Core Laboratories N.V. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Earnings Guidance for the First Quarter of 2015
For the year, the company reported revenue of $1,085,222,000 compared to revenue of $1,073,508,000 for the same period a year ago. Operating income was $346,531,000 compared to $333,419,000 last year. Income before income tax expense was $335,931,000 compared to $324,102,000 last year. Net income attributable to the company was $257,485,000 or $5.77 per diluted share compared to $242,811,000 or $5.28 per diluted share last year. Operating income excluding specific items was $350,765,000 compared to $336,147,000 last year. Cash flows from operating activities were $303,449,000. Net income excluding specific items was $260,745,000 or $5.85 per diluted share compared to $244,857,000 or $5.32 per diluted share last year. Capital expenditures were $36,586,000 and free cash flow of $266,863,000.
The company anticipates that first quarter 2015 revenue to be down approximately 12%, and EPS to be down approximately 20%, from year-ago levels. Core believes the company's performance in the first quarter will be superior to industry activity levels as the company is projecting first quarter year-over-year industry activity levels to be down greater than 12%. As North American activity levels will be down significantly greater than 12% year-over-year, decremental margins for Core's Production Enhancement operations will weigh on Company-wide first quarter results. Thus, Core projects first quarter 2015 revenue of approximately $230,000,000 and EPS of approximately $1.05 to $1.10 which factors in recent euro, ruble and Canadian dollar weakness versus the US dollar. Free cash flow for the first quarter of 2015 is projected at approximately $50,000,000. The company believe full year effective tax rate of 23% will also be the same in 2015.