MIRA INFORM REPORT

 

 

Report Date :

30th January, 2007

 

IDENTIFICATION DETAILS

 

Name :

TESCO CORPORATION

 

 

Registered Office :

6204 - 6a Street Southeast, Calgary, Alberta T2H 2B7, Canada

 

 

Country :

Canada

 

 

Financials (as on) :

30.09.2006

 

 

Date of Incorporation :

01.12.1993

 

 

Com. Reg. No.:

205884497

 

 

Legal Form :

Provincially Chartered Corporation – Public

 

 

Line of Business :

Manufacturer of drilling equipment for oil and gas producers worldwide.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

IDENTIFICATION & EXECUTIVE SUMMARY

 

Company Name : TESCO CORPORATION

Address                        : 6204 - 6A STREET SOUTHEAST

City                              : CALGARY

State/Province               : ALBERTA

Zip Code                       : T2H 2B7

Country                         : CANADA

Telephone                     : 403 692-5700

Facsimile                      : 403 692-5710

Legal Form                    : Provincially Chartered Corporation - Public

Website                        : www.tescocorp.com

@rating Opinion :

Business Activity           : Manufacturer of drilling equipment for oil and gas producers worldwide.

In KUSD  As of              : 31/12/2005

Sales / Revenue : 209,878

Net Income                    : 8,534

Total Equity                   : 222,070

Number of Employees    : 1,295

 

 

NOTE TO CLIENT

 

The information in this report was obtained from the 2005 Annual Report and the 2006 Third Quarter Report.

 

Please note that the Subject's legally registered office is located in Alberta, Canada, at the heading address, however, the majority of its administrative operations are conducted at the following address:

 

3993 W Sam Houston Pkwy N Ste 100

Houston, TX 77043

 

 

LEGAL

 

Legal Form                                : Provincially Chartered Corporation – Public

Since (D/M/Y)                            : 01/12/1993

State/Province of Incorporation    : AB

Status                                       : ACTIVE

Previous Legal Form:

Company is NOT required to publish an annual financial report.

The Company provincially chartered in Alberta under the following registration:

 

Legal Name                   : TESCO CORPORATION

Incorporation Date          : 12/1/1993

Status                           : Active

Registration Number       : 205884497

Jurisdiction                    : Alberta

----------------------------------------------------------------------

The Company trades publicly on the Toronto Stock Exchange under the Symbol TEO and on the Nasdaq Stock Exchange under the symbol TESOF.

 

The following is selected stock price information for the Subject on

the Nasdaq Stock Exchange.

As of 1/26/2007

Stock Price:                              $ 19.81

52 Week High:                           $ 22.87

52 Week Low:                           $ 14.62

Shares Outstanding:                  35,520,000

 

 

Managers/Key Personnel

 

Mr. Norman W Robertson                       Chairman Of The Board Of Directors

Mr. Robert M. Tessari                             Vice Chairman

Mr. Julio M. Quintana                             President &  CEO

Mr. Anthony Tripodo                               Chief Financial Officer

 

 

AFFILIATED ENTITIES

 

The Company has no affiliated entities.

 

The Company has the following subsidiaries:

 

Tesco Corporation US Inc. - United States

Tesco Research &  Development - Calgary, Canada

DSI Drilling Services International BV - Beverwijk, Netherlands

PT Tesco Indonesia - Jakarta, Indonesia

Tesco Corporation Sucursal Argentina - Buenos Aires, Argentina

Tesco Corporation Sucursal Venezuela - Puerto La Cruz, Venezuela

 

 

BANKS

 

 

AB

Telephone:

Facsimile:

Account Number:

Account Manager:

During 2005, the Corporation completed new credit facilities with

JPMorgan Chase that provide for $39.2 million in combined term loans and US$50.0 million in combined revolver and swingline loans (with a maximum of US 10.0 million on the swingline portion).

 

 

Bank of Nova Scotia

240-8TH AVE. S.W.

Calgary                            AB       T2P 2N7

 

Telephone                     : (403) 221-6401

Facsimile                      : (403) 221-6618

Account Number            : 100090810312

Account Manager:

This bank requires a signed authorization for credit information, which we were unable to obtain for this report.

 

 

PAYMENT HISTORY

 

 ------------------------------------------------------------------------------

 Supplier's Name/Industry  Terms Amount/Pay Habits/Comments

  Rptd  Open    Credit  Credit    High    Total  Current   Past Due/Pay Period

  Date  Date    Limit  Limit Dt. Credit   Owing     $       1st     2nd     3rd

 ------------------------------------------------------------------------------

 

 ACKLAND GRAINGER CAN:  905-764-8989

 *Jan                0           15,000   3,194   1,561   1,633       0       0

 PEERLESS ENGINEERING:  604-659-4100

 *Jan                0           17,272  17,272   1,247  16,025       0       0

 Whlsl-Ind Mach Sppls:

 *Jan                0           59,992   2,245   2,245       0       0       0

 Mfr-Metal Container:

 *Jan                0           28,020  28,020       0  18,480       0   9,540

 Transportation Serv:   Merged accts

 *Jan                0            2,755   2,755   1,000   1,416     339       0

 Trucking:

 *Jan                0            5,312   5,312   2,656   2,656       0       0

 Wholesale-Elec Equip:

 *Jan                0           11,667  11,667       0       0  11,667       0

 Whlsl-Ind Mach Sppls:

 *Jan                0             243K    243K  20,228    166K  47,877   8,701

 Whlsl-Ind Mach Sppls:

 *Jan                0              723     723     723       0       0       0

 Services-Employment:

 *Jan                0            8,406   8,406   8,406       0       0       0

 Mfr-Primary Metal:

 *Jan                0            2,624   2,273       0   2,273       0       0

 Whlsl-Farm Supplies:

 *Jan                0            5,125   5,125       0   5,125       0       0

 TEXCAN-D/O SONEPAR D:  604-606-0004

 *Jan                0             117K    117K  57,141  10,972       0  49,413

 Whlsl-Electronic Pts:

 *Jan                0            1,264   1,264   1,264       0       0       0

 Mfr-Valve &  Pipe Fit:

 *Jan                0              506     506     506       0       0       0

 Trucking:

 *Jan                0            3,353   3,353   3,353       0       0       0

 WOLSELEY CANADA INC:   403-243-8790

 *Jan                0            1,529     162      54     108       0       0

 Retail-Establishment:  Merged accts

 *Jan                0           30,000   4,248   4,248       0       0       0

 GESCAN DISTRIBUTION:   604-606-0004

 *Jan                0             487K    194K  26,706  62,081  18,606  87,154

 Mfr-Air Conditioning:

 *Jan                0           35,936  35,936  35,936       0       0       0

 Wholesale-Elec Appls:

 *Jan                0           25,000  20,762  14,551   6,211       0       0

 CITI COMMERCE SOLUTI:  800-233-8619                                          #

 *Jan           10,000            3,260   1,246   1,246       0       0       0

 Whlsl-Ind Mach Sppls:

 *Jan                0           18,058  18,058  13,174   4,884       0       0

 Wholesale-Elec Equip:

 *Jan                0           53,754     192       0     192       0       0

 Contr-Electrical Wor:

 *Dec                0            4,077   4,077   1,432   2,645       0       0

 Publisher-Newspaper:

 *Dec                0            1,882   1,882   1,882       0       0       0

 CRYSTAL GLASS CANADA:  780-436-8780

 *Dec                0            1,212   1,212     811     401       0       0

 Whlsl-Durable Goods:

 *Dec                0            1,554     831       0     207     624       0

 Mfr-Sheet Metal:

 *Dec                0            1,000     175       0     175       0       0

 ECS:                   604-276-9913

 *Dec                0           65,019  65,019  21,820  43,199       0       0

 EMCO LIMITED:          780-452-3626

 *Dec                0           15,000   2,587      51       0       0   2,536

 Whlsl Ferrs Nonferrs:

 *Dec                0             300K  23,657   9,098  14,559       0       0

 Transportation Serv:

 *Dec                0           34,271  34,271  15,739  13,385       0   5,147

 Mfr-Plumbing Fixture:

 *Dec                0              460     460     258      62     140       0

 WESTBURNE ELECTRIC A:  403-243-4214

 *Dec                0             277K  38,908   7,089  10,459  12,013   9,347

 Mfr-Rubber/Plstc Pro:

 *Dec                0              239     239       0       0       0     239

 Transportation Serv:

 *Nov                0              157     157       0     157       0       0

 Wholesale-Furniture:

 *Nov                0                2       2       1       0       1       0

 Business Services:

 *Nov                0            2,987   2,987     311     670   2,006       0

 HOUSE OF TOOLS EDMON:  780-944-9600

 *Nov                0            2,000     560       0       0       0     560

                                ------- ------- ------- ------- ------- -------

 P.I. =  40           90 Days    1,885K    905K    254K    384K  93,273    172K

                      Reported  ------- ------- ------- ------- ------- -------

 

 FINNING LTD:           780-483-3636

 *Oct                0           23,051  23,051  18,666       0   4,385       0

 Wholesale-Elec Equip:

 *Oct                0             147K  10,118  10,118       0       0       0

 SHAW PONTIAC GMC BUI:  403-243-4201

 *Oct                0            7,547   7,547   4,831       0   2,716       0

 Wholesale-Elec Equip:  Slow

 *Sep                0             459K    318K    207K  54,917  33,229  22,867

 GUILLEVIN INTERNATIO:  403-287-1680 Within Terms

 *Sep                0            1,500      85      85       0       0       0

 Wholesale-Elec Equip:  Slow but OK

 *Sep                0            1,296       0       0       0       0       0

 Mfr-Pump &  Pumping E:  Merged accts

 *Sep                0             110K    110K  30,920  74,086   4,031   1,493

 Whlsl-Ind Mach Sppls:  Merged accts

 *Sep                0            2,087   2,087   1,220     867       0       0

 Whlsl Ferrs Nonferrs:

 *Sep                0            5,000     946     329       0     617       0

 Whlsl-Electronic Pts:  Slow but OK

 *Sep                0           10,000       0       0       0       0       0

 SHELL CANADA CARD:     403-691-2025

 *Aug                0           12,061  12,061  12,061       0       0       0

 Whlsl-Industrl Paper:

 *Aug                0           16,444  16,444   3,615  12,194     635       0

 STANDARD GENERAL INC:  403-212-4722

 *Aug                0           27,000     935       0       0       0     935

 BURNCO ROCK PROD:      403-255-2600 New Account

 *Aug                0                0       0       0       0       0       0

 Mfr-Air Conditioning:

 *Jul                0            2,600   2,600   2,600       0       0       0

 NEDCO WESTBURNE INDU:  780-465-9511 Slow but OK

 *Jun                0            3,137       0       0       0       0       0

 Whlsl Ferrs Nonferrs:

 *Jun                0            2,000     714     714       0       0       0

 Services-Advertising:

 *May                0               93      93      93       0       0       0

 Mfr-Petroleum Prdts:

 *Apr                0              235     235     235       0       0       0

 Whlsl-Constr/Mine Eq:

 *Apr                0              807     807     786      21       0       0

 Whlsl-Ind Mach Sppls:

 *Mar                0               99      99      99       0       0       0

 KAL TIRE H O:          250-558-3220

 *Mar                0            1,749   1,749       0       0   1,749       0

 Whlsl Ferrs Nonferrs:  DLA-2006/02/08

 *Mar Oct/1997   3,000 Oct/2005      51      32      32       0       0       0

 Mfr-Drawing& Insulatn:

 *Feb                0             100K   2,027   2,027       0       0       0

 Services-Employment:

 *Jan                0              619     619     619       0       0       0

 Whlsl-Ind Mach Sppls:

 *Jan                0            2,823   2,823     524   1,562     737       0

 Whlsl-Ind Mach Sppls:

 *Jan                0            5,175   1,159     895     264       0       0

 Whlsl-Ind Mach Sppls:

 *Dec                0               27      27      22       0       5       0

                                ------- ------- ------- ------- ------- -------

 P.I. =  33           Total      2,828K  1,420K    552K    528K    141K    197K

                      Reported  ------- ------- ------- ------- ------- -------

 

 PAYMENT TRENDS

 ------------------------------------------------------------------------------

           Payment  C.I.  Number of  Total   Current             Overdue

 Quarters   Index  Score  Suppliers  Owing      $         1st      2nd      3rd

 ------------------------------------------------------------------------------

 4 Qtr/2006  33      19        41   1,627K   652,274  622,597   69,388  283,197

 3 Qtr/2006  18       4        43   2,369K    1,506K  579,600  143,593  139,643

 2 Qtr/2006  23       8        45   2,660K    1,267K   1,027K  282,970   82,727

 1 Qtr/2006  16       4        43  795,618   469,551  290,624   23,574   11,869

 4 Qtr/2005  16       4        38  824,875   525,370  234,974   31,673   32,858

 3 Qtr/2005  22      12        42  654,496   326,351  261,092   36,957   30,093

 2 Qtr/2005  18       4        36  706,133   362,104  314,450   13,491   16,088

 1 Qtr/2005  13       7        28  220,567   136,644   79,152    4,612      159

 4 Qtr/2004  16       7        34  366,698   196,106  162,291    7,837      464

 

 

FINANCIAL INFORMATION

 

FINANCIAL FIGURES

 

 Year-End (D/M/Y):               30/09/2006         31/12/2005         31/12/2004

                                 Quarterly         Consolidated      Consolidated

 Sales / Revenues                  272,209          209,878          148,674  

 Interest Income                       -                -             -5,736  

 Gross Margin                       71,793           51,764           55,044  

 Operating Income (Loss)            43,524           20,428            6,287  

 Interest on Loans                     -              2,075            3,462  

 Other Expenses                     40,683              -                537  

 Extraordinary Item                  7,603              -                -     

 

 RESULTS

 

 Income before Taxes                35,921           15,507           -2,911  

 Income Tax                         15,299            6,664            2,754  

 Net Income                         20,622            8,534           -5,665  

 

 ASSETS

 

 Cash and Equivalents               14,140           35,408           15,675  

 Inventory                          86,348           40,077           28,229  

 Accounts Receivables               92,866           76,159           42,416  

 Total Current Assets              201,737          151,644           86,320  

 Property Plant &  Equip            127,754          109,770          106,337  

 Other Fixed Assets                  5,890           17,399           20,881  

 Total Fixed Assets                165,069          151,629          142,268  

 Intangibles                        30,560           22,327            9,221  

 Total Assets                      366,806          303,273          228,588  

 

 LIABILITIES

 

 Trade Creditors                    82,002           52,635           24,530  

 Total Current Liab                 89,798           53,061           37,093  

 Long Term Debt                     36,835           40,867            2,331  

 Other Long Term Liab                1,345          -12,726           10,189  

 Total Long Term Liab               38,180           28,141           12,520  

 Total Liabilities                 127,978           81,202           49,613  

 

 EQUITY

 Retained Earnings                  66,308           57,646           29,154  

 Total Equity                      238,828          222,070          178,975  

 

 

FINANCIAL ANALYSIS

 

                           Actual           Previous    Percentage of total assets

                           30/09/2006        31/12/2005     30/09/2006  31/12/2005

 Cash and Equivalents        14,140           35,408         3.85     11.68

 Inventory                   86,348           40,077        23.54     13.21

 Total Current Assets       201,737          151,644        55.00     50.00

 Intangibles                 30,560           22,327         8.33      7.36

 Total Assets               366,806          303,273       100.00    100.00

 Total Current Liab          89,798           53,061        24.48     17.50

 Long Term Debt              36,835           40,867        10.04     13.48

 Other Long Term Liab         1,345         - 12,726         0.37    - 4.20

 Total Liabilities          127,978           81,202        34.89     26.78

 Total Equity               238,828          222,070        65.11     73.22

 

 

The above information is listed in thousands of US Dollars.

 

 

CURRENT OPERATIONS

 

NAICS Code      : 333132    Oil and Gas Field Machinery and Equipment Manufact

SIC Code          : 3533

NAICS Code      : 213112    Support Activities for Oil and Gas Operations

 

Number of Employees:           1,295

 

 

Business Activity

 

Manufacturer of drilling equipment for oil and gas producers worldwide.

 

The Company is organized around two business lines: top drives and casing services.  They maintain a fleet of about 130 portable units, or top drives, that are rented for drilling use.  Their casing drilling technology allows drilling of wells without the use of drill pipe.  Their blow-out preventers and active control units are used for snubbing, air drilling, and underbalanced drilling.  They also offer complete drilling rigs, drilling machinery, and related equipment.

The heading address is the registered headquarters for the Company.

 

The following are additional administrative offices for the Subject:

 

3993 W. Sam Houston Parkway No., Suite 100

Houston, Texas, UNITED STATES  77043

Telephone         : (713) 359-7000

Facsimile          : (713) 359-7001

 

11330 Brittmoore Park Drive

Houston, Texas, UNITED STATES  77041

Telephone         : (713) 849-5900

Facsimile          : (713) 849-0075

 

Engineering - Building A

4930 - 74th Avenue SE

Calgary, Alberta, CANADA  T2C 3C9

Telephone         : (403) 692-5700

 

Manufacturing

5616 - 80th Avenue SE

Calgary, Alberta, CANADA  T2C 4N5

Telephone         : (403) 692-5700

 

 

PUBLIC RECORD

 

A search of public revealed no derogatory information, Uniform Commercial Codes, or bankruptcy petitions.

 

 

GENERAL COMMENTS

 

Tesco Corporation is engaged as a manfacturer and lessor of drilling equipment for the oil and gas industry.  The payment record is generally satisfactory and the operating history is clear.  No derogatory information or bankruptcy petitions were reported or noted.  The Company is responsible for normal business transactions.

 

RATING EXPLANATIONS

 

 

RATING

STATUS

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

 

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