Oil States International, Inc. (NYSE: OIS) reported a net loss of
$15.8 million, or $0.26 per share, for the first quarter
of 2021, which included non-cash fixed asset impairment charges of
$0.7 million ($0.5 million after-tax, or $0.01 per
share), severance and restructuring charges of $3.4 million
($2.7 million after-tax, or $0.04 per share) and non-cash
gains on extinguishment of convertible senior notes of
$3.6 million ($2.9 million after-tax, or $0.05 per
share).
During the first quarter of 2021, the Company
generated revenues of $125.6 million and Adjusted Consolidated
EBITDA (Note A) of $6.1 million (excluding $3.4 million
of severance and restructuring charges). These results compare to
revenues of $137.4 million and Adjusted Consolidated EBITDA of
$2.2 million reported in the fourth quarter of 2020 (excluding
$2.7 million of severance and restructuring charges).
First quarter 2021 highlights and corporate
actions included:
- Entered into a new
asset-based credit facility providing for borrowings of up to
$125 million
- Issued
$135 million principal amount of 4.75% convertible senior
notes due 2026
- Purchased
$125 million principal amount of 1.50% convertible senior
notes due 2023 for cash totaling $120 million
- Implemented
additional long-term cost control measures, including personnel
reductions and facility closures
- Extreme winter
weather event in February adversely impacted operating results in
all segments, which was offset by employee retention credits
provided for under the CARES Act
Oil States' President and Chief Executive Officer,
Cindy B. Taylor, stated,
"First quarter operating results in each of our
segments benefited from increased U.S. land-based completion
activity resulting from the improved commodity price environment.
The impact of higher activity levels was partially offset by the
severe winter weather event that occurred in February 2021 –
particularly in Texas, Oklahoma and surrounding states. While our
facilities did not sustain meaningful damage and our operations and
services were restored following the event, our February results of
operations were adversely impacted due to the temporary cessation
of work at well sites, facility closures by us and our customers,
and delays in the shipment of goods to our customers and from our
vendors. Revenues in our Downhole Technologies and Well Site
Services segments increased 10% and 2% sequentially, despite the
severe winter weather conditions experienced, due to a strong
recovery in March. Revenues in our Offshore/Manufactured Products
segment decreased 20% sequentially, but we did achieve a 160 basis
point increase in EBITDA margins, resulting from cost reductions.
Our first quarter bookings improved sequentially to
$70 million, which included one notable project award
exceeding $10 million, yielding a book-to-bill ratio of 1.2x
for the quarter. Of the $70 million in bookings, 17% related
to non oil and gas projects.
"We also significantly strengthened our
longer-term liquidity position during the quarter by entering into
a new $125 million asset-based revolving credit facility that
matures in 2025, issuing $135 million principal amount of
convertible notes due in 2026 and purchasing $125 million
principal amount of our existing convertible notes which come due
in 2023."
BUSINESS SEGMENT RESULTS
(See Segment Data tables)
Offshore/Manufactured Products
Offshore/Manufactured Products reported revenues
of $60.6 million and Adjusted Segment EBITDA (Note B) of
$6.8 million in the first quarter of 2021, compared to
revenues of $75.5 million and Adjusted Segment EBITDA of
$7.5 million reported in the fourth quarter of 2020. Revenues
decreased 20% sequentially, due primarily to a reduction in the
segment's major project revenues (reflecting a lower beginning of
year backlog) and service activities. Adjusted Segment EBITDA
margin in the first quarter of 2021 was 11% compared to 10% in the
fourth quarter of 2020.
Backlog totaled $226 million at
March 31, 2021, a 3% sequential increase. During the first
quarter, the segment booked one notable project award exceeding
$10 million. First quarter 2021 bookings totaled
$70 million, yielding a book-to-bill ratio of 1.2x in the
period.
Downhole Technologies
Downhole Technologies reported revenues of
$25.4 million and Adjusted Segment EBITDA of $3.0 million
in the first quarter of 2021, compared to revenues of
$23.2 million and Adjusted Segment EBITDA of $2.0 million
reported in the fourth quarter of 2020. Adjusted Segment EBITDA
margin in the first quarter of 2021 was 12% compared to 9% in the
fourth quarter of 2020. With the sequential improvement in
revenues, the segment's incremental Adjusted Segment EBITDA margin
(Note C) was 45%.
Well Site Services
Well Site Services reported revenues of
$39.6 million and Adjusted Segment EBITDA of $4.0 million
in the first quarter of 2021, compared to revenues of
$38.7 million and Adjusted Segment EBITDA of $1.4 million
reported in the fourth quarter of 2020. While U.S. land-based
completion activity improved sequentially, first quarter 2021
revenue was hindered, particularly in the Permian, due to the
extreme weather experienced in February. In addition, international
contributions slowed during the quarter. Adjusted Segment EBITDA
margin the first quarter of 2021 was 10% compared to 4% in the
fourth quarter of 2020. With the sequential improvement in revenues
and improved cost structure, the segment's incremental Adjusted
Segment EBITDA margin was in excess of 100%.
Corporate
Corporate expenses in the first quarter of 2021
totaled $9.4 million, which included $1.6 million of
severance costs.
Interest Expense, Net
The Company reported net interest expense of
$2.3 million in the first quarter of 2021, including
$0.9 million of non-cash amortization of deferred debt
issuance costs.
Other Income, Net
During the first quarter of 2021, the Company
recognized non-cash gains of $3.6 million in connection with
the purchases of $125.0 million principal amount of its 1.50%
convertible senior notes due February 2023 (the "2023 Notes").
Income Taxes
The Company recognized an effective tax rate
benefit of 13% in the first quarter of 2021, which compared to an
effective tax rate benefit of 39% in the fourth quarter of 2020.
The effective tax rate benefit in the first quarter of 2021
included the impact of certain discrete tax items.
Financial Condition
On February 10, 2021, the Company entered
into a new credit agreement, which provides for a $125 million
asset-based revolving credit facility (the "ABL Facility") that
matures in February 2025. The ABL Facility was amended on
March 16, 2021 to allow for the issuance of the 4.75%
convertible senior notes due 2026 (the "2026 Notes") discussed
below.
On March 19, 2021, the Company issued
$135.0 million aggregate principal amount of the 2026 Notes.
Net proceeds from the 2026 Notes offering, after deducting issuance
costs, totaled $130.3 million. The 2026 Notes will mature on
April 1, 2026 and bear interest at an annual rate of 4.75%,
which is payable semi-annually on April 1 and October 1.
The Company used $120.0 million in cash proceeds from the
offering to purchase $125.0 million principal amount (96% of
par value) of the 2023 Notes, with the balance added to cash
on-hand. As of March 31, 2021, $32.4 million principal
amount remained outstanding related to the 2023 Notes.
As of March 31, 2021, $7.0 million was
outstanding under the Company's ABL Facility, compared to
$19.0 million outstanding under the previous revolving credit
facility as of December 31, 2020. Cash on-hand totaled
$54.5 million as of March 31, 2021, compared to
$72.0 million as of December 31, 2020. The total amount
available to be drawn under the ABL Facility was $40.6 million
as of April 1, 2021, resulting in $95.1 million of total
liquidity (cash plus borrowing availability).
The Company's total debt represented 20% of
combined total debt and stockholders' equity as of March 31,
2021 and December 31, 2020.
Conference Call Information
The call is scheduled for April 29, 2021 at
9:00 a.m. central daylight time, is being webcast and can be
accessed from the Company's website at www.ir.oilstatesintl.com.
Participants may also join the conference call by dialing 1 (888)
771-4371 in the United States or by dialing +1 (847) 585-4405
internationally and using the passcode 50146955. A replay of the
conference call will be available one and a half hours after the
completion of the call and can be accessed from the Company's
website at www.ir.oilstatesintl.com.
About Oil States
Oil States International, Inc. is a global
provider of manufactured products and services to customers in the
oil and natural gas, industrial and military sectors. The Company's
manufactured products include highly engineered capital equipment
and consumable products. Oil States is headquartered in Houston,
Texas with manufacturing and service facilities strategically
located across the globe. Oil States is publicly traded on the New
York Stock Exchange under the symbol "OIS".
For more information on the Company, please
visit Oil States International's website at
www.oilstatesintl.com.
Forward Looking Statements
The foregoing contains forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Forward-looking statements are those that do not state
historical facts and are, therefore, inherently subject to risks
and uncertainties. The forward-looking statements included herein
are based on current expectations and entail various risks and
uncertainties that could cause actual results to differ materially
from those forward-looking statements. Such risks and uncertainties
include, among others, the level of supply of and demand for oil
and natural gas, fluctuations in the prices thereof, the cyclical
nature of the oil and natural gas industry, the impact of the
COVID-19 pandemic on our Company and our customers, the other risks
associated with the general nature of the energy service industry
and other factors discussed in the "Business" and "Risk Factors"
sections of the Company's Annual Report on Form 10-K for the year
ended December 31, 2020 and the subsequently filed Periodic
Reports on Form 8-K. Readers are cautioned not to place undue
reliance on forward-looking statements, which speak only as of the
date hereof, and, except as required by law, the Company undertakes
no obligation to update those statements or to publicly announce
the results of any revisions to any of those statements to reflect
future events or developments.
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS(In Thousands, Except Per Share Amounts)
|
Three Months Ended |
|
|
March 31,2021 |
|
December 31,2020 |
|
March 31,2020 |
|
Revenues: |
|
|
|
|
|
|
Products |
$ |
61,445 |
|
|
$ |
73,051 |
|
|
$ |
102,980 |
|
|
Services |
64,144 |
|
|
64,326 |
|
|
116,714 |
|
|
|
125,589 |
|
|
137,377 |
|
|
219,694 |
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
Product costs |
49,463 |
|
|
62,992 |
|
|
89,746 |
|
|
Service costs |
52,847 |
|
|
52,517 |
|
|
107,856 |
|
|
Cost of revenues (exclusive of depreciation and
amortization expense presented below)(1) |
102,310 |
|
|
115,509 |
|
|
197,602 |
|
|
Selling, general and administrative expense |
21,225 |
|
|
22,597 |
|
|
26,124 |
|
|
Depreciation and amortization expense |
21,520 |
|
|
23,237 |
|
|
26,409 |
|
|
Impairments of goodwill |
— |
|
|
— |
|
|
406,056 |
|
|
Impairments of fixed and lease assets |
650 |
|
|
4,257 |
|
|
5,198 |
|
|
Other operating (income) expense, net |
(354 |
) |
|
141 |
|
|
107 |
|
|
|
145,351 |
|
|
165,741 |
|
|
661,496 |
|
|
Operating loss |
(19,762 |
) |
|
(28,364 |
) |
|
(441,802 |
) |
|
|
|
|
|
|
|
|
Interest expense, net |
(2,325 |
) |
|
(2,637 |
) |
|
(3,504 |
) |
|
Other income, net(2) |
3,960 |
|
|
368 |
|
|
774 |
|
|
Loss before income taxes |
(18,127 |
) |
|
(30,633 |
) |
|
(444,532 |
) |
|
Income tax benefit |
2,317 |
|
|
11,886 |
|
|
39,491 |
|
|
Net loss |
$ |
(15,810 |
) |
|
$ |
(18,747 |
) |
|
$ |
(405,041 |
) |
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
Basic |
$ |
(0.26 |
) |
|
$ |
(0.31 |
) |
|
$ |
(6.79 |
) |
|
Diluted |
$ |
(0.26 |
) |
|
$ |
(0.31 |
) |
|
$ |
(6.79 |
) |
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
Basic |
60,098 |
|
|
59,885 |
|
|
59,654 |
|
|
Diluted |
60,098 |
|
|
59,885 |
|
|
59,654 |
|
|
________________
(1) |
Cost of revenues (exclusive of depreciation and amortization
expense) included non-cash inventory impairment charges of
$25.2 million ($12.0 million in product costs and
$13.3 million in service costs) recognized in the first
quarter of 2020. |
(2) |
Other income, net included non-cash gains of $3.6 million
recognized in connection with the purchases of $125.0 million
principal amount of the 2023 Notes in the first quarter of
2021. |
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS(In
Thousands)
|
March 31, 2021 |
|
December 31, 2020 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
54,513 |
|
|
$ |
72,011 |
|
|
Accounts receivable, net |
173,512 |
|
|
163,135 |
|
|
Inventories, net |
174,314 |
|
|
170,376 |
|
|
Prepaid expenses and other current assets |
17,167 |
|
|
18,071 |
|
|
Total current assets |
419,506 |
|
|
423,593 |
|
|
|
|
|
|
Property, plant, and equipment, net |
365,605 |
|
|
383,562 |
|
|
Operating lease assets, net |
32,122 |
|
|
33,140 |
|
|
Goodwill, net |
76,550 |
|
|
76,489 |
|
|
Other intangible assets, net |
200,685 |
|
|
205,749 |
|
|
Other noncurrent assets |
29,951 |
|
|
29,727 |
|
|
Total assets |
$ |
1,124,419 |
|
|
$ |
1,152,260 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt |
$ |
17,789 |
|
|
$ |
17,778 |
|
|
Accounts payable |
50,010 |
|
|
46,433 |
|
|
Accrued liabilities |
40,552 |
|
|
44,504 |
|
|
Current operating lease liabilities |
7,162 |
|
|
7,620 |
|
|
Income taxes payable |
2,398 |
|
|
2,413 |
|
|
Deferred revenue |
43,207 |
|
|
43,384 |
|
|
Total current liabilities |
161,118 |
|
|
162,132 |
|
|
|
|
|
|
Long-term debt |
170,119 |
|
|
165,759 |
|
|
Long-term operating lease liabilities |
28,565 |
|
|
29,166 |
|
|
Deferred income taxes |
8,882 |
|
|
14,263 |
|
|
Other noncurrent liabilities |
23,573 |
|
|
23,309 |
|
|
Total liabilities |
392,257 |
|
|
394,629 |
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
Common stock |
738 |
|
|
733 |
|
|
Additional paid-in capital |
1,100,077 |
|
|
1,122,945 |
|
|
Retained earnings |
329,750 |
|
|
329,327 |
|
|
Accumulated other comprehensive loss |
(72,914 |
) |
|
(71,385 |
) |
|
Treasury stock |
(625,489 |
) |
|
(623,989 |
) |
|
Total stockholders' equity |
732,162 |
|
|
757,631 |
|
|
Total liabilities and stockholders' equity |
$ |
1,124,419 |
|
|
$ |
1,152,260 |
|
|
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH
FLOWS(In Thousands)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Cash flows from operating activities: |
|
|
|
Net loss |
$ |
(15,810 |
) |
|
$ |
(405,041 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
Depreciation and amortization expense |
21,520 |
|
|
26,409 |
|
|
Impairments of goodwill |
— |
|
|
406,056 |
|
|
Impairments of inventories |
— |
|
|
25,230 |
|
|
Impairments of fixed assets |
650 |
|
|
5,198 |
|
|
Stock-based compensation expense |
2,820 |
|
|
1,162 |
|
|
Amortization of debt discount and deferred financing costs |
895 |
|
|
1,681 |
|
|
Deferred income tax benefit |
(2,710 |
) |
|
(40,832 |
) |
|
Gains on extinguishment of 1.50% convertible senior notes |
(3,637 |
) |
|
— |
|
|
Gains on disposals of assets |
(307 |
) |
|
(513 |
) |
|
Other, net |
285 |
|
|
771 |
|
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
(10,701 |
) |
|
4,617 |
|
|
Inventories |
(3,890 |
) |
|
(15,332 |
) |
|
Accounts payable and accrued liabilities |
1,648 |
|
|
(8,625 |
) |
|
Income taxes payable |
— |
|
|
(1,100 |
) |
|
Deferred revenue |
(206 |
) |
|
3,118 |
|
|
Other operating assets and liabilities, net |
1,026 |
|
|
2,650 |
|
|
Net cash flows provided by (used in) operating activities |
(8,417 |
) |
|
5,449 |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Capital expenditures |
(4,120 |
) |
|
(5,881 |
) |
|
Proceeds from disposition of property, plant and equipment |
1,851 |
|
|
4,092 |
|
|
Other, net |
(95 |
) |
|
(256 |
) |
|
Net cash flows used in investing activities |
(2,364 |
) |
|
(2,045 |
) |
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
Revolving credit facility borrowings |
12,220 |
|
|
72,173 |
|
|
Revolving credit facility repayments |
(24,220 |
) |
|
(52,404 |
) |
|
Issuance of 4.75% convertible senior notes |
135,000 |
|
|
— |
|
|
Purchases of 1.50% convertible senior notes |
(120,000 |
) |
|
(4,737 |
) |
|
Other debt and finance lease activity, net |
(145 |
) |
|
35 |
|
|
Payment of financing costs |
(7,961 |
) |
|
— |
|
|
Shares added to treasury stock as a result of net share settlements
due to vesting of stock awards |
(1,500 |
) |
|
(2,665 |
) |
|
Net cash flows provided by (used in) financing activities |
(6,606 |
) |
|
12,402 |
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
(111 |
) |
|
9 |
|
|
Net change in cash and cash equivalents |
(17,498 |
) |
|
15,815 |
|
|
Cash and cash equivalents, beginning of period |
72,011 |
|
|
8,493 |
|
|
Cash and cash equivalents, end of period |
$ |
54,513 |
|
|
$ |
24,308 |
|
|
|
|
|
|
Cash paid for: |
|
|
|
Interest |
$ |
1,842 |
|
|
$ |
2,436 |
|
|
Income taxes, net |
577 |
|
|
2,499 |
|
|
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
SEGMENT DATA(In
Thousands)(unaudited)
|
Three Months Ended |
|
March 31,2021(2) |
|
December 31,2020(3) |
|
March 31,2020(4) |
Revenues: |
|
|
|
|
|
Offshore/Manufactured Products(1): |
|
|
|
|
|
Project-driven products |
$ |
21,374 |
|
|
$ |
36,340 |
|
|
$ |
36,788 |
|
|
Short-cycle products |
12,250 |
|
|
6,809 |
|
|
22,097 |
|
|
Other products and services |
26,985 |
|
|
32,369 |
|
|
32,287 |
|
|
Total Offshore/Manufactured Products |
60,609 |
|
|
75,518 |
|
|
91,172 |
|
|
Downhole Technologies |
25,430 |
|
|
23,193 |
|
|
41,065 |
|
|
Well Site Services |
39,550 |
|
|
38,666 |
|
|
87,457 |
|
|
Total revenues |
$ |
125,589 |
|
|
$ |
137,377 |
|
|
$ |
219,694 |
|
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
Offshore/Manufactured Products |
$ |
1,071 |
|
|
$ |
1,408 |
|
|
$ |
(95,496 |
) |
|
Downhole Technologies |
(1,615 |
) |
|
(8,019 |
) |
|
(192,691 |
) |
|
Well Site Services |
(9,853 |
) |
|
(11,642 |
) |
|
(144,954 |
) |
|
Corporate |
(9,365 |
) |
|
(10,111 |
) |
|
(8,661 |
) |
|
Total operating loss |
$ |
(19,762 |
) |
|
$ |
(28,364 |
) |
|
$ |
(441,802 |
) |
|
________________
(1) |
Disaggregated revenue data is provided to supplement the Segment
Data. |
(2) |
Operating income (loss) for the three months ended March 31,
2021 included $0.3 million of severance and restructuring
charges related to the Offshore/Manufactured Products segment. In
the Downhole Technologies segment, operating income (loss) included
severance and restructuring charges of $0.3 million. In the
Well Site Services segment, operating income (loss) included
non-cash fixed asset impairment charges of $0.7 million and
severance and restructuring charges of $1.3 million. In
Corporate, operating income (loss) included $1.6 million of
severance charges. |
(3) |
Operating income (loss) for the three months ended December 31,
2020 included $0.6 million of severance and restructuring charges
related to the Offshore/Manufactured Products segment. In the
Downhole Technologies segment, operating income (loss) included
non-cash fixed asset and lease impairment charges of $3.6 million
and severance and restructuring charges of $0.7 million. In the
Well Site Services segment, operating income (loss) included a
non-cash fixed asset impairment charge of $0.7 million and
severance and restructuring charges of $0.2 million. In Corporate,
operating income (loss) included $1.2 million of severance
charges. |
(4) |
Operating income (loss) for the three months ended March 31,
2020 included a non-cash goodwill impairment charge of
$86.5 million, non-cash inventory charges of
$16.2 million and $0.1 million of severance charges
related to the Offshore/Manufactured Products segment. In the
Downhole Technologies segment, operating income (loss) included a
non-cash goodwill impairment charge of $192.5 million. In the
Well Site Services segment, operating income (loss) included a
non-cash goodwill impairment charge of $127.1 million, a
non-cash inventory impairment charge of $9.0 million, a
non-cash fixed asset impairment charge of $5.2 million and
severance and downsizing charges of $0.5 million. |
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATIONSEGMENT EBITDA AND ADJUSTED
SEGMENT EBITDA (B)(In Thousands)(unaudited)
|
Three Months Ended |
|
March 31,2021 |
|
December 31,2020 |
|
March 31,2020 |
Offshore/Manufactured Products: |
|
|
|
|
|
Operating income (loss) |
$ |
1,071 |
|
|
$ |
1,408 |
|
|
$ |
(95,496 |
) |
|
Depreciation and amortization expense |
5,469 |
|
|
5,376 |
|
|
5,628 |
|
|
Impairment of goodwill |
— |
|
|
— |
|
|
86,500 |
|
|
Impairment of inventories |
— |
|
|
— |
|
|
16,249 |
|
|
Other income (expense) |
(62 |
) |
|
82 |
|
|
176 |
|
|
Segment EBITDA |
6,478 |
|
|
6,866 |
|
|
13,057 |
|
|
Severance and restructuring charges |
282 |
|
|
633 |
|
|
112 |
|
|
Adjusted Segment EBITDA |
$ |
6,760 |
|
|
$ |
7,499 |
|
|
$ |
13,169 |
|
|
|
|
|
|
|
|
Downhole Technologies: |
|
|
|
|
|
Operating loss |
$ |
(1,615 |
) |
|
$ |
(8,019 |
) |
|
$ |
(192,691 |
) |
|
Depreciation and amortization expense |
4,389 |
|
|
5,745 |
|
|
5,584 |
|
|
Impairment of goodwill |
— |
|
|
— |
|
|
192,502 |
|
|
Impairment of fixed and lease assets |
— |
|
|
3,602 |
|
|
— |
|
|
Other income (expense) |
(2 |
) |
|
16 |
|
|
(77 |
) |
|
Segment EBITDA |
2,772 |
|
|
1,344 |
|
|
5,318 |
|
|
Severance and restructuring charges |
275 |
|
|
703 |
|
|
— |
|
|
Adjusted Segment EBITDA |
$ |
3,047 |
|
|
$ |
2,047 |
|
|
$ |
5,318 |
|
|
|
|
|
|
|
|
Well Site Services: |
|
|
|
|
|
Operating loss |
$ |
(9,853 |
) |
|
$ |
(11,642 |
) |
|
$ |
(144,954 |
) |
|
Depreciation and amortization expense |
11,468 |
|
|
11,906 |
|
|
15,036 |
|
|
Impairment of goodwill |
— |
|
|
— |
|
|
127,054 |
|
|
Impairment of inventories |
— |
|
|
— |
|
|
8,981 |
|
|
Impairments of fixed assets |
650 |
|
|
655 |
|
|
5,198 |
|
|
Other income |
387 |
|
|
270 |
|
|
675 |
|
|
Segment EBITDA |
2,652 |
|
|
1,189 |
|
|
11,990 |
|
|
Severance and restructuring charges |
1,306 |
|
|
219 |
|
|
548 |
|
|
Adjusted Segment EBITDA |
$ |
3,958 |
|
|
$ |
1,408 |
|
|
$ |
12,538 |
|
|
|
|
|
|
|
|
Corporate: |
|
|
|
|
|
Operating loss |
$ |
(9,365 |
) |
|
$ |
(10,111 |
) |
|
$ |
(8,661 |
) |
|
Depreciation and amortization expense |
194 |
|
|
210 |
|
|
161 |
|
|
EBITDA |
(9,171 |
) |
|
(9,901 |
) |
|
(8,500 |
) |
|
Severance charges |
1,555 |
|
|
1,169 |
|
|
— |
|
|
Adjusted EBITDA |
$ |
(7,616 |
) |
|
$ |
(8,732 |
) |
|
$ |
(8,500 |
) |
|
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION CONSOLIDATED EBITDA AND
ADJUSTED CONSOLIDATED EBITDA (A)(In
Thousands)(unaudited)
|
Three Months Ended |
|
March 31,2021 |
|
December 31,2020 |
|
March 31,2020 |
|
|
|
|
|
|
Net loss |
$ |
(15,810 |
) |
|
$ |
(18,747 |
) |
|
$ |
(405,041 |
) |
|
Income tax benefit |
(2,317 |
) |
|
(11,886 |
) |
|
(39,491 |
) |
|
Depreciation and amortization expense |
21,520 |
|
|
23,237 |
|
|
26,409 |
|
|
Impairments of goodwill |
— |
|
|
— |
|
|
406,056 |
|
|
Impairments of inventories |
— |
|
|
— |
|
|
25,230 |
|
|
Impairments of fixed and lease assets |
650 |
|
|
4,257 |
|
|
5,198 |
|
|
Interest expense, net |
2,325 |
|
|
2,637 |
|
|
3,504 |
|
|
Gains on extinguishment of 1.50% convertible senior notes |
(3,637 |
) |
|
— |
|
|
— |
|
|
Consolidated EBITDA |
2,731 |
|
|
(502 |
) |
|
21,865 |
|
|
Severance and restructuring charges |
3,418 |
|
|
2,724 |
|
|
660 |
|
|
Adjusted Consolidated EBITDA |
$ |
6,149 |
|
|
$ |
2,222 |
|
|
$ |
22,525 |
|
|
________________
(A) |
The terms Consolidated EBITDA and Adjusted Consolidated EBITDA
consist of net loss plus net interest expense, taxes, depreciation
and amortization expense, non-cash asset impairment charges, gains
on extinguishment of the 2023 Notes and adjustments for certain
other items. Consolidated EBITDA and Adjusted Consolidated EBITDA
are not measures of financial performance under generally accepted
accounting principles and should not be considered in isolation
from or as a substitute for net loss or cash flow measures prepared
in accordance with generally accepted accounting principles or as
measures of profitability or liquidity. Additionally, Consolidated
EBITDA and Adjusted Consolidated EBITDA may not be comparable to
other similarly titled measures of other companies. The Company has
included Consolidated EBITDA and Adjusted Consolidated EBITDA as
supplemental disclosures because its management believes that
Consolidated EBITDA and Adjusted Consolidated EBITDA provide useful
information regarding its ability to service debt and to fund
capital expenditures and provides investors a helpful measure for
comparing its operating performance with the performance of other
companies that have different financing and capital structures or
tax rates. The Company uses Consolidated EBITDA and Adjusted
Consolidated EBITDA to compare and to monitor the performance of
the Company and its business segments to other comparable public
companies and as a benchmark for the award of incentive
compensation under its annual incentive compensation plan. The
table above sets forth reconciliations of Consolidated EBITDA and
Adjusted Consolidated EBITDA to net loss, which is the most
directly comparable measure of financial performance calculated
under generally accepted accounting principles. |
(B) |
The terms EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted
Segment EBITDA consist of operating income (loss) plus depreciation
and amortization expense, non-cash asset impairment charges, gains
on extinguishment of the 2023 Notes and adjustments for certain
other items. EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted
Segment EBITDA are not measures of financial performance under
generally accepted accounting principles and should not be
considered in isolation from or as a substitute for operating
income (loss) or cash flow measures prepared in accordance with
generally accepted accounting principles or as a measure of
profitability or liquidity. Additionally, EBITDA, Adjusted EBITDA,
Segment EBITDA and Adjusted Segment EBITDA may not be comparable to
other similarly titled measures of other companies. The Company has
included EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted
Segment EBITDA as a supplemental disclosure because its management
believes that EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted
Segment EBITDA provide useful information regarding its ability to
service debt and to fund capital expenditures and provides
investors a helpful measure for comparing its operating performance
with the performance of other companies that have different
financing and capital structures or tax rates. The Company uses
EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA
to compare and to monitor the performance of its business segments
to other comparable public companies and as a benchmark for the
award of incentive compensation under its annual incentive
compensation plan. The tables above set forth reconciliations of
EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA
to operating income (loss), which is the most directly comparable
measure of financial performance calculated under generally
accepted accounting principles. |
(C) |
Incremental Adjusted Segment EBITDA margin is calculated by
dividing the change in Adjusted Segment EBITDA by the change in
segment revenues. |
Company Contact:
Lloyd A. HajdikOil States International,
Inc.Executive Vice President, Chief Financial Officer and
Treasurer713-652-0582
SOURCE: Oil States International, Inc.
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