Oceaneering Reports Third Quarter 2017 Results
HOUSTON, Oct. 25, 2017 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE: OII) today reported a net loss of $1.8 million, or $(0.02) per share, on revenue of $476 million for the three months ended September 30, 2017. Excluding the impacts of a total of $4.2 million for: prior year non-income related taxes, discrete income tax expense, and foreign currency exchange losses, adjusted net income was $2.4 million, or $0.02 per share.
During the immediately preceding quarter, Oceaneering reported net income of $2.1 million, or $0.02 per share, on revenue of $515 million.
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 Nine Months Ended
-----------------
Sep 30, Jun 30, Sep 30,
------- -------
2017 2016 2017 2017 2016
---- ---- ---- ---- ----
Revenue $476,120 $549,275 $515,036 $1,437,332 $1,783,158
Gross Margin 54,885 35,443 53,571 153,311 228,156
Income (Loss) from
Operations 10,531 (11,856) 9,390 19,771 74,623
Net Income (Loss) (1,768) (11,798) 2,132 (7,170) 35,614
Diluted Earnings
(Loss) Per Share
(EPS) $(0.02) $(0.12) $0.02 $(0.07) $0.36
Sequentially, adjusted operating income improved 28% due mainly to increased profit contributions from Subsea Projects and Subsea Products, and reduced Unallocated Expenses, offset primarily by lower profits being realized by ROVs.
Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Our third quarter adjusted operating results were in line with our expectations, with the exception of ROVs. Furthermore, each of our operating segments remained profitable and generated substantial EBITDA. On a consolidated basis, for the first nine months of 2017, we have generated $179 million of adjusted EBITDA and $84 million of free cash flow. These results are commendable in light of an offshore oilfield services and products market landscape that remains extremely challenging due to continued pricing degradation and the sluggish rate of subsea project approval and progression. Our tax provision, as adjusted, was higher than the statutory percentage of pre-tax income due to the geographic mix of tax jurisdictions in which we generated our earnings and losses.
"Compared to the second quarter, third quarter ROV adjusted operating income declined more than expected due to lower average revenue per day on hire and an increase in average daily operating costs. Consequently, ROV adjusted EBITDA margin declined to 33%, from 38% for the second quarter.
"Additionally, average ROV revenue per day on hire decreased 3% due primarily to an unfavorable change in geographic mix, as we experienced disproportionately fewer work days in higher day rate operating areas, notably Angola. Days on hire increased 4% as our fleet utilization improved to 50% from 48%. At the end of September 2017, our fleet size remained at 279 vehicles. Our fleet use mix during the quarter was unchanged from the prior quarter at 61% in drill support and 39% vessel-based activity. At the end of September, we had ROVs on 83, or 55% of the 151 floating rigs under contract. This compares to having ROVs on 53% of the rigs contracted at the end of June and the end of March 2017.
"Compared to the second quarter, Subsea Products third quarter operating income improved as expected on an 18% decline in quarterly revenues. Operating margin improved due to a higher percentage of segment revenue being generated by our service and rental business unit and excellent execution by our umbilical business unit. Our Subsea Products backlog at September 30, 2017 was $284 million, compared to our June 30, 2017 backlog of $328 million. The backlog decline was largely attributable to low umbilical order intake and production associated with Shell Appomattox. Our book-to-bill ratio year-to-date was 0.69 and the past twelve months has been 0.72, no change from the prior quarter.
"Sequentially, Subsea Projects revenue and operating income increased, principally driven by seasonal improvements in U.S. Gulf of Mexico deepwater vessel work. Asset Integrity operating income was down slightly as projected. Advanced Technologies revenue and operating income declined as expected, primarily due to lower levels of work for the U.S. Navy. Unallocated Expenses were lower.
"Looking forward, we believe our fourth quarter results will be considerably lower than our adjusted third quarter results due to seasonality and a reduced level of activity. Most of the decline is expected to be in our ROV and Subsea Projects segments, with modestly lower operating income from our other oilfield segments as we foresee very few near-term catalysts to support an improvement in our oilfield markets. For our non-oilfield segment, Advanced Technologies, we are projecting a modest quarterly improvement, and slightly higher Unallocated Expenses.
"While our fourth quarter outlook has been revised downward, we continue to believe that we will be marginally profitable at the operating income line on a consolidated basis for all of 2017.
"Based on the current number of floating rigs working and expectations for further reductions in oil and gas industry capital and operating expenditures as offshore activities get pushed into 2019, we believe our 2018 earnings will be significantly lower than 2017. However, during 2018, we expect each of our operating segments will contribute positive EBITDA, and, on a consolidated basis, we will generate sufficient cash flows to service our debt and fund our anticipated maintenance and organic growth capital expenditures. While we are anticipating an increase in offshore activity levels during the second half of 2018, we do not expect this shift in momentum to be adequate to offset the near-term market weakness or to present an opportunity to meaningfully improve pricing.
"Beyond 2018, 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."
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: outlook for the fourth quarter of 2017, and expected contributions of its segments to the fourth quarter results, as well as expected fourth quarter Unallocated Expenses; expectation for the full year of 2017 to be marginally profitable at the operating income line on a consolidated basis; outlook for 2018 earnings relative to 2017, and expected contribution of its segments to the 2018 results; beliefs about deepwater investment and improving demand for its services and products; and intention to look for opportunities that may emerge to grow the company, with more focus on its customers' operating expenditures in the production phase of the offshore oilfield life cycle. 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 subsequent 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 Spera
Director, Investor Relations
Oceaneering International, Inc.
713-329-4707
investorrelations@oceaneering.com
OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Sep 30, 2017 Dec 31, 2016
------------ ------------
(in thousands)
ASSETS
Current Assets (including cash and cash equivalents of $472,381 and $450,193) $1,232,775 $1,262,595
Net Property and
Equipment 1,083,353 1,153,258
Other Assets 828,555 714,462
TOTAL ASSETS $3,144,683 $3,130,315
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Liabilities $461,456 $508,364
Long-term Debt 795,805 793,058
Other Long-term Liabilities 387,464 312,250
Shareholders'
Equity 1,499,958 1,516,643
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,144,683 $3,130,315
========== ==========
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended For the Nine Months Ended
Sep 30, 2017 Sep 30, 2016 Jun 30, 2017 Sep 30, 2017 Sep 30, 2016
------------ ------------ ------------ ------------ ------------
(in thousands, except per share amounts)
Revenue $476,120 $549,275 $515,036 $1,437,332 $1,783,158
Cost of services and
products 421,235 513,832 461,465 1,284,021 1,555,002
Gross Margin 54,885 35,443 53,571 153,311 228,156
Selling, general and
administrative
expense 44,354 47,299 44,181 133,540 153,533
Income (loss)
from
Operations 10,531 (11,856) 9,390 19,771 74,623
Interest
income 1,997 684 2,045 5,379 2,421
Interest
expense (8,650) (6,325) (7,599) (22,517) (18,924)
Equity earnings
(losses) of
unconsolidated
affiliates (424) (246) (394) (1,798) 543
Other income
(expense), net (1,287) 570 (58) (3,901) (6,823)
Income before
Income Taxes 2,167 (17,173) 3,384 (3,066) 51,840
Provision for income
taxes (benefit) 3,935 (5,375) 1,252 4,104 16,226
Net Income (loss) $(1,768) $(11,798) $2,132 $(7,170) $35,614
======= ======== ====== ======= =======
Weighted average diluted shares outstanding 98,270 98,061 98,751 98,224 98,384
Diluted Earnings (Loss) per Share $(0.02) $(0.12) $0.02 $(0.07) $0.36
The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
SEGMENT INFORMATION
For the Three Months Ended For the Nine Months Ended
Sep 30, 2017 Sep 30, 2016 Jun 30, 2017 Sep 30, 2017 Sep 30, 2016
------------ ------------ ------------ ------------ ------------
($ in thousands)
Remotely Operated Vehicles Revenue $104,617 $126,507 $103,432 $302,071 $413,769
Gross Margin $12,102 $(16,288) $16,659 $41,783 $45,959
Operating Income (Loss) $5,009 $(23,845) $10,376 $21,310 $21,162
Operating Income (Loss)% 5% (19)% 10% 7% 5%
Days available 25,695 29,126 25,300 76,214 86,904
Days utilized 12,742 15,156 12,267 36,497 47,218
Utilization 50% 52% 48% 48% 54%
Subsea Products Revenue $143,583 $157,269 $174,893 $469,115 $542,978
Gross Margin $24,949 $20,423 $22,762 $72,702 $119,287
Operating Income $12,383 $6,109 $10,552 $34,418 $71,870
Operating Income % 9% 4% 6% 7% 13%
Backlog at end of period $284,000 $457,000 $328,000 $284,000 $457,000
Subsea Projects Revenue $80,116 $110,799 $75,545 $218,617 $378,883
Gross Margin $10,187 $19,321 $6,462 $20,673 $45,147
Operating Income $6,512 $15,029 $3,000 $9,699 $32,055
Operating Income % 8% 14% 4% 4% 8%
Asset Integrity Revenue $61,098 $71,995 $58,192 $171,948 $215,459
Gross Margin $9,754 $11,591 $10,004 $28,139 $29,030
Operating Income $3,050 $4,725 $3,755 $9,072 $4,354
Operating Income % 5% 7% 6% 5% 2%
Advanced Technologies Revenue $86,706 $82,705 $102,974 $275,581 $232,069
Gross Margin $11,833 $9,665 $14,133 $36,038 $26,092
Operating Income $6,602 $4,357 $7,632 $19,260 $10,478
Operating Income % 8% 5% 7% 7% 5%
Unallocated
Expenses
Gross Margin $(13,940) $(9,269) $(16,449) $(46,024) $(37,359)
Operating Income $(23,025) $(18,231) $(25,925) $(73,988) $(65,296)
TOTAL Revenue $476,120 $549,275 $515,036 $1,437,332 $1,783,158
Gross Margin $54,885 $35,443 $53,571 $153,311 $228,156
Operating Income (Loss) $10,531 $(11,856) $9,390 $19,771 $74,623
Operating Income (Loss) % 2% (2)% 2% 1% 4%
SELECTED CASH FLOW INFORMATION
For the Three Months Ended For the Nine Months Ended
Sep 30, 2017 Sep 30, 2016 Jun 30, 2017 Sep 30, 2017 Sep 30, 2016
------------ ------------ ------------ ------------ ------------
(in thousands)
Capital expenditures, including
acquisitions $29,878 $32,945 $23,493 $71,178 $85,889
======= ======= ======= ======= =======
Depreciation and Amortization:
Oilfield
Remotely
Operated
Vehicles $28,269 $43,705 $29,036 $86,534 $111,415
Subsea
Products 13,340 14,205 12,785 39,124 39,964
Subsea
Projects 7,881 8,575 7,781 23,742 25,447
Asset
Integrity 2,139 5,980 1,780 5,379 11,736
Total Oilfield 51,629 72,465 51,382 154,779 188,562
Advanced Technologies 796 789 784 2,377 2,329
Unallocated Expenses 1,088 946 1,138 3,324 3,069
----- --- ----- ----- -----
Total
depreciation
and
amortization $53,513 $74,200 $53,304 $160,480 $193,960
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.
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)
For the Three Months Ended
Sep 30, 2017 Sep 30, 2016 Jun 30, 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 $(1,768) $(0.02) $(11,798) $(0.12) $2,132 $0.02
------- ====== -------- ====== ------ =====
Pre tax adjustments for the effects of:
Inventory
write-downs - 30,490 -
Fixed asset
write-offs - 13,790 -
Charge
related to
prior year
non-income
related
taxes 1,500 - -
Foreign
currency
(gains)
losses 1,273 (643) (20)
Total pre tax adjustments 2,773 43,637 (20)
----- ------ ---
Tax effect on pre tax
adjustments at the 35%
statutory rate (971) (15,273) 7
---- ------- ---
Discrete tax items 2,413 - -
----- --- ---
Total of
adjustments 4,215 28,364 (13)
Adjusted net
income $2,447 $0.02 $16,566 $0.17 $2,119 $0.02
For Nine Months Ended
Sep 30, 2017 Sep 30, 2016
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 $(7,170) $(0.07) $35,614 $0.36
------- ====== ------- =====
Pre tax adjustments for the effects of:
Inventory write-downs - 30,490
Allowance for bad debts - 5,569
Fixed asset write-offs - 13,790
Charge related to prior year non-income related
taxes 1,500 -
Foreign currency losses 3,406 6,459
Total pre tax adjustments 4,906 56,308
----- ------
Tax effect on pre tax adjustments at the 35% statutory rate (1,718) (19,708)
------ -------
Discrete tax items 4,519 -
----- ---
Total of
adjustments 7,707 36,600
Adjusted net income $537 $0.01 $72,214 $0.73
==== ===== ======= =====
Notes:
The $2.4 million discrete tax provision during the three months ended September 30, 2017 included a $1.4 million tax reserve
for uncertain income tax positions related to foreign entity tax filings of prior years. The $4.7 million discrete tax
provision for the nine months ended September 30, 2017 included the $2.9 million provision made during the three months ended
March 31, 2017 related to tax amounts associated with share based compensation required to be implemented effective January 1,
2017.
Weighted average number of diluted shares in each period presented is the same for each adjusting item as used in accordance
with GAAP for that period, except for the three-month and nine-month periods ended September 30, 2017, and the three-month
ended September 30, 2016, where we used 98,796,533, 98,734,516 and 98,443,914 respectively, instead of 98,270,168, 98,224,129
and 98,061,214 respectively, share amounts used in reporting EPS in accordance with GAAP, as our share equivalents became
dilutive based on the amount of adjusted net income.
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
EBITDA and EBITDA Margins
For the Three Months Ended For the Nine Months Ended
Sep 30, 2017 Sep 30, 2016 Jun 30, 2017 Sep 30, 2017 Sep 30, 2016
------------ ------------ ------------ ------------ ------------
($ in thousands)
Net Income (Loss) $(1,768) $(11,798) $2,132 $(7,170) $35,614
Depreciation and
Amortization 53,513 74,200 53,304 160,480 193,960
------ ------ ------ ------- -------
Subtotal 51,745 62,402 55,436 153,310 229,574
Interest Expense, net of
Interest Income 6,653 5,641 5,554 17,138 16,503
Amortization included in
Interest Expense (283) (287) (283) (849) (860)
Provision for Income
Taxes (Benefit) 3,935 (5,375) 1,252 4,104 16,226
----- ------ ----- ----- ------
EBITDA $62,050 $62,381 $61,959 $173,703 $261,443
Revenue $476,120 $549,275 $515,036 $1,437,332 $1,783,158
======== ======== ======== ========== ==========
EBITDA margin % 13% 11% 12% 12% 15%
=== === === === ===
Free Cash Flow
For the Nine Months Ended
Sep 30, 2017 Sep 30, 2016
------------ ------------
(in thousands)
Net
Income $(7,170) $35,614
Depreciation
and
amortization 160,480 193,960
Other
increases
(decreases)
in
cash
from
operating
activities (9,296) 32,099
------ ------
Cash
flow
provided
by
operating
activities 144,014 261,673
Purchases
of
property
and
equipment (59,900) (83,389)
------- -------
Free
Cash
Flow $84,114 $178,284
======= ========
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
Adjusted Operating Income and Margins by Segment
For the Three Months Ended September 30, 2017
Remotely Subsea Subsea Asset Advanced Unalloc. Total
Operated Products Projects Integrity Tech. Expenses
Vehicles
--------
($ in thousands)
Operating income as reported in
accordance with GAAP $5,009 $12,383 $6,512 $3,050 $6,602 $(23,025) $10,531
------ ------- ------ ------ ------ -------- -------
Adjustments for the effects of:
Charge related
to prior year
non-income
related taxes 1,275 225 - - - - 1,500
Total of adjustments 1,275 225 - - - - 1,500
----- --- --- --- --- --- -----
Adjusted operating income $6,284 $12,608 $6,512 $3,050 $6,602 $(23,025) $12,031
====== ======= ====== ====== ====== ======== =======
Revenue $104,617 $143,583 $80,116 $61,098 $86,706 $476,120
Operating income % as reported in
accordance with GAAP 5% 9% 8% 5% 8% 2%
Operating income % using adjusted
amounts 6% 9% 8% 5% 8% 3%
For the Three Months Ended September 30, 2016
Remotely Subsea Subsea Asset Advanced Unalloc. Total
Operated Products Projects Integrity Tech. Expenses
Vehicles
--------
($ in thousands)
Operating income (loss) as reported in
accordance with GAAP $(23,845) $6,109 $15,029 $4,725 $4,357 $(18,231) $(11,856)
-------- ------ ------- ------ ------ -------- --------
Adjustments for the effects of:
Inventory
write-downs 25,200 5,290 - - - - 30,490
Fixed asset
write-offs 10,840 2,950 - - - - 13,790
Total of adjustments 36,040 8,240 - - - - 44,280
------ ----- --- --- --- --- ------
Adjusted operating income $12,195 $14,349 $15,029 $4,725 $4,357 $(18,231) $32,424
======= ======= ======= ====== ====== ======== =======
Revenue $126,507 $157,269 $110,799 $71,995 $82,705 $549,275
Operating income (loss) % as reported in
accordance with GAAP (19)% 4% 14% 7% 5% (2)%
Operating income % using adjusted
amounts 10% 9% 14% 7% 5% 6%
For the Three Months Ended June 30, 2017
Remotely Subsea Subsea Asset Advanced Unalloc. Total
Operated Products Projects Integrity Tech. Expenses
Vehicles
--------
($ 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 operating
income $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 $515,036
Operating income % as
reported in
accordance with GAAP 10% 6% 4% 6% 7% 2%
Operating income %
using adjusted
amounts 10% 6% 4% 6% 7% 2%
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
Adjusted Operating Income and Margins by Segment
For the Nine Months Ended September 30, 2017
Remotely Subsea Subsea Asset Advanced Unalloc. Total
Operated Products Projects Integrity Tech. Expenses
Vehicles
--------
($ in thousands)
Operating income as reported in
accordance with GAAP $21,310 $34,418 $9,699 $9,072 $19,260 $(73,988) $19,771
------- ------- ------ ------ ------- -------- -------
Adjustments for the effects of:
Charge related
to prior year
non-income
related taxes 1,275 225 - - - - 1,500
Total of adjustments 1,275 225 - - - - 1,500
----- --- --- --- --- --- -----
Adjusted operating income $22,585 $34,643 $9,699 $9,072 $19,260 $(73,988) $21,271
======= ======= ====== ====== ======= ======== =======
Revenue $302,071 $469,115 $218,617 $171,948 $275,581 $1,437,332
Operating income % as reported in
accordance with GAAP 7% 7% 4% 5% 7% 1%
Operating income % using adjusted
amounts 7% 7% 4% 5% 7% 1%
For the Nine Months Ended September 30, 2016
Remotely Subsea Subsea Asset Advanced Unalloc. Expenses Total
Operated Products Projects Integrity Tech.
Vehicles
--------
($ in thousands)
Operating income as reported in
accordance with GAAP $21,162 $71,870 $32,055 $4,354 $10,478 $(65,296) $74,623
------- ------- ------- ------ ------- -------- -------
Adjustments for the effects of:
Inventory
write-downs 25,200 5,290 - - - - 30,490
Allowance for
bad debts 340 1,770 127 3,332 - - 5,569
Fixed asset
write-offs 10,840 2,950 - - - - 13,790
Total of adjustments 36,380 10,010 127 3,332 - - 49,849
------ ------ --- ----- --- --- ------
Adjusted operating income $57,542 $81,880 $32,182 $7,686 $10,478 $(65,296) $124,472
======= ======= ======= ====== ======= ======== ========
Revenue $413,769 $542,978 $378,883 $215,459 $232,069 $1,783,158
Operating income % as reported in
accordance with GAAP 5% 13% 8% 2% 5% 4%
Operating income % using adjusted
amounts 14% 15% 8% 4% 5% 7%
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
EBITDA and Adjusted EBITDA and Margins by Segment
For the Three Months Ended September 30, 2017
Remotely Subsea Subsea Asset Advanced Unalloc. Total
Operated Products Projects Integrity Tech. Expenses
Vehicles and other
-------- ---------
($ in thousands)
Operating income as reported in
accordance with GAAP $5,009 $12,383 $6,512 $3,050 $6,602 $(23,025) $10,531
------ ------- ------ ------ ------ -------- -------
Adjustments for the effects of:
Depreciation
and
amortization 28,269 13,340 7,881 2,139 796 1,088 53,513
Other pre-tax - - - - - (1,994) (1,994)
EBITDA 33,278 25,723 14,393 5,189 7,398 (23,931) 62,050
Adjustments for the effects of:
Charge related
to prior year
non-income
related taxes 1,275 225 - - - - 1,500
Foreign
currency
(gains) losses - - - - - 1,273 1,273
Total of adjustments 1,275 225 - - - 1,273 2,773
----- --- --- --- --- ----- -----
Adjusted EBITDA $34,553 $25,948 $14,393 $5,189 $7,398 $(22,658) $64,823
======= ======= ======= ====== ====== ======== =======
Revenue $104,617 $143,583 $80,116 $61,098 $86,706 $476,120
Operating income % as reported in
accordance with GAAP 5% 9% 8% 5% 8% 2%
EBITDA Margin 32% 18% 18% 8% 9% 13%
Adjusted EBITDA Margin 33% 18% 18% 8% 9% 14%
For the Three Months Ended September 30, 2016
Remotely Subsea Subsea Asset Advanced Unalloc. Total
Operated Products Projects Integrity Tech. Expenses
Vehicles and other
-------- ---------
($ in thousands)
Operating income (loss) as reported in
accordance with GAAP $(23,845) $6,109 $15,029 $4,725 $4,357 $(18,231) $(11,856)
-------- ------ ------- ------ ------ -------- --------
Adjustments for the effects of:
Depreciation
and
amortization 43,705 14,205 8,575 5,980 789 946 74,200
Other pre-tax - - - - - 37 37
EBITDA 19,860 20,314 23,604 10,705 5,146 (17,248) 62,381
Adjustments for the effects of:
Inventory
write-downs 25,200 5,290 - - - - 30,490
Total of adjustments 25,200 5,290 - - - - 30,490
------ ----- --- --- --- --- ------
Adjusted EBITDA $45,060 $25,604 $23,604 $10,705 $5,146 $(17,248) $92,871
======= ======= ======= ======= ====== ======== =======
Revenue $126,507 $157,269 $110,799 $71,995 $82,705 $549,275
Operating income (loss) % as reported in
accordance with GAAP (19)% 4% 14% 7% 5% (2)%
EBITDA Margin 16% 13% 21% 15% 6% 11%
Adjusted EBITDA Margin 36% 16% 21% 15% 6% 17%
For the Three Months Ended June 30, 2017
Remotely Subsea Subsea Asset Advanced Unalloc. Total
Operated Products Projects Integrity Tech. Expenses and other
Vehicles
--------
($ 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)
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 $515,036
Operating income % as reported in
accordance with GAAP 10% 6% 4% 6% 7% 2%
EBITDA Margin 38% 13% 14% 10% 8% 12%
Adjusted EBITDA Margin 38% 13% 14% 10% 8% 12%
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
EBITDA and Adjusted EBITDA and Margins by Segment
For the Nine Months Ended September 30, 2017
Remotely Subsea Subsea Asset Advanced Unalloc. Total
Operated Products Projects Integrity Expenses
Vehicles Tech. and other
-------- ----- ---------
($ in thousands)
Operating income as reported in
accordance with GAAP $21,310 $34,418 $9,699 $9,072 $19,260 $(73,988) $19,771
------- ------- ------ ------ ------- -------- -------
Adjustments for the effects of:
Depreciation
and
amortization 86,534 39,124 23,742 5,379 2,377 3,324 160,480
Other pre-tax - - - - - (6,548) (6,548)
EBITDA 107,844 73,542 33,441 14,451 21,637 (77,212) 173,703
Adjustments for the effects of:
Charge related
to prior year
non-income
related taxes 1,275 225 - - - - 1,500
Foreign
currency
(gains) losses - - - - - 3,406 3,406
Total of adjustments 1,275 225 - - - 3,406 4,906
----- --- --- --- --- ----- -----
Adjusted EBITDA $109,119 $73,767 $33,441 $14,451 $21,637 $(73,806) $178,609
======== ======= ======= ======= ======= ======== ========
Revenue $302,071 $469,115 $218,617 $171,948 $275,581 $1,437,332
Operating income % as reported in
accordance with GAAP 7% 7% 4% 5% 7% 1%
EBITDA Margin 36% 16% 15% 8% 8% 12%
Adjusted EBITDA Margin 36% 16% 15% 8% 8% 12%
For the Nine Months Ended September 30, 2016
Remotely Subsea Subsea Asset Advanced Unalloc. Total
Operated Products Projects Integrity Tech. Expenses
Vehicles and other
-------- ---------
($ in thousands)
Operating income as reported in
accordance with GAAP $21,162 $71,870 $32,055 $4,354 $10,478 $(65,296) $74,623
------- ------- ------- ------ ------- -------- -------
Adjustments for the effects of:
Depreciation
and
amortization 111,415 39,964 25,447 11,736 2,329 3,069 193,960
Other pre-tax - - - - - (7,140) (7,140)
EBITDA 132,577 111,834 57,502 16,090 12,807 (69,367) 261,443
Adjustments for the effects of:
Inventory
write-downs 25,200 5,290 - - - - 30,490
Allowance for
bad debts 340 1,770 127 3,332 - - 5,569
Total of adjustments 25,540 7,060 127 3,332 - - 36,059
------ ----- --- ----- --- --- ------
Adjusted EBITDA $158,117 $118,894 $57,629 $19,422 $12,807 $(69,367) $297,502
======== ======== ======= ======= ======= ======== ========
Revenue $413,769 $542,978 $378,883 $215,459 $232,069 $1,783,158
Operating income % as reported in
accordance with GAAP 5% 13% 8% 2% 5% 4%
EBITDA Margin 32% 21% 15% 7% 6% 15%
Adjusted EBITDA Margin 38% 22% 15% 9% 6% 17%
View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-third-quarter-2017-results-300543499.html
SOURCE Oceaneering International, Inc.
