HOUSTON, July 29, 2020 /PRNewswire/ -- Oceaneering
International, Inc. ("Oceaneering") (NYSE:OII) today reported a net
loss of $24.8 million, or
$(0.25) per share, on revenue of
$427 million for the three months
ended June 30, 2020. Adjusted net loss was $14.2 million, or $(0.14) per share, reflecting the impact of
$9.6 million of pre-tax adjustments
associated with restructuring expenses and foreign exchange losses
recognized during the quarter and $3.3
million of other discrete tax adjustments.
During the prior quarter ended March 31, 2020, Oceaneering
reported a net loss of $368 million,
or $(3.71) per share, on revenue of
$537 million. Adjusted net
income was $3.5 million, or
$0.04 per share, reflecting the
impact of $393 million of pre-tax
adjustments, primarily $379 million associated with goodwill
impairments, asset impairments and write-offs recognized during the
quarter.
Adjusted operating income (loss), operating margins, 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 that 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 (Loss) 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,
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
427,216
|
|
|
$
|
495,781
|
|
|
$
|
536,668
|
|
|
$
|
963,884
|
|
|
$
|
989,667
|
|
Gross
Margin
|
|
42,537
|
|
|
41,983
|
|
|
46,752
|
|
|
89,289
|
|
|
69,570
|
|
Income (Loss) from
Operations
|
|
(5,182)
|
|
|
(9,635)
|
|
|
(380,757)
|
|
|
(385,939)
|
|
|
(31,349)
|
|
Net Income
(Loss)
|
|
(24,788)
|
|
|
(35,182)
|
|
|
(367,598)
|
|
|
(392,386)
|
|
|
(60,009)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
(Loss) Per Share
|
|
$
|
(0.25)
|
|
|
$
|
(0.36)
|
|
|
$
|
(3.71)
|
|
|
$
|
(3.96)
|
|
|
$
|
(0.61)
|
|
|
|
|
|
|
Roderick A. Larson, President and
Chief Executive Officer of Oceaneering, stated, "Considering all of
the uncertainties surrounding the crude oil markets and the
COVID-19 pandemic, we were satisfied with our second quarter 2020
results. For the second quarter, we generated adjusted EBITDA
of $40.5 million, exceeding consensus
estimates, and we generated $26.9 million of free cash flow. These
positive results were partially attributable to our actions to
substantially reduce structural costs in light of an expected
continuation of lower demand for our services and products.
The positive effect of these cost reductions is reflected in our 9%
consolidated adjusted EBITDA margin for the second quarter of 2020,
which declined by only 14 basis points as compared to the first
quarter of 2020, despite a 20% decrease in revenue.
"As expected, compared to the first quarter of 2020, the
aggregate result of our energy segments declined during the second
quarter of 2020. However, this decline was partially offset
by improved performance in our non-energy segment, Advanced
Technologies, and lower Unallocated Expenses. We did
experience some operational disruptions and delays due to COVID-19
during the second quarter but the safety protocols we, and the
industry, put into place in response to the pandemic limited
impacts to our employees and customers.
"Sequentially, ROV adjusted operating performance declined as
anticipated, primarily due to the lower number of working drilling
rigs. This led to fewer days on hire for drill support
services that were slightly offset by a marginal increase in days
on hire for vessel-based services. Our fleet use during the
quarter was 64% in drill support and 36% in vessel-based activity,
compared to 68% and 32%, respectively, during the first
quarter. Revenue declined 12%, primarily due to a 9% decrease
in ROV days on hire. ROV adjusted EBITDA margin remained
relatively unchanged at 31% during the second quarter of 2020 as
compared to the adjusted EBITDA margin of 32% achieved during the
first quarter of 2020.
"At the end of June 2020 our ROV
fleet size was 250, unchanged from the first quarter. For the
second quarter, utilization was 59%, down from 65% achieved for the
quarter ended March 31, 2020.
As of June 30, 2020, we had ROV
contracts on 86 of the 139 floating rigs under contract, resulting
in a drill support market share of 62%.
"Subsea Products adjusted operating results declined during the
second quarter of 2020, as compared to the first quarter of 2020,
on significantly lower revenue. Revenue in our manufactured
products business was impacted by the delayed receipt of materials,
customer-driven project delays, and reduced working hours due to
COVID-19. Revenue in our service and rental business declined
due to decreased activity, including the uncertainty of timing of
our riserless light well intervention project in Angola.
Persistent cost-reduction efforts helped us to achieve an adjusted
operating margin consistent with the margin generated in the first
quarter of 2020.
"Our Subsea Products backlog at June 30, 2020 was
$486 million, compared to our March 31, 2020 backlog of
$528 million. As expected, there were low levels of
bookings during the second quarter, as many of our
customers delayed investment decisions due to the
uncertainties regarding oil prices and potential COVID-19-related
operating risks. Revenue replacement during the quarter was
67% and our book-to-bill ratio for the trailing 12 months was
0.83.
"The second quarter 2020 Subsea Projects adjusted operating
performance improved, as compared to the first quarter of 2020, on
lower revenue. Revenue declined due to decreased customer
activity, but we were pleased that adjusted operating results
improved due to better project execution and ongoing cost-reduction
activity. Asset Integrity's adjusted operating results
declined sequentially on lower revenue and as a result of
non-recurring costs on certain completed projects.
"For our non-energy segment, Advanced Technologies, second
quarter 2020 adjusted operating results improved sequentially due
to good performance from our government businesses. COVID-19
continues to adversely affect our commercial businesses.
However cost reduction measures implemented during the first
quarter of 2020 limited the financial impact on our second quarter
2020 results. Unallocated Expenses for the quarter were
sequentially lower as the return on market-based assets held in a
trust for the benefit of certain post-retirement obligations
improved, as compared to a first quarter loss. Additionally,
we had reduced information technology costs during the quarter.
"For the second quarter of 2020, our cash balance increased to
$334 million, as we generated
$26.9 million of free cash flow,
largely driven by positive contributions from operations and
working capital, and continued scrutiny of our capital
expenditures.
"Although we are encouraged by our second quarter 2020
results, uncertainty remains for the rest of 2020. Many
of the markets we serve will likely continue to be impacted by the
effects of and associated responses to COVID-19, as well as
potential reductions in customer spending as a consequence of the
volatility in the macro drivers surrounding commodity prices.
As a result, we are not providing segment financial guidance for
the third quarter or second half of 2020. We affirm that
Unallocated Expenses are forecast to be in the high-$20 million range per quarter. For the
year, we affirm guidance for capital expenditures in the range of
$45 million to $65 million, our cash tax payments in the range
of $30 million to $35 million, and our expectation of CARES Act tax
refunds in the range of $16 million
to $34 million.
"In our first quarter 2020 earnings release, we outlined our
plan for a targeted reduction of annualized expenses in the range
of $125 million to $160 million by the end of 2020, inclusive of
$35 million to $40 million of reduced depreciation
expense. These cost reduction efforts are progressing well,
and we estimate that, since launching those efforts, approximately
$85 million of annualized cost
reductions have been initiated, with additional savings expected to
be achieved throughout the remainder of the year. We continue to
expect the cash costs associated with these actions to approximate
$15 million in 2020.
"Preserving our liquidity and balance sheet remains a high
priority in the current environment. We expect to generate
positive free cash flow for the full year of 2020 based on actions
we are taking to achieve cost reductions, reduced capital spending,
lower cash taxes, our expectation for CARES Act tax refunds, and
cash expected to be generated from working capital for the
remainder of the year."
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,
future expected business and financial performance and prospects of
Oceaneering. More specifically, the forward-looking
statements in this press release include the statements concerning
Oceaneering's: forecasted Unallocated Expenses per quarter, and
annual capital expenditures and cash tax payments; targeted
reduction range of annualized expenses, including depreciation
expense; timing and anticipation of additional savings from cost
reduction actions already initiated; cash costs associated with
cost reduction actions; belief in generating positive free cash
flow during 2020, and the bases for that belief, including
expectations regarding: actions to achieve cost reductions, capital
spending, cash taxes, CARES Act tax refunds, and cash from working
capital for the remainder of the year.
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,
including worldwide demand for and prices of oil and natural gas,
oil and natural gas production growth and the supply and demand of
offshore drilling rigs; actions by members of OPEC and other oil
exporting countries; decisions about offshore developments to be
made by oil and gas exploration, development and production
companies; the use of subsea completions and our ability to capture
associated market share; general economic and business conditions
and industry trends; the strength of the industry segments in which
we are involved; the continuing effects of the COVID-19 pandemic
and the governmental, customer, supplier, and other responses
thereto; cancellations of contracts, change orders and other
contractual modifications and the resulting adjustments to our
backlog; collections from our customers; our future financial
performance, including as a result of the availability, terms and
deployment of capital; the consequences of significant changes in
currency exchange rates; the volatility and uncertainties of credit
markets; changes in tax laws, regulations and interpretation by
taxing authorities; changes in, or our ability to comply with,
other laws and governmental regulations, including those relating
to the environment; the continued availability of qualified
personnel; our ability to obtain raw materials and parts on a
timely basis and, in some cases, from limited sources; operating
risks normally incident to offshore exploration, development and
production operations; hurricanes and other adverse weather and sea
conditions; cost and time associated with drydocking of our
vessels; the highly competitive nature of our businesses; adverse
outcomes from legal or regulatory proceedings; the risks associated
with integrating businesses we acquire; rapid technological
changes; and social, political, military and economic situations in
foreign countries where we do business and the possibilities of
civil disturbances, war, other armed conflicts or terrorist
attacks. For a more complete discussion of these and other
risk factors, please see Oceaneering's latest annual report on Form
10-K and subsequent quarterly reports on Form 10Q filed with the
Securities and Exchange Commission. You should not place undue
reliance on forward-looking statements. Except to the extent
required by applicable law, Oceaneering undertakes no obligation to
update or revise any forward-looking statement.
Oceaneering is a global provider of engineered services and
products, primarily to the offshore energy industry. 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:
Mark Peterson
Vice President, Corporate Development and Investor Relations
Oceaneering International, Inc.
713-329-4507
investorrelations@oceaneering.com
OCEANEERING
INTERNATIONAL, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
2020
|
|
Dec 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
(including cash and cash equivalents of $333,509 and
$373,655)
|
|
|
|
|
|
$
|
1,131,908
|
|
|
$
|
1,244,436
|
|
|
Net property and
equipment
|
|
|
|
|
|
|
647,864
|
|
|
776,532
|
|
|
Other
assets
|
|
|
|
|
|
|
|
|
|
349,012
|
|
|
719,695
|
|
|
|
|
Total
Assets
|
|
|
|
|
|
$
|
2,128,784
|
|
|
$
|
2,740,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
$
|
452,444
|
|
|
$
|
600,956
|
|
|
Long-term
debt
|
|
|
|
|
|
|
|
|
|
806,006
|
|
|
796,516
|
|
|
Other long-term
liabilities
|
|
|
|
|
|
244,925
|
|
|
267,782
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
625,409
|
|
|
1,075,409
|
|
|
|
|
Total Liabilities and
Equity
|
|
|
|
|
|
$
|
2,128,784
|
|
|
$
|
2,740,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
|
|
|
|
|
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
Mar 31,
2020
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
|
|
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
$
|
427,216
|
|
|
$
|
495,781
|
|
|
$
|
536,668
|
|
|
$
|
963,884
|
|
|
$
|
989,667
|
|
|
Cost of services and
products
|
|
384,679
|
|
|
453,798
|
|
|
489,916
|
|
|
874,595
|
|
|
920,097
|
|
|
|
Gross
margin
|
|
42,537
|
|
|
41,983
|
|
|
46,752
|
|
|
89,289
|
|
|
69,570
|
|
|
Selling, general and
administrative expense
|
|
47,719
|
|
|
51,618
|
|
|
55,741
|
|
|
103,460
|
|
|
100,919
|
|
|
Long-lived assets
impairments
|
|
—
|
|
|
—
|
|
|
68,763
|
|
|
68,763
|
|
|
—
|
|
|
Goodwill
impairment
|
|
—
|
|
|
—
|
|
|
303,005
|
|
|
303,005
|
|
|
—
|
|
|
|
Income (loss) from
operations
|
|
|
|
(5,182)
|
|
|
(9,635)
|
|
|
(380,757)
|
|
|
(385,939)
|
|
|
(31,349)
|
|
|
Interest
income
|
|
|
|
|
|
511
|
|
|
1,848
|
|
|
1,277
|
|
|
1,788
|
|
|
4,452
|
|
|
Interest expense, net
of amounts capitalized
|
|
(11,611)
|
|
|
(10,199)
|
|
|
(12,462)
|
|
|
(24,073)
|
|
|
(19,623)
|
|
|
Equity in income
(losses) of unconsolidated affiliates
|
|
674
|
|
|
—
|
|
|
1,197
|
|
|
1,871
|
|
|
(164)
|
|
|
Other income
(expense), net
|
|
(3,660)
|
|
|
7
|
|
|
(7,128)
|
|
|
(10,788)
|
|
|
726
|
|
|
|
Income (loss) before
income taxes
|
|
(19,268)
|
|
|
(17,979)
|
|
|
(397,873)
|
|
|
(417,141)
|
|
|
(45,958)
|
|
|
Provision (benefit)
for income taxes
|
|
5,520
|
|
|
17,203
|
|
|
(30,275)
|
|
|
(24,755)
|
|
|
14,051
|
|
|
|
Net Income
(Loss)
|
|
$
|
(24,788)
|
|
|
$
|
(35,182)
|
|
|
$
|
(367,598)
|
|
|
$
|
(392,386)
|
|
|
$
|
(60,009)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
|
99,273
|
|
|
98,929
|
|
|
99,055
|
|
|
99,164
|
|
|
98,822
|
|
Diluted earnings
(loss) per share
|
|
$
|
(0.25)
|
|
|
$
|
(0.36)
|
|
|
$
|
(3.71)
|
|
|
$
|
(3.96)
|
|
|
$
|
(0.61)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2020
|
|
Jun 30,
2019
|
|
Mar 31,
2020
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Remotely Operated
Vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
98,778
|
|
|
$
|
120,363
|
|
|
$
|
111,780
|
|
|
$
|
210,558
|
|
|
$
|
220,709
|
|
|
Gross
margin
|
|
|
$
|
13,788
|
|
|
$
|
17,360
|
|
|
$
|
18,112
|
|
|
$
|
31,900
|
|
|
$
|
26,781
|
|
Operating income
(loss)
|
|
|
$
|
5,975
|
|
|
$
|
8,688
|
|
|
$
|
9,066
|
|
|
$
|
15,041
|
|
|
$
|
10,106
|
|
Operating income
(loss) %
|
|
|
6
|
%
|
|
7
|
%
|
|
8
|
%
|
|
7
|
%
|
|
5
|
%
|
|
Days
available
|
|
|
22,750
|
|
|
25,006
|
|
|
22,750
|
|
|
45,500
|
|
|
49,512
|
|
|
Days
utilized
|
|
|
13,501
|
|
|
15,423
|
|
|
14,853
|
|
|
28,354
|
|
|
28,365
|
|
|
Utilization
|
|
|
59
|
%
|
|
62
|
%
|
|
65
|
%
|
|
62
|
%
|
|
57
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsea
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
130,655
|
|
|
$
|
138,910
|
|
|
$
|
194,838
|
|
|
$
|
325,493
|
|
|
$
|
267,754
|
|
|
Gross
margin
|
|
|
$
|
21,578
|
|
|
$
|
21,029
|
|
|
$
|
28,639
|
|
|
$
|
50,217
|
|
|
$
|
33,344
|
|
Operating income
(loss)
|
|
|
$
|
9,068
|
|
|
$
|
7,413
|
|
|
$
|
(91,858)
|
|
|
$
|
(82,790)
|
|
|
$
|
6,937
|
|
Operating income
(loss) %
|
|
|
7
|
%
|
|
5
|
%
|
|
(47)
|
%
|
|
(25)
|
%
|
|
3
|
%
|
Backlog at end of
period
|
|
|
$
|
486,000
|
|
|
$
|
596,000
|
|
|
$
|
528,000
|
|
|
$
|
486,000
|
|
|
$
|
596,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsea
Projects
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
56,326
|
|
|
$
|
75,104
|
|
|
$
|
61,455
|
|
|
$
|
117,781
|
|
|
$
|
164,832
|
|
|
Gross
margin
|
|
|
$
|
6,331
|
|
|
$
|
5,472
|
|
|
$
|
(2,114)
|
|
|
$
|
4,217
|
|
|
$
|
14,505
|
|
Operating income
(loss)
|
|
|
$
|
845
|
|
|
$
|
87
|
|
|
$
|
(145,290)
|
|
|
$
|
(144,445)
|
|
|
$
|
2,979
|
|
Operating income
(loss) %
|
|
|
2
|
%
|
|
—
|
%
|
|
(236)
|
%
|
|
(123)
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Integrity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
48,077
|
|
|
$
|
61,156
|
|
|
$
|
59,132
|
|
|
$
|
107,209
|
|
|
$
|
121,845
|
|
|
Gross
margin
|
|
|
$
|
4,155
|
|
|
$
|
6,423
|
|
|
$
|
8,729
|
|
|
$
|
12,884
|
|
|
$
|
12,695
|
|
Operating income
(loss)
|
|
|
$
|
(2,598)
|
|
|
$
|
(1,302)
|
|
|
$
|
(109,441)
|
|
|
$
|
(112,039)
|
|
|
$
|
(2,015)
|
|
Operating income
(loss) %
|
|
|
(5)
|
%
|
|
(2)
|
%
|
|
(185)
|
%
|
|
(105)
|
%
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced
Technologies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
93,380
|
|
|
$
|
100,248
|
|
|
$
|
109,463
|
|
|
$
|
202,843
|
|
|
$
|
214,527
|
|
|
Gross
margin
|
|
|
$
|
15,089
|
|
|
$
|
13,386
|
|
|
$
|
13,428
|
|
|
$
|
28,517
|
|
|
$
|
28,634
|
|
Operating income
(loss)
|
|
|
$
|
9,707
|
|
|
$
|
7,241
|
|
|
$
|
(10,585)
|
|
|
$
|
(878)
|
|
|
$
|
16,840
|
|
Operating income
(loss) %
|
|
|
10
|
%
|
|
7
|
%
|
|
(10)
|
%
|
|
—
|
%
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
|
$
|
(18,404)
|
|
|
$
|
(21,687)
|
|
|
$
|
(20,042)
|
|
|
$
|
(38,446)
|
|
|
$
|
(46,389)
|
|
Operating income
(loss)
|
|
|
$
|
(28,179)
|
|
|
$
|
(31,762)
|
|
|
$
|
(32,649)
|
|
|
$
|
(60,828)
|
|
|
$
|
(66,196)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
427,216
|
|
|
$
|
495,781
|
|
|
$
|
536,668
|
|
|
$
|
963,884
|
|
|
$
|
989,667
|
|
|
Gross
margin
|
|
|
$
|
42,537
|
|
|
$
|
41,983
|
|
|
$
|
46,752
|
|
|
$
|
89,289
|
|
|
$
|
69,570
|
|
Operating income
(loss)
|
|
|
$
|
(5,182)
|
|
|
$
|
(9,635)
|
|
|
$
|
(380,757)
|
|
|
$
|
(385,939)
|
|
|
$
|
(31,349)
|
|
Operating income
(loss) %
|
|
|
(1)
|
%
|
|
(2)
|
%
|
|
(71)
|
%
|
|
(40)
|
%
|
|
(3)
|
%
|
|
The above Segment
Information does not include adjustments for non-recurring
transactions. See the tables in our Reconciliations of
Non-GAAP to GAAP Financial Information section for financial
measures that management considers representative of our ongoing
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED CASH FLOW
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
|
|
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
Mar 31,
2020
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures,
including Acquisitions
|
|
|
$
|
10,631
|
|
|
$
|
40,898
|
|
|
$
|
27,229
|
|
|
$
|
37,860
|
|
|
70,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
Energy Services and
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
Remotely Operated
Vehicles
|
|
|
$
|
22,892
|
|
|
$
|
26,871
|
|
|
$
|
25,725
|
|
|
$
|
48,617
|
|
|
$
|
54,861
|
|
|
Subsea
Products
|
|
|
10,024
|
|
|
12,366
|
|
|
62,454
|
|
|
72,478
|
|
|
25,357
|
|
|
Subsea
Projects
|
|
|
4,597
|
|
|
7,550
|
|
|
143,346
|
|
|
147,943
|
|
|
15,432
|
|
|
Asset
Integrity
|
|
|
190
|
|
|
1,570
|
|
|
111,385
|
|
|
111,575
|
|
|
3,204
|
|
Total Energy Services
and Products
|
|
|
37,703
|
|
|
48,357
|
|
|
342,910
|
|
|
380,613
|
|
|
98,854
|
|
Advanced
Technologies
|
|
|
634
|
|
|
765
|
|
|
12,178
|
|
|
12,812
|
|
|
1,595
|
|
Unallocated
Expenses
|
|
|
361
|
|
|
1,182
|
|
|
1,108
|
|
|
1,469
|
|
|
2,341
|
|
|
Total Depreciation
and Amortization
|
|
|
$
|
38,698
|
|
|
$
|
50,304
|
|
|
$
|
356,196
|
|
|
$
|
394,894
|
|
|
$
|
102,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and
long-lived asset impairment expense, reflected in the depreciation
and amortization expense above, was $310 million in the three
months ended March 31, 2020 and the six months ended June 30,
2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
(Loss) and Diluted Earnings (Loss) 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, EBITDA Margins, 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,
2020
|
Jun 30,
2019
|
Mar 31,
2020
|
|
|
|
|
|
Net Income
(Loss)
|
|
Diluted
EPS
|
|
Net Income
(Loss)
|
|
Diluted
EPS
|
|
Net Income
(Loss)
|
|
Diluted
EPS
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
Net income (loss) and
diluted EPS as reported in accordance with GAAP
|
|
$
|
(24,788)
|
|
|
$
|
(0.25)
|
|
|
$
|
(35,182)
|
|
|
$
|
(0.36)
|
|
|
$
|
(367,598)
|
|
|
$
|
(3.71)
|
|
Pre-tax adjustments
for the effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived assets
impairments
|
|
—
|
|
|
|
|
—
|
|
|
|
|
68,763
|
|
|
|
|
Long-lived assets
write-offs
|
|
—
|
|
|
|
|
—
|
|
|
|
|
7,328
|
|
|
|
|
Goodwill
impairment
|
|
—
|
|
|
|
|
—
|
|
|
|
|
303,005
|
|
|
|
|
Restructuring
expenses and other
|
|
5,708
|
|
|
|
|
—
|
|
|
|
|
6,630
|
|
|
|
|
Foreign currency
(gains) losses
|
|
3,908
|
|
|
|
|
(59)
|
|
|
|
|
7,050
|
|
|
|
Total pre-tax
adjustments
|
|
9,616
|
|
|
|
|
(59)
|
|
|
|
|
392,776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect on pre-tax
adjustments at the applicable jurisdictional statutory rate in
effect for respective periods
|
|
(2,331)
|
|
|
|
|
12
|
|
|
|
|
(45,355)
|
|
|
|
Discrete tax
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
16
|
|
|
|
|
1
|
|
|
|
|
987
|
|
|
|
Uncertain tax positions
|
|
735
|
|
|
|
|
1,268
|
|
|
|
|
(9,652)
|
|
|
|
U.S. CARES Act
|
|
1,159
|
|
|
|
|
—
|
|
|
|
|
(33,784)
|
|
|
|
Valuation allowances
|
|
3,245
|
|
|
|
|
—
|
|
|
|
|
65,208
|
|
|
|
Other
|
|
(1,887)
|
|
|
|
|
2,436
|
|
|
|
|
950
|
|
|
|
|
Total discrete tax
adjustments
|
|
3,268
|
|
|
|
|
3,705
|
|
|
|
|
23,709
|
|
|
|
|
Total of
adjustments
|
|
10,553
|
|
|
|
|
3,658
|
|
|
|
|
371,130
|
|
|
|
Adjusted Net Income
(Loss)
|
|
$
|
(14,235)
|
|
|
$
|
(0.14)
|
|
|
$
|
(31,524)
|
|
|
$
|
(0.32)
|
|
|
$
|
3,532
|
|
|
$
|
0.04
|
|
Weighted average
diluted shares outstanding utilized for Adjusted Net Income
(Loss)
|
|
|
|
99,273
|
|
|
|
|
98,929
|
|
|
|
|
99,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income (Loss) and Diluted Earnings (Loss) per Share
(EPS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended
|
|
|
|
|
|
|
Jun 30,
2020
|
Jun 30,
2019
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
|
Diluted
EPS
|
|
Net Income
(Loss)
|
|
Diluted
EPS
|
|
|
|
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
Net income (loss) and
diluted EPS as reported in accordance with GAAP
|
|
|
|
|
|
$
|
(392,386)
|
|
|
$
|
(3.96)
|
|
|
$
|
(60,009)
|
|
|
$
|
(0.61)
|
|
Pre-tax adjustments
for the effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived assets
impairments
|
|
|
|
|
|
68,763
|
|
|
|
|
—
|
|
|
|
|
Long-lived assets
write-offs
|
|
|
|
|
|
7,328
|
|
|
|
|
—
|
|
|
|
|
Goodwill
impairment
|
|
|
|
|
|
303,005
|
|
|
|
|
—
|
|
|
|
|
Restructuring
expenses and other
|
|
|
|
|
|
12,338
|
|
|
|
|
—
|
|
|
|
|
Foreign currency
(gains) losses
|
|
|
|
|
|
10,958
|
|
|
|
|
(673)
|
|
|
|
Total pre-tax
adjustments
|
|
|
|
|
|
402,392
|
|
|
|
|
(673)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect on pre-tax
adjustments at the applicable jurisdictional statutory rate in
effect for respective periods
|
|
|
|
|
|
(47,686)
|
|
|
|
|
141
|
|
|
|
Discrete tax
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
|
|
|
|
1,003
|
|
|
|
|
987
|
|
|
|
Uncertain tax positions
|
|
|
|
|
|
(8,917)
|
|
|
|
|
2,290
|
|
|
|
U.S. CARES Act
|
|
|
|
|
|
(32,625)
|
|
|
|
|
—
|
|
|
|
Valuation allowances
|
|
|
|
|
|
68,453
|
|
|
|
|
1,539
|
|
|
|
Other
|
|
|
|
|
|
(937)
|
|
|
|
|
295
|
|
|
|
|
Total discrete tax
adjustments
|
|
|
|
|
|
26,977
|
|
|
|
|
5,111
|
|
|
|
|
Total of
adjustments
|
|
|
|
|
|
381,683
|
|
|
|
|
4,579
|
|
|
|
Adjusted Net Income
(Loss)
|
|
|
|
|
|
$
|
(10,703)
|
|
|
$
|
(0.11)
|
|
|
$
|
(55,430)
|
|
|
$
|
(0.56)
|
|
Weighted average
diluted shares outstanding utilized for Adjusted Net Income
(Loss)
|
|
|
|
|
|
|
|
99,164
|
|
|
|
|
98,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and
Adjusted EBITDA and Margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
|
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
Mar 31,
2020
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
$
|
(24,788)
|
|
|
$
|
(35,182)
|
|
|
$
|
(367,598)
|
|
|
$
|
(392,386)
|
|
|
$
|
(60,009)
|
|
Depreciation and
amortization
|
|
|
38,698
|
|
|
50,304
|
|
|
356,196
|
|
|
394,894
|
|
|
102,790
|
|
|
Subtotal
|
|
|
13,910
|
|
|
15,122
|
|
|
(11,402)
|
|
|
2,508
|
|
|
42,781
|
|
Interest expense, net
of interest income
|
|
11,100
|
|
|
8,351
|
|
|
11,185
|
|
|
22,285
|
|
|
15,171
|
|
Amortization included
in interest expense
|
|
333
|
|
|
(335)
|
|
|
(333)
|
|
|
—
|
|
|
(675)
|
|
Provision (benefit)
for income taxes
|
|
|
5,520
|
|
|
17,203
|
|
|
(30,275)
|
|
|
(24,755)
|
|
|
14,051
|
|
|
EBITDA
|
|
|
30,863
|
|
|
40,341
|
|
|
(30,825)
|
|
|
38
|
|
|
71,328
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived assets
impairments
|
|
|
—
|
|
|
—
|
|
|
68,763
|
|
|
68,763
|
|
|
—
|
|
|
Restructuring
expenses and other
|
|
|
5,708
|
|
|
—
|
|
|
6,630
|
|
|
12,338
|
|
|
—
|
|
|
Foreign currency
(gains) losses
|
|
|
3,908
|
|
|
(59)
|
|
|
7,050
|
|
|
10,958
|
|
|
(673)
|
|
|
|
Total of
adjustments
|
|
|
9,616
|
|
|
(59)
|
|
|
82,443
|
|
|
92,059
|
|
|
(673)
|
|
|
Adjusted
EBITDA
|
|
|
$
|
40,479
|
|
|
$
|
40,282
|
|
|
$
|
51,618
|
|
|
$
|
92,097
|
|
|
$
|
70,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
427,216
|
|
|
$
|
495,781
|
|
|
$
|
536,668
|
|
|
$
|
963,884
|
|
|
$
|
989,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin
%
|
|
|
7
|
%
|
|
8
|
%
|
|
(6)
|
%
|
|
—
|
%
|
|
7
|
%
|
Adjusted EBITDA
margin %
|
|
|
9
|
%
|
|
8
|
%
|
|
10
|
%
|
|
10
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
Mar 31,
2020
|
|
Jun 30,
2020
|
|
Jun 30,
2019
|
|
|
|
(in
thousands)
|
Net Income
(loss)
|
|
$
|
(24,788)
|
|
|
$
|
(35,182)
|
|
|
$
|
(367,598)
|
|
|
$
|
(392,386)
|
|
|
$
|
(60,009)
|
|
Non-cash
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization, including goodwill impairment
|
|
38,698
|
|
|
50,304
|
|
|
356,196
|
|
|
394,894
|
|
|
102,790
|
|
|
Other
non-cash
|
|
41
|
|
|
495
|
|
|
64,137
|
|
|
64,178
|
|
|
557
|
|
Other increases
(decreases) in cash from operating activities
|
|
23,567
|
|
|
37,968
|
|
|
(84,885)
|
|
|
(61,318)
|
|
|
29,371
|
|
Cash flow provided by
(used in) operating activities
|
|
37,518
|
|
|
53,585
|
|
|
(32,150)
|
|
|
5,368
|
|
|
72,709
|
|
Purchases of property
and equipment
|
|
(10,631)
|
|
|
(40,898)
|
|
|
(27,229)
|
|
|
(37,860)
|
|
|
(70,862)
|
|
Free Cash
Flow
|
|
$
|
26,887
|
|
|
$
|
12,687
|
|
|
$
|
(59,379)
|
|
|
$
|
(32,492)
|
|
|
$
|
1,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss) and Margins by Segment
|
|
|
|
|
|
For the Three Months
Ended June 30, 2020
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
5,975
|
|
|
$
|
9,068
|
|
|
$
|
845
|
|
|
$
|
(2,598)
|
|
|
$
|
9,707
|
|
|
$
|
(28,179)
|
|
|
$
|
(5,182)
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses and other
|
|
1,336
|
|
|
1,646
|
|
|
1,250
|
|
|
1,536
|
|
|
(235)
|
|
|
175
|
|
|
5,708
|
|
|
|
Total of
adjustments
|
|
1,336
|
|
|
1,646
|
|
|
1,250
|
|
|
1,536
|
|
|
(235)
|
|
|
175
|
|
|
5,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
$
|
7,311
|
|
|
$
|
10,714
|
|
|
$
|
2,095
|
|
|
$
|
(1,062)
|
|
|
$
|
9,472
|
|
|
$
|
(28,004)
|
|
|
$
|
526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
98,778
|
|
|
$
|
130,655
|
|
|
$
|
56,326
|
|
|
$
|
48,077
|
|
|
$
|
93,380
|
|
|
|
|
$
|
427,216
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
6
|
%
|
|
7
|
%
|
|
2
|
%
|
|
(5)
|
%
|
|
10
|
%
|
|
|
|
(1)
|
%
|
Operating income
(loss)% using adjusted amounts
|
|
7
|
%
|
|
8
|
%
|
|
4
|
%
|
|
(2)
|
%
|
|
10
|
%
|
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, 2019
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
8,688
|
|
|
$
|
7,413
|
|
|
$
|
87
|
|
|
$
|
(1,302)
|
|
|
$
|
7,241
|
|
|
$
|
(31,762)
|
|
|
$
|
(9,635)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
$
|
8,688
|
|
|
$
|
7,413
|
|
|
$
|
87
|
|
|
$
|
(1,302)
|
|
|
$
|
7,241
|
|
|
$
|
(31,762)
|
|
|
$
|
(9,635)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
120,363
|
|
|
$
|
138,910
|
|
|
$
|
75,104
|
|
|
$
|
61,156
|
|
|
$
|
100,248
|
|
|
|
|
$
|
495,781
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
7
|
%
|
|
5
|
%
|
|
—
|
%
|
|
(2)
|
%
|
|
7
|
%
|
|
|
|
(2)
|
%
|
Operating income
(loss)% using adjusted amounts
|
|
7
|
%
|
|
5
|
%
|
|
—
|
%
|
|
(2)
|
%
|
|
7
|
%
|
|
|
|
(2)
|
%
|
|
|
|
|
Adjusted Operating
Income (Loss) and Margins by Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended March 31, 2020
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
9,066
|
|
|
$
|
(91,858)
|
|
|
$
|
(145,290)
|
|
|
$
|
(109,441)
|
|
|
$
|
(10,585)
|
|
|
$
|
(32,649)
|
|
|
$
|
(380,757)
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived assets
impairments
|
|
—
|
|
|
54,859
|
|
|
7,689
|
|
|
—
|
|
|
6,215
|
|
|
—
|
|
|
68,763
|
|
|
Long-lived assets
write-offs
|
|
—
|
|
|
—
|
|
|
7,328
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,328
|
|
|
Goodwill
impairment
|
|
—
|
|
|
51,302
|
|
|
129,562
|
|
|
110,753
|
|
|
11,388
|
|
|
—
|
|
|
303,005
|
|
|
Restructuring
expenses and other
|
|
713
|
|
|
1,668
|
|
|
1,480
|
|
|
1,694
|
|
|
795
|
|
|
280
|
|
|
6,630
|
|
|
|
Total of
adjustments
|
|
713
|
|
|
107,829
|
|
|
146,059
|
|
|
112,447
|
|
|
18,398
|
|
|
280
|
|
|
385,726
|
|
Adjusted Operating
Income (Loss)
|
|
$
|
9,779
|
|
|
$
|
15,971
|
|
|
$
|
769
|
|
|
$
|
3,006
|
|
|
$
|
7,813
|
|
|
$
|
(32,369)
|
|
|
$
|
4,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
111,780
|
|
|
$
|
194,838
|
|
|
$
|
61,455
|
|
|
$
|
59,132
|
|
|
$
|
109,463
|
|
|
|
|
$
|
536,668
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
8
|
%
|
|
(47)
|
%
|
|
(236)
|
%
|
|
(185)
|
%
|
|
(10)
|
%
|
|
|
|
(71)
|
%
|
Operating income
(loss) % using adjusted amounts
|
|
9
|
%
|
|
8
|
%
|
|
1
|
%
|
|
5
|
%
|
|
7
|
%
|
|
|
|
1
|
%
|
|
|
|
|
Adjusted Operating
Income (Loss) and Margins by Segment
|
|
|
|
|
|
For the Six Months
Ended June 30, 2020
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
15,041
|
|
|
$
|
(82,790)
|
|
|
$
|
(144,445)
|
|
|
$
|
(112,039)
|
|
|
$
|
(878)
|
|
|
$
|
(60,828)
|
|
|
$
|
(385,939)
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived assets
impairments
|
|
—
|
|
|
54,859
|
|
|
7,689
|
|
|
—
|
|
|
6,215
|
|
|
—
|
|
|
68,763
|
|
|
Long-lived assets
write-offs
|
|
—
|
|
|
—
|
|
|
7,328
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,328
|
|
|
Goodwill
impairment
|
|
—
|
|
|
51,302
|
|
|
129,562
|
|
|
110,753
|
|
|
11,388
|
|
|
—
|
|
|
303,005
|
|
|
Restructuring
expenses and other
|
|
2,049
|
|
|
3,314
|
|
|
2,730
|
|
|
3,230
|
|
|
560
|
|
|
455
|
|
|
12,338
|
|
|
|
Total of
adjustments
|
|
2,049
|
|
|
109,475
|
|
|
147,309
|
|
|
113,983
|
|
|
18,163
|
|
|
455
|
|
|
391,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
$
|
17,090
|
|
|
$
|
26,685
|
|
|
$
|
2,864
|
|
|
$
|
1,944
|
|
|
$
|
17,285
|
|
|
$
|
(60,373)
|
|
|
$
|
5,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
210,558
|
|
|
$
|
325,493
|
|
|
$
|
117,781
|
|
|
$
|
107,209
|
|
|
$
|
202,843
|
|
|
|
|
$
|
963,884
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
7
|
%
|
|
(25)
|
%
|
|
(123)
|
%
|
|
(105)
|
%
|
|
—
|
%
|
|
|
|
(40)
|
%
|
Operating income
(loss)% using adjusted amounts
|
|
8
|
%
|
|
8
|
%
|
|
2
|
%
|
|
2
|
%
|
|
9
|
%
|
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2019
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
10,106
|
|
|
$
|
6,937
|
|
|
$
|
2,979
|
|
|
$
|
(2,015)
|
|
|
$
|
16,840
|
|
|
$
|
(66,196)
|
|
|
$
|
(31,349)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income (Loss)
|
|
$
|
10,106
|
|
|
$
|
6,937
|
|
|
$
|
2,979
|
|
|
$
|
(2,015)
|
|
|
$
|
16,840
|
|
|
$
|
(66,196)
|
|
|
$
|
(31,349)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
220,709
|
|
|
$
|
267,754
|
|
|
$
|
164,832
|
|
|
$
|
121,845
|
|
|
$
|
214,527
|
|
|
|
|
$
|
989,667
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
5
|
%
|
|
3
|
%
|
|
2
|
%
|
|
(2)
|
%
|
|
8
|
%
|
|
|
|
(3)
|
%
|
Operating income
(loss)% using adjusted amounts
|
|
5
|
%
|
|
3
|
%
|
|
2
|
%
|
|
(2)
|
%
|
|
8
|
%
|
|
|
|
(3)
|
%
|
|
|
|
|
EBITDA and
Adjusted EBITDA and Margins by Segment
|
|
|
|
|
|
For the Three Months
Ended June 30, 2020
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
and other
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
5,975
|
|
|
$
|
9,068
|
|
|
$
|
845
|
|
|
$
|
(2,598)
|
|
|
$
|
9,707
|
|
|
$
|
(28,179)
|
|
|
$
|
(5,182)
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
22,892
|
|
|
10,024
|
|
|
4,597
|
|
|
190
|
|
|
634
|
|
|
361
|
|
|
38,698
|
|
|
Other
pre-tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,653)
|
|
|
(2,653)
|
|
|
EBITDA
|
|
28,867
|
|
|
19,092
|
|
|
5,442
|
|
|
(2,408)
|
|
|
10,341
|
|
|
(30,471)
|
|
|
30,863
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses and other
|
|
1,336
|
|
|
1,646
|
|
|
1,250
|
|
|
1,536
|
|
|
(235)
|
|
|
175
|
|
|
5,708
|
|
|
Foreign currency
(gains) losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,908
|
|
|
3,908
|
|
|
|
Total of
adjustments
|
|
1,336
|
|
|
1,646
|
|
|
1,250
|
|
|
1,536
|
|
|
(235)
|
|
|
4,083
|
|
|
9,616
|
|
Adjusted
EBITDA
|
|
$
|
30,203
|
|
|
$
|
20,738
|
|
|
$
|
6,692
|
|
|
$
|
(872)
|
|
|
$
|
10,106
|
|
|
$
|
(26,388)
|
|
|
$
|
40,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
98,778
|
|
|
$
|
130,655
|
|
|
$
|
56,326
|
|
|
$
|
48,077
|
|
|
$
|
93,380
|
|
|
|
|
$
|
427,216
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
6
|
%
|
|
7
|
%
|
|
2
|
%
|
|
(5)
|
%
|
|
10
|
%
|
|
|
|
(1)
|
%
|
EBITDA
Margin
|
|
29
|
%
|
|
15
|
%
|
|
10
|
%
|
|
(5)
|
%
|
|
11
|
%
|
|
|
|
7
|
%
|
Adjusted EBITDA
Margin
|
|
31
|
%
|
|
16
|
%
|
|
12
|
%
|
|
(2)
|
%
|
|
11
|
%
|
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended June 30, 2019
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
and other
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
8,688
|
|
|
$
|
7,413
|
|
|
$
|
87
|
|
|
$
|
(1,302)
|
|
|
$
|
7,241
|
|
|
$
|
(31,762)
|
|
|
$
|
(9,635)
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
26,871
|
|
|
12,366
|
|
|
7,550
|
|
|
1,570
|
|
|
765
|
|
|
1,182
|
|
|
50,304
|
|
|
Other
pre-tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(328)
|
|
|
(328)
|
|
|
EBITDA
|
|
35,559
|
|
|
19,779
|
|
|
7,637
|
|
|
268
|
|
|
8,006
|
|
|
(30,908)
|
|
|
40,341
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
(gains) losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59)
|
|
|
(59)
|
|
|
|
Total of
adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(59)
|
|
|
(59)
|
|
Adjusted
EBITDA
|
|
$
|
35,559
|
|
|
$
|
19,779
|
|
|
$
|
7,637
|
|
|
$
|
268
|
|
|
$
|
8,006
|
|
|
$
|
(30,967)
|
|
|
$
|
40,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
120,363
|
|
|
$
|
138,910
|
|
|
$
|
75,104
|
|
|
$
|
61,156
|
|
|
$
|
100,248
|
|
|
|
|
$
|
495,781
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
7
|
%
|
|
5
|
%
|
|
—
|
%
|
|
(2)
|
%
|
|
7
|
%
|
|
|
|
(2)
|
%
|
EBITDA
Margin
|
|
30
|
%
|
|
14
|
%
|
|
10
|
%
|
|
—
|
%
|
|
8
|
%
|
|
|
|
8
|
%
|
Adjusted EBITDA
Margin
|
|
30
|
%
|
|
14
|
%
|
|
10
|
%
|
|
—
|
%
|
|
8
|
%
|
|
|
|
8
|
%
|
|
|
|
EBITDA and
Adjusted EBITDA and Margins by Segment
|
|
|
|
|
|
For the Three Months
Ended March 31, 2020
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
and other
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
9,066
|
|
|
$
|
(91,858)
|
|
|
$
|
(145,290)
|
|
|
$
|
(109,441)
|
|
|
$
|
(10,585)
|
|
|
$
|
(32,649)
|
|
|
$
|
(380,757)
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
25,725
|
|
|
62,454
|
|
|
143,346
|
|
|
111,385
|
|
|
12,178
|
|
|
1,108
|
|
|
356,196
|
|
|
Other
pre-tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,264)
|
|
|
(6,264)
|
|
|
EBITDA
|
|
34,791
|
|
|
(29,404)
|
|
|
(1,944)
|
|
|
1,944
|
|
|
1,593
|
|
|
(37,805)
|
|
|
(30,825)
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived assets
impairments
|
|
—
|
|
|
54,859
|
|
|
7,689
|
|
|
—
|
|
|
6,215
|
|
|
—
|
|
|
68,763
|
|
|
Restructuring
expenses and other
|
|
713
|
|
|
1,668
|
|
|
1,480
|
|
|
1,694
|
|
|
795
|
|
|
280
|
|
|
6,630
|
|
|
Foreign currency
(gains) losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,050
|
|
|
7,050
|
|
|
|
Total of
adjustments
|
|
713
|
|
|
56,527
|
|
|
9,169
|
|
|
1,694
|
|
|
7,010
|
|
|
7,330
|
|
|
82,443
|
|
Adjusted
EBITDA
|
|
$
|
35,504
|
|
|
$
|
27,123
|
|
|
$
|
7,225
|
|
|
$
|
3,638
|
|
|
$
|
8,603
|
|
|
$
|
(30,475)
|
|
|
$
|
51,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
111,780
|
|
|
$
|
194,838
|
|
|
$
|
61,455
|
|
|
$
|
59,132
|
|
|
$
|
109,463
|
|
|
|
|
$
|
536,668
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
8
|
%
|
|
(47)
|
%
|
|
(236)
|
%
|
|
(185)
|
%
|
|
(10)
|
%
|
|
|
|
(71)
|
%
|
EBITDA
Margin
|
|
31
|
%
|
|
(15)
|
%
|
|
(3)
|
%
|
|
3
|
%
|
|
1
|
%
|
|
|
|
(6)
|
%
|
Adjusted EBITDA
Margin
|
|
32
|
%
|
|
14
|
%
|
|
12
|
%
|
|
6
|
%
|
|
8
|
%
|
|
|
|
10
|
%
|
|
|
|
EBITDA and
Adjusted EBITDA and Margins by Segment
|
|
|
|
|
|
For the Six Months
Ended June 30, 2020
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
and other
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
15,041
|
|
|
$
|
(82,790)
|
|
|
$
|
(144,445)
|
|
|
$
|
(112,039)
|
|
|
$
|
(878)
|
|
|
$
|
(60,828)
|
|
|
$
|
(385,939)
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
48,617
|
|
|
72,478
|
|
|
147,943
|
|
|
111,575
|
|
|
12,812
|
|
|
1,469
|
|
|
394,894
|
|
|
Other
pre-tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,917)
|
|
|
(8,917)
|
|
|
EBITDA
|
|
63,658
|
|
|
(10,312)
|
|
|
3,498
|
|
|
(464)
|
|
|
11,934
|
|
|
(68,276)
|
|
|
38
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-lived assets
impairments
|
|
—
|
|
|
54,859
|
|
|
7,689
|
|
|
—
|
|
|
6,215
|
|
|
—
|
|
|
68,763
|
|
|
Restructuring
expenses and other
|
|
2,049
|
|
|
3,314
|
|
|
2,730
|
|
|
3,230
|
|
|
560
|
|
|
455
|
|
|
12,338
|
|
|
Foreign currency
(gains) losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,958
|
|
|
10,958
|
|
|
|
Total of
adjustments
|
|
2,049
|
|
|
58,173
|
|
|
10,419
|
|
|
3,230
|
|
|
6,775
|
|
|
11,413
|
|
|
92,059
|
|
Adjusted
EBITDA
|
|
$
|
65,707
|
|
|
$
|
47,861
|
|
|
$
|
13,917
|
|
|
$
|
2,766
|
|
|
$
|
18,709
|
|
|
$
|
(56,863)
|
|
|
$
|
92,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
210,558
|
|
|
$
|
325,493
|
|
|
$
|
117,781
|
|
|
$
|
107,209
|
|
|
$
|
202,843
|
|
|
|
|
$
|
963,884
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
7
|
%
|
|
(25)
|
%
|
|
(123)
|
%
|
|
(105)
|
%
|
|
—
|
%
|
|
|
|
(40)
|
%
|
EBITDA
Margin
|
|
30
|
%
|
|
(3)
|
%
|
|
3
|
%
|
|
—
|
%
|
|
6
|
%
|
|
|
|
—
|
%
|
Adjusted EBITDA
Margin
|
|
31
|
%
|
|
15
|
%
|
|
12
|
%
|
|
3
|
%
|
|
9
|
%
|
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended June 30, 2019
|
|
|
|
|
Remotely
Operated
Vehicles
|
|
Subsea
Products
|
|
Subsea
Projects
|
|
Asset
Integrity
|
|
Advanced
Tech.
|
|
Unallocated
Expenses
and other
|
|
Total
|
|
|
|
|
($ in
thousands)
|
Operating Income
(Loss) as reported in accordance with GAAP
|
|
$
|
10,106
|
|
|
$
|
6,937
|
|
|
$
|
2,979
|
|
|
$
|
(2,015)
|
|
|
$
|
16,840
|
|
|
$
|
(66,196)
|
|
|
$
|
(31,349)
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
54,861
|
|
|
25,357
|
|
|
15,432
|
|
|
3,204
|
|
|
1,595
|
|
|
2,341
|
|
|
102,790
|
|
|
Other
pre-tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(113)
|
|
|
(113)
|
|
|
EBITDA
|
|
64,967
|
|
|
32,294
|
|
|
18,411
|
|
|
1,189
|
|
|
18,435
|
|
|
(63,968)
|
|
|
71,328
|
|
Adjustments for the
effects of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
(gains) losses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(673)
|
|
|
(673)
|
|
|
|
Total of
adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(673)
|
|
|
(673)
|
|
Adjusted
EBITDA
|
|
$
|
64,967
|
|
|
$
|
32,294
|
|
|
$
|
18,411
|
|
|
$
|
1,189
|
|
|
$
|
18,435
|
|
|
$
|
(64,641)
|
|
|
$
|
70,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
220,709
|
|
|
$
|
267,754
|
|
|
$
|
164,832
|
|
|
$
|
121,845
|
|
|
$
|
214,527
|
|
|
|
|
$
|
989,667
|
|
Operating income
(loss) % as reported in accordance with GAAP
|
|
5
|
%
|
|
3
|
%
|
|
2
|
%
|
|
(2)
|
%
|
|
8
|
%
|
|
|
|
(3)
|
%
|
EBITDA
Margin
|
|
29
|
%
|
|
12
|
%
|
|
11
|
%
|
|
1
|
%
|
|
9
|
%
|
|
|
|
7
|
%
|
Adjusted EBITDA
Margin
|
|
29
|
%
|
|
12
|
%
|
|
11
|
%
|
|
1
|
%
|
|
9
|
%
|
|
|
|
7
|
%
|
View original
content:http://www.prnewswire.com/news-releases/oceaneering-reports-second-quarter-2020-results-301102562.html
SOURCE Oceaneering International, Inc.