Civeo (CVEO) Misses Q4 EPS by 11c, Revenues Beat; Q1 Revenue Outlook Above Consensus, FY20 Revenue Guidance Below Consensus

Civeo (NYSE: CVEO) reported Q4 EPS of ($0.19), $0.11 worse than the analyst estimate of ($0.08). Revenue for the quarter came in at $148.69 million versus the consensus estimate of $130.05 million.

Highlights for the quarter include:

• Generated $41.0 million in operating cash flow and $37.1 million in free cash flow allowing for the reduction of total debt by $34.5 million during the fourth quarter of 2019
• Reduced leverage ratio to 2.98x at December 31, 2019 from 3.52x as of September 30, 2019
• Incurred fourth quarter net loss of $32.1 million and delivered Adjusted EBITDA of $29.9 million
• Reported fourth quarter revenues of $148.7 million, an increase of 30% year-over-year due to the Action Industrial Catering ("Action") acquisition in Australia and stronger occupancy in both our Canadian lodges and Australian villages

“Civeo made significant progress in 2019 despite some challenges in our key end markets. We achieved year-over-year growth in revenues and EBITDA, generated $74.5 million of operating cash flow and $50.6 million of free cash flow, completed the acquisition and integration of Action and reduced our leverage ratio to 2.98x at year end,” stated Bradley J. Dodson, Civeo\'s President and Chief Executive Officer.

Mr. Dodson continued, “The fourth quarter results continued to build on our positive momentum experienced earlier in 2019 with strong operational and financial results. We realized a significant amount of free cash flow in the quarter which allowed us to materially reduce our total debt and our leverage ratio. Despite the typical seasonal holiday downtime, our Canadian and Australian segments experienced very strong occupancy compared to the fourth quarter of 2018,”

Mr. Dodson added, “Looking ahead to 2020, we will continue to focus on generating free cash flow to pay down debt, strengthening our balance sheet and creating long-term shareholder value.”

GUIDANCE:

Civeo sees Q1 2020 revenue of $139.5-143.5 million, versus the consensus of $131.7 million.

Civeo sees FY2020 revenue of $560-576 million, versus the consensus of $582.95 million.

• For the first quarter of 2020, Civeo expects revenues of $139.5 million to $143.5 million and EBITDA of $20.0 million to $22.0 million. For the full year of 2020, Civeo expects revenues of $560.0 million to $576.0 million, EBITDA of $100.0 million to $108.0 million and capital expenditures of $18.0 million to $22.0 million.

For earnings history and earnings-related data on Civeo (CVEO) click here.

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