is primarily due to a decrease in the number of Top Drive units sold during the current year in connection with the current downturn in the drilling industry. We sold 13 units (10 new and 3 used) during the three months ended September 30, 2009, compared to 38 units sold (32 new and 6 used) during the same period in 2008. Revenues related to the sale of used top drive units during the three months ended September 30, 2009 were $2.9 million, down from $7.1 million during the three months ended September 30, 2008.
Research and Engineering s operating expenses are comprised of our activities related to the design and enhancement of our top drive models and proprietary equipment and were $2.1 million for the three months ended September 30, 2009, a decrease of $0.5 million from operating expenses of $2.6 million for the three months ended September 30, 2008. This decrease is primarily due to our focus on reducing costs during the current year s period, partially offset by $0.1 million in severance costs incurred during the current quarter. We will continue to invest in the development, commercialization and enhancements of our proprietary technologies.
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 s operating expenses for the three months ended September 30, 2009 decreased $3.4 million to $5.1 million, compared to $8.5 million for the same period in 2008. This decrease is primarily due to decreased legal expenses and employee compensation costs during the current year s period. In addition, our non-cash stock compensation expense decreased $0.7 million during the current period related to performance stock units, which declined in value in response to the current year s operating levels.
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Tesco Corp. has a market cap of $373.8 million; its shares were traded at around $9.94 with a P/E ratio of 11.1 and P/S ratio of 0.7.
Highlight of Business Operations:
Revenues for the three months ended September 30, 2009 were $72.6 million, compared to $140.0 million in the same period in 2008, a decrease of $67.4 million, or 48%. This decrease is due to a $45.5 million decrease in the Top Drive segment, an $18.5 million decrease in the Tubular Services segment and a $3.4 million decrease in the CASING DRILLING segment. Each segment is discussed in further detail below.Operating Income for the three months ended September 30, 2009 was $1.7 million, compared to $25.4 million in the three months ended September 30, 2008, a decrease of $23.7 million, or 93%. This decrease is primarily due to lower revenues in all of our segments, decreased margins due to ongoing pricing pressures associated with depressed drilling activity and $0.3 million in severance costs, partially offset by a $1.6 million gain on the sale of operating equipment, as discussed further below.
Net Loss for the three months ended September 30, 2009 was $0.3 million, compared to income of $17.6 million in the same period in 2008, a decrease of $17.9 million, or 102%. This decrease is primarily due to decreased operating income as discussed above and a $0.4 million increase in foreign exchange losses and an increase in our effective tax rate during the current year s period, partially offset by a $0.6 million decrease in interest expense and a $0.8 million increase in interest income, as discussed below.
Revenues from top drive sales decreased $31.6 million to $14.3 million for the three months ended September 30, 2009 as compared to the same period in 2008. This decrease is primarily due to a decrease in the number of Top Drive units sold during the current year in connection with the current downturn in the drilling industry. We sold 13 units (10 new and 3 used) during the three months ended September 30, 2009, compared to 38 units sold (32 new and 6 used) during the same period in 2008. Revenues related to the sale of used top drive units during the three months ended September 30, 2009 were $2.9 million, down from $7.1 million during the three months ended September 30, 2008.
Research and Engineering s operating expenses are comprised of our activities related to the design and enhancement of our top drive models and proprietary equipment and were $2.1 million for the three months ended September 30, 2009, a decrease of $0.5 million from operating expenses of $2.6 million for the three months ended September 30, 2008. This decrease is primarily due to our focus on reducing costs during the current year s period, partially offset by $0.1 million in severance costs incurred during the current quarter. We will continue to invest in the development, commercialization and enhancements of our proprietary technologies.
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 s operating expenses for the three months ended September 30, 2009 decreased $3.4 million to $5.1 million, compared to $8.5 million for the same period in 2008. This decrease is primarily due to decreased legal expenses and employee compensation costs during the current year s period. In addition, our non-cash stock compensation expense decreased $0.7 million during the current period related to performance stock units, which declined in value in response to the current year s operating levels.
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