Tesco Q1 Profit Down - Quick Facts

(RTTNews) - Tesco Corp. (TESO) reported that its net income for the first-quarter ended March 31, 2014 decreased to $3.0 million or $0.07 per share from $8.8 million or $0.22 per share in 2013.

The first quarter of 2013 included an after-tax gain on sale of Casing Drilling business of $0.9 million, or $0.02 per share, and a reversal for tax penalties and interest in one jurisdiction of $1.6 million, or $0.04 per share.

Adjusted net income for the quarter was $8.4 million or $0.21 per share, up from $6.2 million or $0.16 per share in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted net income for the first quarter 2014 excludes the after-tax impact of foreign currency translation losses in Argentina, Venezuela and Russia, totaling $2.9 million, or $0.08 per share, bad debt from two international customers totaling $1.6 million after-tax, or $0.04 per share, and certain tax related charges in Latin America totaling $0.9 million, or $0.02 per share.

Quarterly revenue declined to $121.4 million from $127.1 million in the year ago quarter. Wall Street analysts had a consensus revenue estimate of $137.52 million for the quarter.

Julio Quintana, Chief Executive Officer, said, "Due mainly to a number of one off charges associated with our international operations, reported Q1 2014 bottom line results came in below our expectations. Adjusting for these items our EPS would have been $0.21 per share. As we expected, top drive shipments were lower in Q1 2014 due to the timing of shipments from backlog and we had lower top drive rental utilization in Mexico due to annual contract startup delays."

"However, during the first quarter, there were several positive trends that give us greater optimism for the full year 2014 results," the company said.