HOUSTON--(BUSINESS WIRE)--Oil States International, Inc. (NYSE: OIS):
Three Months Ended |
|
% Change |
|||||||||||||||
(Unaudited, In Thousands, Except Per Share Amounts) |
March 31,
|
|
December 31,
|
|
March 31,
|
|
Sequential |
|
Year-over-Year |
||||||||
Consolidated results: |
|
|
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
196,199 |
|
|
$ |
202,434 |
|
|
$ |
164,044 |
|
|
(3 |
)% |
|
20 |
% |
Operating income (loss) |
$ |
5,875 |
|
|
$ |
3,273 |
|
|
$ |
(4,336 |
) |
|
79 |
% |
|
nm |
|
Net income (loss) |
$ |
2,158 |
|
|
$ |
2,885 |
|
|
$ |
(9,424 |
) |
|
(25 |
)% |
|
nm |
|
Diluted earning per share |
$ |
0.03 |
|
|
$ |
0.05 |
|
|
$ |
(0.16 |
) |
|
(40 |
)% |
|
nm |
|
Adjusted EBITDA(1) |
$ |
21,407 |
|
|
$ |
20,542 |
|
|
$ |
14,506 |
|
|
4 |
% |
|
48 |
% |
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues by segment: |
|
|
|
|
|
|
|
|
|
||||||||
Offshore/Manufactured Products |
$ |
98,199 |
|
|
$ |
105,107 |
|
|
$ |
84,112 |
|
|
(7 |
)% |
|
17 |
% |
Well Site Services |
|
67,058 |
|
|
|
67,689 |
|
|
|
48,172 |
|
|
(1 |
)% |
|
39 |
% |
Downhole Technologies |
|
30,942 |
|
|
|
29,638 |
|
|
|
31,760 |
|
|
4 |
% |
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) by segment: |
|
|
|
|
|
|
|
|
|
||||||||
Offshore/Manufactured Products |
$ |
11,090 |
|
|
$ |
12,258 |
|
|
$ |
10,196 |
|
|
(10 |
)% |
|
9 |
% |
Well Site Services |
|
6,966 |
|
|
|
5,300 |
|
|
|
(3,395 |
) |
|
31 |
% |
|
nm |
|
Downhole Technologies |
|
(1,519 |
) |
|
|
(3,337 |
) |
|
|
(1,505 |
) |
|
54 |
% |
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Segment EBITDA (a non-GAAP measure(1)): |
|||||||||||||||||
Offshore/Manufactured Products |
$ |
15,923 |
|
|
$ |
17,751 |
|
|
$ |
15,567 |
|
|
(10 |
)% |
|
2 |
% |
Well Site Services |
|
13,223 |
|
|
|
12,516 |
|
|
|
5,523 |
|
|
6 |
% |
|
139 |
% |
Downhole Technologies |
|
2,756 |
|
|
|
1,042 |
|
|
|
2,877 |
|
|
164 |
% |
|
(4 |
)% |
| (1) | Adjusted EBITDA and Adjusted Segment EBITDA are non-GAAP measures, see "Reconciliations of GAAP to Non-GAAP Financial Information" tables below for reconciliations to their most comparable GAAP measures as well as further clarification and explanation. |
Oil States International, Inc. reported net income of $2.2 million, or $0.03 per share, for the first quarter of 2023 on revenues of $196.2 million and Adjusted EBITDA of $21.4 million. These results compare to revenues of $202.4 million, net income of $2.9 million, or $0.05 per share, and Adjusted EBITDA of $20.5 million reported in the fourth quarter of 2022.
Oil States' President and Chief Executive Officer, Cindy B. Taylor, stated,
"Our operating results during the quarter were fairly strong relative to industry benchmarks, with net income generation, EBITDA growth, improving margins and backlog growth. Our organization's long-term focus on addressing the challenges our customers face with technically advanced products and services drove sequential and year-over-year increases in both consolidated operating income and Adjusted EBITDA.
"In the first quarter, our Offshore/Manufactured Products segment revenues decreased 7% sequentially totaling $98.2 million, while Adjusted Segment EBITDA totaled $15.9 million. Backlog increased $18 million in the quarter, totaling $326 million as of March 31. The segment's quarterly bookings totaled $118 million in the first quarter of 2023, yielding a quarterly book-to-bill ratio of 1.2x.
"Revenues reported by our Well Site Services segment decreased slightly due to normal seasonality, but Adjusted Segment EBITDA rose 6% from the fourth quarter of 2022 – with the impact of lower activity in the Rocky Mountain region of the United States substantially offset by large customer projects in the Northeast region.
"Our Downhole Technologies segment revenues increased 4%, while Adjusted Segment EBITDA increased 164% from the fourth quarter of 2022, driven by increased international perforating sales and a favorable shift in sales mix.
"Complementing Oil States' continued expansion of financial returns, our historical investments in technology and safety were also recognized with: the award of our first two projects for our proprietary Managed Pressure Drilling and Riser Gas Handling System; two 2023 Spotlight on New Technology™ Awards from the Offshore Technology Conference; a 2023 Meritorious Engineering Award from Hart Energy; and the 2023 NOIA Safety in Seas Culture of Safety Award. We are very proud of the industry's recognition of the accomplishments of our global team – providing new technologies to the traditional oil and gas industry while leveraging our core expertise to enable pathways toward a multi-source energy mix to meet growing global demand. These technology advancements will augment our core technologies and set the stage for longer-term growth."
Business Segment Results
(See Segment Data and Adjusted Segment EBITDA tables below)
Offshore/Manufactured Products
Offshore/Manufactured Products reported revenues of $98.2 million, operating income of $11.1 million and Adjusted Segment EBITDA of $15.9 million in the first quarter of 2023, compared to revenues of $105.1 million, operating income of $12.3 million and Adjusted Segment EBITDA of $17.8 million reported in the fourth quarter of 2022. Adjusted Segment EBITDA margin in the first quarter of 2023 was 16%, compared to 17% in the prior quarter.
Backlog totaled $326 million as of March 31, 2023, an increase of $18 million, or 6%, from December 31, 2022 and $61 million, or 23%, from March 31, 2022. The current quarter-end backlog is at its highest level since December 31, 2015. First quarter 2023 bookings totaled $118 million, yielding a quarterly book-to-bill ratio of 1.2x.
Well Site Services
Well Site Services reported revenues of $67.1 million, operating income of $7.0 million and Adjusted Segment EBITDA of $13.2 million in the first quarter of 2023, compared to revenues of $67.7 million, operating income of $5.3 million and Adjusted Segment EBITDA of $12.5 million reported in the fourth quarter of 2022. Adjusted Segment EBITDA margin was 20% in the first quarter of 2023, compared to 18% in the fourth quarter of 2022.
Downhole Technologies
Downhole Technologies reported revenues of $30.9 million, an operating loss of $1.5 million and Adjusted Segment EBITDA of $2.8 million in the first quarter of 2023, compared to revenues of $29.6 million, an operating loss of $3.3 million and Adjusted Segment EBITDA of $1.0 million reported in the fourth quarter of 2022. Adjusted Segment EBITDA margin in the first quarter of 2023 was 9%, compared to 4% in the fourth quarter of 2022.
Corporate
Corporate operating expenses in the first quarter of 2023 totaled $10.7 million.
Interest Expense, Net
Net interest expense totaled $2.4 million in the first quarter of 2023, which included $0.4 million of non-cash amortization of deferred debt issuance costs.
Income Taxes
The Company recognized tax expense of $1.6 million on pre-tax income of $3.8 million during the first quarter of 2023. In the fourth quarter of 2022, the Company recognized a tax benefit of $0.5 million on pre-tax income of $2.4 million.
Financial Condition
On February 15, 2023, the Company repaid the $17.3 million principal amount, plus accrued interest, outstanding under its 1.50% convertible senior notes.
Due to the repayment of the 1.5% convertible senior notes and seasonal working capital investments, $5.0 million in borrowings were outstanding under the Company's asset-based revolving credit facility (the "ABL Facility") at March 31, 2023. Cash on-hand decreased from $42.0 million at December 31, 2022 to $15.8 million at March 31, 2023. Liquidity (cash plus borrowing availability) totaled $108.6 million at March 31, 2023, with amounts available to be drawn under the ABL Facility totaling $92.8 million.
The Company's total debt represented 17% of combined total debt and stockholders' equity at March 31, 2023, compared to 18% at December 31, 2022. Net Debt to annualized first quarter 2023 Adjusted EBITDA ratio was 1.4x at March 31, 2023.
On February 16, 2023, the Company's Board of Directors approved a $25.0 million stock repurchase plan, which extends through February 2025. No stock repurchases were made during the first quarter of 2023.
Other Highlights – Industry Awards, Technology Advancements and R&D Efforts
- In the first quarter of 2023, the Company was awarded two contracts for its recently introduced Managed Pressure Drilling and Riser Gas Handling ("MPD" and "RGH") System, which integrates managed pressure drilling and riser gas handling into a deepwater drilling riser to create a safer environment, dramatically reduce non-productive time, promote faster connections and enhance total cost of ownership. The MPD and RGH System's innovative design features retrievable annular packers to substantially reduce maintenance and non-productive time while its smaller size reduces the rig footprint by up to 40 percent. The system includes features that remove workers from the red zone to significantly increase safety.
- The Company was honored with the 2023 NOIA Safety in Seas Culture of Safety Award. The Culture of Safety Award recognizes overall organizational immersion in and commitment to safety, which has resulted in remarkable, measurable and sustained safety performance over a prolonged period of time.
-
2023 Spotlight on New Technology™ Awards from the Offshore Technology Conference
- Rooted in 40-plus years of fixed offshore and deepwater floating infrastructure experience, the Company has developed the FTLP™ Floating Wind Platform – a potentially game-changing technology offering mid-water depth offshore wind operators the benefits of a highly-stable, floating-platform structure with reduced cost and streamlined installation capability compared to traditional floating wind platforms.
- The Company's Active Seat Gate Valve provides exceptional sealing performance to dramatically reduce the amount of heavy grease used during valve operations, which significantly reduces grease disposal needs. Personnel intervention at the wellhead is substantially lowered as well, boosting safety and efficiency.
- The Company received the 2023 Meritorious Engineering Award from Hart Energy for its MPD-Ready Jack-Up Drilling Riser System. With a growing number of high-pressure wells being drilled offshore, more jack-ups require upgrades to safely manage pressures encountered during the drilling process. The Company's MPD-Ready High-Pressure Riser Systems for jack-ups are specifically engineered to meet this need, offering operators greater capability, safety and efficiency.
- The Company's Merlin™ Mineral Riser, designed for water depth of 6,000 meters, was successfully run to a water depth of 4,500 meters (or almost three miles).
Conference Call Information
The call is scheduled for April 28, 2023 at 10:00 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) 210-3346 in the United States or by dialing +1 (646) 960-0253 internationally and using the passcode 7534957. A replay of the conference call will be available approximately two 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 energy, 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.
Cautionary Language Concerning 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 and demand for oil and natural gas, fluctuations in the current and future prices of oil and natural gas, the level of exploration, drilling and completion activity, general global economic conditions, the cyclical nature of the oil and natural gas industry, geopolitical tensions, the financial health of our customers, the actions of the Organization of Petroleum Exporting Countries ("OPEC") and other producing nations with respect to crude oil production levels and pricing, the impact of environmental matters, including executive actions and regulatory efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, our ability to access and the cost of capital in the bank and capital markets, our ability to develop new competitive technologies and products, 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, 2022. 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 CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) (Unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Revenues: |
|
|
|
|
|
||||||
Products |
$ |
99,840 |
|
|
$ |
101,027 |
|
|
$ |
85,761 |
|
Services |
|
96,359 |
|
|
|
101,407 |
|
|
|
78,283 |
|
|
|
196,199 |
|
|
|
202,434 |
|
|
|
164,044 |
|
|
|
|
|
|
|
||||||
Costs and expenses: |
|
|
|
|
|
||||||
Product costs |
|
78,677 |
|
|
|
81,606 |
|
|
|
64,801 |
|
Service costs |
|
72,058 |
|
|
|
76,891 |
|
|
|
61,803 |
|
Cost of revenues (exclusive of depreciation and amortization expense presented below) |
|
150,735 |
|
|
|
158,497 |
|
|
|
126,604 |
|
Selling, general and administrative expense |
|
24,016 |
|
|
|
25,074 |
|
|
|
23,833 |
|
Depreciation and amortization expense |
|
15,256 |
|
|
|
15,865 |
|
|
|
17,817 |
|
Other operating (income) expense, net |
|
317 |
|
|
|
(275 |
) |
|
|
126 |
|
|
|
190,324 |
|
|
|
199,161 |
|
|
|
168,380 |
|
Operating income (loss) |
|
5,875 |
|
|
|
3,273 |
|
|
|
(4,336 |
) |
|
|
|
|
|
|
||||||
Interest expense, net |
|
(2,391 |
) |
|
|
(2,333 |
) |
|
|
(2,672 |
) |
Other income, net |
|
276 |
|
|
|
1,423 |
|
|
|
1,025 |
|
Income (loss) before income taxes |
|
3,760 |
|
|
|
2,363 |
|
|
|
(5,983 |
) |
Income tax (provision) benefit |
|
(1,602 |
) |
|
|
522 |
|
|
|
(3,441 |
) |
Net income (loss) |
$ |
2,158 |
|
|
$ |
2,885 |
|
|
$ |
(9,424 |
) |
|
|
|
|
|
|
||||||
Net income (loss) per share: |
|
|
|
|
|
||||||
Basic |
$ |
0.03 |
|
|
$ |
0.05 |
|
|
$ |
(0.16 |
) |
Diluted |
|
0.03 |
|
|
|
0.05 |
|
|
|
(0.16 |
) |
|
|
|
|
|
|
||||||
Weighted average number of common shares outstanding: |
|
|
|
|
|||||||
Basic |
|
62,825 |
|
|
|
62,678 |
|
|
|
60,498 |
|
Diluted |
|
63,072 |
|
|
|
62,768 |
|
|
|
60,498 |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands) |
|||||||
|
March 31, 2023 |
|
December 31, 2022 |
||||
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
15,807 |
|
|
$ |
42,018 |
|
Accounts receivable, net |
|
220,202 |
|
|
|
218,769 |
|
Inventories, net |
|
196,278 |
|
|
|
182,658 |
|
Prepaid expenses and other current assets |
|
18,130 |
|
|
|
19,317 |
|
Total current assets |
|
450,417 |
|
|
|
462,762 |
|
|
|
|
|
||||
Property, plant, and equipment, net |
|
306,134 |
|
|
|
303,835 |
|
Operating lease assets, net |
|
23,828 |
|
|
|
23,028 |
|
Goodwill, net |
|
79,579 |
|
|
|
79,282 |
|
Other intangible assets, net |
|
165,673 |
|
|
|
169,798 |
|
Other noncurrent assets |
|
24,506 |
|
|
|
25,687 |
|
Total assets |
$ |
1,050,137 |
|
|
$ |
1,064,392 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of long-term debt |
$ |
527 |
|
|
$ |
17,831 |
|
Accounts payable |
|
73,478 |
|
|
|
73,251 |
|
Accrued liabilities |
|
35,414 |
|
|
|
49,057 |
|
Current operating lease liabilities |
|
6,528 |
|
|
|
6,142 |
|
Income taxes payable |
|
3,719 |
|
|
|
2,605 |
|
Deferred revenue |
|
48,969 |
|
|
|
44,790 |
|
Total current liabilities |
|
168,635 |
|
|
|
193,676 |
|
|
|
|
|
||||
Long-term debt |
|
138,484 |
|
|
|
135,066 |
|
Long-term operating lease liabilities |
|
20,912 |
|
|
|
20,658 |
|
Deferred income taxes |
|
7,143 |
|
|
|
6,652 |
|
Other noncurrent liabilities |
|
19,445 |
|
|
|
18,782 |
|
Total liabilities |
|
354,619 |
|
|
|
374,834 |
|
|
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Common stock |
|
771 |
|
|
|
766 |
|
Additional paid-in capital |
|
1,123,876 |
|
|
|
1,122,292 |
|
Retained earnings |
|
274,185 |
|
|
|
272,027 |
|
Accumulated other comprehensive loss |
|
(74,792 |
) |
|
|
(78,941 |
) |
Treasury stock |
|
(628,522 |
) |
|
|
(626,586 |
) |
Total stockholders' equity |
|
695,518 |
|
|
|
689,558 |
|
Total liabilities and stockholders' equity |
$ |
1,050,137 |
|
|
$ |
1,064,392 |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited) |
|||||||
|
Three Months Ended March 31, |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
2,158 |
|
|
$ |
(9,424 |
) |
Adjustments to reconcile net income (loss) to net cash used in operating |
|
|
|
||||
Depreciation and amortization expense |
|
15,256 |
|
|
|
17,817 |
|
Stock-based compensation expense |
|
1,589 |
|
|
|
1,835 |
|
Amortization of deferred financing costs |
|
449 |
|
|
|
469 |
|
Deferred income tax provision (benefit) |
|
396 |
|
|
|
(174 |
) |
Gains on disposals of assets |
|
(210 |
) |
|
|
(543 |
) |
Other, net |
|
17 |
|
|
|
550 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(745 |
) |
|
|
(9,086 |
) |
Inventories |
|
(12,802 |
) |
|
|
(13,090 |
) |
Accounts payable and accrued liabilities |
|
(18,329 |
) |
|
|
(4,555 |
) |
Deferred revenue |
|
4,179 |
|
|
|
4,324 |
|
Other operating assets and liabilities, net |
|
2,124 |
|
|
|
1,142 |
|
Net cash flows used in operating activities |
|
(5,918 |
) |
|
|
(10,735 |
) |
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(6,568 |
) |
|
|
(2,858 |
) |
Proceeds from disposition of property and equipment |
|
223 |
|
|
|
869 |
|
Other, net |
|
(48 |
) |
|
|
(67 |
) |
Net cash flows used in investing activities |
|
(6,393 |
) |
|
|
(2,056 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Revolving credit facility borrowings |
|
27,865 |
|
|
|
367 |
|
Revolving credit facility repayments |
|
(22,865 |
) |
|
|
(367 |
) |
Repayment of 1.50% convertible senior notes |
|
(17,315 |
) |
|
|
— |
|
Other debt and finance lease repayments, net |
|
(106 |
) |
|
|
(165 |
) |
Payment of financing costs |
|
(21 |
) |
|
|
(68 |
) |
Shares added to treasury stock as a result of net share settlements due to vesting of stock awards |
|
(1,936 |
) |
|
|
(990 |
) |
Net cash flows used in financing activities |
|
(14,378 |
) |
|
|
(1,223 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
478 |
|
|
|
320 |
|
Net change in cash and cash equivalents |
|
(26,211 |
) |
|
|
(13,694 |
) |
Cash and cash equivalents, beginning of period |
|
42,018 |
|
|
|
52,852 |
|
Cash and cash equivalents, end of period |
$ |
15,807 |
|
|
$ |
39,158 |
|
|
|
|
|
||||
Cash paid (received) for: |
|
|
|
||||
Interest |
$ |
485 |
|
|
$ |
522 |
|
Income taxes, net |
|
(2,465 |
) |
|
|
119 |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES SEGMENT DATA (In Thousands) (Unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022(2) |
||||||
Revenues: |
|
|
|
|
|
||||||
Offshore/Manufactured Products(1): |
|
|
|
|
|
||||||
Project-driven products |
$ |
39,132 |
|
|
$ |
44,187 |
|
|
$ |
33,844 |
|
Short-cycle products |
|
27,440 |
|
|
|
24,207 |
|
|
|
20,624 |
|
Other products and services |
|
31,627 |
|
|
|
36,713 |
|
|
|
29,644 |
|
Total Offshore/Manufactured Products |
|
98,199 |
|
|
|
105,107 |
|
|
|
84,112 |
|
Well Site Services |
|
67,058 |
|
|
|
67,689 |
|
|
|
48,172 |
|
Downhole Technologies |
|
30,942 |
|
|
|
29,638 |
|
|
|
31,760 |
|
Total revenues |
$ |
196,199 |
|
|
$ |
202,434 |
|
|
$ |
164,044 |
|
|
|
|
|
|
|
||||||
Operating income (loss): |
|
|
|
|
|
||||||
Offshore/Manufactured Products |
$ |
11,090 |
|
|
$ |
12,258 |
|
|
$ |
10,196 |
|
Well Site Services |
|
6,966 |
|
|
|
5,300 |
|
|
|
(3,395 |
) |
Downhole Technologies |
|
(1,519 |
) |
|
|
(3,337 |
) |
|
|
(1,505 |
) |
Corporate |
|
(10,662 |
) |
|
|
(10,948 |
) |
|
|
(9,632 |
) |
Total operating income (loss) |
$ |
5,875 |
|
|
$ |
3,273 |
|
|
$ |
(4,336 |
) |
| (1) | Disaggregated revenue data is provided to supplement the Segment Data. |
| (2) | Operating income (loss) for the three months ended March 31, 2022 included $0.8 million of bad debt expense on receivables from Russia-based customers within the Offshore/Manufactured Products segment. |
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED EBITDA (A) (In Thousands) (Unaudited) |
||||||||||
|
Three Months Ended |
|||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
|||||
|
|
|
|
|
|
|||||
Net income (loss) |
$ |
2,158 |
|
$ |
2,885 |
|
|
$ |
(9,424 |
) |
Interest expense, net |
|
2,391 |
|
|
2,333 |
|
|
|
2,672 |
|
Income tax provision (benefit) |
|
1,602 |
|
|
(522 |
) |
|
|
3,441 |
|
Depreciation and amortization expense |
|
15,256 |
|
|
15,865 |
|
|
|
17,817 |
|
Gains on extinguishment of 1.50% convertible senior notes |
|
— |
|
|
(19 |
) |
|
|
— |
|
Adjusted EBITDA |
$ |
21,407 |
|
$ |
20,542 |
|
|
$ |
14,506 |
|
| (A) | The term Adjusted EBITDA consists of net income (loss) plus net interest expense, taxes and depreciation and amortization expense, less gains on extinguishment of 1.50% convertible senior notes (the "2023 Notes"). Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles ("GAAP") and should not be considered in isolation from or as a substitute for net income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted EBITDA as a supplemental disclosure because its management believes that Adjusted EBITDA provides 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 Adjusted 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 Adjusted EBITDA to net income (loss), which is the most directly comparable measure of financial performance calculated under GAAP. |
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED SEGMENT EBITDA (B) (In Thousands) (Unaudited) |
|||||||||||
|
Three Months Ended |
||||||||||
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Offshore/Manufactured Products: |
|
|
|
|
|
||||||
Operating income |
$ |
11,090 |
|
|
$ |
12,258 |
|
|
$ |
10,196 |
|
Other income, net |
|
165 |
|
|
|
693 |
|
|
|
41 |
|
Depreciation and amortization expense |
|
4,668 |
|
|
|
4,800 |
|
|
|
5,330 |
|
Adjusted Segment EBITDA |
$ |
15,923 |
|
|
$ |
17,751 |
|
|
$ |
15,567 |
|
|
|
|
|
|
|
||||||
Well Site Services: |
|
|
|
|
|
||||||
Operating income (loss) |
$ |
6,966 |
|
|
$ |
5,300 |
|
|
$ |
(3,395 |
) |
Other income, net |
|
111 |
|
|
|
711 |
|
|
|
986 |
|
Depreciation and amortization expense |
|
6,146 |
|
|
|
6,505 |
|
|
|
7,932 |
|
Adjusted Segment EBITDA |
$ |
13,223 |
|
|
$ |
12,516 |
|
|
$ |
5,523 |
|
|
|
|
|
|
|
||||||
Downhole Technologies: |
|
|
|
|
|
||||||
Operating loss |
$ |
(1,519 |
) |
|
$ |
(3,337 |
) |
|
$ |
(1,505 |
) |
Other expense, net |
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Depreciation and amortization expense |
|
4,275 |
|
|
|
4,379 |
|
|
|
4,384 |
|
Adjusted Segment EBITDA |
$ |
2,756 |
|
|
$ |
1,042 |
|
|
$ |
2,877 |
|
|
|
|
|
|
|
||||||
Corporate: |
|
|
|
|
|
||||||
Operating loss |
$ |
(10,662 |
) |
|
$ |
(10,948 |
) |
|
$ |
(9,632 |
) |
Other income, net |
|
— |
|
|
|
19 |
|
|
|
— |
|
Depreciation and amortization expense |
|
167 |
|
|
|
181 |
|
|
|
171 |
|
Gains on extinguishment of 1.50% convertible senior notes |
|
— |
|
|
|
(19 |
) |
|
|
— |
|
Adjusted Segment EBITDA |
$ |
(10,495 |
) |
|
$ |
(10,767 |
) |
|
$ |
(9,461 |
) |
| (B) | The term Adjusted Segment EBITDA consists of operating income (loss) plus other income (expense) and depreciation and amortization expense, less gains on extinguishment of the 2023 Notes. Adjusted Segment EBITDA is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for operating income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted Segment EBITDA as supplemental disclosure because its management believes that Adjusted Segment EBITDA provides 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 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 table above sets forth reconciliations of Adjusted Segment EBITDA to operating income (loss), which is the most directly comparable measure of financial performance calculated under GAAP. |
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION RATIO OF NET DEBT TO ANNUALIZED FIRST QUARTER 2023 ADJUSTED EBITDA (C) (Dollars, In Thousands) (Unaudited) |
|||
|
March 31,
|
||
Total debt |
$ |
139,011 |
|
Less: cash and cash equivalents |
|
(15,807 |
) |
Net Debt |
$ |
123,204 |
|
|
|
||
First quarter 2023 Adjusted EBITDA |
$ |
21,407 |
|
Annualized first quarter 2023 Adjusted EBITDA |
|
85,628 |
|
Ratio of Net Debt to annualized first quarter Adjusted EBITDA |
1.4x |
||
| (C) | The Company has included Net Debt and the ratio of Net Debt to annualized first quarter 2023 Adjusted EBITDA as a supplemental disclosure because its management believes that this data provides useful information regarding the level of the Company’s indebtedness and its ability to service debt. Net Debt and the ratio of Net Debt to annualized first quarter 2023 Adjusted EBITDA are not financial measures under GAAP and should not be considered in isolation from or as a substitute for total debt, net income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. |