Varco International (VRC) 8-K FINANCIAL RESULTS - As initially reported

VARCO INTERNATIONAL, INC.

FINANCIAL RESULTS - As initially reported

(in thousands, except share and per share data)

	Q1 01			Q2 01			Q3 01			Q4 01			YTD 2001			Q1 02			Q2 02			Q3 02			Q4 02			YTD 2002
	Restated															Restated
Revenue
Drilling Equipment Sales	$	68,100		$	92,372		$	101,689		$	133,390		$	395,551		$	110,276		$	133,440		$	120,344		$	122,635		$	486,695
Tubular Services		88,968			87,835			89,332			86,489			352,624			75,039			76,394			91,339			113,194			355,966
Drilling Services		76,366			78,686			83,479			75,740			314,271			71,252			66,419			69,525			71,421			278,617
Coiled Tubing & Wireline Products		40,923			47,796			53,156			63,488			205,363			54,001			59,800			52,731			47,254			213,786
Total Revenue		274,357			306,689			327,656			359,107			1,267,809			310,568			336,053			333,939			354,504			1,335,064
Gross Profit (before goodwill amortization)		80,925			97,900			98,819			106,350			383,994			89,471			95,799			97,252			100,485			383,007
		29.5	%		31.9	%		30.2	%		29.6	%		30.3	%		28.8	%		28.5	%		29.1	%		28.3	%		28.7	%
Goodwill Amortization		2,460			2,711			2,636			2,650			10,457			0			0			0			0			0
Selling, General & Administration		31,987			40,154			37,136			42,999			152,276			37,965			38,407			41,257			45,754			163,383
Research & Engineering		9,892			11,325			12,605			12,813			46,635			12,781			14,464			14,932			14,895			57,072
Merger, Transaction, Litigation and Impairment Costs		0			16,500			0			0			16,500			2,829			0			2,369			1,289			6,487
Operating Profit		36,586			27,210			46,442			47,888			158,126			35,896			42,928			38,694			38,547			156,065
Interest Expense		3,789			5,529			6,134			6,324			21,776			6,068			6,046			6,243			7,251			25,608
Other Expense(Income)		976			631			1,599			1,049			4,255			2,296			3,467			2,137			(222	)		7,678
Income before Taxes		31,821			21,050			38,709			40,515			132,095			27,532			33,415			30,314			31,518			122,779
Income Tax Provision		12,732			8,477			13,741			14,177			49,127			10,245			12,352			10,262			10,113			42,972
Net Income from continuing operations		19,089			12,573			24,968			26,338			82,968			17,287			21,063			20,052			21,405			79,807
Income (loss) from discontinued operations		0			0			0			0			0			0			0			0			0			0
Net Income	$	19,089		$	12,573		$	24,968		$	26,338		$	82,968		$	17,287		$	21,063		$	20,052		$	21,405		$	79,807
Earnings per Common Share
Basic:
Continuing operations	$	0.20		$	0.13		$	0.26		$	0.27		$	0.87		$	0.18		$	0.22		$	0.21		$	0.22		$	0.83
Discontinued operations		0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00
Net income	$	0.20		$	0.13		$	0.26		$	0.27		$	0.87		$	0.18		$	0.22		$	0.21		$	0.22		$	0.83
Dilutive:
Continuing operations	$	0.20		$	$0.13		$	0.26		$	0.27		$	0.86		$	0.18		$	0.22		$	0.21		$	0.22		$	0.82
Discontinued operations		0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00
Net income	$	0.20		$	0.13		$	0.26		$	0.27		$	0.86		$	0.18		$	0.22		$	0.21		$	0.22		$	0.82
Weighted Avg Shares Outstanding
Basic		95,338,404			95,765,303			95,857,867			95,970,015			95,732,897			96,137,535			96,669,634			96,785,063			96,922,426			96,628,664
Dilutive		96,613,309			96,927,297			96,569,018			96,591,551			96,675,294			96,841,252			97,714,512			97,504,538			97,663,657			97,430,990
Depreciation and Amortization	$	15,407		$	16,880		$	17,560		$	18,053		$	67,900		$	14,712		$	13,945		$	14,388		$	16,201		$	59,246

	Q1 03			Q2 03			Q3 03			Q4 03			YTD 2003
Revenue
Drilling Equipment Sales	$	139,179		$	123,056		$	114,749		$	97,189		$	474,173
Tubular Services		104,758			107,999			124,198			118,943			455,898
Drilling Services		69,460			69,879			78,024			75,300			292,663
Coiled Tubing & Wireline Products		54,080			56,523			58,005			58,265			226,873
Total Revenue		367,477			357,457			374,976			349,697			1,449,607
Gross Profit (before goodwill amortization)		103,615			91,668			107,899			90,314			393,496
		28.2	%		25.6	%		28.8	%		25.8	%		27.1	%
Goodwill Amortization		0			0			0			0			0
Selling, General & Administration		47,115			44,554			44,495			44,676			180,840
Research & Engineering		14,948			16,239			15,325			14,994			61,506
Merger, Transaction, Litigation and Impairment Costs		0			0			0			11,169			11,169
Operating Profit		41,552			30,875			48,079			19,475			139,981
Interest Expense		7,899			7,815			7,357			7,097			30,168
Other Expense(Income)		1,447			(86	)		1,093			(211	)		2,243
Income before Taxes		32,206			23,146			39,629			12,589			107,570
Income Tax Provision		11,272			8,031			12,990			8,034			40,327
Net Income from continuing operations		20,934			15,115			26,639			4,555			67,243
Income (loss) from discontinued operations		0			0			0			0			0
Net Income	$	20,934		$	15,115		$	26,639		$	4,555		$	67,243
Earnings per Common Share
Basic:
Continuing operations	$	0.22		$	0.16		$	0.27		$	0.05		$	0.69
Discontinued operations		0.00			0.00			0.00			0.00			0.00
Net income	$	0.22		$	0.16		$	0.27		$	0.05		$	0.69
Dilutive:
Continuing operations	$	0.21		$	0.15		$	0.27		$	0.05		$	0.68
Discontinued operations		0.00			0.00			0.00			0.00			0.00
Net income	$	0.21		$	0.15		$	0.27		$	0.05		$	0.68
Weighted Avg Shares Outstanding
Basic		97,136,872			97,365,039			97,503,222			97,190,313			97,298,862
Dilutive		97,970,011			98,423,757			98,263,529			98,004,179			98,165,369
Depreciation and Amortization	$	16,326		$	16,366		$	16,936		$	17,571		$	67,199

VARCO INTERNATIONAL, INC.

MORINOAK INTERNATIONAL LIMITED (MIL) FINANCIAL RESULTS

(in thousands, except share and per share data)

	Q1 01			Q2 01			Q3 01			Q4 01			YTD 2001			Q1 02			Q2 02			Q3 02			Q4 02			YTD 2002
	Restated															Restated
Revenue
Drilling Equipment Sales	$	0		$	0		$	0		$	6,014		$	6,014		$	1,721		$	1,222		$	5,847		$	3,908		$	12,698
Tubular Services		0			0			0			0			0			0			0			0			0			0
Drilling Services		0			0			0			0			0			0			0			0			0			0
Coiled Tubing & Wireline Products		0			0			0			0			0			0			0			0			0			0
Total Revenue		0			0			0			6,014			6,014			1,721			1,222			5,847			3,908			12,698
Gross Profit (before goodwill amortization)		0			0			0			849			849			385			(105	)		462			276			1,018
		0	%		0	%		0	%		14.1	%		14.1	%		22.4	%		-8.6	%		7.9	%		7.1	%		8.0	%
Goodwill Amortization		0			0			0			0			0			0			0			0			0			0
Selling, General & Administration		0			0			0			692			692			634			634			812			1,047			3,127
Research & Engineering		0			0			0			0			0			0			0			0			0			0
Merger, Transaction, Litigation and Impairment Costs		0			0			0			0			0			0			0			0			0			0
Operating Profit(Loss)		0			0			0			157			157			(249	)		(739	)		(350	)		(771	)		(2,109	)
Interest Expense		0			0			0			0			0			0			0			0			0			0
Other Expense(Income)		0			0			0			0			0			0			0			0			0			0
Income(Loss) before Taxes		0			0			0			157			157			(249	)		(739	)		(350	)		(771	)		(2,109	)
Income Tax Provision		0			0			0			47			47			(75	)		(222	)		(105	)		(231	)		(633	)
Net Income(Loss) from continuing operations		0			0			0			110			110			(174	)		(517	)		(245	)		(540	)		(1,476	)
Income (loss) from discontinued operations		0			0			0			0			0			0			0			0			0			0
Net Income(Loss)	$	0		$	0		$	0		$	110		$	110		$	(174	)	$	(517	)	$	(245	)	$	(540	)	$	(1,476	)
Earnings per Common Share
Basic:
Continuing operations	$	0.00		$	$0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	-0.01		$	0.00		$	-0.01		$	-0.02
Discontinued operations		0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00
Net income	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	-0.01		$	0.00		$	-0.01		$	-0.02
Dilutive:
Continuing operations	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	-0.01		$	0.00		$	-0.01		$	-0.02
Discontinued operations		0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00			0.00
Net income	$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	0.00		$	-0.01		$	0.00		$	-0.01		$	-0.02
Weighted Avg Shares Outstanding
Basic		95,338,404			95,765,303			95,857,867			95,970,015			95,732,897			96,137,535			96,669,634			96,785,063			96,922,426			96,628,664
Dilutive		96,613,309			96,927,297			96,569,018			96,591,551			96,675,294			96,841,252			97,714,512			97,504,538			97,663,657			97,430,990
Depreciation and Amortization	$	0		$	0		$	0		$	67		$	67		$	54		$	55		$	60		$	60		$	229

	Q1 03			Q2 03			Q3 03			Q4 03			YTD 2003			Q1 04
Revenue
Drilling Equipment Sales	$	5,937		$	1,648		$	3,061		$	1,340		$	11,986		$	39,109
Tubular Services		0			0			0			0			0			0
Drilling Services		0			0			0			0			0			0
Coiled Tubing & Wireline Products		0			0			0			0			0			0
Total Revenue		5,937			1,648			3,061			1,340			11,986			39,109
Gross Profit (before goodwill amortization)		776			(7,702	)		174			(4,767	)		(11,519	)		(15,019	)
		13.1	%		-467.4	%		5.7	%		-355.7	%		-96.1	%		-38.4	%
Goodwill Amortization		0			0			0			0			0			0
Selling, General & Administration		649			721			809			853			3,032			873
Research & Engineering		103			142			39			51			335			193
Merger, Transaction, Litigation and Impairment Costs		0			0			0			11,169			11,169			0
Operating Profit(Loss)		24			(8,565	)		(674	)		(16,840	)		(26,055	)		(16,085	)
Interest Expense		0			0			0			0			0			0
Other Expense(Income)		0			0			0			0			0			0
Income(Loss) before Taxes		24			(8,565	)		(674	)		(16,840	)		(26,055	)		(16,085	)
Income Tax Provision		7			(2,570	)		(202	)		(1,701	)		(4,466	)		(4,343	)
Net Income(Loss) from Continuing Operations		17			(5,995	)		(472	)		(15,139	)		(21,589	)		(11,742	)
Income (loss) from discontinued operations		0			0			0			0			0			0
Net Income(Loss)	$	17		$	(5,995	)	$	(472	)	$	(15,139	)	$	(21,589	)	$	(11,742	)
Earnings per Common Share
Basic:
Continuing operations	$	0.00		$	-0.06		$	0.00		$	-0.16		$	-0.22		$	-0.12
Discontinued operations		0.00			0.00			0.00			0.00			0.00			0.00
Net income	$	0.00		$	-0.06		$	0.00		$	-0.16		$	-0.22		$	-0.12
Dilutive:
Continuing operations	$	0.00		$	-0.06		$	0.00		$	-0.15		$	-0.22		$	-0.12
Discontinued operations		0.00			0.00			0.00			0.00			0.00			0.00
Net income	$	0.00		$	-0.06		$	0.00		$	-0.15		$	-0.22		$	-0.12
Weighted Avg Shares Outstanding
Basic		97,136,872			97,365,039			97,503,222			97,190,313			97,298,862			97,123,136
Dilutive		97,970,011			98,423,757			98,263,529			98,004,179			98,165,369			98,094,162
Depreciation and Amortization	$	63		$	65		$	66		$	70		$	264		$	76

VARCO INTERNATIONAL, INC.

FINANCIAL RESULTS with MIL as Discontinued Operations

(in thousands, except share and per share data)

	Q1 01			Q2 01			Q3 01			Q4 01			YTD 2001			Q1 02			Q2 02			Q3 02			Q4 02			YTD 2002
	Restated															Restated
Revenue
Drilling Equipment Sales	$	68,100		$	92,372		$	101,689		$	127,376		$	389,537		$	108,555		$	132,218		$	114,497		$	118,727		$	473,997
Tubular Services		88,968			87,835			89,332			86,489			352,624			75,039			76,394			91,339			113,194			355,966
Drilling Services		76,366			78,686			83,479			75,740			314,271			71,252			66,419			69,525			71,421			278,617
Coiled Tubing & Wireline Products		40,923			47,796			53,156			63,488			205,363			54,001			59,800			52,731			47,254			213,786
Total Revenue		274,357			306,689			327,656			353,093			1,261,795			308,847			334,831			328,092			350,596			1,322,366
Gross Profit (before goodwill amortization)		80,925			97,900			98,819			105,501			383,145			89,086			95,904			96,790			100,209			381,989
		29.5	%		31.9	%		30.2	%		29.9	%		30.4	%		28.8	%		28.6	%		29.5	%		28.6	%		28.9	%
Goodwill Amortization		2,460			2,711			2,636			2,650			10,457			0			0			0			0			0
Selling, General & Administration		31,987			40,154			37,136			42,307			151,584			37,331			37,773			40,445			44,707			160,256
Research & Engineering		9,892			11,325			12,605			12,813			46,635			12,781			14,464			14,932			14,895			57,072
Merger, Transaction & Litigation (Note 1)		0			16,500			0			0			16,500			2,829			0			2,369			1,289			6,487
Operating Profit		36,586			27,210			46,442			47,731			157,969			36,145			43,667			39,044			39,318			158,174
Interest Expense		3,789			5,529			6,134			6,324			21,776			6,068			6,046			6,243			7,251			25,608
Other Expense(Income)		976			631			1,599			1,049			4,255			2,296			3,467			2,137			(222	)		7,678
Income before Taxes		31,821			21,050			38,709			40,358			131,938			27,781			34,154			30,664			32,289			124,888
Income Tax Provision		12,732			8,477			13,741			14,130			49,080			10,320			12,574			10,367			10,344			43,605
Net income from continuing operations		19,089			12,573			24,968			26,228			82,858			17,461			21,580			20,297			21,945			81,283
Income (loss) from discontinued operations		0			0			0			110			110			(174	)		(517	)		(245	)		(540	)		(1,476	)
Net Income	$	19,089		$	12,573		$	24,968		$	26,338		$	82,968		$	17,287		$	21,063		$	20,052		$	21,405		$	79,807
Earnings per Common Share
Basic:
Continuing operations	$	0.20		$	0.13		$	0.26		$	0.27		$	0.87		$	0.18		$	0.22		$	0.21		$	0.23		$	0.84
Discontinued operations		0.00			0.00			0.00			0.00			0.00			0.00			-0.01			0.00			-0.01			-0.02
Net income	$	0.20		$	0.13		$	0.26		$	0.27		$	0.87		$	0.18		$	0.22		$	0.21		$	0.22		$	0.83
Dilutive:
Continuing operations	$	0.20		$	0.13		$	0.26		$	0.27		$	0.86		$	0.18		$	0.22		$	0.21		$	0.22		$	0.83
Discontinued operations		0.00			0.00			0.00			0.00			0.00			0.00			-0.01			0.00			-0.01			-0.02
Net income	$	0.20		$	0.13		$	0.26		$	0.27		$	0.86		$	0.18		$	0.22		$	0.21		$	0.22		$	0.82
Weighted Avg Shares Outstanding
Basic		95,338,404			95,765,303			95,857,867			95,970,015			95,732,897			96,137,535			96,669,634			96,785,063			96,922,426			96,628,664
Dilutive		96,613,309			96,927,297			96,569,018			96,591,551			96,675,294			96,841,252			97,714,512			97,504,538			97,663,657			97,430,990
Before Merger, Transaction, Litigation, Restructuring and Discontinued Operations (Note 1 and Note 2)
Operating Profit	$	36,586		$	43,710		$	46,442		$	47,731		$	174,469		$	38,974		$	43,667		$	41,413		$	40,607		$	164,661
EBITDA	$	,017		$	59,959		$	62,403		$	64,668		$	238,047		$	51,336		$	54,090		$	53,604		$	56,970		$	216,000
Net Income	$	19,089		$	23,298		$	24,968		$	26,228		$	93,583		$	19,300		$	21,580		$	21,813		$	22,807		$	85,500
Dilutive EPS	$	0.20		$	0.24		$	0.26		$	0.27		$	0.97		$	0.20		$	0.22		$	0.22		$	0.23		$	0.88
Depreciation & Amortization	$	15,407		$	16,880		$	17,560		$	17,986		$	67,833		$	14,658		$	13,890		$	14,328		$	16,141		$	59,017

	Q1 03			Q2 03			Q3 03			Q4 03			YTD 2003			Q1 04
Revenue
Drilling Equipment Sales	$	133,242		$	121,408		$	111,688		$	95,849		$	462,187		$	96,775
Tubular Services		104,758			107,999			124,198			118,943			455,898			118,465
Drilling Services		69,460			69,879			78,024			75,300			292,663			74,547
Coiled Tubing & Wireline Products		54,080			56,523			58,005			58,265			226,873			52,557
Total Revenue		361,540			355,809			371,915			348,357			1,437,621			342,344
Gross Profit (before goodwill amortization)		102,839			99,370			107,725			95,081			405,015			88,849
		28.4	%		27.9	%		29.0	%		27.3	%		28.2	%		26.0	%
Goodwill Amortization		0			0			0			0			0			0
Selling, General & Administration		46,466			43,833			43,686			43,823			177,808			42,269
Research & Engineering		14,845			16,097			15,286			14,943			61,171			13,564
Merger, Transaction & Litigation (Note 1)		0			0			0			0			0			0
Operating Profit		41,528			39,440			48,753			36,315			166,036			33,016
Interest Expense		7,899			7,815			7,357			7,097			30,168			7,346
Other Expense(Income)		1,447			(86	)		1,093			(211	)		2,243			1,229
Income before Taxes		32,182			31,711			40,303			29,429			133,625			24,441
Income Tax Provision		11,265			10,601			13,192			9,735			44,793			8,215
Net income(loss) from continuing operations		20,917			21,110			27,111			19,694			88,832			16,226
Income (loss) from discontinued operations		17			(5,995	)		(472	)		(15,139	)		(21,589	)		(11,742	)
Net Income	$	20,934		$	15,115		$	26,639		$	4,555		$	67,243		$	4,484
Earnings per Common Share
Basic:
Continuing operations	$	0.22		$	0.22		$	0.28		$	0.20		$	0.91		$	0.17
Discontinued operations		0.00			-0.06			0.00			-0.16			-0.22			-0.12
Net income	$	0.22		$	0.16		$	0.27		$	0.05		$	0.69		$	0.05
Dilutive:
Continuing operations	$	0.21		$	0.21		$	0.28		$	0.20		$	0.90		$	0.17
Discontinued operations		0.00			-0.06			0.00			-0.15			-0.22			-0.12
Net income	$	0.21		$	0.15		$	0.27		$	0.05		$	0.68		$	0.05
Weighted Avg Shares Outstanding
Basic		97,136,872			97,365,039			97,503,222			97,190,313			97,298,862			97,123,136
Dilutive		97,970,011			98,423,757			98,263,529			98,004,179			98,165,369			98,094,162
Before Merger, Transaction, Litigation, Restructuring and Discontinued Operations (Note 1)
Operating Profit	$	41,528		$	39,440		$	49,069		$	36,865		$	166,902		$	34,783
EBITDA	$	56,344		$	55,827		$	64,846		$	54,577		$	231,594		$	51,550
Net Income	$	20,917		$	21,110		$	27,324		$	20,062		$	89,413		$	17,399
Dilutive EPS	$	0.21		$	0.21		$	0.28		$	0.20		$	0.91		$	0.18
Depreciation & Amortization	$	16,263		$	16,301		$	16,870		$	17,501		$	66,935		$	17,996

Note 1: The second quarter 2001 charge of $16.5 million was related to a patent litigation matter. The first quarter 2002 charge of $2.8 million was related to the May 2000 merger of Tuboscope Inc. and Varco International Inc. The third quarter and fourth quarter 2002 charges of $2.4 million and $1.3 million, respectively, were related to merger and transaction costs associated with the acquisition of ICO, Inc. in September 2002. The fourth quarter 2003 charge of $11.2 million was related to the goodwill impairment and write-off of fixed assets associated with the registrant’s MIL business. The third and fourth quarter of 2003 and first quarter of 2004 included Drilling Equipment Group restructuring charges of $0.3 million, $0.6 million and $1.8 million, respectively. The registrant believes that reporting operating profit, EBITDA, net income, and dilutive EPS excluding certain special charges (merger, transaction, litigation, Drilling Equipment Group restructuring and discontinued operations) provides useful supplemental information regarding the registrant’s on-going economic performance and, therefore, uses this financial measure internally to evaluate and manage the registrant’s operations. The registrant has chosen to provide this information to investors to enable them to perform more meaningful comparisons of operating results and as a means to emphasize the results of on-going operations.

VARCO INTERNATIONAL, INC.

RECONCILIATIONS

(in thousands, except share and per share data)

	Q1 01		Q2 01		Q3 01		Q4 01			YTD 2001			Q1 02			Q2 02			Q3 02			Q4 02			YTD 2002
	Restated												Restated
Reconciliation of EBITDA:
GAAP net income	$	19,089	$	12,573	$	24,968	$	26,338		$	82,968		$	17,287		$	21,063		$	20,052		$	21,405		$	79,807
Provision for income taxes		12,732		8,477		13,741		14,130			49,080			10,320			12,574			10,367			10,344			43,605
Interest expense		3,789		5,529		6,134		6,324			21,776			6,068			6,046			6,243			7,251			25,608
Depreciation and amortization		15,407		16,880		17,560		18,053			67,900			14,712			13,945			14,388			16,201			59,246
Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment:
Litigation costs		0		16,500		0		0			16,500			0			0			0			0			0
ICO acquisition costs		0		0		0		0			0			0			0			2,369			1,289			3,658
Severance costs from merger agreement		0		0		0		0			0			2,829			0			0			0			2,829
Drilling equipment restructuring		0		0		0		0			0			0			0			0			0			0
MIL discontinued operations/impairment costs		0		0		0		(110	)		(110	)		174			517			245			540			1,476
Less MIL depreciation and amortization		0		0		0		(67	)		(67	)		(54	)		(55	)		(60	)		(60	)		(229	)
EBITDA before Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment charges	$	51,017	$	59,959	$	62,403	$	64,668		$	238,047		$	51,336		$	54,090		$	53,604		$	56,970		$	216,000
Reconciliation of GAAP net income before Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment charges, net of tax:
GAAP net income	$	19,089	$	12,573	$	24,968	$	26,338		$	82,968		$	17,287		$	21,063		$	20,052		$	21,405		$	79,807
Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment, net of tax:
Litigation costs		0		10,725		0		0			10,725			0			0			0			0			0
ICO acquisition costs		0		0		0		0			0			0			0			1,516			862			2,378
Severance costs from merger agreement		0		0		0		0			0			1,839			0			0			0			1,839
Drilling equipment restructuring		0		0		0		0			0			0			0			0			0			0
MIL discontinued operations/impairment costs		0		0		0		(110	)		(110	)		174			517			245			540			1,476
Net income before Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment charges, net of tax	$	19,089	$	23,298	$	24,968	$	26,228		$	93,583		$	19,300		$	21,580		$	21,813		$	22,807		$	85,500
Earnings per Common Share before Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment charges, net of tax:
Basic	$	0.20	$	0.24	$	0.26	$	0.27		$	0.98		$	0.20		$	0.22		$	0.23		$	0.24		$	0.88
Dilutive	$	0.20	$	0.24	$	0.26	$	0.27		$	0.97		$	0.20		$	0.22		$	0.22		$	0.23		$	0.88
Weighted Avg Shares Outstanding
Basic		95,338,404		95,765,303		95,857,867		95,970,015			95,732,897			96,137,535			96,669,634			96,785,063			96,922,426			96,628,664
Dilutive		96,613,309		96,927,297		96,569,018		96,591,551			96,675,294			96,841,252			97,714,512			97,504,538			97,663,657			97,430,990

	Q1 03			Q2 03			Q3 03			Q4 03			YTD 2003			Q1 04
Reconciliation of EBITDA:
GAAP net income	$	20,934		$	15,115		$	26,639		$	4,555		$	67,243		$	4,484
Provision for income taxes		11,265			10,601			13,192			9,735			44,793			8,215
Interest expense		7,899			7,815			7,357			7,097			30,168			7,346
Depreciation and amortization		16,326			16,366			16,936			17,571			67,199			18,072
Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment:
Litigation costs		0			0			0			0			0			0
ICO acquisition costs		0			0			0			0			0			0
Severance costs from merger agreement		0			0			0			0			0			0
Drilling equipment restructuring		0			0			316			550			866			1,767
MIL discontinued operations/impairment costs		(17	)		5,995			472			15,139			21,589			11,742
Less MIL depreciation and amortization		(63	)		(65	)		(66	)		(70	)		(264	)		(76	)
EBITDA before Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment charges	$	56,344		$	55,827		$	64,846		$	54,577		$	231,594		$	51,550
Reconciliation of GAAP net income before Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment charges, net of tax:
GAAP net income	$	20,934		$	15,115		$	26,639		$	4,555		$	67,243		$	4,484
Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment charges, net of tax:
Litigation costs		0			0			0			0			0			0
ICO acquisition costs		0			0			0			0			0			0
Severance costs from merger agreement		0			0			0			0			0			0
Drilling equipment restructuring		0			0			213			368			581			1,173
MIL discontinued operations/impairment costs		(17	)		5,995			472			15,139			21,589			11,742
Net income before Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment charges, net of tax	$	20,917		$	21,110		$	27,324		$	20,062		$	89,413		$	17,399
Earnings per Common Share before Merger, Transaction, Litigation, Restructuring and MIL Discontinued Operations/Impairment charges, net of tax:
Basic	$	0.22		$	0.22		$	0.28		$	0.21		$	0.92		$	0.18
Dilutive	$	0.21		$	0.21		$	0.28		$	0.20		$	0.91		$	0.18
Weighted Avg Shares Outstanding
Basic		97,136,872			97,365,039			97,503,222			97,190,313			97,298,862			97,123,136
Dilutive		97,970,011			98,423,757			98,263,529			98,004,179			98,165,369			98,094,162