from web site
A reconciliation of each such procedure to its most directly equivalent GAAP financial procedure, together with a description of why management believes that these non-GAAP monetary measures supply helpful details to investors, is provided listed below. (1) We define EBITDA as profits prior to interest income (expense), taxes, devaluation and amortization. Although not recommended under 2000 hp drilling rigs , our company believe the discussion of EBITDA is relevant and useful due to the fact that it helps our financiers understand our operating efficiency and makes it simpler to compare our outcomes with those of other companies that have various financing, capital or tax structures.
A reconciliation of net income to EBITDA is consisted of in the operating fact table in this press release. EBITDA, as we determine it, may not be equivalent to EBITDA measures reported by other business. In addition, EBITDA does not represent funds offered for discretionary usage. (2) Drilling Providers margin represents contract drilling revenues less agreement drilling operating costs.
Our company believe that Drilling Services margin and Production Services margin work steps for evaluating financial efficiency, although they are not procedures of financial performance under GAAP. However, Drilling Providers margin and Production Services margin prevail procedures of operating performance utilized by investors, monetary experts, rating firms and Leader management.
3 67. 0 67. 0 65. 7 Usage rate 96% 90% 90% 90% 90% Revenue days 6,017 5,559 5,475 16,528 16,149 Average earnings each day $20,658 $19,161 $19,954 $20,183 $19,360 Average operating expense each day 11,691 11,735 11,740 11,987 11,569 Drilling services margin per day (2) $8,967 $7,426 $8,214 $8,196 $7,791 Production Services Department: Profits $49,948 $- $43,297 $106,602 $- Operating expenses 25,025 - 21,916 53,871 - Production services margin (1) $24,923 $- $21,381 $52,731 $- EBITDA (3) $64,747 $33,411 $53,366 $154,318 $109,440 Reconciliation of combined Drilling services margin and Production services margin and EBITDA to net revenues: Drilling services margin $53,955 $41,279 $44,973 $135,472 $125,820 Production services margin 24,923 - 21,381 52,731 - Combined margin 78,878 41,279 66,354 188,203 125,820 General and administrative (12,840) (5,252) (12,150) (32,712) (13,792) Uncollectable bill (expense) recovery 260 (2,627) 92 216 (2,627) Other earnings (expense) (1,551) 11 (930) (1,389) 39 EBITDA 64,747 33,411 53,366 154,318 109,440 Devaluation and amortization (24,225) (16,093) (20,580) (61,924) (46,927) Interest earnings (expenditure), net (3,568) 717 (4,060) (8,617) 2,459 Earnings tax expenditure (12,760) (6,255) (9,609) (28,619) (22,886) Net incomes $24,194 $11,780 $19,117 $55,158 $42,086 (1) Drilling services margin represents agreement drilling revenues less contract drilling operating expense.
Leader believes that Drilling services margin and Production services margin are useful steps for evaluating monetary efficiency, although they are not steps of financial efficiency under GAAP. Nevertheless, Drilling services margin and Production services margin prevail measures of operating efficiency used by financiers, monetary experts, rating agencies and Leader's management.
Drilling services margin and production services margin as provided may not be similar to other resemblance entitled steps reported by other business. (2) Drilling services margin per earnings day represents the Drilling Solutions Division's typical profits per profits day less average operating costs per earnings day. (3) We define EBITDA as revenues prior to interest earnings (expenditure), taxes, depreciation and amortization.