Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 21, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | CORE LABORATORIES INC. | |
Entity Central Index Key | 0001958086 | |
Trading Symbol | CLB | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 46,680,409 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-41695 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 6316 Windfern Road | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77040 | |
City Area Code | 713 | |
Local Phone Number | 328-2673 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock (par value $0.01) | |
Security Exchange Name | NYSE | |
Entity Tax Identification Number | 98-1164194 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 26,204 | $ 15,428 |
Accounts receivable, net of allowance for credit losses of $2,325 and $2,214 at 2023 and 2022, respectively | 106,816 | 106,913 |
Inventories | 71,658 | 60,445 |
Prepaid expenses | 11,479 | 15,665 |
Income taxes receivable | 14,557 | 8,190 |
Other current assets | 5,410 | 5,061 |
TOTAL CURRENT ASSETS | 236,124 | 211,702 |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $316,429 and $314,737 at 2023 and 2022, respectively | 101,662 | 105,028 |
RIGHT OF USE ASSETS | 55,456 | 52,379 |
INTANGIBLES, net of accumulated amortization and impairment of $17,779 and $17,475 at 2023 and 2022, respectively | 7,412 | 7,483 |
GOODWILL | 99,445 | 99,445 |
DEFERRED TAX ASSETS, net | 68,768 | 68,570 |
OTHER ASSETS | 32,981 | 33,747 |
TOTAL ASSETS | 601,848 | 578,354 |
CURRENT LIABILITIES: | ||
Accounts payable | 39,145 | 45,847 |
Accrued payroll and related costs | 21,210 | 23,431 |
Taxes other than payroll and income | 4,238 | 4,822 |
Unearned revenues | 5,539 | 5,942 |
Operating lease liabilities | 10,731 | 11,699 |
Income taxes payable | 6,785 | 3,034 |
Other current liabilities | 8,546 | 8,360 |
TOTAL CURRENT LIABILITIES | 96,194 | 103,135 |
LONG-TERM DEBT, net | 182,583 | 172,386 |
LONG-TERM OPERATING LEASE LIABILITIES | 42,376 | 38,305 |
DEFERRED COMPENSATION | 29,876 | 31,814 |
DEFERRED TAX LIABILITIES, net | 12,126 | 22,877 |
OTHER LONG-TERM LIABILITIES | 19,089 | 20,883 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY: | ||
Preference stock, 6,000,000 shares authorized, $0.01 par value at June 30, 2023 and EUR 0.02 par value at December 31, 2022; none issued or outstanding | 0 | 0 |
Common stock, 200,000,000 shares authorized, $0.01 par value, 46,701,102 issued and 46,680,409 outstanding at June 30, 2023; EUR 0.02 par value, 46,699,102 issued and 46,631,934 outstanding at December 31, 2022 | 467 | 1,194 |
Additional paid-in capital | 108,030 | 102,254 |
Retained earnings | 110,234 | 85,949 |
Accumulated other comprehensive income (loss) | (3,539) | (3,777) |
Treasury stock (at cost), 20,693 and 67,168 shares at 2023 and 2022, respectively | (436) | (1,362) |
Total Core Laboratories N.V. shareholders' equity | 214,756 | 184,258 |
Non-controlling interest | 4,848 | 4,696 |
TOTAL EQUITY | 219,604 | 188,954 |
TOTAL LIABILITIES AND EQUITY | $ 601,848 | $ 578,354 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical $ in Thousands | Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 € / shares |
Statement of Financial Position [Abstract] | |||
Allowance for doubtful accounts | $ | $ 2,325 | $ 2,214 | |
Accumulated Depreciation | $ | 316,429 | 314,737 | |
Accumulated amortization | $ | $ 17,779 | $ 17,475 | |
Preferred stock, par value per share | (per share) | $ 0.01 | € 0.02 | |
Preferred stock, shares authorized | 6,000,000 | 6,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value per share | (per share) | $ 0.01 | € 0.02 | |
Common stock, shares authorized | 200,000,000 | ||
Common stock, shares, issued | 46,701,102 | 46,699,102 | |
Common shares, outstanding | 46,680,409 | 46,631,934 | |
Treasury stock (at cost) | 20,693 | 67,168 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
REVENUES: | ||||
Revenue | $ 127,881 | $ 120,898 | $ 256,237 | $ 236,198 |
OPERATING EXPENSES: | ||||
General and administrative expense, exclusive of depreciation expense shown below | 5,811 | 6,847 | 22,142 | 19,392 |
Depreciation | 3,807 | 4,189 | 7,746 | 8,573 |
Amortization | 130 | 171 | 235 | 344 |
Other (income) expense, net | (1,068) | 82 | (1,096) | 1,719 |
OPERATING INCOME | 18,906 | 11,652 | 25,387 | 11,261 |
Interest expense | 3,236 | 2,707 | 6,665 | 5,351 |
Income before income taxes | 15,670 | 8,945 | 18,722 | 5,910 |
Income tax expense (benefit) | (7,259) | 1,789 | (6,649) | 593 |
Net income | 22,929 | 7,156 | 25,371 | 5,317 |
Net income attributable to non-controlling interest | 83 | 90 | 152 | 139 |
Net income attributable to Core Laboratories Inc. | $ 22,846 | $ 7,066 | $ 25,219 | $ 5,178 |
EARNINGS PER SHARE INFORMATION: | ||||
Basic earnings per share | $ 0.49 | $ 0.15 | $ 0.54 | $ 0.11 |
Basic earnings per share attributable to Core Laboratories Inc. | 0.49 | 0.15 | 0.54 | 0.11 |
Diluted earnings per share | 0.48 | 0.15 | 0.53 | 0.11 |
Diluted earnings per share attributable to Core Laboratories Inc. | $ 0.48 | $ 0.15 | $ 0.53 | $ 0.11 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic | 46,675 | 46,319 | 46,655 | 46,309 |
Diluted | 47,497 | 47,143 | 47,476 | 47,133 |
Service [Member] | ||||
REVENUES: | ||||
Revenue | $ 93,265 | $ 85,422 | $ 184,341 | $ 170,145 |
OPERATING EXPENSES: | ||||
Cost of services and product sales exclusive of depreciation expense shown below | 71,121 | 68,166 | 142,055 | 137,023 |
Product [Member] | ||||
REVENUES: | ||||
Revenue | 34,616 | 35,476 | 71,896 | 66,053 |
OPERATING EXPENSES: | ||||
Cost of services and product sales exclusive of depreciation expense shown below | $ 29,174 | $ 29,791 | $ 59,768 | $ 57,886 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 22,929 | $ 7,156 | $ 25,371 | $ 5,317 |
Gain (loss) on fair value of interest rate swaps | 0 | 2,058 | 0 | 6,015 |
Interest rate swap amount reclassified to net income (loss) | (38) | 259 | 228 | 513 |
Income tax expense (benefit) on interest rate swaps reclassified to net income (loss) | 8 | (313) | (48) | (1,144) |
Total interest rate swaps | (30) | 2,004 | 180 | 5,384 |
Amortization of actuarial gain (loss) reclassified to net income (loss) | 39 | 0 | 78 | 0 |
Income tax expense (benefit) on pension and other postretirement benefit plans reclassified to net income (loss) | (10) | 0 | (20) | 0 |
Total pension and other postretirement benefit plans | 29 | 0 | 58 | 0 |
Total other comprehensive income (loss) | (1) | 2,004 | 238 | 5,384 |
Comprehensive income | 22,928 | 9,160 | 25,609 | 10,701 |
Comprehensive income attributable to non-controlling interest | 83 | 90 | 152 | 139 |
Comprehensive income attributable to Core Laboratories Inc. | $ 22,845 | $ 9,070 | $ 25,457 | $ 10,562 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Shares [Member] | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-Controlling Interest | Common Stock Outstanding |
Balance at Beginning of Period at Dec. 31, 2021 | $ 161,001 | $ 1,188 | $ 101,120 | $ 68,349 | $ (10,133) | $ (4,075) | $ 4,552 | |
Balance at Beginning of Period at Dec. 31, 2021 | 46,454,264 | (104,867) | 46,349,397 | |||||
Stock-based compensation | 5,218 | 3,659 | $ 1,559 | |||||
Stock-based compensation (shares) | 59,405 | 59,405 | ||||||
Repurchase of common stock | (2,166) | $ (2,166) | ||||||
Repurchase of common stock (shares) | (83,995) | (83,995) | ||||||
Dividends paid | (926) | (926) | ||||||
Non-controlling interest additions | (61) | 61 | ||||||
Interest rate swaps, net of income taxes | 5,384 | 5,384 | ||||||
Net income | 5,317 | 5,178 | 139 | |||||
Balance at End of Period at Jun. 30, 2022 | $ 173,767 | $ 1,188 | 104,779 | 72,601 | (4,749) | $ (4,682) | 4,630 | |
Balance at End of Period at Jun. 30, 2022 | 46,454,264 | (129,457) | 46,324,807 | |||||
Cash Dividends per Share | $ 0.02 | |||||||
Balance at Beginning of Period at Mar. 31, 2022 | $ 166,386 | $ 1,188 | 107,088 | 65,998 | (6,753) | $ (5,736) | 4,601 | |
Balance at Beginning of Period at Mar. 31, 2022 | 46,454,264 | (170,587) | 46,283,677 | |||||
Stock-based compensation | (1,009) | (2,309) | $ 1,300 | |||||
Stock-based compensation (shares) | 50,105 | 50,105 | ||||||
Repurchase of common stock | (246) | $ (246) | ||||||
Repurchase of common stock (shares) | (8,975) | (8,975) | ||||||
Dividends paid | (463) | (463) | ||||||
Non-controlling interest additions | (61) | (61) | ||||||
Interest rate swaps, net of income taxes | 2,004 | 2,004 | ||||||
Net income | 7,156 | 7,066 | 90 | |||||
Balance at End of Period at Jun. 30, 2022 | $ 173,767 | $ 1,188 | 104,779 | 72,601 | (4,749) | $ (4,682) | 4,630 | |
Balance at End of Period at Jun. 30, 2022 | 46,454,264 | (129,457) | 46,324,807 | |||||
Cash Dividends per Share | $ 0.01 | |||||||
Balance at Beginning of Period at Dec. 31, 2022 | $ 188,954 | $ 1,194 | 102,254 | 85,949 | (3,777) | $ (1,362) | 4,696 | |
Balance at Beginning of Period at Dec. 31, 2022 | 46,699,102 | (67,168) | 46,631,934 | |||||
Stock-based compensation | 10,337 | 9,211 | $ 1,126 | |||||
Stock-based compensation (shares) | 55,545 | 55,545 | ||||||
Repurchase of common stock | (200) | $ (200) | ||||||
Repurchase of common stock (shares) | (9,070) | (9,070) | ||||||
Dividends paid | (934) | (934) | ||||||
Pension and other postretirement benefit plans, net of income taxes | 58 | 58 | ||||||
Change in par value | $ (727) | |||||||
Change in par value and equity related transaction costs | (4,162) | (3,435) | ||||||
New share issuance (shares) | 2,000 | 2,000 | ||||||
Interest rate swaps, net of income taxes | 180 | 180 | ||||||
Net income | 25,371 | 25,219 | 152 | |||||
Balance at End of Period at Jun. 30, 2023 | $ 219,604 | $ 467 | 108,030 | 110,234 | (3,539) | $ (436) | 4,848 | |
Balance at End of Period at Jun. 30, 2023 | 46,701,102 | (20,693) | 46,680,409 | |||||
Cash Dividends per Share | $ 0.02 | |||||||
Balance at Beginning of Period at Mar. 31, 2023 | $ 200,151 | $ 1,194 | 111,235 | 87,855 | (3,538) | $ (1,360) | 4,765 | |
Balance at Beginning of Period at Mar. 31, 2023 | 46,701,102 | (67,075) | 46,634,027 | |||||
Stock-based compensation | 1,353 | 230 | $ 1,123 | |||||
Stock-based compensation (shares) | 55,395 | 55,395 | ||||||
Repurchase of common stock | (199) | $ (199) | ||||||
Repurchase of common stock (shares) | (9,013) | (9,013) | ||||||
Dividends paid | (467) | (467) | ||||||
Pension and other postretirement benefit plans, net of income taxes | 29 | 29 | ||||||
New share issuance | 0 | $ 0 | 0 | |||||
Change in par value | (727) | |||||||
Change in par value and equity related transaction costs | (4,162) | (3,435) | ||||||
Interest rate swaps, net of income taxes | (30) | (30) | ||||||
Net income | 22,929 | 22,846 | 83 | |||||
Balance at End of Period at Jun. 30, 2023 | $ 219,604 | $ 467 | $ 108,030 | $ 110,234 | $ (3,539) | $ (436) | $ 4,848 | |
Balance at End of Period at Jun. 30, 2023 | 46,701,102 | (20,693) | 46,680,409 | |||||
Cash Dividends per Share | $ 0.01 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 25,371 | $ 5,317 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 10,337 | 5,218 |
Depreciation and amortization | 7,981 | 8,917 |
Changes in value of life insurance policies | (3,989) | 5,310 |
Deferred income taxes | (10,949) | 530 |
Other non-cash items | 936 | (485) |
Changes in assets and liabilities: | ||
Accounts receivable | (103) | (2,202) |
Inventories | (11,618) | (6,827) |
Prepaid expenses and other current assets | (2,532) | (2,903) |
Other assets | 1,579 | (1,019) |
Accounts payable | (8,685) | 5,062 |
Accrued expenses | 1,131 | (681) |
Unearned revenues | (403) | (1,238) |
Other liabilities | (3,484) | (9,104) |
Net cash provided by (used in) operating activities | 5,572 | 5,895 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (4,382) | (5,493) |
Patents and other intangibles | (164) | (42) |
Proceeds from sale of assets | 353 | 281 |
Proceeds from insurance recovery | 0 | 583 |
Net proceeds on life insurance policies | 3,375 | 2,074 |
Proceeds from sale of business, net of cash sold | 0 | 240 |
Net cash provided by (used in) investing activities | (818) | (2,357) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of long-term debt | (101,000) | (31,000) |
Proceeds from long-term debt | 111,000 | 29,000 |
Dividends paid | (934) | (926) |
Repurchase of common stock | (200) | (2,166) |
Equity related transaction costs | (2,553) | 0 |
Other financing activities | (291) | (1) |
Net cash provided by (used in) financing activities | 6,022 | (5,093) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 10,776 | (1,555) |
CASH AND CASH EQUIVALENTS, beginning of period | 15,428 | 17,703 |
CASH AND CASH EQUIVALENTS, end of period | 26,204 | 16,148 |
Supplemental disclosures of cash flow information: | ||
Cash payments for interest | 5,187 | 4,359 |
Cash payments for income taxes | 4,694 | 6,966 |
Non-cash investing and financing activities: | ||
Equity related transaction costs incurred but not paid | $ 1,609 | $ 0 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 22,846 | $ 7,066 | $ 25,219 | $ 5,178 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. DESCRIPTION OF BUSINESS References to “Core Lab”, “Core Laboratories”, the “Company”, “we”, “our” and similar phrases are used throughout this Quarterly Report on Form 10-Q (“Quarterly Report”) and relate collectively to Core Laboratories Inc. and its consolidated subsidiaries. On May 1, 2023, Core Laboratories N.V. completed its previously announced redomestication transaction (the “Redomestication Transaction”), which included (i) the merger (the “Merger”) of Core Laboratories N.V. with and into Core Laboratories Luxembourg S.A., a public limited liability company incorporated under the laws of Luxembourg, with Core Laboratories Luxembourg S.A. surviving, and (ii) following the completion of the Merger, the migration of Core Laboratories Luxembourg S.A. out of Luxembourg and its domestication as Core Laboratories Inc., a Delaware corporation. As a result of the Redomestication Transaction, all common shares in Core Laboratories N.V. were canceled and exchanged for common stock in Core Laboratories Luxembourg S.A. on a one-for-one basis. Former holders of Core Laboratories N.V. common shares now hold one share of common stock of Core Laboratories Inc. for each Core Laboratories N.V. common share owned immediately prior to the consummation of the Redomestication Transaction, and the business, assets, liabilities, directors and officers of Core Laboratories Inc. are now the same as the business, assets, liabilities, directors and officers of Core Laboratories N.V. immediately prior to the Redomestication Transaction. See Note 2 - Significant Accounting Policies Update – Basis of Presentation and Principles of Consolidation , Note 7 - Long-Term Debt, net , Note 8 - Pension And Other Postretirement Benefit Plans , Note 10 - Equity and Note 14 - Income Tax Expense (Benefit) for additional information regarding the Redomestication Transaction. We operate our business in two segments: (1) Reservoir Description and (2) Production Enhancement. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields. For a description of the types of services and products offered by these operating segments, see Note 16 - S egment Reporting . |
Significant Accounting Policies
Significant Accounting Policies Update | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies Update | 2. SIGNIFICANT ACCOUNTING POLICIES UPDATE Basis of Presentation and Principles of Consolidation The Redomestication Transaction has been accounted for as a transaction between entities under common control. Accordingly, Core Laboratories Inc. (formerly Core Laboratories Luxembourg S.A.) recorded the assets and liabilities transferred at their carrying amounts at the date of transfer. All common shares in Core Laboratories N.V., at par value EUR 0.02 , were canceled and exchanged for common stock in Core Laboratories Inc. (formerly Core Laboratories Luxembourg S.A.), at par value $ 0.01 , on a one-for-one basis. Core Laboratories Inc.'s common stock par value was decreased by $ 0.7 million for the difference between the total par value of common stock of Core Laboratories Inc. and the total par value of common shares of Core Laboratories N.V. at the date of transfer, with an offset to additional paid in capital. There is no difference between the combined separate entities prior to the Redomestication Transaction and the combined separate entities after the Redomestication Transaction, therefore, these financial statements, reported as though the exchange of equity interests had occurred at the beginning of the reporting period, and comparative information do not differ from amounts previously reported under Core Laboratories N.V.’s consolidated financial statements. These financial statements should be read in conjunction with Core Laboratories N.V.’s Quarterly Report on Form 10-Q for the three months ended March 31, 2023 and Core Laboratories N.V.’s Annual Report on Form 10-K for the year ended December 31, 2022, including Note 2 - Summary of Significant Accounting Policies. There have been no changes to the accounting policies of the combined entities during the six months ended June 30, 2023. The accompanying unaudited interim consolidated financial statements include the accounts of Core Laboratories Inc. and its subsidiaries for which we have a controlling voting interest and/or a controlling financial interest. These financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information using the instructions to Form 10-Q and Article 10 of Regulation S-X. Core Laboratories Inc.’s balance sheet information for the year ended December 31, 2022, was derived from the 2022 audited consolidated financial statements. Accordingly, these financial statements do not include all of the information and footnote disclosures required by U.S. GAAP for the annual financial statements and should be read in conjunction with the audited financial statements. Core Laboratories Inc. uses the equity method of accounting for investments in which it has less than a majority interest and does not exercise control but does exert significant influence. Non-controlling interests have been recorded to reflect outside ownership attributable to consolidated subsidiaries that are less than 100% owned. All inter-company transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included in these financial statements. Furthermore, the operating results presented for the three and six months ended June 30, 2023, may not necessarily be indicative of the results that may be expected for the year ending December 31, 2023 . Property, Plant and Equipment We review our long-lived assets (“LLA”) for impairment when events or changes in circumstances indicate that their net book value may not be recovered over their remaining service lives. Indicators of possible impairment may include significant declines in activity levels in regions where specific assets or groups of assets are located, extended periods of idle use, declining revenue or cash flow or overall changes in general market conditions. The geopolitical conflict between Russia and Ukraine, which began in February 2022 and has continued through June 30, 2023, has resulted in disruptions to our operations in Russia and Ukraine. However, as of June 30, 2023, all laboratory facilities, offices, and locations in Russia continued to operate and remained profitable. The Company’s operation, assets and facilities in Ukraine are immaterial. Therefore, we determined there was no triggering event for LLA in Russia and Ukraine, and no impairment assessments have been performed as of June 30, 2023 . |
Acquisitions and Divestures
Acquisitions and Divestures | 6 Months Ended |
Jun. 30, 2023 | |
Business Combinations [Abstract] | |
Acquisitions and Divestures | 3. ACQUISITIONS AND DIVESTURES We had no significant business acquisitions or divestures during the three and six months ended June 30, 2023 and 2022 . |
Contract Assets and Liabilities
Contract Assets and Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Liabilities | 4. CONTRACT ASSETS AND LIABILITIES The balance of contract assets and liabilities consisted of the following (in thousands): June 30, December 31, Contract assets: Current $ 502 $ 1,148 $ 502 $ 1,148 Contract liabilities: Current $ 702 $ 907 Non-current 24 24 $ 726 $ 931 June 30, Estimate of when contract liabilities will be recognized as revenue: Within 12 months $ 702 Within 12 to 24 months — Greater than 24 months 24 The current portion of contract assets are included in our accounts receivable. The current portion of contract liabilities is included in unearned revenues and the non-current portion of contract liabilities is included in other long-term liabilities. We did no t recognize any impairment losses on our contract assets during the three and six months ended June 30, 2023 and 2022 . |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. INVENTORIES Inventories consist of the following (in thousands): June 30, December 31, Finished goods $ 32,742 $ 26,534 Parts and materials 35,477 31,323 Work in progress 3,439 2,588 Total inventories $ 71,658 $ 60,445 We include freight costs incurred for shipping inventory to our clients in the cost of product sales caption in the accompanying consolidated statements of operations. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | 6. LEASES We have operating leases primarily consisting of office and lab space, machinery and equipment and vehicles. The components of lease expense are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Operating lease expense $ 4,181 $ 4,098 $ 8,670 $ 8,267 Short-term lease expense 462 397 891 821 Variable lease expense 437 351 1,041 764 Total lease expense $ 5,080 $ 4,846 $ 10,602 $ 9,852 Other information: Operating cash flows - operating leases payments $ 4,218 $ 4,347 $ 8,750 $ 8,953 Right of use assets obtained (released) in exchange for $ 441 $ 953 $ 10,405 $ 3,996 Weighted-average remaining lease term - operating leases 8.32 years 7.22 years 8.32 years 7.22 years Weighted-average discount rate - operating leases 5.24 % 4.55 % 5.24 % 4.55 % Scheduled undiscounted lease payments for non-cancellable leases consist of the following (in thousands): June 30, Remainder of 2023 $ 6,969 2024 11,292 2025 9,107 2026 6,967 2027 5,708 Thereafter 26,531 Total undiscounted lease payments 66,574 Less: Imputed interest ( 13,467 ) Total operating lease liabilities $ 53,107 See Note 13 - Other (income) and expense, net regarding lease abandonments during the six months ended June 30, 2023 . |
Long-Term Debt, Net
Long-Term Debt, Net | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Net | 7. LONG-TERM DEBT, NET We have no significant finance lease obligations. Debt is summarized in the following table (in thousands): Interest Rate Maturity Date June 30, December 31, 2011 Senior Notes (1) 4.11 % September 30, 2023 $ 75,000 $ 75,000 2021 Senior Notes Series A (2) 4.09 % January 12, 2026 45,000 45,000 2021 Senior Notes Series B (2) 4.38 % January 12, 2028 15,000 15,000 2023 Senior Notes Series A (3) 7.25 % June 28, 2028 25,000 — 2023 Senior Notes Series B (3) 7.50 % June 28, 2030 25,000 — Credit Facility — 40,000 Total long-term debt 185,000 175,000 Less: Debt issuance costs ( 2,417 ) ( 2,614 ) Long-term debt, net $ 182,583 $ 172,386 (1) Interest is payable semi-annually on March 30 and September 30. (2) Interest is payable semi-annually on June 30 and December 30. (3) Interest is payable semi-annually on March 28 and September 28. In connection with the Redomestication Transaction, on May 1, 2023, Core Laboratories N.V. assigned to Core Laboratories Inc., and Core Laboratories Inc. assumed, all of Core Laboratories N.V.’s rights and obligations under existing agreements. We, along with our wholly owned subsidiary Core Laboratories (U.S.) Interests Holdings, Inc. (“CLIH”) as issuer, have five series of senior notes outstanding with an aggregate principal amount of $ 185 million that were issued through private placement transactions. The 2011 Senior Notes were issued in 2011. Series A and Series B of the 2021 Senior Notes were issued in 2021 (the “2021 Senior Notes”). Series A and Series B of the 2023 Senior Notes were entered on May 4, 2023, and subsequently issued and funded on June 28, 2023 (the “2023 Senior Notes”). The 2011 Senior Notes, 2021 Senior Notes and the 2023 Senior Notes are collectively the “Senior Notes”. We intend to repay the 2011 Senior Notes at maturity in September 2023 using borrowings under our existing long-term credit facility; therefore, we continue to classify them as long-term debt. We, along with our wholly owned subsidiary CLIH, have a credit facility, the Eighth Amended and Restated Credit Agreement (as amended, the “Credit Facility”) for an aggregate borrowing commitment of $ 135 million with a $ 50 million “accordion” feature. Proceeds from the 2023 Senior Notes were used to repay the outstanding balance under the Credit Facility at June 30, 2023. The Credit Facility is secured by first priority interests in (1) substantially all of the tangible and intangible personal property, and equity interest of CLIH and certain of the Company’s U.S. and foreign subsidiary companies; and (2) instruments evidencing intercompany indebtedness owing to the Company, CLIH and certain of the Company’s U.S. and foreign subsidiary companies. Under the Credit Facility, the Secured Overnight Financing Rate (“SOFR”) plus 2.00 % to SOFR plus 3.00 % will be applied to outstanding borrowings. Any outstanding balance under the Credit Facility is due at maturity on July 25, 2026 , subject to springing maturity on July 12, 2025, if any portion of the Company’s 2021 Senior Notes Series A due January 12, 2026, in the aggregate principal amount of $ 45 million, remain outstanding on July 12, 2025, unless the Company’s liquidity equals or exceeds the principal amount of the 2021 Senior Notes Series A outstanding on such date. The available capacity at any point in time is reduced by outstanding borrowings and outstanding letters of credit which totaled approximately $ 9 million at June 30, 2023 , resulting in an available borrowing capacity under the Credit Facility of approximately $ 126 million. In addition to indebtedness under the Credit Facility, we had approximately $ 7 million of outstanding letters of credit and performance guarantees and bonds from other sources as of June 30, 2023. The terms of the Credit Facility and Senior Notes require us to meet certain covenants, including, but not limited to, an interest coverage ratio (calculated as consolidated EBITDA divided by interest expense) and a leverage ratio (calculated as consolidated net indebtedness divided by consolidated EBITDA), where consolidated EBITDA (as defined in each agreement) and interest expense are calculated using the most recent four fiscal quarters. The Credit Facility and Senior Notes include a cross-default provision, whereby a default under one agreement may trigger a default in the other agreements. The Credit Facility has more restrictive covenants with a minimum interest coverage ratio of 3.00 to 1.00 and permits a maximum leverage ratio of 2.50 to 1.00 . The Credit Facility allows non-cash charges such as impairment of assets, stock compensation and other non-cash charges to be added back in the calculation of consolidated EBITDA. The terms of our Credit Facility also allow us to negotiate in good faith to amend any ratio or requirement to preserve the original intent of the agreement if any change in accounting principles would affect the computation of any financial ratio or covenant of the Credit Facility. In accordance with the terms of the Credit Facility, our leverage ratio is 1.85 , and our interest coverage ratio is 6.66 , each for the period ended June 30, 2023. We believe that we are in compliance with all covenants contained in our Credit Facility and Senior Notes. Certain of our material, wholly owned subsidiaries are guarantors or co-borrowers under the Credit Facility and Senior Notes. See Note 11 - Derivative Instruments and Hedging Activities for additional information regarding interest rate swap agreements we have entered to fix the underlying risk-free rate on our Credit Facility and the 2023 Senior Notes. The estimated fair value of total debt at June 30, 2023, and December 31, 2022 , approximated the book value of total debt. The fair value was estimated using Level 2 inputs by calculating the sum of the discounted future interest and principal payments through the maturity date. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | 8. PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Prior to January 2020, one of our subsidiaries provided a noncontributory defined benefit pension plan covering substantially all of our Dutch employees (“Dutch Plan”) who were hired prior to 2000. This pension benefit was based on years of service and final pay or career average pay, depending on when the employee began participating. The Dutch Plan was curtailed prior to January 2020, and these employees have been moved into the Dutch defined contribution plan. However, the unconditional indexation for this group of participants continues for so long as they remain in active service with the Company. The following table summarizes the components of net periodic pension cost under the Dutch Plan (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Interest cost $ 372 $ 145 $ 739 $ 299 Expected return on plan assets ( 330 ) ( 136 ) ( 656 ) ( 281 ) Net periodic pension cost $ 42 $ 9 $ 83 $ 18 During the three and six months ended June 30, 2023, we made additional contributions to the Dutch Plan of approximately $ 1.8 million for the indexation. In connection with the Redomestication Transaction, Core Laboratories N.V. assigned to Core Laboratories Inc., and Core Laboratories Inc. assumed, all of Core Laboratories N.V.’s rights and obligations under compensation or benefit plans, policies and arrangements previously maintained by Core Laboratories N.V., including the Supplemental Executive Retirement Plan, Deferred Compensation Plan, Employment Agreements and Profit Sharing and Retirement Plan. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. COMMITMENTS AND CONTINGENCIES We have been and may, from time to time, be named as a defendant in legal actions that arise in the ordinary course of business. These include, but are not limited to, employment-related claims and contractual disputes or claims for personal injury or property damage which occur in connection with the provision of our services and products. A liability is accrued when a loss is both probable and can be reasonably estimated. See Note 7 - Long-term Debt, net for amounts committed under letters of credits and performance guarantees and bonds. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity | 10. EQUITY Common Stock In connection with the Redomestication Transaction, all common shares in Core Laboratories N.V. at par value EUR 0.02 , were canceled and exchanged for common stock in Core Laboratories Inc. (formerly Core Laboratories Luxembourg S.A.) at par value $ 0.01 , on a one-for-one basis. Core Laboratories Inc.’s common stock par value was decreased by $ 0.7 million for the difference between the total par value of common stock of Core Laboratories Inc. and the total par value of common shares of Core Laboratories N.V. at the date of transfer, with an offset to additional paid in capital. Equity related transaction costs associated with the Redomestication Transaction of $ 4.2 million have been charged to additional paid in capital. In addition, Core Laboratories N.V. assigned to Core Laboratories Inc., and Core Laboratories Inc. assumed, all of Core Laboratories N.V.’s rights and obligations under the 2014 Non-Employee Director Stock Incentive Plan and the 2020 Long Term Incentive Plan. Each outstanding Core Laboratories N.V. incentive award thereunder became a Core Laboratories Inc. incentive award that is subject to substantially the same terms and conditions as the former Core Laboratories N.V. incentive award, except, in the case of equity-based Core Laboratories N.V. incentive awards, the security issuable upon exercise or settlement of the incentive award, as applicable, will be a share of Core Laboratories Inc. common stock rather than a Core Laboratories N.V. common share. On June 9, 2022, we entered into an Equity Distribution Agreement with certain banks for the issuance and sale of up to $ 60.0 million of our common stock allowing sales of our common stock to be made by any method deemed to be an “at-the-market offering” (“ATM Program”) as defined in Rule 415 under the Securities Act of 1933. Subsequently, on July 17, 2023, the Company terminated the Equity Distribution Agreement. As a result of the termination of the Equity Distribution Agreement, the Company suspended and terminated the 2022 ATM Program and therefore will not offer or sell any shares under the 2022 ATM Program. The Company did not sell any shares under the Equity Distribution Agreement. During the six months ended June 30, 2023, we distributed 2,000 shares of common stock upon vesting of stock-based awards. Treasury Stock During the three and six months ended June 30, 2023 , we distributed 55,395 and 55,545 shares of treasury stock, respectively, upon vesting of stock-based awards. During the three and six months ended June 30, 2023 , we repurchased 9,013 and 9,070 shares of our common stock, respectively, for $ 199 thousand and $ 200 thousand, respectively, which were surrendered to us pursuant to the terms of a stock-based compensation plan in consideration of the participants' tax burdens resulting from the issuance of common stock under that plan. Such shares of common stock, unless canceled, may be reissued for a variety of purposes such as future acquisitions, non-employee director stock awards or employee stock awards. Dividend Policy In March and May 2023, we paid quarterly cash dividends of $ 0.01 per share of common stock. In addition, on July 26, 2023 , we declared a quarterly dividend of $ 0.01 per share of common stock for shareholders of record on August 7, 2023, and payable on August 28, 2023. Accumulated Other Comprehensive Income (Loss) Amounts recognized, net of income tax, in accumulated other comprehensive income (loss) consist of the following (in thousands): June 30, December 31, Pension and other post-retirement benefit plans - unrecognized prior service costs and net actuarial loss $ ( 5,050 ) $ ( 5,108 ) Interest rate swaps - net gain (loss) on fair value 1,511 1,331 Total accumulated other comprehensive income (loss) $ ( 3,539 ) $ ( 3,777 ) |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 11. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We are exposed to market risks related to fluctuations in interest rates. To mitigate these risks, we may utilize derivative instruments in the form of interest rate swaps. We do not enter into derivative transactions for speculative purposes. Under the Company’s Credit Facility, the SOFR plus 2.00 % to SOFR plus 3.00 % will be applied to outstanding borrowings. See Note 7 - Long-Term Debt, net for additional information. The Company has elected to apply the optional expedient for hedging relationships affected by reference rate reform. Accordingly, no outstanding balance on the Credit Facility with a SOFR rate will preclude cash flow hedging with existing London Inter-Bank Offer Rate (“LIBOR”) hedging instruments. In August 2014, we entered into a swap agreement with a notional amount of $ 25 million (“2014 Variable-to-Fixed Swap”), and the LIBOR portion of the interest rate was fixed at 2.5 % through August 29, 2024 . In February 2020, we entered into a second swap agreement with a notional amount of $ 25 million (“2020 Variable-to-Fixed Swap”), and the LIBOR portion of the interest rate was fixed at 1.3 % through February 28, 2025 . These interest rate swap agreements were terminated, dedesignated and settled in March 2021. The hedging relationship is highly effective; therefore, gains and losses on these swaps will be reclassified into interest expense in accordance with the forecasted transactions or the scheduled interest payments on the Credit Facility. At June 30, 2023, the outstanding balance on our Credit Facility had been reduced to zero , and approximately $ 0.2 million of losses were reclassified to interest expense associated with the ineffective period of the hedging relationship, as it became probable that certain of the forecasted transactions would not occur within the originally specified time period. Remaining losses on these swaps included in accumulated other comprehensive income (loss) as of June 30, 2023, are $ 0.5 million of which $ 0.4 million, is expected to be reclassified into earnings within the next 12 months as interest payments are made on the Company’s Credit Facility. In March 2021, we entered into a new forward interest rate swap agreement for a notional amount of $ 60 million and carried the fair value of the terminated 2014 and 2020 Variable-to-Fixed Swaps into the new agreement in a “blend and extend” structured transaction. The purpose of this forward interest rate swap agreement is to fix the underlying risk-free rate, that would be associated with the anticipated issuance of new long-term debt by the Company in future periods. The forward interest rate swap would hedge the risk-free rate on forecasted long-term debt for a maximum of 11 years through March 2033. Risk associated with future changes in the 10-year LIBOR interest rates have been fixed up to a notional amount of $ 60 million with this instrument. The interest rate swap qualifies as a cash flow hedging instrument. This forward interest rate swap agreement was terminated and settled in April 2022. The hedging relationship is highly effective, therefore, the gain on the termination of the forward interest rate swap was included in accumulated other comprehensive income (loss). On June 28, 2023, the Company issued the 2023 Senior Notes in the aggregate principal amount of $ 50 million at fixed interest rates of 7.25 % and 7.50 %. The Company has elected to apply the optional expedient for hedging relationships affected by reference rate reform. Accordingly, no outstanding balance on the 2023 Senior Notes will preclude cash flow hedging with the existing LIBOR hedging instrument. The Company recognized a gain of $ 0.4 million in earnings for the $ 10 million over hedged portion of the interest rate swap. The remaining gain on this swap included in accumulated other comprehensive income (loss) at June 30, 2023, is $ 2.0 million of which $ 1.4 million will be reclassified into earnings within the next 12 months as interest expense in accordance with the forecasted transactions or the scheduled interest payments on the 2023 Senior Notes. As of June 30, 2023, the aggregated gains and losses on these interest swaps that is included in accumulated other comprehensive income (loss) are a net gain of $ 1.5 million. At June 30, 2023 , we had fixed rate long-term debt aggregating $ 185 million and no variable rate long-term debt. The effect of the interest rate swaps on the consolidated statements of operations is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Income Statement Derivatives designated as hedges: 5 year interest rate swap $ 128 $ 91 $ 211 $ 180 Increase (decrease) to interest expense 10 year interest rate swap ( 166 ) 168 17 333 Increase (decrease) to interest expense $ ( 38 ) $ 259 $ 228 $ 513 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 12. FINANCIAL INSTRUMENTS The Company’s only financial assets and liabilities which are measured at fair value on a recurring basis relate to certain aspects of the Company’s benefit plans. We use the market approach to determine the fair value of these assets and liabilities using significant other observable inputs (Level 2) with the assistance of third-party specialists. We do not have any assets or liabilities measured at fair value on a recurring basis using quoted prices in an active market (Level 1) or significant unobservable inputs (Level 3). Gains and losses related to the fair value changes in the deferred compensation assets and liabilities are recorded in general and administrative expense in the consolidated statements of operations. The following table summarizes the fair value balances (in thousands): Fair Value Measurement at June 30, 2023 Total Level 1 Level 2 Level 3 Assets: Company owned life insurance policies (1) $ 24,408 $ — $ 24,408 $ — $ 24,408 $ — $ 24,408 $ — Liabilities: Deferred compensation liabilities $ 17,281 $ — $ 17,281 $ — $ 17,281 $ — $ 17,281 $ — Fair Value Measurement at December 31, 2022 Total Level 1 Level 2 Level 3 Assets: Company owned life insurance policies (1) $ 23,787 $ — $ 23,787 $ — $ 23,787 $ — $ 23,787 $ — Liabilities: Deferred compensation liabilities $ 16,284 $ — $ 16,284 $ — $ 16,284 $ — $ 16,284 $ — (1) Company owned life insurance policies have cash surrender value and are intended to assist in funding deferred compensation liabilities and other benefit plans. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | 13. OTHER (INCOME) EXPENSE, NET The components of other (income) expense, net, are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Gain) loss on sale of assets $ ( 129 ) $ ( 111 ) $ ( 33 ) $ ( 268 ) Results of non-consolidated subsidiaries ( 62 ) ( 21 ) ( 199 ) ( 114 ) Foreign exchange (gain) loss, net ( 386 ) 1,258 ( 530 ) 841 Rents and royalties ( 110 ) ( 126 ) ( 255 ) ( 297 ) Return on pension assets and other pension costs ( 330 ) ( 136 ) ( 656 ) ( 281 ) Loss on lease abandonment and other exit costs — — 641 — Assets write-down — — 1,015 — Severance and other charges — — — 3,332 Insurance and other settlements — — ( 604 ) ( 669 ) Other, net ( 51 ) ( 782 ) ( 475 ) ( 825 ) Total other (income) expense, net $ ( 1,068 ) $ 82 $ ( 1,096 ) $ 1,719 During the six months ended June 30, 2023 , we abandoned certain leases in the U.S. and Canada and incurred costs of $ 0.6 million. We integrated and relocated certain of our facilities in Canada and wrote down related leasehold improvements and right of use assets of $ 1.0 million. Additionally, the State of Louisiana expropriated the access road to one of our facilities and paid us a settlement of $ 0.6 million. During the six months ended June 30, 2022 , we received insurance settlements of $ 0.7 million associated with business interruptions and property losses to certain facilities caused by the North America mid-continent winter storm in February 2021. Foreign exchange (gain) loss, net by currency is summarized in the following table (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 British Pound $ 70 $ 28 $ ( 181 ) $ ( 8 ) Canadian Dollar ( 64 ) ( 44 ) ( 6 ) 29 Colombian Peso 79 ( 187 ) 132 ( 89 ) Euro ( 101 ) ( 357 ) ( 17 ) ( 455 ) Russian Ruble ( 90 ) 1,707 ( 341 ) 1,105 Turkish Lira ( 443 ) 37 ( 448 ) 124 Other currencies, net 163 74 331 135 Foreign exchange (gain) loss, net $ ( 386 ) $ 1,258 $ ( 530 ) $ 841 |
Income Tax Expense (Benefit)
Income Tax Expense (Benefit) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense (Benefit) | 14. INCOME TAX EXPENSE (BENEFIT) The Company recorded an income tax benefit of $ 7.3 million and $ 6.6 million for the three and six months ended June 30, 2023, respectively, compared to an income tax expense of $ 1.8 million and $ 0.6 million for the three and six months ended June 30, 2022, respectively. The effective tax rate for the three and six months ended June 30, 2023 was ( 46.3 %) and ( 35.5 %), respectively. The effective tax rate for the three and six months ended June 30, 2022 was 20 % and 10 %, respectively. The tax rate for the three and six months ended June 30, 2023 was largely impacted by the reversal of net deferred tax liabilities attributable to Core Laboratories N.V. which will not be realized subsequent to the Redomestication Transaction on May 1, 2023. The tax rate for the six months ended June 30, 2022 was largely impacted by the release of withholding tax related to unrepatriated earnings of our Russian subsidiary, which are not expected to be distributed in the foreseeable future. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 15. EARNINGS PER SHARE We compute basic earnings per share by dividing net income attributable to Core Laboratories Inc. by the number of weighted average common shares outstanding during the period. Diluted earnings per share includes the incremental effect of contingently issuable shares from performance and restricted stock awards, as determined using the treasury stock method. The Redomestication Transaction had no effect on earnings per share for the periods presented. The following table summarizes the calculation of weighted average common shares outstanding used in the computation of basic and diluted earnings per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Weighted average common shares outstanding - basic 46,675 46,319 46,655 46,309 Effect of dilutive securities: Restricted shares 91 124 88 123 Performance shares 731 700 733 701 Weighted average common shares outstanding - diluted 47,497 47,143 47,476 47,133 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | 16. SEGMENT REPORTING We operate our business in two segments. These complementary operating segments provide different services and products and utilize different technologies for evaluating and improving reservoir performance and increasing oil and gas recovery from new and existing fields. • Reservoir Description: Encompasses the characterization of petroleum reservoir rock and reservoir fluids samples to increase production and improve recovery of crude oil and natural gas from our clients' reservoirs. We provide laboratory-based analytical and field services to characterize properties of crude oil and crude oil-derived products to the oil and gas industry. Services relating to these fluids include determining the quality and measuring the quantity of the reservoir fluids and their derived products, such as gasoline, diesel and biofuels. We also provide proprietary and joint industry studies based on these types of analyses and manufacture associated laboratory equipment. In addition, we provide reservoir description capabilities that support various activities associated with energy transition projects, including services that support carbon capture, utilization and storage, hydrogen storage, geothermal projects, and the evaluation and appraisal of mining activities around lithium and other elements necessary for energy storage. • Production Enhancement: Includes services and manufactured products associated with reservoir well completions, perforations, stimulation, production and well abandonment. We provide integrated diagnostic services to evaluate and monitor the effectiveness of well completions and to develop solutions aimed at increasing the effectiveness of enhanced oil recovery projects. We use the same accounting policies to prepare our operating segment results as are used to prepare our consolidated financial statements. All interest and other non-operating income (expense) is attributable to Corporate & Other and is not allocated to specific operating segments. Summarized financial information concerning our operating segments is shown in the following table (in thousands): Reservoir Production Corporate & (1) Consolidated Three months ended June 30, 2023 Revenue from unaffiliated clients $ 83,384 $ 44,497 $ — $ 127,881 Inter-segment revenue 88 65 ( 153 ) — Segment operating income (loss) 13,316 5,498 92 18,906 Total assets (at end of period) 306,513 165,777 129,558 601,848 Capital expenditures 1,477 383 315 2,175 Depreciation and amortization 2,776 994 167 3,937 Three months ended June 30, 2022 Revenue from unaffiliated clients $ 75,818 $ 45,080 $ — $ 120,898 Inter-segment revenue 196 61 ( 257 ) — Segment operating income (loss) 5,925 4,949 778 11,652 Total assets (at end of period) 303,222 158,469 115,849 577,540 Capital expenditures 2,051 831 315 3,197 Depreciation and amortization 2,961 1,167 232 4,360 Six months ended June 30, 2023 Revenue from unaffiliated clients $ 163,572 $ 92,665 $ — $ 256,237 Inter-segment revenue 129 119 ( 248 ) — Segment operating income (loss) 15,787 8,779 821 25,387 Total assets (at end of period) 306,513 165,777 129,558 601,848 Capital expenditures 3,039 1,000 343 4,382 Depreciation and amortization 5,661 1,985 335 7,981 Six months ended June 30, 2022 Revenue from unaffiliated clients $ 150,572 $ 85,626 $ — $ 236,198 Inter-segment revenue 321 94 ( 415 ) — Segment operating income (loss) 6,287 4,030 944 11,261 Total assets (at end of period) 303,222 158,469 115,849 577,540 Capital expenditures 4,131 888 474 5,493 Depreciation and amortization 5,932 2,506 479 8,917 (1) "Corporate & Other" represents those items that are not directly related to a particular operating segment and eliminations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Redomestication Transaction has been accounted for as a transaction between entities under common control. Accordingly, Core Laboratories Inc. (formerly Core Laboratories Luxembourg S.A.) recorded the assets and liabilities transferred at their carrying amounts at the date of transfer. All common shares in Core Laboratories N.V., at par value EUR 0.02 , were canceled and exchanged for common stock in Core Laboratories Inc. (formerly Core Laboratories Luxembourg S.A.), at par value $ 0.01 , on a one-for-one basis. Core Laboratories Inc.'s common stock par value was decreased by $ 0.7 million for the difference between the total par value of common stock of Core Laboratories Inc. and the total par value of common shares of Core Laboratories N.V. at the date of transfer, with an offset to additional paid in capital. There is no difference between the combined separate entities prior to the Redomestication Transaction and the combined separate entities after the Redomestication Transaction, therefore, these financial statements, reported as though the exchange of equity interests had occurred at the beginning of the reporting period, and comparative information do not differ from amounts previously reported under Core Laboratories N.V.’s consolidated financial statements. These financial statements should be read in conjunction with Core Laboratories N.V.’s Quarterly Report on Form 10-Q for the three months ended March 31, 2023 and Core Laboratories N.V.’s Annual Report on Form 10-K for the year ended December 31, 2022, including Note 2 - Summary of Significant Accounting Policies. There have been no changes to the accounting policies of the combined entities during the six months ended June 30, 2023. The accompanying unaudited interim consolidated financial statements include the accounts of Core Laboratories Inc. and its subsidiaries for which we have a controlling voting interest and/or a controlling financial interest. These financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information using the instructions to Form 10-Q and Article 10 of Regulation S-X. Core Laboratories Inc.’s balance sheet information for the year ended December 31, 2022, was derived from the 2022 audited consolidated financial statements. Accordingly, these financial statements do not include all of the information and footnote disclosures required by U.S. GAAP for the annual financial statements and should be read in conjunction with the audited financial statements. Core Laboratories Inc. uses the equity method of accounting for investments in which it has less than a majority interest and does not exercise control but does exert significant influence. Non-controlling interests have been recorded to reflect outside ownership attributable to consolidated subsidiaries that are less than 100% owned. All inter-company transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included in these financial statements. Furthermore, the operating results presented for the three and six months ended June 30, 2023, may not necessarily be indicative of the results that may be expected for the year ending December 31, 2023 . |
Property, Plant and Equipment | Property, Plant and Equipment We review our long-lived assets (“LLA”) for impairment when events or changes in circumstances indicate that their net book value may not be recovered over their remaining service lives. Indicators of possible impairment may include significant declines in activity levels in regions where specific assets or groups of assets are located, extended periods of idle use, declining revenue or cash flow or overall changes in general market conditions. The geopolitical conflict between Russia and Ukraine, which began in February 2022 and has continued through June 30, 2023, has resulted in disruptions to our operations in Russia and Ukraine. However, as of June 30, 2023, all laboratory facilities, offices, and locations in Russia continued to operate and remained profitable. The Company’s operation, assets and facilities in Ukraine are immaterial. Therefore, we determined there was no triggering event for LLA in Russia and Ukraine, and no impairment assessments have been performed as of June 30, 2023 . |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Liabilities | The balance of contract assets and liabilities consisted of the following (in thousands): June 30, December 31, Contract assets: Current $ 502 $ 1,148 $ 502 $ 1,148 Contract liabilities: Current $ 702 $ 907 Non-current 24 24 $ 726 $ 931 June 30, Estimate of when contract liabilities will be recognized as revenue: Within 12 months $ 702 Within 12 to 24 months — Greater than 24 months 24 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in thousands): June 30, December 31, Finished goods $ 32,742 $ 26,534 Parts and materials 35,477 31,323 Work in progress 3,439 2,588 Total inventories $ 71,658 $ 60,445 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Operating lease expense $ 4,181 $ 4,098 $ 8,670 $ 8,267 Short-term lease expense 462 397 891 821 Variable lease expense 437 351 1,041 764 Total lease expense $ 5,080 $ 4,846 $ 10,602 $ 9,852 Other information: Operating cash flows - operating leases payments $ 4,218 $ 4,347 $ 8,750 $ 8,953 Right of use assets obtained (released) in exchange for $ 441 $ 953 $ 10,405 $ 3,996 Weighted-average remaining lease term - operating leases 8.32 years 7.22 years 8.32 years 7.22 years Weighted-average discount rate - operating leases 5.24 % 4.55 % 5.24 % 4.55 % |
Schedule of Undiscounted Cash Flows for Non-cancellable Leases | Scheduled undiscounted lease payments for non-cancellable leases consist of the following (in thousands): June 30, Remainder of 2023 $ 6,969 2024 11,292 2025 9,107 2026 6,967 2027 5,708 Thereafter 26,531 Total undiscounted lease payments 66,574 Less: Imputed interest ( 13,467 ) Total operating lease liabilities $ 53,107 |
Long-Term Debt, Net (Tables)
Long-Term Debt, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt is summarized in the following table (in thousands): Interest Rate Maturity Date June 30, December 31, 2011 Senior Notes (1) 4.11 % September 30, 2023 $ 75,000 $ 75,000 2021 Senior Notes Series A (2) 4.09 % January 12, 2026 45,000 45,000 2021 Senior Notes Series B (2) 4.38 % January 12, 2028 15,000 15,000 2023 Senior Notes Series A (3) 7.25 % June 28, 2028 25,000 — 2023 Senior Notes Series B (3) 7.50 % June 28, 2030 25,000 — Credit Facility — 40,000 Total long-term debt 185,000 175,000 Less: Debt issuance costs ( 2,417 ) ( 2,614 ) Long-term debt, net $ 182,583 $ 172,386 (1) Interest is payable semi-annually on March 30 and September 30. (2) Interest is payable semi-annually on June 30 and December 30. (3) Interest is payable semi-annually on March 28 and September 28. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Pension Cost | The following table summarizes the components of net periodic pension cost under the Dutch Plan (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Interest cost $ 372 $ 145 $ 739 $ 299 Expected return on plan assets ( 330 ) ( 136 ) ( 656 ) ( 281 ) Net periodic pension cost $ 42 $ 9 $ 83 $ 18 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Amounts recognized, net of income tax, in accumulated other comprehensive income (loss) consist of the following (in thousands): June 30, December 31, Pension and other post-retirement benefit plans - unrecognized prior service costs and net actuarial loss $ ( 5,050 ) $ ( 5,108 ) Interest rate swaps - net gain (loss) on fair value 1,511 1,331 Total accumulated other comprehensive income (loss) $ ( 3,539 ) $ ( 3,777 ) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The effect of the interest rate swaps on the consolidated statements of operations is as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Income Statement Derivatives designated as hedges: 5 year interest rate swap $ 128 $ 91 $ 211 $ 180 Increase (decrease) to interest expense 10 year interest rate swap ( 166 ) 168 17 333 Increase (decrease) to interest expense $ ( 38 ) $ 259 $ 228 $ 513 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Balances | The following table summarizes the fair value balances (in thousands): Fair Value Measurement at June 30, 2023 Total Level 1 Level 2 Level 3 Assets: Company owned life insurance policies (1) $ 24,408 $ — $ 24,408 $ — $ 24,408 $ — $ 24,408 $ — Liabilities: Deferred compensation liabilities $ 17,281 $ — $ 17,281 $ — $ 17,281 $ — $ 17,281 $ — Fair Value Measurement at December 31, 2022 Total Level 1 Level 2 Level 3 Assets: Company owned life insurance policies (1) $ 23,787 $ — $ 23,787 $ — $ 23,787 $ — $ 23,787 $ — Liabilities: Deferred compensation liabilities $ 16,284 $ — $ 16,284 $ — $ 16,284 $ — $ 16,284 $ — (1) Company owned life insurance policies have cash surrender value and are intended to assist in funding deferred compensation liabilities and other benefit plans. |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component | The components of other (income) expense, net, are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Gain) loss on sale of assets $ ( 129 ) $ ( 111 ) $ ( 33 ) $ ( 268 ) Results of non-consolidated subsidiaries ( 62 ) ( 21 ) ( 199 ) ( 114 ) Foreign exchange (gain) loss, net ( 386 ) 1,258 ( 530 ) 841 Rents and royalties ( 110 ) ( 126 ) ( 255 ) ( 297 ) Return on pension assets and other pension costs ( 330 ) ( 136 ) ( 656 ) ( 281 ) Loss on lease abandonment and other exit costs — — 641 — Assets write-down — — 1,015 — Severance and other charges — — — 3,332 Insurance and other settlements — — ( 604 ) ( 669 ) Other, net ( 51 ) ( 782 ) ( 475 ) ( 825 ) Total other (income) expense, net $ ( 1,068 ) $ 82 $ ( 1,096 ) $ 1,719 |
Foreign Currency (Gain) Loss, Net By Currency | Foreign exchange (gain) loss, net by currency is summarized in the following table (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 British Pound $ 70 $ 28 $ ( 181 ) $ ( 8 ) Canadian Dollar ( 64 ) ( 44 ) ( 6 ) 29 Colombian Peso 79 ( 187 ) 132 ( 89 ) Euro ( 101 ) ( 357 ) ( 17 ) ( 455 ) Russian Ruble ( 90 ) 1,707 ( 341 ) 1,105 Turkish Lira ( 443 ) 37 ( 448 ) 124 Other currencies, net 163 74 331 135 Foreign exchange (gain) loss, net $ ( 386 ) $ 1,258 $ ( 530 ) $ 841 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table summarizes the calculation of weighted average common shares outstanding used in the computation of basic and diluted earnings per share (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Weighted average common shares outstanding - basic 46,675 46,319 46,655 46,309 Effect of dilutive securities: Restricted shares 91 124 88 123 Performance shares 731 700 733 701 Weighted average common shares outstanding - diluted 47,497 47,143 47,476 47,133 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summarized financial information concerning our operating segments is shown in the following table (in thousands): Reservoir Production Corporate & (1) Consolidated Three months ended June 30, 2023 Revenue from unaffiliated clients $ 83,384 $ 44,497 $ — $ 127,881 Inter-segment revenue 88 65 ( 153 ) — Segment operating income (loss) 13,316 5,498 92 18,906 Total assets (at end of period) 306,513 165,777 129,558 601,848 Capital expenditures 1,477 383 315 2,175 Depreciation and amortization 2,776 994 167 3,937 Three months ended June 30, 2022 Revenue from unaffiliated clients $ 75,818 $ 45,080 $ — $ 120,898 Inter-segment revenue 196 61 ( 257 ) — Segment operating income (loss) 5,925 4,949 778 11,652 Total assets (at end of period) 303,222 158,469 115,849 577,540 Capital expenditures 2,051 831 315 3,197 Depreciation and amortization 2,961 1,167 232 4,360 Six months ended June 30, 2023 Revenue from unaffiliated clients $ 163,572 $ 92,665 $ — $ 256,237 Inter-segment revenue 129 119 ( 248 ) — Segment operating income (loss) 15,787 8,779 821 25,387 Total assets (at end of period) 306,513 165,777 129,558 601,848 Capital expenditures 3,039 1,000 343 4,382 Depreciation and amortization 5,661 1,985 335 7,981 Six months ended June 30, 2022 Revenue from unaffiliated clients $ 150,572 $ 85,626 $ — $ 236,198 Inter-segment revenue 321 94 ( 415 ) — Segment operating income (loss) 6,287 4,030 944 11,261 Total assets (at end of period) 303,222 158,469 115,849 577,540 Capital expenditures 4,131 888 474 5,493 Depreciation and amortization 5,932 2,506 479 8,917 (1) "Corporate & Other" represents those items that are not directly related to a particular operating segment and eliminations. |
Description of Business (Detail
Description of Business (Details) | 6 Months Ended |
Jun. 30, 2023 Segment | |
Basis Of Presentation [Line Items] | |
Number of operating segments | 2 |
Significant Accounting Polici_3
Significant Accounting Policies Update - Additional Information (Details) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2023 € / shares | Dec. 31, 2022 € / shares | |
Significant Accounting Policies [Line Items] | |||
Common stock, par value per share | (per share) | $ 0.01 | € 0.02 | |
Core Laboratories Inc. | |||
Significant Accounting Policies [Line Items] | |||
Amount decreased due to difference between the total par value of common shares | $ 0.7 | ||
Common stock, par value per share | (per share) | $ 0.01 | € 0.02 |
Acquisitions and Divestures - A
Acquisitions and Divestures - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Combinations [Abstract] | ||||
Goodwill, acquired during period | $ 0 | $ 0 | $ 0 | $ 0 |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities - Contract Assets and Liabilities Changes in Net Contract Assets (Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Contract assets | ||
Current | $ 502 | $ 1,148 |
Contract asset | 502 | 1,148 |
Contract Liabilities | ||
Current | 702 | 907 |
Non-current | 24 | 24 |
Contract liabilities | $ 726 | $ 931 |
Contract Assets and Liabiliti_4
Contract Assets and Liabilities - Contract Assets and Liabilities Current and Long-term Contract Liabilities (Details 1) $ in Thousands | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liability | $ 702 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liability | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liability | $ 24 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 24 months |
Contract Assets and Liabiliti_5
Contract Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Impairment losses on contract assets | $ 0 | $ 0 | $ 0 | $ 0 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 32,742 | $ 26,534 |
Parts and materials | 35,477 | 31,323 |
Work in progress | 3,439 | 2,588 |
Total inventories | $ 71,658 | $ 60,445 |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 4,181 | $ 4,098 | $ 8,670 | $ 8,267 |
Short-term lease expense | 462 | 397 | 891 | 821 |
Variable lease expense | 437 | 351 | 1,041 | 764 |
Total lease expense | 5,080 | 4,846 | 10,602 | 9,852 |
Operating cash flows - operating leases payments | 4,218 | 4,347 | 8,750 | 8,953 |
Right of use assets obtained (released) in exchange for operating lease obligations | $ 441 | $ 953 | $ (10,405) | $ 3,996 |
Weighted-average remaining lease term - operating leases | 8 years 3 months 25 days | 7 years 2 months 19 days | 8 years 3 months 25 days | 7 years 2 months 19 days |
Weighted-average discount rate - operating leases | 5.24% | 4.55% | 5.24% | 4.55% |
Leases - Schedule of Undiscount
Leases - Schedule of Undiscounted Cash Flows for Non-cancellable Leases (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
Remainder of 2023 | $ 6,969 |
2024 | 11,292 |
2025 | 9,107 |
2026 | 6,967 |
2027 | 5,708 |
Thereafter | 26,531 |
Total undiscounted lease payments | 66,574 |
Less: Imputed interest | (13,467) |
Total operating lease liabilities | $ 53,107 |
Long-Term Debt, Net - Additiona
Long-Term Debt, Net - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 USD ($) SeriesNote | Sep. 30, 2023 | |
Debt Instrument [Line Items] | ||
Financing lease obligations | $ 0 | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Financing lease obligations | |
Number of series of debt issued | SeriesNote | 5 | |
Face amount | $ 185,000 | |
Maturity date | Jul. 25, 2026 | |
Line of credit facility reduced minimum borrowing capacity | $ 50,000 | |
Performance bonds under credit facility | 9,000 | |
Remaining borrowing capacity | 126,000 | |
Performance bonds | $ 7,000 | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 135,000 | |
Basis spread on variable rate | 2% | |
2021 Senior Notes Series A [Member] | ||
Debt Instrument [Line Items] | ||
Face amount | $ 45,000 | |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Interest coverage ratio, minimum | 3% | |
Calculated covenant leverage ratio | 1.85% | |
Calculated interest coverage ratio | 6.66% | |
Line of Credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Maximum leverage ratio permitted | 2.5 | |
Line of Credit [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Maximum leverage ratio permitted | 1 |
Long-Term Debt, Net - Schedule
Long-Term Debt, Net - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | ||
Debt Instrument [Line Items] | |||
Maturity date | Jul. 25, 2026 | ||
Total long-term debt | $ 185,000 | $ 175,000 | |
Less: Debt issuance costs | (2,417) | (2,614) | |
Long-term debt, net | $ 182,583 | 172,386 | |
2011 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, interest rate | [1] | 4.11% | |
Maturity date | [1] | Sep. 30, 2023 | |
Total long-term debt | [1] | $ 75,000 | 75,000 |
Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 0 | 40,000 | |
Series A [Member] | 2021 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, interest rate | [2] | 4.09% | |
Maturity date | [2] | Jan. 12, 2026 | |
Total long-term debt | [2] | $ 45,000 | 45,000 |
Series A [Member] | 2023 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, interest rate | [3] | 7.25% | |
Maturity date | [3] | Jun. 28, 2028 | |
Total long-term debt | [3] | $ 25,000 | 0 |
Series B [Member] | 2021 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, interest rate | [2] | 4.38% | |
Maturity date | [2] | Jan. 12, 2028 | |
Total long-term debt | [2] | $ 15,000 | 15,000 |
Series B [Member] | 2023 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, interest rate | [3] | 7.50% | |
Maturity date | [3] | Jun. 28, 2030 | |
Total long-term debt | [3] | $ 25,000 | $ 0 |
[1] (1) Interest is payable semi-annually on March 30 and September 30. (2) Interest is payable semi-annually on June 30 and December 30. (3) Interest is payable semi-annually on March 28 and September 28. |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Schedule of Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | ||||
Interest cost | $ 372 | $ 145 | $ 739 | $ 299 |
Expected return on plan assets | (330) | (136) | (656) | (281) |
Net periodic pension cost | $ 42 | $ 9 | $ 83 | $ 18 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Retirement Benefits [Abstract] | ||
Contributions by employer | $ 1.8 | $ 1.8 |
Equity - Additional Information
Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jul. 26, 2023 $ / shares | Jun. 09, 2022 USD ($) | May 30, 2023 $ / shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2023 € / shares shares | Dec. 31, 2022 € / shares shares | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Common stock, par value per share | (per share) | $ 0.01 | $ 0.01 | € 0.02 | ||||||
Common stock, shares, issued | shares | 46,701,102 | 46,701,102 | 46,701,102 | 46,699,102 | |||||
Repurchase of common shares (shares) | shares | 9,013 | 9,070 | |||||||
Treasury stock, value | $ 199 | $ 246 | $ 200 | $ 2,166 | |||||
Treasury stock, value | $ 199 | $ 200 | |||||||
Treasury stock reissued | shares | 55,395 | 55,545 | |||||||
Cash dividends per share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.02 | $ 0.02 | |||
Dividends payable, date declared | Jul. 26, 2023 | ||||||||
Common Shares [Member] | |||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Common shares, vesting, stock based award | shares | 2,000 | ||||||||
Wells Fargo Securities, LLC [Member] | At-The-Market Offerings [Member] | |||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Proceeds from issuance of common shares | $ 60,000 | ||||||||
Core Laboratories Inc. | |||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||||
Common stock, par value per share | (per share) | $ 0.01 | $ 0.01 | € 0.02 | ||||||
Amount decreased due to difference between the total par value of common shares | $ 700 | ||||||||
Equity related Transaction costs | $ 4,200 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Income (Loss) Net of Income Taxes (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Pension and other post-retirement benefit plans - unrecognized prior service costs and net actuarial loss | $ (5,050) | $ (5,108) |
Interest rate swaps - net gain (loss) on fair value | 1,511 | 1,331 |
Total accumulated other comprehensive income | $ (3,539) | $ (3,777) |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 28, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | |||
Total long-term debt | $ 185,000 | $ 175,000 | |
Face amount | 185,000 | ||
Net loss included in accumulated other comprehensive income | $ 400 | 500 | |
Net loss included in AOCI expected to be reclassified into earnings | 10,000 | 400 | |
Gain on forward interest rate swap agreements terminated and settlements | 1,500 | ||
Long-term debt, percentage bearing fixed interest, amount | 185,000 | ||
Long-term debt, percentage bearing variable interest, amount | 0 | ||
Credit Facility [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total long-term debt | 0 | $ 40,000 | |
Net loss reclassified to interest expense | 200 | ||
2023 Senior Notes [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Face amount | $ 50 | ||
Net loss included in accumulated other comprehensive income | 2,000 | ||
Net loss included in AOCI expected to be reclassified into earnings | $ 1,400 | ||
Maximum [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Basis spread on variable rate | 3% | ||
Maximum [Member] | Amended Credit Facility | SOFR [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Basis spread on variable rate | 3% | ||
Maximum [Member] | 2023 Senior Notes [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, fixed interest rate | 7.50% | ||
Minimum [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Basis spread on variable rate | 2% | ||
Minimum [Member] | Amended Credit Facility | SOFR [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Basis spread on variable rate | 2% | ||
Minimum [Member] | 2023 Senior Notes [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, fixed interest rate | 7.25% | ||
Interest Rate Swap No. 1 [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, notional amount | $ 25,000 | ||
Derivative, fixed interest rate | 2.50% | ||
Derivative, maturity date | Aug. 29, 2024 | ||
Interest Rate Swap No. 2 [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, notional amount | $ 25,000 | ||
Derivative, fixed interest rate | 1.30% | ||
Derivative, maturity date | Feb. 28, 2025 | ||
New Blended and Extended Interest Swap Agreement [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, notional amount | $ 60,000 | ||
Forward Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, notional amount | $ 60,000 | ||
Derivative, term of contract | 10 years | ||
Forward Interest Rate Swap [Member] | Maximum [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Long term debt terms | 11 years |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest Rate Swap No. 1 [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain (loss) on interest rate cash flow hedges | $ 128 | $ 91 | $ 211 | $ 180 |
Interest Rate Swap No. 2 [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain (loss) on interest rate cash flow hedges | (166) | 168 | 17 | 333 |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain (loss) on interest rate cash flow hedges | $ (38) | $ 259 | $ 228 | $ 513 |
Financial Instruments - Summary
Financial Instruments - Summary of Fair Value Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Company owned life insurance policies | [1] | $ 24,408 | $ 23,787 |
Deferred compensation plan, assets | 24,408 | 23,787 | |
Deferred compensation liabilities | 17,281 | 16,284 | |
Deferred compensation plan, liability | 17,281 | 16,284 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Company owned life insurance policies | [1] | 24,408 | 23,787 |
Deferred compensation plan, assets | 24,408 | 23,787 | |
Deferred compensation liabilities | 17,281 | 16,284 | |
Deferred compensation plan, liability | $ 17,281 | $ 16,284 | |
[1] (1) Company owned life insurance policies have cash surrender value and are intended to assist in funding deferred compensation liabilities and other benefit plans. |
Other (Income) Expense, Net - S
Other (Income) Expense, Net - Schedule of Other (Income) Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | $ (1,068) | $ 82 | $ (1,096) | $ 1,719 |
(Gain) loss on sale of assets [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | (129) | (111) | (33) | (268) |
Results of non-consolidated subsidiaries [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | (62) | (21) | (199) | (114) |
Foreign exchange (gain) loss, net [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | (386) | 1,258 | (530) | 841 |
Rents and royalties [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | (110) | (126) | (255) | (297) |
Return on pension assets and other pension costs [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | (330) | (136) | (656) | (281) |
Loss on lease abandonment and other exit costs [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | 0 | 0 | 641 | 0 |
Assets write-down [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | 0 | 0 | 1,015 | 0 |
Severance and other charges [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | 0 | 0 | 0 | 3,332 |
Insurance Settlement [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | 0 | 0 | (604) | (669) |
Other, net [Member] | ||||
Other Income Expense [Line Items] | ||||
Other (Income) expense, net | $ (51) | $ (782) | $ (475) | $ (825) |
Other (Income) Expense, Net - A
Other (Income) Expense, Net - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Partial Proceeds From insurance Settlement Investing Activities | $ 0.7 | |
Real Estate Inventory, Capitalized Interest Costs Incurred | $ 0.6 | |
Right of use assets write down | 1 | |
Expropriation settlement from related party | $ 0.6 |
Other (Income) Expense, Net - F
Other (Income) Expense, Net - Foreign Currency (Gain) Loss, Net By Currency (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income Expense [Line Items] | ||||
Foreign exchange (gain) loss, net | $ (386) | $ 1,258 | $ (530) | $ 841 |
British Pound [Member] | ||||
Other Income Expense [Line Items] | ||||
Foreign exchange (gain) loss, net | 70 | 28 | (181) | (8) |
Canadian Dollar [Member] | ||||
Other Income Expense [Line Items] | ||||
Foreign exchange (gain) loss, net | (64) | (44) | (6) | 29 |
Colombian Peso [Member] | ||||
Other Income Expense [Line Items] | ||||
Foreign exchange (gain) loss, net | 79 | (187) | 132 | (89) |
Euro [Member] | ||||
Other Income Expense [Line Items] | ||||
Foreign exchange (gain) loss, net | (101) | (357) | (17) | (455) |
Russian Ruble [Member] | ||||
Other Income Expense [Line Items] | ||||
Foreign exchange (gain) loss, net | (90) | 1,707 | (341) | 1,105 |
Turkish Lira [Member] | ||||
Other Income Expense [Line Items] | ||||
Foreign exchange (gain) loss, net | (443) | 37 | (448) | 124 |
Other Currencies, Net [Member] | ||||
Other Income Expense [Line Items] | ||||
Foreign exchange (gain) loss, net | $ 163 | $ 74 | $ 331 | $ 135 |
Income Tax Expense (Benefit) (D
Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 46.30% | 20% | 35.50% | 10% |
Income tax expense (benefit) | $ (7,259) | $ 1,789 | $ (6,649) | $ 593 |
Income loss before income tax | $ 15,670 | $ 8,945 | $ 18,722 | $ 5,910 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding - basic | 46,675 | 46,319 | 46,655 | 46,309 |
Restricted shares | 91 | 124 | 88 | 123 |
Performance shares | 731 | 700 | 733 | 701 |
Weighted average common shares outstanding - diluted | 47,497 | 47,143 | 47,476 | 47,133 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | ||
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | Segment | 2 | |||||
Revenue | $ 127,881 | $ 120,898 | $ 256,237 | $ 236,198 | ||
Segment operating income (loss) | 18,906 | 11,652 | 25,387 | 11,261 | ||
Total assets (at end of period) | 601,848 | 577,540 | 601,848 | 577,540 | $ 578,354 | |
Capital expenditures | 2,175 | 3,197 | 4,382 | 5,493 | ||
Depreciation and amortization | 3,937 | 4,360 | 7,981 | 8,917 | ||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Reservoir Description [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 83,384 | 75,818 | 163,572 | 150,572 | ||
Segment operating income (loss) | 13,316 | 5,925 | 15,787 | 6,287 | ||
Total assets (at end of period) | 306,513 | 303,222 | 306,513 | 303,222 | ||
Capital expenditures | 1,477 | 2,051 | 3,039 | 4,131 | ||
Depreciation and amortization | 2,776 | 2,961 | 5,661 | 5,932 | ||
Reservoir Description [Member] | Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 88 | 196 | 129 | 321 | ||
Production Enhancement [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 44,497 | 45,080 | 92,665 | 85,626 | ||
Segment operating income (loss) | 5,498 | 4,949 | 8,779 | 4,030 | ||
Total assets (at end of period) | 165,777 | 158,469 | 165,777 | 158,469 | ||
Capital expenditures | 383 | 831 | 1,000 | 888 | ||
Depreciation and amortization | 994 | 1,167 | 1,985 | 2,506 | ||
Production Enhancement [Member] | Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 65 | 61 | 119 | 94 | ||
Corporate and Other [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 0 | 0 | 0 | 0 | |
Segment operating income (loss) | [1] | 92 | 778 | 821 | 944 | |
Total assets (at end of period) | [1] | 129,558 | 115,849 | 129,558 | 115,849 | |
Capital expenditures | [1] | 315 | 315 | 343 | 474 | |
Depreciation and amortization | [1] | 167 | 232 | 335 | 479 | |
Corporate and Other [Member] | Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | $ (153) | $ (257) | $ (248) | $ (415) | |
[1] (1) "Corporate & Other" represents those items that are not directly related to a particular operating segment and eliminations. |