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Home » Pressroom » News Archive » 2015 » TESCO CORPORATION: $2.1 MLN LOSS




HOUSTON, March 31, 2015 /PRNewswire/ -- Tesco Corporation (NASDAQ: TESO) ("TESCO" or the "Company") today reported a net loss of $2.1 million, or $(0.05) per diluted share, for the fourth quarter ended December 31, 2014. Adjusted net income for the quarter was $4.8 million, or $0.12 per diluted share, which excludes the impact of certain foreign currency losses, certain warranty and legal reserves, asset valuation charges against our Venezuelan operation, and costs associated with executive retirement and other severance costs. This compares to net income of $7.5 million, or $0.18 per diluted share, in the third quarter of 2014, and net income of $5.1 million, or $0.13 per diluted share, for the fourth quarter of 2013. Adjusted net income in the third quarter of 2014 was $11.1 million, or $0.27 per diluted share, and in the fourth quarter of 2013 was $8.3 million, or $0.21 per diluted share. Fourth quarter 2014 revenue was $134.5 million, compared to $141.9 million for the third quarter of 2014 and to $136.8 million for the fourth quarter of 2013, a decrease of 5% and 2%, respectively.

As disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, certain prior-period financial information has been revised to properly reflect out-of-period adjustments found during the year-end close and audit process. All prior-period financial information in this news release has been revised. The revisions to prior years did not reach the materiality threshold to require restatements.

As a result of the financial control assessment around the out-of-period adjustments requiring this revision, the Company has determined it has a material weakness in its financial controls over certain processes impacted by foreign exchange revaluation. While the Company believes it has developed enhanced controls to remediate this control weakness, the Company will have to test the effectiveness of the enhanced controls over several quarters to validate the remediation.