Oceaneering Reports Second Quarter 2018 Results

HOUSTON, July 25, 2018 /PRNewswire/ — Oceaneering International, Inc. (“Oceaneering”) (NYSE:OII) today reported a net loss of $33.1 million, or $(0.34) per share, on revenue of $479 million for the three months ended June 30, 2018.  Excluding the $10.1 million after-tax impacts of adjustments, comprised of foreign currency exchange losses and write-offs of certain equipment and intangibles, adjusted net loss was $23.0 million, or $(0.23) per share.  During the prior quarter ended March 31, 2018, Oceaneering reported a net loss of $49.1 million, or $(0.50) per share, on revenue of $416 million, and an adjusted net loss of $40.2 million, or $(0.41) per share.

Adjusted operating income (loss), operating margin, net income (loss) and earnings (loss) per share, EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins and forecasted 2018 EBITDA) and free cash flow are non-GAAP measures that exclude the impacts of certain identified items.  Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share, EBITDA and EBITDA Margins, 2018 EBITDA Estimates, Free Cash Flow, Adjusted Operating Income (Loss) and Margins by Segment, and EBITDA and Adjusted EBITDA and Margins by Segment.  These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.

Summary of Results

(in thousands, except per share amounts)

Three Months Ended

Six Months Ended

Jun 30,

Mar 31,

Jun 30,

2018

2017

2018

2018

2017

Revenue

$

478,674

$

515,036

$

416,413

$

895,087

$

961,212

Gross Margin

29,728

53,571

18,828

48,556

98,426

Income (Loss) from Operations

(19,637)

9,390

(27,149)

(46,786)

9,240

Net Income (Loss)

(33,076)

2,132

(49,133)

(82,209)

(5,402)

Diluted Earnings (Loss) Per Share

$

(0.34)

$

0.02

$

(0.50)

$

(0.83)

$

(0.06)

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, “The sequential improvement in our adjusted consolidated second quarter 2018 operating results met our expectations, and resulted from profit contributions from each of our operating segments, except Subsea Projects.  We are pleased that each of our operating segments generated positive adjusted EBITDA, and our consolidated adjusted EBITDA of $39.0 million was better than consensus published estimates.

“On a consolidated basis, for the first half of 2018, we have generated $64.2 million of adjusted EBITDA  and at June 30, 2018, we had $340 million in cash, a $500 million unsecured undrawn revolving credit facility, and our nearest loan maturity is not until 2024.

“Operationally, for the second quarter 2018, ROV adjusted operating income improved as expected, resulting from higher seasonal activity for vessel-based services and an increase in the number of working floating rigs for which we provide drill support.  Our fleet mix during the quarter was 62% in drill support and 38% for vessel-based activity, compared to 70% and 30%, for the prior quarter.  Revenue grew 26% on a 24% increase in ROV days on hire, as our average ROV revenue per day on hire was essentially flat compared to the prior quarter.  ROV adjusted EBITDA margin of 31% improved slightly from 29% for the first quarter 2018.

“At the end of June 2018, our fleet size remained at 279 vehicles and utilization improved to 54% from 44%.  At quarter end, we had ROVs on 92, or 60%, of the 154 floating rigs under contract.  At the end of March 2018, we had ROVs on 85, or 58%, of the 147 floating rigs under contract.

“Subsea Products achieved profitability of $3.8 million on an adjusted basis during the second quarter 2018, on a 4% reduction in quarterly revenues.  Our better-than-expected operating results were due to the timing of awards and execution in our manufactured products businesses and an increase in demand for our service and rental business.  Our Subsea Products backlog at June 30, 2018 was $245 million, compared to our March 31, 2018 backlog of $240 million.   Our book-to-bill ratio for the second quarter 2018 was 1.0 and year-to-date was 0.87.

“For the second quarter 2018, Subsea Projects adjusted operating results declined more than expected.  These results were due to lower-than-anticipated margins on certain projects, timing of projects moving into the second half of the year, and a continued competitive price environment for both diving and deepwater vessel services in the U.S. Gulf of Mexico.  Asset Integrity operating income improved as projected, on higher revenue, due to seasonality in the demand for inspection services.

“For our non-energy segment, Advanced Technologies, second quarter 2018 operating income improved as expected, predominantly due to increased government-related work.  In addition, Unallocated Expenses were essentially flat between the second and first quarter 2018.

“For the third quarter 2018, we are expecting an improvement in our overall operating results, compared to the adjusted second quarter, based primarily on Subsea Project’s return to profitability.  We expect each of our other operating segments results to be flat to slightly down.  Unallocated Expenses are expected to continue to be in the upper-$20 million range.

“On an adjusted basis, relative to the first half of 2018, during the second half we expect to generate an improvement in our consolidated operating results on increased revenue, with positive EBITDA contributions from each of our operating segments.  We anticipate improvements to be led by Subsea Projects and Advanced Technologies.  Subsea Projects operating profit is expected to increase from contributions from our recent Ecosse acquisition, and on higher levels of deepwater vessel activity at improved margins.  In our non-energy segment, Advanced Technologies, we expect improved operating income due to increased activity from backlog in our commercial theme park business.

“We expect operating income contribution during the second half of the year from ROV to be higher, compared to the first half.  We are continuing to project increased days on hire, due to both increased drill support and vessel-based activity, leading to our second half overall ROV fleet utilization to be in the low-to-mid 50% range.  We are also expecting to maintain EBITDA margins at approximately 30%.

“For Subsea Products and Asset Integrity, we anticipate our operating results to be similar to the first half of 2018.  Specifically, for Subsea Products, we expect increased manufacturing activity levels on the execution of lower margin projects.  We anticipate our operating margins to be in the low-single digit range until we see an increase in Subsea Products backlog and pricing.  We still project an increase in contract awards during the second half of 2018, which should result in a Subsea Products book-to-bill ratio exceeding 1.0 for the full year.

“We are updating our full year 2018 adjusted EBITDA estimate to be in the range of $140 million to $160 million, with positive EBITDA contributions from each of our operating segments.  This change in our full year guidance reflects narrowing our estimated range for pretax loss by $10 million, estimating depreciation expense at $215 million, and lowering net interest expense to $30 million.  We are raising the lower end of the prior pre-tax guidance range as the level of subsea activity is progressing as we expected.  We are also lowering the upper end of the prior range as the higher margin services call out work necessary for us to achieve the upper end has not materialized.  This change also includes the impact of the late 2018 delivery of the Ocean Evolution.

“As indicated last quarter, we are no longer providing guidance as to our 2018 annual effective tax rate due to the short-term nature of much of our work and a continuous shifting of the geographic mix of our operating revenue and results.  These conditions do not allow for meaningful guidance on an effective tax rate.”

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 and EBITDA guidance for the third quarter, second half, and full year of 2018; anticipated EBITDA, EBITDA contributions from each of its segments, expected contributions of its segments to 2018 operating results; expectations of ROV fleet utilization and EBITDA margins; expectations of Subsea Products margins and book-to-bill ratio; backlog; and overall view of the markets.  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 energy industry.  Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment, and aerospace industries.
For more information on Oceaneering, please visit www.oceaneering.com.

Contact:
Suzanne Spera
Director, Investor Relations
Oceaneering International, Inc.
713-329-4707
investorrelations@oceaneering.com

 

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

Jun 30, 2018

Dec 31, 2017

(in thousands)

ASSETS

Current Assets (including cash and cash equivalents of $339,541 and $430,316)

$

1,114,245

$

1,187,402

Net Property and Equipment

1,014,004

1,064,204

Other Assets

774,499

772,344

TOTAL ASSETS

$

2,902,748

$

3,023,950

LIABILITIES AND EQUITY

Current Liabilities

$

427,376

$

435,797

Long-term Debt

782,228

792,312

Other Long-term Liabilities

122,610

131,323

Equity

1,570,534

1,664,518

TOTAL LIABILITIES AND EQUITY

$

2,902,748

$

3,023,950

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended

For the Six Months Ended

Jun 30, 2018

Jun 30, 2017

Mar 31, 2018

Jun 30, 2018

Jun 30, 2017

(in thousands, except per share amounts)

Revenue

$

478,674

$

515,036

$

416,413

$

895,087

$

961,212

Cost of services and products

448,946

461,465

397,585

846,531

862,786

Gross Margin

29,728

53,571

18,828

48,556

98,426

Selling, general and administrative expense

49,365

44,181

45,977

95,342

89,186

Income (loss) from Operations

(19,637)

9,390

(27,149)

(46,786)

9,240

Interest income

2,950

2,045

2,592

5,542

3,382

Interest expense

(8,802)

(7,599)

(9,371)

(18,173)

(13,867)

Equity losses of unconsolidated affiliates

(737)

(394)

(843)

(1,580)

(1,374)

Other income (expense), net

(3,556)

(58)

(8,474)

(12,030)

(2,614)

Income (loss) before Income Taxes

(29,782)

3,384

(43,245)

(73,027)

(5,233)

Provision (benefit) for income taxes

3,294

1,252

5,888

9,182

169

Net Income (loss)

$

(33,076)

$

2,132

$

(49,133)

$

(82,209)

$

(5,402)

Weighted average diluted shares outstanding

98,531

98,751

98,383

98,457

98,201

Diluted Earnings (Loss) per Share

$

(0.34)

$

0.02

$

(0.50)

$

(0.83)

$

(0.06)

The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company’s latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

 

SEGMENT INFORMATION

For the Three Months Ended

For the Six Months Ended

Jun 30, 2018

Jun 30, 2017

Mar 31, 2018

Jun 30, 2018

Jun 30, 2017

($ in thousands)

Remotely Operated Vehicles

Revenue

$

107,426

$

103,432

$

85,594

$

193,020

$

197,454

Gross Margin

$

12,176

$

16,659

$

4,955

$

17,131

$

29,681

Operating Income (Loss)

$

4,542

$

10,376

$

(2,398)

$

2,144

$

16,301

Operating Income (Loss)%

4

%

10

%

(3)

%

1

%

8

%

Days available

25,386

25,300

25,138

50,524

50,519

Days utilized

13,654

12,267

11,034

24,688

23,755

Utilization

54

%

48

%

44

%

49

%

47

%

Subsea Products

Revenue

$

121,704

$

174,893

$

126,688

$

248,392

$

325,532

Gross Margin

$

16,075

$

22,762

$

15,005

$

31,080

$

47,753

Operating Income

$

2,295

$

10,552

$

1,755

$

4,050

$

22,035

Operating Income %

2

%

6

%

1

%

2

%

7

%

Backlog at end of period

$

245,000

$

328,000

$

240,000

$

245,000

$

328,000

Subsea Projects

Revenue

$

78,036

$

75,545

$

56,860

$

134,896

$

138,501

Gross Margin

$

(5,145)

$

6,462

$

1,117

$

(4,028)

$

10,486

Operating Income (Loss)

$

(10,358)

$

3,000

$

(2,359)

$

(12,717)

$

3,187

Operating Income (Loss) %

(13)

%

4

%

(4)

%

(9)

%

2

%

Asset Integrity

Revenue

$

67,422

$

58,192

$

61,288

$

128,710

$

110,850

Gross Margin

$

9,461

$

10,004

$

8,018

$

17,479

$

18,385

Operating Income

$

3,357

$

3,755

$

1,679

$

5,036

$

6,022

Operating Income %

5

%

6

%

3

%

4

%

5

%

Advanced Technologies

Revenue

$

104,086

$

102,974

$

85,983

$

190,069

$

188,875

Gross Margin

$

13,999

$

14,133

$

7,822

$

21,821

$

24,205

Operating Income

$

7,886

$

7,632

$

1,668

$

9,554

$

12,658

Operating Income %

8

%

7

%

2

%

5

%

7

%

Unallocated Expenses

Gross Margin

$

(16,838)

$

(16,449)

$

(18,089)

$

(34,927)

$

(32,084)

Operating Expense

$

(27,359)

$

(25,925)

$

(27,494)

$

(54,853)

$

(50,963)

TOTAL

Revenue

$

478,674

$

515,036

$

416,413

$

895,087

$

961,212

Gross Margin

$

29,728

$

53,571

$

18,828

$

48,556

$

98,426

Operating Income (Loss)

$

(19,637)

$

9,390

$

(27,149)

$

(46,786)

$

9,240

Operating Income (Loss) %

(4)

%

2

%

(7)

%

(5)

%

1

%

 

SELECTED CASH FLOW INFORMATION

For the Three Months Ended

For the Six Months Ended

Jun 30, 2018

Jun 30, 2017

Mar 31, 2018

Jun 30, 2018

Jun 30, 2017

(in thousands)

Capital expenditures, including acquisitions

$

27,798

$

23,493

$

94,130

$

121,928

$

41,300

Depreciation and Amortization:

Energy Services and Products

Remotely Operated Vehicles

$

28,269

$

29,036

$

27,642

$

55,911

$

58,265

Subsea Products

14,914

12,785

14,025

28,939

25,784

Subsea Projects

13,053

7,781

8,313

21,366

15,861

Asset Integrity

1,836

1,780

1,848

3,684

3,240

Total Energy Services and Products

58,072

51,382

51,828

109,900

103,150

Advanced Technologies

737

784

766

1,503

1,581

Unallocated Expenses

1,034

1,138

1,534

2,568

2,236

Total depreciation and amortization

$

59,843

$

53,304

$

54,128

$

113,971

$

106,967

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, 2018 EBITDA Estimates and Free Cash Flow, as well as the following by segment:  Adjusted Operating Income and Margins, EBITDA, EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins.  We define EBITDA margin as EBITDA divided by revenue.  Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow.  EBITDA and EBITDA margins, Adjusted EBITDA and Adjusted EBITDA margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures.  We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions).  We have included these disclosures in this press release because EBITDA,  EBITDA margins and Free Cash Flow are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts.  Furthermore, our management uses these measures for purposes of evaluating our financial performance.  Our presentation of EBITDA, EBITDA margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report.  Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP.  The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

Adjusted Net Income (Loss) and Diluted Earnings per Share

For the Three Months Ended

Jun 30, 2018

Jun 30, 2017

Mar 31, 2018

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

$

(33,076)

$

(0.34)

$

2,132

$

0.02

$

(49,133)

$

(0.50)

Pre tax adjustments for the effects of:

Property & equipment write-offs

4,233

Intangible asset write-offs

3,458

Foreign currency (gains) losses

3,418

(20)

8,315

Total pre-tax adjustments

11,109

(20)

8,315

Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods

(2,173)

7

(1,746)

Discrete tax items (1)

1,180

2,400

Difference in tax provision on income before taxes in accordance with GAAP (2)

68

Total of adjustments

10,116

55

8,969

Adjusted Net Income (Loss)

$

(22,960)

$

(0.23)

$

2,187

$

0.02

$

(40,164)

$

(0.41)

Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)

98,531

98,751

98,383

For the Six Months Ended

Jun 30, 2018

Jun 30, 2017

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

$

(82,209)

$

(0.83)

$

(5,402)

$

(0.06)

Pre tax adjustments for the effects of:

Property & equipment write-offs

4,233

Intangible asset write-offs

3,458

Foreign currency losses

11,733

2,133

Total pre tax adjustments

19,424

2,133

Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods

(3,919)

(747)

Discrete tax items (1)

3,580

2,106

Difference in tax provision on income before taxes in accordance with GAAP (2)

(105)

Total of adjustments

19,085

3,387

Adjusted net income

$

(63,124)

$

(0.64)

$

(2,015)

$

(0.02)

Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)

98,457

98,201

Notes:

(1)

Discrete items consist of share-based compensation, uncertain tax positions and adjustments to previous estimates upon filing various international tax returns for the three and six months ended June 30, 2018 and share-based compensation for the three and six months ended June 30, 2017.

(2)

For consistency in presentation, the difference in tax provision on income before taxes is computed using the U.S. statutory rate of 35% for 2017, in determining Adjusted Net Income (Loss) for the respective periods.  This is not calculated for the three months and six months ended June 30, 2018 due to changes in U.S. tax law.

 

EBITDA and EBITDA Margins

For the Three Months Ended

For the Six Months Ended

Jun 30, 2018

Jun 30, 2017

Mar 31, 2018

Jun 30, 2018

Jun 30, 2017

($ in thousands)

Net Income (Loss)

$

(33,076)

$

2,132

$

(49,133)

$

(82,209)

$

(5,402)

Depreciation and Amortization

59,843

53,304

54,128

113,971

106,967

Subtotal

26,767

55,436

4,995

31,762

101,565

Interest Expense, net of Interest Income

5,852

5,554

6,779

12,631

10,485

Amortization included in Interest Expense

(333)

(283)

(774)

(1,107)

(566)

Provision (Benefit) for Income Taxes

3,294

1,252

5,888

9,182

169

EBITDA

$

35,580

$

61,959

$

16,888

$

52,468

$

111,653

Revenue

$

478,674

$

515,036

$

416,413

$

895,087

$

961,212

EBITDA margin %

7

%

12

%

4

%

6

%

12

%

 

2018 EBITDA Estimates

Low

High

(in thousands)

Loss before income taxes

$

(105,000)

(85,000)

Depreciation and amortization

215,000

215,000

Subtotal

110,000

130,000

Interest expense, net of interest income

30,000

30,000

EBITDA

$

140,000

$

160,000

Free Cash Flow

For the Six Months Ended

Jun 30, 2018

Jun 30, 2017

(in thousands)

Net Loss

$

(82,209)

$

(5,402)

Depreciation and amortization

113,971

106,967

Other increases (decreases) in cash from operating activities

(16,077)

1,039

Cash flow provided by operating activities

15,685

102,604

Purchases of property and equipment

(53,530)

(41,300)

Free Cash Flow

$

(37,845)

$

61,304

 

Adjusted Operating Income (Loss) and Margins by Segment

For the Three Months Ended June 30, 2018

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses

Total

($ in thousands)

Operating income (loss) as reported in accordance with GAAP

$

4,542

$

2,295

$

(10,358)

$

3,357

$

7,886

$

(27,359)

$

(19,637)

Adjustments for the effects of:

Property & equipment write-offs

617

1,531

2,085

4,233

Intangible asset write-offs

3,458

3,458

Total of adjustments

617

1,531

5,543

7,691

Adjusted operating income (loss)

$

5,159

$

3,826

$

(4,815)

$

3,357

$

7,886

$

(27,359)

$

(11,946)

Revenue

$

107,426

$

121,704

$

78,036

$

67,422

$

104,086

$

478,674

Operating income (loss) % as reported in accordance with GAAP

4

%

2

%

(13)

%

5

%

8

%

(4)

%

Operating income (loss)% using adjusted amounts

5

%

3

%

(6)

%

5

%

8

%

(2)

%

For the Three Months Ended June 30, 2017

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses

Total

($ in thousands)

Operating income (loss) as reported in accordance with GAAP

$

10,376

$

10,552

$

3,000

$

3,755

$

7,632

$

(25,925)

$

9,390

Adjusted operating income (loss)

$

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

%

 

Adjusted Operating Income (Loss) and Margins by Segment

For the Three Months Ended March 31, 2018

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses

Total

($ in thousands)

Operating income (loss) as reported in accordance with GAAP

$

(2,398)

$

1,755

$

(2,359)

$

1,679

$

1,668

$

(27,494)

$

(27,149)

Adjusted operating income (loss)

$

(2,398)

$

1,755

$

(2,359)

$

1,679

$

1,668

$

(27,494)

$

(27,149)

Revenue

$

85,594

$

126,688

$

56,860

$

61,288

$

85,983

$

416,413

Operating income (loss) % as reported in accordance with GAAP

(3)

%

1

%

(4)

%

3

%

2

%

(7)

%

Operating income (loss) % using adjusted amounts

(3)

%

1

%

(4)

%

3

%

2

%

(7)

%

 

Adjusted Operating Income (Loss) and Margins by Segment

For the Six Months Ended June 30, 2018

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses

Total

($ in thousands)

Operating income (loss) as reported in accordance with GAAP

$

2,144

$

4,050

$

(12,717)

$

5,036

$

9,554

$

(54,853)

$

(46,786)

Adjustments for the effects of:

Property & equipment write-offs

617

1,531

2,085

4,233

Intangible asset write-offs

3,458

3,458

Total of adjustments

617

1,531

5,543

7,691

Adjusted operating income (loss)

$

2,761

$

5,581

$

(7,174)

$

5,036

$

9,554

$

(54,853)

$

(39,095)

Revenue

$

193,020

$

248,392

$

134,896

$

128,710

$

190,069

$

895,087

Operating income (loss) % as reported in accordance with GAAP

1

%

2

%

(9)

%

4

%

5

%

(5)

%

Operating income (loss) % using adjusted amounts

1

%

2

%

(5)

%

4

%

5

%

(4)

%

For the Six Months Ended June 30, 2017

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses

Total

($ in thousands)

Operating income as reported in accordance with GAAP

$

16,301

$

22,035

$

3,187

$

6,022

$

12,658

$

(50,963)

$

9,240

Adjusted operating income

$

16,301

$

22,035

$

3,187

$

6,022

$

12,658

$

(50,963)

$

9,240

Revenue

$

197,454

$

325,532

$

138,501

$

110,850

$

188,875

$

961,212

Operating income % as reported in accordance with GAAP

8

%

7

%

2

%

5

%

7

%

1

%

Operating income % using adjusted amounts

8

%

7

%

2

%

5

%

7

%

1

%

 

EBITDA and Adjusted EBITDA and Margins by Segment

For the Three Months Ended June 30, 2018

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses
and other

Total

($ in thousands)

Operating income (loss) as reported in accordance with GAAP

$

4,542

$

2,295

$

(10,358)

$

3,357

$

7,886

$

(27,359)

$

(19,637)

Adjustments for the effects of:

Depreciation and amortization

28,269

14,914

13,053

1,836

737

1,034

59,843

Other pre-tax

(4,626)

(4,626)

EBITDA

32,811

17,209

2,695

5,193

8,623

(30,951)

35,580

Adjustments for the effects of:

Foreign currency (gains) losses

3,418

3,418

Total of adjustments

3,418

3,418

Adjusted EBITDA

$

32,811

$

17,209

$

2,695

$

5,193

$

8,623

$

(27,533)

$

38,998

Revenue

$

107,426

$

121,704

$

78,036

$

67,422

$

104,086

$

478,674

Operating income (loss) % as reported in accordance with GAAP

4

%

2

%

(13)

%

5

%

8

%

(4)

%

EBITDA Margin

31

%

14

%

3

%

8

%

8

%

7

%

Adjusted EBITDA Margin

31

%

14

%

3

%

8

%

8

%

8

%

For the Three Months Ended June 30, 2017

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses
and other

Total

($ in thousands)

Operating income (loss) 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)

Total of adjustments

(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

%

 

EBITDA and Adjusted EBITDA and Margins by Segment

For the Three Months Ended March 31, 2018

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses
and other

Total

($ in thousands)

Operating income (loss) as reported in accordance with GAAP

$

(2,398)

$

1,755

$

(2,359)

$

1,679

$

1,668

$

(27,494)

$

(27,149)

Adjustments for the effects of:

Depreciation and amortization

27,642

14,025

8,313

1,848

766

1,534

54,128

Other pre-tax

(10,091)

(10,091)

EBITDA

25,244

15,780

5,954

3,527

2,434

(36,051)

16,888

Adjustments for the effects of:

Foreign currency (gains) losses

8,315

8,315

8,315

8,315

Adjusted EBITDA

$

25,244

$

15,780

$

5,954

$

3,527

$

2,434

$

(27,736)

$

25,203

Revenue

$

85,594

$

126,688

$

56,860

$

61,288

$

85,983

$

416,413

Operating income (loss) % as reported in accordance with GAAP

(3)

%

1

%

(4)

%

3

%

2

%

(7)

%

EBITDA Margin

29

%

12

%

10

%

6

%

3

%

4

%

Adjusted EBITDA Margin

29

%

12

%

10

%

6

%

3

%

6

%

 

EBITDA and Adjusted EBITDA and Margins by Segment

For the Six Months Ended June 30, 2018

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses
and other

Total

($ in thousands)

Operating income (loss) as reported in accordance with GAAP

$

2,144

$

4,050

$

(12,717)

$

5,036

$

9,554

$

(54,853)

$

(46,786)

Adjustments for the effects of:

Depreciation and amortization

55,911

28,939

21,366

3,684

1,503

2,568

113,971

Other pre-tax

(14,717)

(14,717)

EBITDA

58,055

32,989

8,649

8,720

11,057

(67,002)

52,468

Adjustments for the effects of:

Foreign currency (gains) losses

11,733

11,733

Total of adjustments

11,733

11,733

Adjusted EBITDA

$

58,055

$

32,989

$

8,649

$

8,720

$

11,057

$

(55,269)

$

64,201

Revenue

$

193,020

$

248,392

$

134,896

$

128,710

$

190,069

$

895,087

Operating income (loss) % as reported in accordance with GAAP

1

%

2

%

(9)

%

4

%

5

%

(5)

%

EBITDA Margin

30

%

13

%

6

%

7

%

6

%

6

%

Adjusted EBITDA Margin

30

%

13

%

6

%

7

%

6

%

7

%

For the Six Months Ended June 30, 2017

Remotely
Operated
Vehicles

Subsea
Products

Subsea
Projects

Asset
Integrity

Advanced
Tech.

Unalloc.
Expenses
and other

Total

($ in thousands)

Operating income (loss) as reported in accordance with GAAP

$

16,301

$

22,035

$

3,187

$

6,022

$

12,658

$

(50,963)

$

9,240

Adjustments for the effects of:

Depreciation and amortization

58,265

25,784

15,861

3,240

1,581

2,236

106,967

Other pre-tax

(4,554)

(4,554)

EBITDA

74,566

47,819

19,048

9,262

14,239

(53,281)

111,653

Adjustments for the effects of:

Foreign currency (gains) losses

2,133

2,133

Total of adjustments

2,133

2,133

Adjusted EBITDA

$

74,566

$

47,819

$

19,048

$

9,262

$

14,239

$

(51,148)

$

113,786

Revenue

$

197,454

$

325,532

$

138,501

$

110,850

$

188,875

$

961,212

Operating income % as reported in accordance with GAAP

8

%

7

%

2

%

5

%

7

%

1

%

EBITDA Margin

38

%

15

%

14

%

8

%

8

%

12

%

Adjusted EBITDA Margin

38

%

15

%

14

%

8

%

8

%

12

%

 

Cision View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-second-quarter-2018-results-300686689.html

SOURCE Oceaneering International, Inc.

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