Oil States International Inc. (NYSE:OIS) Q1 2018 Earnings Conference Call - Final Transcript
Apr 26, 2018 • 10:00 am ET
acquisition price was $84 million net of cash of acquired. The acquisition was funded by borrowings under our amended revolving credit facility. We invested $14 million in capital expenditures during the first quarter and expect the full year to range between $75 million and $80 million.
In terms of our second quarter 2018 consolidated guidance, we expect depreciation and amortization expense to total approximately $31 million. We expect net interest expense to total $5.1 million, which includes $1.8 million of non-cash interest expense associated with the convertible senior notes and amortization of debt issuance costs. Corporate expenses are projected to total $13.7 million. For the second quarter, our recorded income tax expense or benefit will primarily be dependent upon the level of pre-tax income or loss realized compared to the level of non-deductible items under the recently enacted US tax reform legislation which could cause skewed effective tax rates until we generate more taxable income to help offset the impact of these non-deductible items. Longer term, we should move towards the lower US corporate tax rate of 21% as our US operations return to profitability.
At this time, I would like to turn the call back over to Cindy who will take you through the details for each of our business segments.
Thank you. In the following segment comments, the term adjusted EBITDA excludes severance and other downsizing charges and transaction-related expenses where appropriate and applicable. In our Well Site Services segment, we generated sequentially improved results with revenues at 22% and EBITDA at 23% quarter-over-quarter. These results reflect organic growth in our base business coupled with one month's revenue contribution from the acquisition of Falcon. These sequential improvements were driven by 15% increase in the number of completion services jobs performed and 8% increase in revenue per completion services job and steady utilization of our land drilling rigs which averaged 31% during the quarter.
Our completion services business benefited from increased activity and well intensity across the active US basins particularly in the Permian Basin coupled with sequentially improved international and Gulf of Mexico results. During the quarter, we recorded a $1.8 million bad debt reserve related to a customer who declared bankruptcy which negatively impacted segment EBITDA and related margin. Excluding the bad debt provision of $1.8 million, first quarter 2018 segment EBITDA margins would have averaged 15% and our completion services incremental adjusted EBITDA margins would have averaged 24%.
US land base complex well completion activity continues to expand and demand for our equipment and personnel is tightening. Accordingly, we continue to see prudent price increases on our completion services job. We estimate that second quarter revenues for our Well Site Services segment should range between $123 million and $130 million which will include a full quarter's contribution from our Falcon acquisition. Segment EBITDA margins are expected to average 15% to 17%.
In our newly reported Downhole Technology segment, we have included GEODynamics results of operations from the date of acquisition on January 12, 2018 through March