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Materials and operating expenses decreased to 98.6% from 108.7% as a percentage of sales. Decreased guar costs and progress made on cost cutting initiatives led to the improved margins. General and administrative costs decreased by $1.2 million due largely to lower employee costs.
INTERNATIONAL OPERATIONS----------------------------------------------------------------------------($ thousands, except revenue per job, unaudited) Dec. 31, % of Dec. 31, % of Sept. 30, % ofThree months ended, 2012 Revenue 2011 Revenue 2012 Revenue----------------------------------------------------------------------------Revenue 68,039 61,521 72,375Expenses Materials and operating 57,941 85.2% 56,290 91.5% 59,202 81.8% General and administrative 4,216 6.2% 3,964 6.4% 3,590 5.0% --------- --------- --------- Total expenses 62,157 91.4% 60,254 97.9% 62,792 86.8%Operating income(i) 5,882 8.6% 1,267 2.1% 9,583 13.2%Number of jobs 951 1,180 1,057Revenue per job 68,586 48,178 64,873--------------------------------------------------------------------------------------------------------------------------------------------------------(i) see first page of this report
Sales Mix----------------------------------------------------------------------------Three months ended, Dec. 31, Dec. 31, Sept. 30,( unaudited) 2012 2011 2012----------------------------------------------------------------------------% of Total RevenueFracturing 82% 74% 80%Coiled Tubing 9% 13% 10%Cementing 6% 8% 6%Nitrogen 1% 5% 2%Other 2% - 2%----------------------------------------------------------------------------Total 100% 100% 100%--------------------------------------------------------------------------------------------------------------------------------------------------------
Operations Review
Our international operations include the financial results for operations in Russia, Kazakhstan, Algeria, Australia, Saudi Arabia and Colombia.
Our Russian operations comprise the majority of our international results and revenue and activity levels in this region were up year-over-year as several customers increased their work scope to meet 2012 capital spending budgets. Fracturing activity was particularly strong as job count increased slightly and fracturing job size increased substantially year-over-year due to an increase in work performed on horizontal wells. The increase in fracturing activity was partially offset by reduced cementing and coiled tubing activity. Despite the improved fourth quarter results, some Russian customers did not meet spending targets for 2012, which contributed to 2012 results that were below expectations. Russian activity levels were down sequentially due to cold temperatures typically experienced near the end of the fourth quarter.
