Oceaneering Reports Second Quarter 2017 Results
HOUSTON, July 26, 2017 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE: OII) today reported net income of $2.1 million, or $0.02 per share, on revenue of $515 million for the three months ended June 30, 2017. During the prior quarter ended March 31, 2017, Oceaneering reported a net loss of $7.5 million, or $(0.08) per share, on revenue of $446 million, and an adjusted net loss of $4.0 million, or $(0.04) per share.
Adjusted operating income, operating margin, net income (loss) and earnings (loss) per share, EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins) and free cash flow are non-GAAP measures which exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and EBITDA Margins, Free Cash Flow, Adjusted Operating Income and Margins by Segment, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.
|
Summary of Results | ||||||||||||||||||||
|
(in thousands, except per share amounts) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
Jun 30, |
Mar 31, |
Jun 30, | ||||||||||||||||||
|
2017 |
2016 |
2017 |
2017 |
2016 | ||||||||||||||||
|
Revenue |
$ |
515,036 |
$ |
625,539 |
$ |
446,176 |
$ |
961,212 |
$ |
1,233,883 |
||||||||||
|
Gross Margin |
53,571 |
95,233 |
44,855 |
98,426 |
192,713 |
|||||||||||||||
|
Income (Loss) from Operations |
9,390 |
38,380 |
(150) |
9,240 |
86,479 |
|||||||||||||||
|
Net Income (Loss) |
$ |
2,132 |
$ |
22,309 |
$ |
(7,534) |
$ |
(5,402) |
$ |
47,412 |
||||||||||
|
Diluted Earnings (Loss) Per Share (EPS) |
$ |
0.02 |
$ |
0.23 |
$ |
(0.08) |
$ |
(0.06) |
$ |
0.48 |
||||||||||
Sequentially, operating income increased by $9.5 million on improved profit contributions from all of our business segments, except for Subsea Products, which was slightly lower.
Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Our overall operating results during the quarter were in line with expectations. We were pleased that each of our operating segments remained profitable. On a consolidated basis, for the first half of 2017, we have generated $112 million of EBITDA and $61 million of free cash flow. We believe our cash flow and liquidity position us well to manage our business through the continuing industry downturn; at the end of the quarter, we had $482 million in cash and an undrawn $500 million revolving credit facility. Based on these strengths, the Board maintained our current dividend rate and declared a $0.15 per share dividend to be paid during the third quarter of 2017.
"Compared to the first quarter, ROV operating income increased on higher activity for vessel based services. Our fleet mix during the quarter was 61% in drill support and 39% for vessel-based activity, compared to 69% and 31%, for the prior quarter. Revenue grew 10% on increased days on hire and revenue per day on hire, and ROV EBITDA margin of 38% improved slightly from 37% for the first quarter.
"During the second quarter, we put one new ROV into service and retired four. At the end of June 2017, we had 279 vehicles in our fleet. Our fleet utilization for the second quarter was 48%, up from 46% in the first quarter. We held our share of the contracted floating drill support market, with 53% of the 153 floating rigs under contract.
"Sequentially, Subsea Products operating income was slightly lower than expected, due to the continued weakness and competitive nature of the service and rental market. Our Subsea Products backlog at June 30, 2017 was $328 million, compared to our March 31, 2017 backlog of $407 million. The backlog decline was primarily related to umbilicals. Our book-to-bill ratio year-to-date was 0.69.
"Compared to the first quarter, Subsea Projects revenue and operating income increased driven by seasonal improvements in U.S. Gulf of Mexico deepwater vessel work and survey services. Asset Integrity revenue and operating income were up due to seasonality. Advanced Technologies revenue and operating income improved, primarily due to continued increased commercial activity and work for the U.S. Navy. Unallocated Expenses were essentially flat.
"For the third quarter of 2017, we are expecting a sequential increase in our overall quarterly operating income. This improvement should be led by Subsea Products and Subsea Projects, with slight declines in profit contributions from our other operating segments and flat Unallocated Expenses.
"Relative to the first half of 2017, during the second half we expect to generate higher consolidated operating income on relatively flat revenue. Subsea Products profit contribution is expected to be higher, as projected increases in service and rental activity more than offset lower manufactured products throughput. We continue to project our Subsea Products operating margins to be in the mid- to high-single digit range. We expect operating income contributions from ROV and Asset Integrity during the second half to be similar to the first half. For Subsea Projects, we anticipate our results to be considerably lower due to the completion of vessel work offshore Angola, projected low levels of vessel activity, and vessel oversupply. With respect to Advanced Technologies, we expect improved operating income due to a projected uptick in our commercial businesses.
"Our overall outlook for the full year of 2017 has not changed. We continue to project that we will be marginally profitable at the operating income line on a consolidated basis.
"Beyond 2017, we believe that the oil and gas industry will continue its investment in deepwater projects, and foresee improving demand for our services and products. Meanwhile, we continue to look for opportunities that may emerge to grow our company, with more focus on our customers' operating expenditures in the production phase of the offshore oilfield life cycle, while providing a dividend to shareholders."
This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected business, financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering's: belief that its cash flow and liquidity position it well to manage its business through the continuing industry downturn; Subsea Products backlog; outlook for the third quarter of 2017, and expected contributions of its segments to the third quarter results; expectations of Subsea Products margins; expectation of higher consolidated operating income on relatively flat revenue in the second half of 2017, relative to the first half of 2017, and expected contributions of its segments to those operating results; expectation for the full year of 2017 to be marginally profitable at the operating income line on a consolidated basis; beliefs about deepwater investment and improving demand for its services and products; and intention to look for opportunities that may emerge to grow our company, with more focus on our customers' operating expenditures in the production phase of the offshore oilfield life cycle, while providing a dividend to shareholders. The forward-looking statements included in this release are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Among the factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry; supply and demand of drilling rigs; oil and natural gas demand and production growth; oil and natural gas prices; fluctuations in currency markets worldwide; future global economic conditions; the loss of major contracts or alliances; future performance under our customer contracts; and the effects of competition. For a more complete discussion of these and other risk factors, please see Oceaneering's latest annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.
Oceaneering is a global provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment, and aerospace industries.For more information on Oceaneering, please visit www.oceaneering.com.
Contact:Suzanne SperaDirector, Investor RelationsOceaneering International, Inc.713-329-4707[email protected]
|
OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||
|
Jun 30, 2017 |
Dec 31, 2016 | ||||||||||||||||||||||||||
|
(in thousands) | |||||||||||||||||||||||||||
|
ASSETS |
|||||||||||||||||||||||||||
|
Current Assets (including cash and cash equivalents of $482,339 and $450,193) |
$ |
1,261,705 |
$ |
1,262,595 |
|||||||||||||||||||||||
|
Net Property and Equipment |
1,100,190 |
1,153,258 |
|||||||||||||||||||||||||
|
Other Assets |
729,906 |
714,462 |
|||||||||||||||||||||||||
|
TOTAL ASSETS |
$ |
3,091,801 |
$ |
3,130,315 |
|||||||||||||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||||||||||
|
Current Liabilities |
$ |
482,906 |
$ |
508,364 |
|||||||||||||||||||||||
|
Long-term Debt |
794,099 |
793,058 |
|||||||||||||||||||||||||
|
Other Long-term Liabilities |
323,651 |
312,250 |
|||||||||||||||||||||||||
|
Shareholders' Equity |
1,491,145 |
1,516,643 |
|||||||||||||||||||||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
3,091,801 |
$ |
3,130,315 |
|||||||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||||||||||||||
|
Jun 30, 2017 |
Jun 30, 2016 |
Mar 31, 2017 |
Jun 30, 2017 |
Jun 30, 2016 | |||||||||||||||||||||||
|
(in thousands, except per share amounts) | |||||||||||||||||||||||||||
|
Revenue |
$ |
515,036 |
$ |
625,539 |
$ |
446,176 |
$ |
961,212 |
$ |
1,233,883 |
|||||||||||||||||
|
Cost of services and products |
461,465 |
530,306 |
401,321 |
862,786 |
1,041,170 |
||||||||||||||||||||||
|
Gross Margin |
53,571 |
95,233 |
44,855 |
98,426 |
192,713 |
||||||||||||||||||||||
|
Selling, general and administrative expense |
44,181 |
56,853 |
45,005 |
89,186 |
106,234 |
||||||||||||||||||||||
|
Income (loss) from Operations |
9,390 |
38,380 |
(150) |
9,240 |
86,479 |
||||||||||||||||||||||
|
Interest income |
2,045 |
1,442 |
1,337 |
3,382 |
1,737 |
||||||||||||||||||||||
|
Interest expense |
(7,599) |
(6,207) |
(6,268) |
(13,867) |
(12,599) |
||||||||||||||||||||||
|
Equity earnings (losses) of unconsolidated affiliates |
(394) |
263 |
(980) |
(1,374) |
789 |
||||||||||||||||||||||
|
Other income (expense), net |
(58) |
(1,405) |
(2,556) |
(2,614) |
(7,393) |
||||||||||||||||||||||
|
Income before Income Taxes |
3,384 |
32,473 |
(8,617) |
(5,233) |
69,013 |
||||||||||||||||||||||
|
Provision for income taxes (benefit) |
1,252 |
10,164 |
(1,083) |
169 |
21,601 |
||||||||||||||||||||||
|
Net Income (loss) |
$ |
2,132 |
$ |
22,309 |
$ |
(7,534) |
$ |
(5,402) |
$ |
47,412 |
|||||||||||||||||
|
Weighted average diluted shares outstanding |
98,751 |
98,424 |
98,138 |
98,201 |
98,355 |
||||||||||||||||||||||
|
Diluted Earnings (Loss) per Share |
$ |
0.02 |
$ |
0.23 |
$ |
(0.08) |
$ |
(0.06) |
$ |
0.48 |
|||||||||||||||||
|
The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q. | |||||||||||||||||||||||||||
|
SEGMENT INFORMATION | ||||||||||||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||||||||||||||||
|
Jun 30, 2017 |
Jun 30, 2016 |
Mar 31, 2017 |
Jun 30, 2017 |
Jun 30, 2016 | ||||||||||||||||||||
|
($ in thousands) | ||||||||||||||||||||||||
|
Remotely Operated Vehicles |
Revenue |
$ |
103,432 |
$ |
139,641 |
$ |
94,022 |
$ |
197,454 |
$ |
287,262 |
|||||||||||||
|
Gross Margin |
$ |
16,659 |
$ |
26,925 |
$ |
13,022 |
$ |
29,681 |
$ |
62,247 |
||||||||||||||
|
Operating Income |
$ |
10,376 |
$ |
18,020 |
$ |
5,925 |
$ |
16,301 |
$ |
45,007 |
||||||||||||||
|
Operating Income % |
10 |
% |
13 |
% |
6 |
% |
8 |
% |
16 |
% | ||||||||||||||
|
Days available |
25,300 |
28,959 |
25,219 |
50,519 |
57,778 |
|||||||||||||||||||
|
Days utilized |
12,267 |
16,057 |
11,488 |
23,755 |
32,062 |
|||||||||||||||||||
|
Utilization |
48 |
% |
55 |
% |
46 |
% |
47 |
% |
55 |
% | ||||||||||||||
|
Subsea Products |
Revenue |
$ |
174,893 |
$ |
190,897 |
$ |
150,639 |
$ |
325,532 |
$ |
385,709 |
|||||||||||||
|
Gross Margin |
$ |
22,762 |
$ |
42,728 |
$ |
24,991 |
$ |
47,753 |
$ |
98,864 |
||||||||||||||
|
Operating Income |
$ |
10,552 |
$ |
25,121 |
$ |
11,483 |
$ |
22,035 |
$ |
65,761 |
||||||||||||||
|
Operating Income % |
6 |
% |
13 |
% |
8 |
% |
7 |
% |
17 |
% | ||||||||||||||
|
Backlog at end of period |
$ |
328,000 |
$ |
503,000 |
$ |
407,000 |
$ |
328,000 |
$ |
503,000 |
||||||||||||||
|
Subsea Projects |
Revenue |
$ |
75,545 |
$ |
138,662 |
$ |
62,956 |
$ |
138,501 |
$ |
268,084 |
|||||||||||||
|
Gross Margin |
$ |
6,462 |
$ |
14,317 |
$ |
4,024 |
$ |
10,486 |
$ |
25,826 |
||||||||||||||
|
Operating Income |
$ |
3,000 |
$ |
10,237 |
$ |
187 |
$ |
3,187 |
$ |
17,026 |
||||||||||||||
|
Operating Income % |
4 |
% |
7 |
% |
— |
% |
2 |
% |
6 |
% | ||||||||||||||
|
Asset Integrity |
Revenue |
$ |
58,192 |
$ |
73,864 |
$ |
52,658 |
$ |
110,850 |
$ |
143,464 |
|||||||||||||
|
Gross Margin |
$ |
10,004 |
$ |
10,096 |
$ |
8,381 |
$ |
18,385 |
$ |
17,439 |
||||||||||||||
|
Operating Income (Loss) |
$ |
3,755 |
$ |
(805) |
$ |
2,267 |
$ |
6,022 |
$ |
(371) |
||||||||||||||
|
Operating Income (Loss) % |
6 |
% |
(1) |
% |
4 |
% |
5 |
% |
— |
% | ||||||||||||||
|
Advanced Technologies |
Revenue |
$ |
102,974 |
$ |
82,475 |
$ |
85,901 |
$ |
188,875 |
$ |
149,364 |
|||||||||||||
|
Gross Margin |
$ |
14,133 |
$ |
10,600 |
$ |
10,072 |
$ |
24,205 |
$ |
16,427 |
||||||||||||||
|
Operating Income |
$ |
7,632 |
$ |
5,528 |
$ |
5,026 |
$ |
12,658 |
$ |
6,121 |
||||||||||||||
|
Operating Income % |
7 |
% |
7 |
% |
6 |
% |
7 |
% |
4 |
% | ||||||||||||||
|
Unallocated Expenses |
||||||||||||||||||||||||
|
Gross margin |
$ |
(16,449) |
$ |
(9,433) |
$ |
(15,635) |
$ |
(32,084) |
$ |
(28,090) |
||||||||||||||
|
Operating income |
$ |
(25,925) |
$ |
(19,721) |
$ |
(25,038) |
$ |
(50,963) |
$ |
(47,065) |
||||||||||||||
|
TOTAL |
Revenue |
$ |
515,036 |
$ |
625,539 |
$ |
446,176 |
$ |
961,212 |
$ |
1,233,883 |
|||||||||||||
|
Gross Margin |
$ |
53,571 |
$ |
95,233 |
$ |
44,855 |
$ |
98,426 |
$ |
192,713 |
||||||||||||||
|
Operating Income (Loss) |
$ |
9,390 |
$ |
38,380 |
$ |
(150) |
$ |
9,240 |
$ |
86,479 |
||||||||||||||
|
Operating Income % |
2 |
% |
6 |
% |
— |
% |
1 |
% |
7 |
% | ||||||||||||||
|
SELECTED CASH FLOW INFORMATION | ||||||||||||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | |||||||||||||||||||||||
|
Jun 30, 2017 |
Jun 30, 2016 |
Mar 31, 2017 |
Jun 30, 2017 |
Jun 30, 2016 | ||||||||||||||||||||
|
(in thousands) | ||||||||||||||||||||||||
|
Capital expenditures, including acquisitions |
$ |
23,493 |
$ |
31,738 |
$ |
17,807 |
$ |
41,300 |
$ |
52,944 |
||||||||||||||
|
Depreciation and Amortization: |
||||||||||||||||||||||||
|
Oilfield |
||||||||||||||||||||||||
|
Remotely Operated Vehicles |
$ |
29,036 |
$ |
34,026 |
$ |
29,229 |
$ |
58,265 |
$ |
67,710 |
||||||||||||||
|
Subsea Products |
12,785 |
12,952 |
12,999 |
25,784 |
25,759 |
|||||||||||||||||||
|
Subsea Projects |
7,781 |
8,353 |
8,080 |
15,861 |
16,872 |
|||||||||||||||||||
|
Asset Integrity |
1,780 |
2,843 |
1,460 |
3,240 |
5,756 |
|||||||||||||||||||
|
Total Oilfield |
51,382 |
58,174 |
51,768 |
103,150 |
116,097 |
|||||||||||||||||||
|
Advanced Technologies |
784 |
806 |
797 |
1,581 |
1,540 |
|||||||||||||||||||
|
Unallocated Expenses |
1,138 |
999 |
1,098 |
2,236 |
2,123 |
|||||||||||||||||||
|
Total depreciation and amortization |
$ |
53,304 |
$ |
59,979 |
$ |
53,663 |
$ |
106,967 |
$ |
119,760 |
||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G). We have included Adjusted Net Income and Diluted Earnings per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow. As a result, these amounts are non-GAAP financial measures. We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins and Free Cash Flow, as well as the following by segment: Adjusted Operating Income and Margins, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margins. We define EBITDA margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. EBITDA and EBITDA margins, Adjusted EBITDA and Adjusted EBITDA margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures. We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). We have included these disclosures in this press release because EBITDA, EBITDA margins and Free Cash Flow are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA, EBITDA margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.
|
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS) | |||||||||||||||||||||||||||
|
For the Three Months Ended | |||||||||||||||||||||||||||
|
Jun 30, 2017 |
Jun 30, 2016 |
Mar 31, 2017 | |||||||||||||||||||||||||
|
Net Income |
Diluted EPS |
Net Income |
Diluted EPS |
Net Income |
Diluted EPS | ||||||||||||||||||||||
|
(in thousands, except per share amounts) | |||||||||||||||||||||||||||
|
Net Income (Loss) and Diluted EPS as reported in accordance with GAAP |
$ |
2,132 |
$ |
0.02 |
$ |
22,309 |
$ |
0.23 |
$ |
(7,534) |
$ |
(0.08) |
|||||||||||||||
|
Pre tax adjustments for the effects of: |
|||||||||||||||||||||||||||
|
Allowance for bad debts |
— |
5,757 |
— |
||||||||||||||||||||||||
|
Foreign currency (gains) losses |
(20) |
1,218 |
2,153 |
||||||||||||||||||||||||
|
Total pre tax adjustments |
(20) |
6,975 |
2,153 |
||||||||||||||||||||||||
|
Tax effect on pre tax adjustments at the 35% statutory rate |
7 |
(2,441) |
(754) |
||||||||||||||||||||||||
|
Discrete tax items |
— |
2,106 |
|||||||||||||||||||||||||
|
Total of adjustments |
(13) |
4,534 |
3,505 |
||||||||||||||||||||||||
|
Adjusted amounts |
$ |
2,119 |
$ |
0.02 |
$ |
26,843 |
$ |
0.27 |
$ |
(4,029) |
$ |
(0.04) |
|||||||||||||||
|
EBITDA and EBITDA Margins | |||||||||||||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended | ||||||||||||||||||||||||
|
Jun 30, 2017 |
Jun 30, 2016 |
Mar 31, 2017 |
Jun 30, 2017 |
Jun 30, 2016 | |||||||||||||||||||||
|
($ in thousands) | |||||||||||||||||||||||||
|
Net Income (Loss) |
$ |
2,132 |
$ |
22,309 |
$ |
(7,534) |
$ |
(5,402) |
$ |
47,412 |
|||||||||||||||
|
Depreciation and Amortization |
53,304 |
59,979 |
53,663 |
106,967 |
119,760 |
||||||||||||||||||||
|
Subtotal |
55,436 |
82,288 |
46,129 |
101,565 |
167,172 |
||||||||||||||||||||
|
Interest Expense, net of Interest Income |
5,554 |
4,765 |
4,931 |
10,485 |
10,862 |
||||||||||||||||||||
|
Amortization included in Interest Expense |
(283) |
(286) |
(283) |
(566) |
(573) |
||||||||||||||||||||
|
Provision for Income Taxes (Benefit) |
1,252 |
10,164 |
(1,083) |
169 |
21,601 |
||||||||||||||||||||
|
EBITDA |
$ |
61,959 |
$ |
96,931 |
$ |
49,694 |
$ |
111,653 |
$ |
199,062 |
|||||||||||||||
|
Revenue |
$ |
515,036 |
$ |
625,539 |
$ |
446,176 |
$ |
961,212 |
$ |
1,233,883 |
|||||||||||||||
|
EBITDA margin % |
12 |
% |
15 |
% |
11 |
% |
12 |
% |
16 |
% | |||||||||||||||
|
Free Cash Flow | |||||||||||||||
|
For the Six Months Ended | |||||||||||||||
|
Jun 30, 2017 |
Jun 30, 2016 | ||||||||||||||
|
(in thousands) | |||||||||||||||
|
Net Income |
$ |
(5,402) |
$ |
47,412 | |||||||||||
|
Depreciation and amortization |
106,967 |
119,760 | |||||||||||||
|
Other increases (decreases) in cash from operating activities |
1,039 |
(22,571) | |||||||||||||
|
Cash flow provided by operating activities |
102,604 |
144,601 | |||||||||||||
|
Purchases of property and equipment |
(41,300) |
(52,944) | |||||||||||||
|
Free Cash Flow |
$ |
61,304 |
$ |
91,657 | |||||||||||
|
Adjusted Operating Income and Margins by Segment | ||||||||||||||||||||||||||||||
|
For the Three Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expenses |
Total | ||||||||||||||||||||||||
|
($ in thousands) | ||||||||||||||||||||||||||||||
|
Operating income as reported in accordance with GAAP |
$ |
10,376 |
$ |
10,552 |
$ |
3,000 |
$ |
3,755 |
$ |
7,632 |
$ |
(25,925) |
$ |
9,390 |
||||||||||||||||
|
Adjusted amounts |
$ |
10,376 |
$ |
10,552 |
$ |
3,000 |
$ |
3,755 |
$ |
7,632 |
$ |
(25,925) |
$ |
9,390 |
||||||||||||||||
|
Revenue |
$ |
103,432 |
$ |
174,893 |
$ |
75,545 |
$ |
58,192 |
$ |
102,974 |
$ |
515,036 |
||||||||||||||||||
|
Operating income % as reported in accordance with GAAP |
10 |
% |
6 |
% |
4 |
% |
6 |
% |
7 |
% |
2 |
% | ||||||||||||||||||
|
Operating income % using adjusted amounts |
10 |
% |
6 |
% |
4 |
% |
6 |
% |
7 |
% |
2 |
% | ||||||||||||||||||
|
For the Three Months Ended June 30, 2016 | ||||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expenses |
Total | ||||||||||||||||||||||||
|
($ in thousands) | ||||||||||||||||||||||||||||||
|
Operating income (loss) as reported in accordance with GAAP |
$ |
18,020 |
$ |
25,121 |
$ |
10,237 |
$ |
(805) |
$ |
5,528 |
$ |
(19,721) |
$ |
38,380 |
||||||||||||||||
|
Adjustments for the effects of: |
||||||||||||||||||||||||||||||
|
Allowance for bad debts |
479 |
1,826 |
108 |
3,344 |
— |
— |
5,757 |
|||||||||||||||||||||||
|
Total of adjustments |
479 |
1,826 |
108 |
3,344 |
— |
— |
5,757 |
|||||||||||||||||||||||
|
Adjusted amounts |
$ |
18,499 |
$ |
26,947 |
$ |
10,345 |
$ |
2,539 |
$ |
5,528 |
$ |
(19,721) |
$ |
44,137 |
||||||||||||||||
|
Revenue |
$ |
139,641 |
$ |
190,897 |
$ |
138,662 |
$ |
73,864 |
$ |
82,475 |
$ |
625,539 |
||||||||||||||||||
|
Operating income (loss) % as reported in accordance with GAAP |
13 |
% |
13 |
% |
7 |
% |
(1) |
% |
7 |
% |
6 |
% | ||||||||||||||||||
|
Operating income % using adjusted amounts |
13 |
% |
14 |
% |
7 |
% |
3 |
% |
7 |
% |
7 |
% | ||||||||||||||||||
|
For the Three Months Ended March 31, 2017 | ||||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expenses |
Total | ||||||||||||||||||||||||
|
($ in thousands) | ||||||||||||||||||||||||||||||
|
Operating income (loss) as reported in accordance with GAAP |
$ |
5,925 |
$ |
11,483 |
$ |
187 |
$ |
2,267 |
$ |
5,026 |
$ |
(25,038) |
$ |
(150) |
||||||||||||||||
|
Adjusted amounts |
$ |
5,925 |
$ |
11,483 |
$ |
187 |
$ |
2,267 |
$ |
5,026 |
$ |
(25,038) |
$ |
(150) |
||||||||||||||||
|
Revenue |
$ |
94,022 |
$ |
150,639 |
$ |
62,956 |
$ |
52,658 |
$ |
85,901 |
$ |
446,176 |
||||||||||||||||||
|
Operating income (loss) % as reported in accordance with GAAP |
6 |
% |
8 |
% |
— |
% |
4 |
% |
6 |
% |
— |
% | ||||||||||||||||||
|
Operating income % using adjusted amounts |
6 |
% |
8 |
% |
— |
% |
4 |
% |
6 |
% |
— |
% | ||||||||||||||||||
|
Adjusted Operating Income and Margins by Segment | ||||||||||||||||||||||||||||||
|
For the Six Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expenses |
Total | ||||||||||||||||||||||||
|
($ in thousands) | ||||||||||||||||||||||||||||||
|
Operating income as reported in accordance with GAAP |
$ |
16,301 |
$ |
22,035 |
$ |
3,187 |
$ |
6,022 |
$ |
12,658 |
$ |
(50,963) |
$ |
9,240 |
||||||||||||||||
|
Adjusted amounts |
$ |
16,301 |
$ |
22,035 |
$ |
3,187 |
$ |
6,022 |
$ |
12,658 |
$ |
(50,963) |
$ |
9,240 |
||||||||||||||||
|
Revenue |
$ |
197,454 |
$ |
325,532 |
$ |
138,501 |
$ |
110,850 |
$ |
188,875 |
$ |
961,212 |
||||||||||||||||||
|
Operating income % as reported in accordance with GAAP |
8 |
% |
7 |
% |
2 |
% |
5 |
% |
7 |
% |
1 |
% | ||||||||||||||||||
|
Operating income % using adjusted amounts |
8 |
% |
7 |
% |
2 |
% |
5 |
% |
7 |
% |
1 |
% | ||||||||||||||||||
|
For the Six Months Ended June 30, 2016 | ||||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expenses |
Total | ||||||||||||||||||||||||
|
($ in thousands) | ||||||||||||||||||||||||||||||
|
Operating income (loss) as reported in accordance with GAAP |
$ |
45,007 |
$ |
65,761 |
$ |
17,026 |
$ |
(371) |
$ |
6,121 |
$ |
(47,065) |
$ |
86,479 |
||||||||||||||||
|
Adjustments for the effects of: |
||||||||||||||||||||||||||||||
|
Allowance for bad debts |
479 |
1,826 |
108 |
3,344 |
— |
— |
5,757 |
|||||||||||||||||||||||
|
Fixed asset write-offs |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
|
Total of adjustments |
479 |
1,826 |
108 |
3,344 |
— |
— |
5,757 |
|||||||||||||||||||||||
|
Adjusted amounts |
$ |
45,486 |
$ |
67,587 |
$ |
17,134 |
$ |
2,973 |
$ |
6,121 |
$ |
(47,065) |
$ |
92,236 |
||||||||||||||||
|
Revenue |
$ |
287,262 |
$ |
385,709 |
$ |
268,084 |
$ |
143,464 |
$ |
149,364 |
$ |
1,233,883 |
||||||||||||||||||
|
Operating income % as reported in accordance with GAAP |
16 |
% |
17 |
% |
6 |
% |
— |
% |
4 |
% |
7 |
% | ||||||||||||||||||
|
Operating income % using adjusted amounts |
16 |
% |
18 |
% |
6 |
% |
2 |
% |
4 |
% |
7 |
% | ||||||||||||||||||
|
EBITDA and Adjusted EBITDA and Margins by Segment | ||||||||||||||||||||||||||||||||||||||||||||||
|
For the Three Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expensesand other |
Total | ||||||||||||||||||||||||||||||||||||||||
|
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
|
Operating income as reported in accordance with GAAP |
$ |
10,376 |
$ |
10,552 |
$ |
3,000 |
$ |
3,755 |
$ |
7,632 |
$ |
(25,925) |
$ |
9,390 |
||||||||||||||||||||||||||||||||
|
Adjustments for the effects of: |
||||||||||||||||||||||||||||||||||||||||||||||
|
Depreciation and amortization |
29,036 |
12,785 |
7,781 |
1,780 |
784 |
1,138 |
53,304 |
|||||||||||||||||||||||||||||||||||||||
|
Other pre-tax |
— |
— |
— |
— |
— |
(735) |
(735) |
|||||||||||||||||||||||||||||||||||||||
|
EBITDA |
39,412 |
23,337 |
10,781 |
5,535 |
8,416 |
(25,522) |
61,959 |
|||||||||||||||||||||||||||||||||||||||
|
Adjustments for the effects of: |
||||||||||||||||||||||||||||||||||||||||||||||
|
Foreign currency (gains) losses |
— |
— |
— |
— |
— |
(20) |
(20) |
|||||||||||||||||||||||||||||||||||||||
|
Total of adjustments |
— |
— |
— |
— |
— |
(20) |
(20) |
|||||||||||||||||||||||||||||||||||||||
|
Adjusted EBITDA |
$ |
39,412 |
$ |
23,337 |
$ |
10,781 |
$ |
5,535 |
$ |
8,416 |
$ |
(25,542) |
$ |
61,939 |
||||||||||||||||||||||||||||||||
|
Revenue |
$ |
103,432 |
$ |
174,893 |
$ |
75,545 |
$ |
58,192 |
$ |
102,974 |
$ |
515,036 |
||||||||||||||||||||||||||||||||||
|
Operating income % as reported in accordance with GAAP |
10 |
% |
6 |
% |
4 |
% |
6 |
% |
7 |
% |
2 |
% | ||||||||||||||||||||||||||||||||||
|
EBITDA Margin |
38 |
13 |
14 |
10 |
8 |
12 |
||||||||||||||||||||||||||||||||||||||||
|
Adjusted EBITDA Margin |
38 |
13 |
14 |
10 |
8 |
12 |
||||||||||||||||||||||||||||||||||||||||
|
For the Three Months Ended June 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expensesand other |
Total | ||||||||||||||||||||||||||||||||||||||||
|
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
|
Operating income (loss) as reported in accordance with GAAP |
$ |
18,020 |
$ |
25,121 |
$ |
10,237 |
$ |
(805) |
$ |
5,528 |
$ |
(19,721) |
$ |
38,380 |
||||||||||||||||||||||||||||||||
|
Adjustments for the effects of: |
||||||||||||||||||||||||||||||||||||||||||||||
|
Depreciation and amortization |
34,026 |
12,952 |
8,353 |
2,843 |
806 |
999 |
59,979 |
|||||||||||||||||||||||||||||||||||||||
|
Other pre-tax |
— |
— |
— |
— |
— |
(1,428) |
(1,428) |
|||||||||||||||||||||||||||||||||||||||
|
EBITDA |
52,046 |
38,073 |
18,590 |
2,038 |
6,334 |
(20,150) |
96,931 |
|||||||||||||||||||||||||||||||||||||||
|
Adjustments for the effects of: |
||||||||||||||||||||||||||||||||||||||||||||||
|
Allowance for bad debts |
479 |
1,826 |
108 |
3,344 |
— |
— |
5,757 |
|||||||||||||||||||||||||||||||||||||||
|
Foreign currency (gains) losses |
— |
— |
— |
— |
— |
1,219 |
1,219 |
|||||||||||||||||||||||||||||||||||||||
|
Total of adjustments |
479 |
1,826 |
108 |
3,344 |
— |
1,219 |
6,976 |
|||||||||||||||||||||||||||||||||||||||
|
Adjusted EBITDA |
$ |
52,525 |
$ |
39,899 |
$ |
18,698 |
$ |
5,382 |
$ |
6,334 |
$ |
(18,931) |
$ |
103,907 |
||||||||||||||||||||||||||||||||
|
Revenue |
$ |
139,641 |
$ |
190,897 |
$ |
138,662 |
$ |
73,864 |
$ |
82,475 |
$ |
625,539 |
||||||||||||||||||||||||||||||||||
|
Operating income (loss) % as reported in accordance with GAAP |
13 |
% |
13 |
% |
7 |
% |
(1) |
% |
7 |
% |
6 |
% | ||||||||||||||||||||||||||||||||||
|
EBITDA Margin |
37 |
% |
20 |
% |
13 |
% |
3 |
% |
8 |
% |
15 |
% | ||||||||||||||||||||||||||||||||||
|
Adjusted EBITDA Margin |
38 |
% |
21 |
% |
13 |
% |
7 |
% |
8 |
% |
17 |
% | ||||||||||||||||||||||||||||||||||
|
EBITDA and Adjusted EBITDA and Margins by Segment |
||||||||||||||||||||||||||||
|
For the Three Months Ended March 31, 2017 |
||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expensesand other |
Total |
||||||||||||||||||||||
|
($ in thousands) |
||||||||||||||||||||||||||||
|
Operating income (loss) as reported in accordance with GAAP |
$ |
5,925 |
$ |
11,483 |
$ |
187 |
$ |
2,267 |
$ |
5,026 |
$ |
(25,038) |
$ |
(150) |
||||||||||||||
|
Adjustments for the effects of: |
||||||||||||||||||||||||||||
|
Depreciation and amortization |
29,229 |
12,999 |
8,080 |
1,460 |
797 |
1,098 |
53,663 |
|||||||||||||||||||||
|
Other pre-tax |
— |
— |
— |
— |
— |
(3,819) |
(3,819) |
|||||||||||||||||||||
|
EBITDA |
35,154 |
24,482 |
8,267 |
3,727 |
5,823 |
(27,759) |
49,694 |
|||||||||||||||||||||
|
Adjustments for the effects of: |
||||||||||||||||||||||||||||
|
Foreign currency (gains) losses |
— |
— |
— |
— |
— |
2,153 |
2,153 |
|||||||||||||||||||||
|
Adjusted EBITDA |
$ |
35,154 |
$ |
24,482 |
$ |
8,267 |
$ |
3,727 |
$ |
5,823 |
$ |
(25,606) |
$ |
51,847 |
||||||||||||||
|
Revenue |
$ |
94,022 |
$ |
150,639 |
$ |
62,956 |
$ |
52,658 |
$ |
85,901 |
$ |
446,176 |
||||||||||||||||
|
Operating income % as reported in accordance with GAAP |
6 |
% |
8 |
% |
— |
% |
4 |
% |
6 |
% |
— |
% | ||||||||||||||||
|
EBITDA Margin |
37 |
% |
16 |
% |
13 |
% |
7 |
% |
7 |
% |
11 |
% | ||||||||||||||||
|
Adjusted EBITDA Margin |
37 |
% |
16 |
% |
13 |
% |
7 |
% |
7 |
% |
12 |
% | ||||||||||||||||
|
EBITDA and Adjusted EBITDA and Margins by Segment | |||||||||||||||||||||||||||||
|
For the Six Months Ended June 30, 2017 | |||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expensesand other |
Total | |||||||||||||||||||||||
|
($ in thousands) | |||||||||||||||||||||||||||||
|
Operating income as reported in accordance with GAAP |
$ |
16,301 |
$ |
22,035 |
$ |
3,187 |
$ |
6,022 |
$ |
12,658 |
$ |
(50,963) |
$ |
9,240 |
|||||||||||||||
|
Adjustments for the effects of: |
|||||||||||||||||||||||||||||
|
Depreciation and amortization |
58,265 |
25,784 |
15,861 |
3,240 |
1,581 |
2,236 |
106,967 |
||||||||||||||||||||||
|
Other pre-tax |
— |
— |
— |
— |
— |
(4,554) |
(4,554) |
||||||||||||||||||||||
|
EBITDA |
74,566 |
47,819 |
19,048 |
9,262 |
14,239 |
(53,281) |
111,653 |
||||||||||||||||||||||
|
Adjustments for the effects of: |
|||||||||||||||||||||||||||||
|
Foreign currency (gains) losses |
— |
— |
— |
— |
— |
2,133 |
2,133 |
||||||||||||||||||||||
|
Total of adjustments |
— |
— |
— |
— |
— |
2,133 |
2,133 |
||||||||||||||||||||||
|
Adjusted EBITDA |
$ |
74,566 |
$ |
47,819 |
$ |
19,048 |
$ |
9,262 |
$ |
14,239 |
$ |
(51,148) |
$ |
113,786 |
|||||||||||||||
|
Revenue |
$ |
197,454 |
$ |
325,532 |
$ |
138,501 |
$ |
110,850 |
$ |
188,875 |
$ |
961,212 |
|||||||||||||||||
|
Operating income % as reported in accordance with GAAP |
8 |
% |
7 |
% |
2 |
% |
5 |
% |
7 |
% |
1 |
% | |||||||||||||||||
|
EBITDA Margin |
38 |
% |
15 |
% |
14 |
% |
8 |
% |
8 |
% |
12 |
% | |||||||||||||||||
|
Adjusted EBITDA Margin |
38 |
% |
15 |
% |
14 |
% |
8 |
% |
8 |
% |
12 |
% | |||||||||||||||||
|
For the Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||
|
RemotelyOperatedVehicles |
SubseaProducts |
SubseaProjects |
AssetIntegrity |
AdvancedTech. |
Unalloc.Expensesand other |
Total | |||||||||||||||||||||||
|
($ in thousands) | |||||||||||||||||||||||||||||
|
Operating income (loss) as reported in accordance with GAAP |
$ |
45,007 |
$ |
65,761 |
$ |
17,026 |
$ |
(371) |
$ |
6,121 |
$ |
(47,065) |
$ |
86,479 |
|||||||||||||||
|
Adjustments for the effects of: |
|||||||||||||||||||||||||||||
|
Depreciation and amortization |
67,710 |
25,759 |
16,872 |
5,756 |
1,540 |
2,123 |
119,760 |
||||||||||||||||||||||
|
Other pre-tax |
— |
— |
— |
— |
— |
(7,177) |
(7,177) |
||||||||||||||||||||||
|
EBITDA |
112,717 |
91,520 |
33,898 |
5,385 |
7,661 |
(52,119) |
199,062 |
||||||||||||||||||||||
|
Adjustments for the effects of: |
|||||||||||||||||||||||||||||
|
Allowance for bad debts |
479 |
1,826 |
108 |
3,344 |
— |
— |
5,757 |
||||||||||||||||||||||
|
Foreign currency (gains) losses |
— |
— |
— |
— |
— |
7,103 |
7,103 |
||||||||||||||||||||||
|
Total of adjustments |
479 |
1,826 |
108 |
3,344 |
— |
7,103 |
12,860 |
||||||||||||||||||||||
|
Adjusted EBITDA |
$ |
113,196 |
$ |
93,346 |
$ |
34,006 |
$ |
8,729 |
$ |
7,661 |
$ |
(45,016) |
$ |
211,922 |
|||||||||||||||
|
Revenue |
$ |
287,262 |
$ |
385,709 |
$ |
268,084 |
$ |
143,464 |
$ |
149,364 |
$ |
1,233,883 |
|||||||||||||||||
|
Operating income % as reported in accordance with GAAP |
16 |
% |
17 |
% |
6 |
% |
— |
% |
4 |
% |
7 |
% | |||||||||||||||||
|
EBITDA Margin |
39 |
% |
24 |
% |
13 |
% |
4 |
% |
5 |
% |
16 |
% | |||||||||||||||||
|
Adjusted EBITDA Margin |
39 |
% |
24 |
% |
13 |
% |
6 |
% |
5 |
% |
17 |
% | |||||||||||||||||
View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-second-quarter-2017-results-300494632.html
SOURCE Oceaneering International, Inc.