Tesco Corporation Announces Filing for Form 10-Q for the Quarter Ended September 30, 2007 and Amends November 6th, 2007 Press Release



    Trading Symbol:
    "TESO" on NASDAQ
    "TEO" on TSX

    HOUSTON, Nov. 14 /CNW/ - Tesco Corporation ("TESCO" or the "Company")
today announced the filing of its Quarterly Report on Form 10-Q for the
quarter ended September 30, 2007 reporting net income of $10.8 million or
$0.29 per diluted share. The Company previously announced in its press release
of November 6, 2007 net income of $8.8 million or $0.24 per diluted share.
    The additional net income compared to the amount previously announced is
the result of a $2.0 million income tax benefit primarily related to the U.S.
branch of the Company and a reversal of a valuation allowance previously
provided on net operating losses in that branch. This benefit is in addition
to the $4.2 million of after-tax benefit for the two separate tax and
contingency matters disclosed in the Company's press release of November 6,
2007. Thus, the $2.0 million associated with the U.S. federal income tax
return, when added to the $4.2 million of after tax benefits associated with
the Canadian and Mexican tax matters previously disclosed, or $6.2 million,
represents an impact of $0.16 per diluted share for the quarter ended
September 30, 2007.
    Our Form 10-Q filing reflects no other changes to the results announced
aside from the $2.0 million tax benefit related to the 2006 U.S. federal
income tax returns. Thus, revenues, operating income and income before tax
remain the same as previously announced on November 6, 2007. We have revised
the Summary of Results reported in the November 6, 2007 press release to
account for this additional $2.0 million adjustment.

    Changes in Internal Controls Over Financial Reporting
    -----------------------------------------------------
    In connection with the preparation of the financial statements for the
quarter ended September 30, 2007 we identified certain tax return to provision
adjustments related to our recent Canadian and U.S. tax return filings. We
identified these adjustments as a result of our existing control procedures.
However, we are in the process of evaluating the impact of these tax return to
provision adjustments on our current control environment.

    
                             Summary of Results
      (in millions of U.S. $, except per share amounts and percentages)
                            U.S. GAAP - Unaudited

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                           Quarter 3        Quarter 2     Nine Months Ended
                           ---------        ---------     -----------------
    -------------------------------------------------------------------------
                       2007        2006        2007    9/30/2007   9/30/2006
                       ----        ----        ----    ---------   ---------
    -------------------------------------------------------------------------
    Revenues       $   113.9   $   101.5   $   109.8   $   338.0   $   271.8
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Operating
     Income              8.6        14.6         7.6        35.2        41.6
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Net Income          10.8         8.5         3.9        25.7        20.1
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    EPS (diluted)  $    0.29   $    0.23   $    0.10   $    0.69   $    0.55
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Adjusted
     EBITDA(*)
     (as defined)  $    18.1   $    22.7   $    15.6   $    60.2   $    58.9
    -------------------------------------------------------------------------
    (*) See explanation of Non-GAAP measure below


           Non-GAAP Measures - Adjusted EBITDA (as defined below)
    

    Our management evaluates Company performance based on non-GAAP measures,
of which a primary performance measure is EBITDA. EBITDA consists of earnings
(net income or loss) available to common stockholders before interest expense,
income tax expense, non-cash stock compensation, non-cash impairments,
depreciation and amortization and other non-cash items. This measure may not
be comparable to similarly titled measures employed by other companies and is
not a measure of performance calculated in accordance with GAAP. They should
not be considered in isolation or as substitutes for operating income, net
income or loss, cash flows provided by operating, investing and financing
activities, or other income or cash flow statement data prepared in accordance
with GAAP.

    
    We believe EBITDA is useful to an investor in evaluating our operating
performance because:

    -   it is widely used by investors in our industry to measure a company's
        operating performance without regard to items such as net interest
        expense, depreciation and amortization, which can vary substantially
        from company to company depending upon accounting methods and book
        value of assets, financing methods, capital structure and the method
        by which assets were acquired;

    -   it helps investors more meaningfully evaluate and compare the results
        of our operations from period to period by removing the impact of our
        capital structure (primarily interest) and asset base (primarily
        depreciation and amortization) and actions that do not affect
        liquidity (stock compensation expense) from our operating results;
        and

    -   it helps investors identify items that are within our operational
        control. Depreciation and amortization charges, while a component of
        operating income, are fixed at the time of the asset purchase in
        accordance with the depreciable lives of the related asset and as
        such are not a directly controllable period operating charge.

    Our management uses EBITDA:

    -   as a measure of operating performance because it assists us in
        comparing our performance on a consistent basis as it removes the
        impact of our capital structure and asset base from our operating
        results;

    -   as one method we use to evaluate potential acquisitions;

    -   in presentations to our Board of Directors to enable them to have the
        same consistent measurement basis of operating performance used by
        management;

    -   to assess compliance with financial ratios and covenants included in
        our credit agreements; and

    -   in communications with investors, analysts, lenders, and others
        concerning our financial performance.
    

    Caution Regarding Forward-Looking Information; Risk Factors

    This press release contains forward-looking statements within the meaning
of Canadian and United States securities laws, including the United States
Private Securities Litigation Reform Act of 1995. From time to time, our
public filings, press releases and other communications (such as conference
calls and presentations) will contain forward-looking statements.
Forward-looking information is often, but not always identified by the use of
words such as "anticipate", "believe", "expect", "plan", "intend", "forecast",
"target", "project", "may", "will", "should", "could", "estimate", "predict"
or similar words suggesting future outcomes or language suggesting an outlook.
Forward-looking statements in this press release include, but are not limited
to, statements with respect to expectations of TESCO's prospects, future
revenues, earnings, activities and technical results.
    Forward-looking statements and information are based on current beliefs
as well as assumptions made by, and information currently available to, TESCO
concerning anticipated financial performance, business prospects, strategies
and regulatory developments. Although management considers these assumptions
to be reasonable based on information currently available to it, they may
prove to be incorrect. The forward-looking statements in this press release
are made as of the date it was issued and TESCO does not undertake any
obligation to up date publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable law.
    By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks that outcomes implied
by forward-looking statements will not be achieved. We caution readers not to
place undue reliance on these statements as a number of important factors
could cause the actual results to differ materially from the beliefs, plans,
objectives, expectations and anticipations, estimates and intentions expressed
in such forward-looking statements.
    These risks and uncertainties include, but are not limited to, the impact
of changes in oil and natural gas prices and worldwide and domestic economic
conditions on drilling activity and demand for and pricing of our products and
services, other risks inherent in the drilling services industry (e.g.
operational risks, potential delays or changes in customers' exploration or
development projects or capital expenditures, the uncertainty of estimates and
projections relating to levels of rental activities, uncertainty of estimates
and projections of costs and expenses, risks in conducting foreign operations,
the consolidation of our customers, and intense competition in our industry),
and risks associated with our intellectual property and with the performance
of our technology. These risks and uncertainties may cause our actual results,
levels of activity, performance or achievements to be materially different
from those expressed or implied by any forward-looking statements. When
relying on our forward-looking statements to make decisions, investors and
others should carefully consider the foregoing factors and other uncertainties
and potential events.
    Further information regarding these factors may be found in TESCO's most
recent annual information form and in TESCO's most recent consolidated
financial statements, management information circular, quarterly reports,
management's discussion and analysis, material change reports and news
releases and in TESCO's Annual Report on Form 10-K for the year ended
December 31, 2006 and in TESCO's Annual Report on Form 40-F for the year ended
December 31, 2005. Copies of TESCO's Canadian public filings are available at
www.tescocorp.com and on SEDAR at www.sedar.com. TESCO's U.S. public filings
are available at www.sec.gov and at www.tescocorp.com.

    %SEDAR: 00002774E




For further information:

For further information: Julio Quintana, (713) 359-7000; Anthony
Tripodo, (713) 359-7000, Tesco Corporation

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Tesco Corporation

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