Oil States International, Inc. (NYSE: OIS) reported net income of
$2.9 million, or $0.05 per share, for the fourth quarter
of 2022 on revenues of $202.4 million and Adjusted EBITDA of
$20.5 million. These results compare to revenues of
$189.4 million, net income of $2.1 million ($0.03 per
share) and Adjusted EBITDA of $22.0 million reported in the
third quarter of 2022. Reported third quarter 2022 results
benefited from a litigation-related settlement gain of
$6.1 million ($4.6 million after-tax, or $0.07 per
share).
Oil States' President and Chief Executive
Officer, Cindy B. Taylor, stated,
"With continued improvement in industry
fundamentals throughout 2022 – both domestically and
internationally, Oil States reported positive operating and net
income for a second consecutive quarter as we concluded our current
fiscal year. Sequentially, consolidated fourth quarter revenues
increased $13.0 million and operating income rose
$4.3 million, excluding a litigation-related settlement gain
recorded in the prior period. This quarter-over-quarter growth
reflects improved offshore-project activity and backlog conversion,
complimenting continuing improvement in U.S. land-based
markets.
"Our year-over-year results were impressive,
with consolidated revenues and operating income in the fourth
quarter 2022 increasing by $41.1 million and
$14.5 million, respectively.
"Our Offshore/Manufactured Products segment
revenues increased 9% sequentially totaling $105.1 million in
the fourth quarter, while Adjusted Segment EBITDA totaled
$17.8 million. Backlog increased $50 million in the
quarter, totaling $308 million as of December 31.
Supported by two notable project awards in the period, the
segment's quarterly bookings increased again to $152 million,
yielding a quarterly book-to-bill ratio of 1.5x.
"Revenues reported by our Well Site Services
segment increased 12% and Adjusted Segment EBITDA rose 29% from the
third quarter of 2022 – driven by higher U.S. completion and
production activity, along with enhanced customer penetration and
better equipment utilization.
"Our Downhole Technologies segment revenues
decreased 10% and Adjusted Segment EBITDA declined 75% from the
third quarter of 2022, due primarily to lower international
perforating sales, manufacturing labor constraints and higher
material and supply chain costs. Additionally, the segment
recognized inventory and receivable reserves totaling
$0.6 million during the fourth quarter of 2022.
"As we enter 2023, we are encouraged by the
high-level of bidding and quoting activity for major offshore
projects, higher backlog levels within our Offshore/Manufactured
Products segment and continued strong industry fundamentals that
suggest a continuation of strong investments by operators.
"We have no significant debt maturities until
2026, providing Oil States with the opportunity to focus on the
return of capital to our stockholders. Given our financial position
and outlook, our Board of Directors recently approved a
$25.0 million stock repurchase program, which extends through
February 2025."
For the year ended December 31, 2022, the
Company reported a net loss of $9.5 million, or $0.15 per
share, revenues of $737.7 million and Adjusted EBITDA of
$74.0 million. The full-year 2022 results included a third
quarter 2022 gain of $6.1 million ($4.6 million
after-tax, or $0.07 per share) recognized in connection with the
settlement of litigation.
Business Segment Results(See
Segment Data and Adjusted Segment EBITDA tables below)
Offshore/Manufactured
ProductsOffshore/Manufactured Products reported revenues of
$105.1 million, operating income of $12.3 million and
Adjusted Segment EBITDA of $17.8 million in the fourth quarter
of 2022, compared to revenues of $96.0 million, operating
income of $13.4 million and Adjusted Segment EBITDA of
$18.3 million reported in the third quarter of 2022. Third
quarter 2022 results included a gain of $6.1 million recorded
in connection with the settlement of litigation. Adjusted Segment
EBITDA margin in the fourth quarter of 2022 was 17%, compared to
13% (excluding the gain) in the third quarter of 2022.
Backlog totaled $308 million as of
December 31, 2022, an increase of $50 million, or 19%,
from September 30, 2022 and $48 million, or 18% from
December 31, 2021. Fourth quarter 2022 bookings totaled
$152 million, yielding a quarterly book-to-bill ratio of 1.5x
and a full-year ratio of 1.1x. During the fourth quarter of 2022,
the segment was awarded two notable production facility project
awards exceeding $20 million each.
Well Site ServicesWell Site Services reported
revenues of $67.7 million, operating income of
$5.3 million and Adjusted Segment EBITDA of $12.5 million
in the fourth quarter of 2022, compared to revenues of
$60.5 million, operating income of $2.4 million and
Adjusted Segment EBITDA of $9.7 million reported in the third
quarter of 2022. Adjusted Segment EBITDA margin was 18% in the
fourth quarter of 2022, compared to 16% in the third quarter of
2022.
Downhole TechnologiesDownhole Technologies
reported revenues of $29.6 million, an operating loss of
$3.3 million and Adjusted Segment EBITDA of $1.0 million
in the fourth quarter of 2022, compared to revenues of
$32.8 million, an operating loss of $0.3 million and
Adjusted Segment EBITDA of $4.1 million reported in the third
quarter of 2022. Adjusted Segment EBITDA margin in the fourth
quarter of 2022 was 4%, compared to 12% in the third quarter of
2022. Weaker revenues and margins in the quarter resulted from the
timing of international sales, which can be lumpy from quarter to
quarter, along with supply chain challenges and inventory
write-offs totaling $0.2 million.
CorporateCorporate operating expenses in the
fourth quarter of 2022 totaled $10.9 million.
Interest Expense, NetNet interest expense
totaled $2.3 million in the fourth quarter of 2022, which
included $0.5 million of non-cash amortization of deferred
debt issuance costs.
Income TaxesThe Company recognized a tax benefit
of $0.5 million on pre-tax income of $2.4 million during
the fourth quarter of 2022. In the third quarter of 2022, the
Company recognized tax expense of $0.8 million on a pre-tax
loss of $2.9 million.
Financial ConditionNo borrowings were
outstanding under the Company's asset-based revolving credit
facility (the "ABL Facility") at December 31, 2022. Cash
on-hand increased from $33.1 million at September 30,
2022 to $42.0 million at December 31, 2022. Liquidity
(cash plus borrowing availability) totaled $134.1 million at
December 31, 2022, with amounts available to be drawn under
the ABL Facility totaling $92.1 million.
The Company's total debt represented 18% of
combined total debt and stockholders' equity at December 31,
2022 and September 30, 2022. Our Net Debt to annualized fourth
quarter 2022 Adjusted EBITDA ratio was 1.4x at December 31,
2022.
On February 15, 2023, the Company repaid
the $17.3 million principal amount, plus accrued interest,
outstanding under its 1.50% convertible senior notes.
On February 16, 2023, the Company's Board
of Directors approved a $25.0 million stock repurchase plan,
which extends through February 2025.
Fourth Quarter Highlights – Technology
Advancement and R&D Efforts
- Successfully
completed a test of OSI Minerals™ deepsea mineral riser system at a
water depth of over 13,000 feet
- Successfully
performed a tank test of a prototype model of our proprietary fixed
tension leg platform ("F-TLP™") design for offshore wind
installations in water depths of up to approximately 500 feet
- Recognized by
World Oil as a finalist for our Merlin™ high-pressure,
high-temperature riser system and our managed pressure drilling
("MPD") and riser gas handling system
- Continued to
invest in and deploy our patented active-seat valve technology,
which reduces the environmental impact of heavy greasing
requirements and promotes personnel safety with decreased time in
the hazardous wellhead zone
- Tempress
extended-reach HydroPull™ tool was successfully deployed in a two
and one-half mile lateral in the Middle East, allowing the operator
to complete an offshore clean-out operation in one trip
- Awarded two
production facility projects each totaling over $20 million
for FlexJoint™ products, which provide long-term fatigue protection
for offshore, high-pressure production riser systems
- Approximately
9% of our Offshore/Manufactured Products bookings in 2022 were for
non-traditional energy applications
Conference Call InformationThe
call is scheduled for February 17, 2023 at 10:00 a.m.
central 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 (866) 374-5140 in the
United States or by dialing +1 (404) 400-0571 internationally and
using the passcode 14898506#. A replay of the conference call will
be available approximately 90 minutes after the completion of the
call and can be accessed from the Company's website at
www.ir.oilstatesintl.com.
About Oil StatesOil 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 StatementsThe 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, geopolitical tensions,
regulatory pressures related to environmental, social and
governance considerations, the impact of the COVID-19 pandemic on
the Company and its 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, 2021 and the subsequently filed Quarterly Reports
on Form 10-Q and 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
CONSOLIDATED STATEMENTS OF
OPERATIONS(In Thousands, Except Per Share Amounts)
|
Three Months Ended |
|
Year Ended |
|
December 31,2022 |
|
September 30,2022 |
|
December 31,2021 |
|
December 31,2022 |
|
December 31,2021 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Products |
$ |
101,027 |
|
|
$ |
99,743 |
|
|
$ |
89,401 |
|
|
$ |
385,564 |
|
|
$ |
299,293 |
|
Services |
|
101,407 |
|
|
|
89,651 |
|
|
|
71,919 |
|
|
|
352,142 |
|
|
|
273,868 |
|
|
|
202,434 |
|
|
|
189,394 |
|
|
|
161,320 |
|
|
|
737,706 |
|
|
|
573,161 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Product costs |
|
81,606 |
|
|
|
81,576 |
|
|
|
72,890 |
|
|
|
307,371 |
|
|
|
246,589 |
|
Service costs |
|
76,891 |
|
|
|
69,723 |
|
|
|
60,357 |
|
|
|
271,185 |
|
|
|
223,807 |
|
Cost of revenues (exclusive of depreciation and
amortization expense presented below)(1) |
|
158,497 |
|
|
|
151,299 |
|
|
|
133,247 |
|
|
|
578,556 |
|
|
|
470,396 |
|
Selling, general and administrative expense |
|
25,074 |
|
|
|
23,374 |
|
|
|
20,297 |
|
|
|
96,038 |
|
|
|
83,692 |
|
Depreciation and amortization expense |
|
15,865 |
|
|
|
16,413 |
|
|
|
18,655 |
|
|
|
67,334 |
|
|
|
80,741 |
|
Impairments of fixed and lease assets |
|
— |
|
|
|
— |
|
|
|
722 |
|
|
|
— |
|
|
|
4,166 |
|
Other operating income, net(2) |
|
(275 |
) |
|
|
(6,750 |
) |
|
|
(328 |
) |
|
|
(7,127 |
) |
|
|
(1,042 |
) |
|
|
199,161 |
|
|
|
184,336 |
|
|
|
172,593 |
|
|
|
734,801 |
|
|
|
637,953 |
|
Operating income (loss) |
|
3,273 |
|
|
|
5,058 |
|
|
|
(11,273 |
) |
|
|
2,905 |
|
|
|
(64,792 |
) |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(2,333 |
) |
|
|
(2,637 |
) |
|
|
(2,577 |
) |
|
|
(10,280 |
) |
|
|
(10,170 |
) |
Other income (expense),
net(3) |
|
1,423 |
|
|
|
491 |
|
|
|
(6,289 |
) |
|
|
3,315 |
|
|
|
1,628 |
|
Income (loss) before income
taxes |
|
2,363 |
|
|
|
2,912 |
|
|
|
(20,139 |
) |
|
|
(4,060 |
) |
|
|
(73,334 |
) |
Income tax (provision)
benefit |
|
522 |
|
|
|
(769 |
) |
|
|
269 |
|
|
|
(5,480 |
) |
|
|
9,341 |
|
Net income (loss) |
$ |
2,885 |
|
|
$ |
2,143 |
|
|
$ |
(19,870 |
) |
|
$ |
(9,540 |
) |
|
$ |
(63,993 |
) |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.05 |
|
|
$ |
0.03 |
|
|
$ |
(0.33 |
) |
|
$ |
(0.15 |
) |
|
$ |
(1.06 |
) |
Diluted |
|
0.05 |
|
|
|
0.03 |
|
|
|
(0.33 |
) |
|
|
(0.15 |
) |
|
|
(1.06 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
62,678 |
|
|
|
62,674 |
|
|
|
60,380 |
|
|
|
61,638 |
|
|
|
60,293 |
|
Diluted |
|
62,768 |
|
|
|
62,676 |
|
|
|
60,380 |
|
|
|
61,638 |
|
|
|
60,293 |
|
________________(1) In the three months and
year ended December 31, 2021, cost of revenues (exclusive of
depreciation and amortization expense) included non-cash inventory
impairment charges of $1.5 million (in service costs) and
$3.6 million ($2.1 million in product costs and
$1.5 million in service costs),
respectively.(2) Other operating income, net
included a litigation-related settlement gain of $6.1 million
in the three months ended September 30, 2022 and year ended
December 31, 2022.(3) Other income (expense),
net in the three months and year ended December 31, 2021
included a non-cash loss of $9.3 million associated with the
reclassification of unrealized foreign currency translation
adjustments, which were released upon the liquidation of an
international operation. Additionally, for the year ended
December 31, 2021, non-cash gains of $4.0 million were
recognized in connection with purchases of $131.4 million
principal amount of the 2023 Notes.
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS(In
Thousands)
|
December 31, 2022 |
|
December 31, 2021 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
42,018 |
|
|
$ |
52,852 |
|
Accounts receivable, net |
|
218,769 |
|
|
|
186,080 |
|
Inventories, net |
|
182,658 |
|
|
|
168,573 |
|
Prepaid expenses and other current assets |
|
19,317 |
|
|
|
19,222 |
|
Total current assets |
|
462,762 |
|
|
|
426,727 |
|
|
|
|
|
Property, plant, and
equipment, net |
|
303,835 |
|
|
|
338,583 |
|
Operating lease assets,
net |
|
23,028 |
|
|
|
25,388 |
|
Goodwill, net |
|
79,282 |
|
|
|
76,412 |
|
Other intangible assets,
net |
|
169,798 |
|
|
|
185,749 |
|
Other noncurrent assets |
|
25,687 |
|
|
|
32,889 |
|
Total assets |
$ |
1,064,392 |
|
|
$ |
1,085,748 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt |
$ |
17,831 |
|
|
$ |
18,262 |
|
Accounts payable |
|
73,251 |
|
|
|
63,343 |
|
Accrued liabilities |
|
49,057 |
|
|
|
43,401 |
|
Current operating lease liabilities |
|
6,142 |
|
|
|
6,481 |
|
Income taxes payable |
|
2,605 |
|
|
|
2,564 |
|
Deferred revenue |
|
44,790 |
|
|
|
43,236 |
|
Total current liabilities |
|
193,676 |
|
|
|
177,287 |
|
|
|
|
|
Long-term debt |
|
135,066 |
|
|
|
160,488 |
|
Long-term operating lease liabilities |
|
20,658 |
|
|
|
23,452 |
|
Deferred income taxes |
|
6,652 |
|
|
|
3,637 |
|
Other noncurrent liabilities |
|
18,782 |
|
|
|
25,058 |
|
Total liabilities |
|
374,834 |
|
|
|
389,922 |
|
|
|
|
|
Stockholders' equity: |
|
|
|
Common stock |
|
766 |
|
|
|
739 |
|
Additional paid-in capital |
|
1,122,292 |
|
|
|
1,105,135 |
|
Retained earnings |
|
272,027 |
|
|
|
281,567 |
|
Accumulated other comprehensive loss |
|
(78,941 |
) |
|
|
(66,031 |
) |
Treasury stock |
|
(626,586 |
) |
|
|
(625,584 |
) |
Total stockholders' equity |
|
689,558 |
|
|
|
695,826 |
|
Total liabilities and stockholders' equity |
$ |
1,064,392 |
|
|
$ |
1,085,748 |
|
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS(In Thousands)
|
Year Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
(Unaudited) |
|
|
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(9,540 |
) |
|
$ |
(63,993 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization expense |
|
67,334 |
|
|
|
80,741 |
|
Impairments of inventories |
|
— |
|
|
|
3,581 |
|
Impairments of fixed and lease assets |
|
— |
|
|
|
4,166 |
|
Stock-based compensation expense |
|
6,852 |
|
|
|
7,879 |
|
Amortization of debt discount and deferred financing costs |
|
1,886 |
|
|
|
2,314 |
|
Deferred income tax provision (benefit) |
|
2,020 |
|
|
|
(8,639 |
) |
Gains on extinguishment of 1.50% convertible senior notes |
|
(176 |
) |
|
|
(4,022 |
) |
Gains on disposals of assets |
|
(2,856 |
) |
|
|
(6,472 |
) |
Other, net |
|
2,066 |
|
|
|
(511 |
) |
Changes in operating assets and liabilities, net of effect from
acquired business: |
|
|
|
Accounts receivable |
|
(35,443 |
) |
|
|
(24,407 |
) |
Inventories |
|
(17,364 |
) |
|
|
(10,334 |
) |
Accounts payable and accrued liabilities |
|
18,183 |
|
|
|
17,727 |
|
Deferred revenue |
|
1,554 |
|
|
|
(148 |
) |
Other operating assets and liabilities, net |
|
(1,654 |
) |
|
|
(8 |
) |
Net cash flows provided by operating activities |
|
32,862 |
|
|
|
7,194 |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Capital expenditures |
|
(20,266 |
) |
|
|
(17,517 |
) |
Proceeds from disposition of property and equipment |
|
5,877 |
|
|
|
11,527 |
|
Acquisition of business, net of cash acquired |
|
(8,125 |
) |
|
|
— |
|
Other, net |
|
(211 |
) |
|
|
(636 |
) |
Net cash flows used in investing activities |
|
(22,725 |
) |
|
|
(6,626 |
) |
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Revolving credit facility borrowings |
|
10,090 |
|
|
|
12,873 |
|
Revolving credit facility repayments |
|
(10,090 |
) |
|
|
(31,873 |
) |
Payment of promissory note to seller of GEODynamics, Inc. |
|
(10,000 |
) |
|
|
— |
|
Issuance of 4.75% convertible senior notes |
|
— |
|
|
|
135,000 |
|
Purchases of 1.50% convertible senior notes |
|
(8,450 |
) |
|
|
(125,952 |
) |
Other debt and finance lease repayments, net |
|
(732 |
) |
|
|
(230 |
) |
Payment of financing costs |
|
(105 |
) |
|
|
(7,791 |
) |
Shares added to treasury stock as a result of net share settlements
due to vesting of stock awards |
|
(1,002 |
) |
|
|
(1,595 |
) |
Net cash flows used in financing activities |
|
(20,289 |
) |
|
|
(19,568 |
) |
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(682 |
) |
|
|
(159 |
) |
Net change in cash and cash
equivalents |
|
(10,834 |
) |
|
|
(19,159 |
) |
Cash and cash equivalents,
beginning of period |
|
52,852 |
|
|
|
72,011 |
|
Cash and cash equivalents, end
of period |
$ |
42,018 |
|
|
$ |
52,852 |
|
|
|
|
|
Cash paid for: |
|
|
|
Interest |
$ |
8,339 |
|
|
$ |
6,532 |
|
Income taxes, net |
|
534 |
|
|
|
152 |
|
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
SEGMENT DATA(In
Thousands)(unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 31,2022 |
|
September 30,2022(2) |
|
December 31,2021(3) |
|
December 31,2022(4) |
|
December 31,2021(5) |
Revenues: |
|
|
|
|
|
|
|
|
|
Offshore/Manufactured Products(1): |
|
|
|
|
|
|
|
|
|
Project-driven products |
$ |
44,187 |
|
|
$ |
38,911 |
|
|
$ |
43,603 |
|
|
$ |
158,040 |
|
|
$ |
122,097 |
|
Short-cycle products |
|
24,207 |
|
|
|
23,710 |
|
|
|
18,212 |
|
|
|
92,152 |
|
|
|
65,174 |
|
Other products and services |
|
36,713 |
|
|
|
33,416 |
|
|
|
30,394 |
|
|
|
131,531 |
|
|
|
111,458 |
|
Total Offshore/Manufactured Products |
|
105,107 |
|
|
|
96,037 |
|
|
|
92,209 |
|
|
|
381,723 |
|
|
|
298,729 |
|
Well Site Services |
|
67,689 |
|
|
|
60,509 |
|
|
|
43,336 |
|
|
|
231,189 |
|
|
|
170,940 |
|
Downhole Technologies |
|
29,638 |
|
|
|
32,848 |
|
|
|
25,775 |
|
|
|
124,794 |
|
|
|
103,492 |
|
Total revenues |
$ |
202,434 |
|
|
$ |
189,394 |
|
|
$ |
161,320 |
|
|
$ |
737,706 |
|
|
$ |
573,161 |
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss): |
|
|
|
|
|
|
|
|
|
Offshore/Manufactured Products |
$ |
12,258 |
|
|
$ |
13,373 |
|
|
$ |
7,802 |
|
|
$ |
45,268 |
|
|
$ |
15,447 |
|
Well Site Services |
|
5,300 |
|
|
|
2,359 |
|
|
|
(7,818 |
) |
|
|
4,865 |
|
|
|
(34,511 |
) |
Downhole Technologies |
|
(3,337 |
) |
|
|
(342 |
) |
|
|
(4,525 |
) |
|
|
(6,669 |
) |
|
|
(13,470 |
) |
Corporate |
|
(10,948 |
) |
|
|
(10,332 |
) |
|
|
(6,732 |
) |
|
|
(40,559 |
) |
|
|
(32,258 |
) |
Total operating income
(loss) |
$ |
3,273 |
|
|
$ |
5,058 |
|
|
$ |
(11,273 |
) |
|
$ |
2,905 |
|
|
$ |
(64,792 |
) |
________________(1) Disaggregated revenue data
is provided to supplement the Segment
Data.(2) Operating income (loss) for the three
months ended September 30, 2022 included a litigation-related
settlement gain of $6.1 million related to the
Offshore/Manufactured Products
segment.(3) Operating income (loss) for the three
months ended December 31, 2021 included $0.3 million of
severance and restructuring charges related to the
Offshore/Manufactured Products segment. In the Well Site Services
segment, operating income (loss) included non-cash inventory and
fixed asset impairment charges of $1.5 million and
$0.7 million, respectively, and severance and restructuring
charges of $0.3 million. In the Downhole Technologies segment,
operating income (loss) included severance and restructuring
charges of $0.2 million.(4) Operating income
(loss) for the year ended December 31, 2022 included a
$6.1 million gain on settlement of litigation and
$0.8 million of bad debt expense on receivables from
Russia-based customers within the Offshore/Manufactured Products
segment.(5) Operating income (loss) for the year
ended December 31, 2021 included $0.9 million of
severance and restructuring charges related to the
Offshore/Manufactured Products segment. In the Well Site Services
segment, operating income (loss) included non-cash fixed asset and
operating lease impairment charges of $4.2 million, a non-cash
inventory impairment charge of $1.5 million and severance and
restructuring charges of $4.3 million. In the Downhole
Technologies segment, operating income (loss) included a non-cash
inventory impairment charge of $2.1 million and severance and
restructuring charges of $0.8 million. In Corporate, operating
income (loss) included $1.6 million of severance charges.
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP
FINANCIAL INFORMATION ADJUSTED EBITDA
(A)(In Thousands)(unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 31,2022 |
|
September 30,2022 |
|
December 31,2021 |
|
December 31,2022 |
|
December 31,2021 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
2,885 |
|
|
$ |
2,143 |
|
|
$ |
(19,870 |
) |
|
$ |
(9,540 |
) |
|
$ |
(63,993 |
) |
Interest expense, net |
|
2,333 |
|
|
|
2,637 |
|
|
|
2,577 |
|
|
|
10,280 |
|
|
|
10,170 |
|
Income tax provision (benefit) |
|
(522 |
) |
|
|
769 |
|
|
|
(269 |
) |
|
|
5,480 |
|
|
|
(9,341 |
) |
Depreciation and amortization expense |
|
15,865 |
|
|
|
16,413 |
|
|
|
18,655 |
|
|
|
67,334 |
|
|
|
80,741 |
|
Impairments of inventories |
|
— |
|
|
|
— |
|
|
|
1,468 |
|
|
|
— |
|
|
|
3,581 |
|
Impairments of fixed and lease assets |
|
— |
|
|
|
— |
|
|
|
722 |
|
|
|
— |
|
|
|
4,166 |
|
Settlement of disputes with seller of GEODynamics, Inc. |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
620 |
|
|
|
— |
|
Release of foreign currency translation adjustments on liquidation
of an international operation |
|
— |
|
|
|
— |
|
|
|
9,320 |
|
|
|
— |
|
|
|
9,320 |
|
Gains on extinguishment of 1.50% convertible senior notes |
|
(19 |
) |
|
|
— |
|
|
|
— |
|
|
|
(176 |
) |
|
|
(4,022 |
) |
Severance and restructuring charges |
|
— |
|
|
|
— |
|
|
|
789 |
|
|
|
— |
|
|
|
7,498 |
|
Adjusted EBITDA |
$ |
20,542 |
|
|
$ |
21,962 |
|
|
$ |
13,392 |
|
|
$ |
73,998 |
|
|
$ |
38,120 |
|
________________(A) The term
Adjusted EBITDA consists of net income (loss) plus net interest
expense, taxes, depreciation and amortization expense, and certain
non-cash charges, less gains on extinguishment of 1.50% convertible
senior notes (the "2023 Notes") and adjustments for certain other
items. 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 INFORMATIONADJUSTED SEGMENT EBITDA
(B)(In Thousands)(unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 31,2022 |
|
September 30,2022 |
|
December 31,2021 |
|
December 31,2022 |
|
December 31,2021 |
Offshore/Manufactured
Products: |
|
|
|
|
|
|
|
|
|
Operating income |
$ |
12,258 |
|
|
$ |
13,373 |
|
|
$ |
7,802 |
|
|
$ |
45,268 |
|
|
$ |
15,447 |
|
Other income (expense), net |
|
693 |
|
|
|
(141 |
) |
|
|
21 |
|
|
|
638 |
|
|
|
770 |
|
Depreciation and amortization expense |
|
4,800 |
|
|
|
5,072 |
|
|
|
5,502 |
|
|
|
20,451 |
|
|
|
22,190 |
|
Severance and restructuring charges |
|
— |
|
|
|
— |
|
|
|
330 |
|
|
|
— |
|
|
|
868 |
|
Adjusted Segment EBITDA |
$ |
17,751 |
|
|
$ |
18,304 |
|
|
$ |
13,655 |
|
|
$ |
66,357 |
|
|
$ |
39,275 |
|
|
|
|
|
|
|
|
|
|
|
Well Site
Services: |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
5,300 |
|
|
$ |
2,359 |
|
|
$ |
(7,818 |
) |
|
$ |
4,865 |
|
|
$ |
(34,511 |
) |
Other income, net |
|
711 |
|
|
|
632 |
|
|
|
3,010 |
|
|
|
3,207 |
|
|
|
6,162 |
|
Depreciation and amortization expense |
|
6,505 |
|
|
|
6,732 |
|
|
|
8,511 |
|
|
|
28,564 |
|
|
|
40,152 |
|
Impairments of inventories |
|
— |
|
|
|
— |
|
|
|
1,468 |
|
|
|
— |
|
|
|
1,468 |
|
Impairment of fixed and lease assets |
|
— |
|
|
|
— |
|
|
|
722 |
|
|
|
— |
|
|
|
4,166 |
|
Severance and restructuring charges |
|
— |
|
|
|
— |
|
|
|
257 |
|
|
|
— |
|
|
|
4,266 |
|
Adjusted Segment EBITDA |
$ |
12,516 |
|
|
$ |
9,723 |
|
|
$ |
6,150 |
|
|
$ |
36,636 |
|
|
$ |
21,703 |
|
|
|
|
|
|
|
|
|
|
|
Downhole
Technologies: |
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(3,337 |
) |
|
$ |
(342 |
) |
|
$ |
(4,525 |
) |
|
$ |
(6,669 |
) |
|
$ |
(13,470 |
) |
Other expense, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(86 |
) |
|
|
(6 |
) |
Depreciation and amortization expense |
|
4,379 |
|
|
|
4,442 |
|
|
|
4,455 |
|
|
|
17,628 |
|
|
|
17,591 |
|
Impairment of inventories |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,113 |
|
Severance and restructuring charges |
|
— |
|
|
|
— |
|
|
|
202 |
|
|
|
— |
|
|
|
809 |
|
Adjusted Segment EBITDA |
$ |
1,042 |
|
|
$ |
4,100 |
|
|
$ |
132 |
|
|
$ |
10,873 |
|
|
$ |
7,037 |
|
|
|
|
|
|
|
|
|
|
|
Corporate: |
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(10,948 |
) |
|
$ |
(10,332 |
) |
|
$ |
(6,732 |
) |
|
$ |
(40,559 |
) |
|
$ |
(32,258 |
) |
Other income (expense), net |
|
19 |
|
|
|
— |
|
|
|
(9,320 |
) |
|
|
(444 |
) |
|
|
(5,298 |
) |
Depreciation and amortization expense |
|
181 |
|
|
|
167 |
|
|
|
187 |
|
|
|
691 |
|
|
|
808 |
|
Settlement of disputes with seller of GEODynamics, Inc. |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
620 |
|
|
|
— |
|
Release of foreign currency translation adjustments on liquidation
of an international operation |
|
— |
|
|
|
— |
|
|
|
9,320 |
|
|
|
— |
|
|
|
9,320 |
|
Gains on extinguishment of 1.50% convertible senior notes |
|
(19 |
) |
|
|
— |
|
|
|
— |
|
|
|
(176 |
) |
|
|
(4,022 |
) |
Severance charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,555 |
|
Adjusted Segment EBITDA |
$ |
(10,767 |
) |
|
$ |
(10,165 |
) |
|
$ |
(6,545 |
) |
|
$ |
(39,868 |
) |
|
$ |
(29,895 |
) |
________________(B) The term
Adjusted Segment EBITDA consists of operating income (loss) plus
other income (expense), depreciation and amortization expense, and
certain non-cash charges, less gains on extinguishment of the 2023
Notes and adjustments for certain other items. 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 INFORMATIONRATIO OF NET DEBT TO
ANNUALIZED FOURTH
QUARTER 2022 ADJUSTED
EBITDA (C)(Dollars, In Thousands)(unaudited)
|
December 31,2022 |
Total debt |
$ |
152,897 |
|
Less: cash and cash
equivalents |
|
(42,018 |
) |
Net Debt |
$ |
110,879 |
|
|
|
Fourth quarter 2022 Adjusted
EBITDA |
$ |
20,542 |
|
Annualized fourth quarter 2022
Adjusted EBITDA |
|
82,168 |
|
Ratio of Net Debt to annualized fourth quarter Adjusted EBITDA |
|
1.4 |
x |
________________(C) The Company
has included Net Debt and the ratio of Net Debt to annualized
fourth quarter 2022 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 fourth quarter 2022 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.
Company Contact:
Lloyd A. HajdikOil States International,
Inc.Executive Vice President, Chief Financial Officer and
Treasurer(713) 652-0582SOURCE: Oil States International, Inc.
Grafico Azioni Oil States (NYSE:OIS)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Oil States (NYSE:OIS)
Storico
Da Mag 2023 a Mag 2024