OII Oceaneering International Inc

Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $15.1 million, or $0.15 per share, on revenue of $599 million for the three months ended March 31, 2024. Adjusted net income was $13.9 million, or $0.14 per share, reflecting the positive impact of $(2.2) million in foreign exchange gains, and the associated $0.8 million of tax effects, along with $0.2 million of expenses related to discrete tax adjustments.

Summary of Results

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

Mar 31,

 

Dec 31,

 

 

 

 

 

 

2024

 

 

2023

 

 

2023

 

 

 

 

 

 

 

Revenue

 

$

599,092

 

$

536,987

 

$

654,629

Gross Margin

 

 

92,384

 

 

77,565

 

 

105,629

Income (Loss) from Operations

 

 

36,693

 

 

26,750

 

 

47,450

Net Income (Loss)

 

 

15,135

 

 

4,060

 

 

44,529

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Share

 

$

0.15

 

$

0.04

 

$

0.43

 

For the first quarter of 2024:

• Net income was $15.1 million and consolidated adjusted EBITDA was $61.7 million
• Consolidated operating income was $36.7 million
• Cash flow used in operating activities was $69.7 million and free cash flow was $(95.2) million, with an ending cash position of $355 million

As of March 31, 2024:

• Remotely Operated Vehicles (ROV): fleet count was 250; Q1 utilization was 64%; and Q1 average revenue per day on hire was $10,009
• Manufactured Products backlog was $597 million

Confirmed prior guidance for 2024:

• Net income is expected in the range of $125 million to $155 million
• Consolidated EBITDA is expected in the range of $330 million to $380 million
• Free cash flow generation is expected in the range of $110 million to $150 million
• Capital expenditures are expected in the range of $110 million to $130 million

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "We are encouraged by our first quarter 2024 results. Our adjusted EBITDA was higher than guided, on better-than-expected activity levels across our businesses. Compared to the same quarter last year, our consolidated first quarter 2024 operating income was 37% higher on a 12% increase in revenue, with higher revenue in all of our business segments and improved operating income in each segment except for our Offshore Projects Group (OPG). These results, when combined with our backlog and current levels of bidding activity, support our unchanged guidance for the year."

First Quarter 2024 Segment Results v. First Quarter 2023 Segment Results

Subsea Robotics (SSR) first quarter 2024 operating income of $44.2 million was 31% higher than the first quarter of 2023. EBITDA margin improved to 31%, as compared to the 29% margin achieved in the first quarter of 2023.

Average ROV revenue per day on hire of $10,009 was 9% higher, utilization improved to 64%, and days on hire increased 2% to 14,536. ROV fleet use during the quarter was 66% in drill support and 34% in vessel-based activity, compared to 65% and 35%, respectively, in the first quarter of the prior year.

Manufactured Products operating income improved 17% on a 15% increase in revenue compared to the first quarter of 2023, while operating income margin remained flat at 10%. Backlog was $597 million on March 31, 2024, an increase of $151 million compared to backlog on March 31, 2023. The book-to-bill ratio was 1.30 for the 12-month period ending March 31, 2024, as compared to the book-to-bill ratio of 1.27 for the same period last year.

OPG operating income declined as expected due to drydock expenses incurred during the first quarter of 2024, on an increase in revenue compared to the first quarter of 2023. Operating income margin declined to 1% in the first quarter, from 5% in the first quarter of 2023.

Integrity Management and Digital Solutions (IMDS) operating income improved year over year on a 16% increase in revenue. Operating income margin of 5% was flat.

Aerospace and Defense Technologies (ADTech) operating income increased by $4.3 million. Revenue increased 8% and operating income margin improved to 13% from 9% in the first quarter of 2023.

At the corporate level, Unallocated Expenses of $38 million were below guidance for the quarter but higher than the same period last year.

Second Quarter 2024 Guidance

For the second quarter of 2024, as compared to the first quarter 2024:

• OPG activity levels and operating profitability are expected to be significantly higher;
• SSR and Manufactured Products activity levels and operating profitability are expected to be higher;
• IMDS and ADTech activity levels are expected to be flat and operating profitability is expected to be slightly lower; and
• Unallocated Expenses are forecasted to be in the $40 million range, consistent with prior guidance.

On a consolidated basis, second quarter 2024 operating results are expected to improve, with EBITDA in the range of $80 million to $90 million on a mid-teens percentage increase in revenue.

Updated Full-Year 2024 Guidance

Full-year 2024 consolidated and segment guidance remains the same as provided in the fourth quarter 2023 earnings release, inclusive of the following clarification and addition:

• SSR revenue increase is expected to be in the low- to mid-teens percentage range; and
• Manufactured Products book-to-bill ratio is expected to be in the range of 1.1 to 1.3 for the full year.

Non-GAAP Financial Measures

Adjusted net income (loss) and earnings (loss) per share; EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins); and free cash flow are non-GAAP measures 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 (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2024 Adjusted EBITDA and Free Cash Flow Estimates, 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.

Conference Call Details

Oceaneering has scheduled a conference call and webcast on Thursday, April 25, 2024 at 9:00 a.m. Central Time, to discuss its results for the first quarter of 2024, as well as more detailed guidance for the full year and second quarter of 2024. Interested parties may listen to the call through a webcast link posted in the Investor Relations section of Oceaneering's website. A replay of the conference call will be made available on the website approximately two hours following the conclusion of the live call.

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, future expected business and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering’s: full-year 2024 guidance ranges for net income, consolidated EBITDA, free cash flow generation, capital expenditures, SSR revenue, and Manufactured Products book-to-bill ratio; second-quarter 2024 guidance for consolidated EBITDA, operating segment revenues, operating results, operating profitability, segment activity levels, and Unallocated Expenses; full-year 2024 sequential activity and operating performance across each operating segment, led by OPG, SSR, and Manufactured Products; expectation that 2024 will generate substantial free cash flow; expectations for improved financial performance and condition in 2024, including activity levels by segment; and the characterization, whether positive or otherwise, of market fundamentals, conditions, and dynamics, robotics markets, offshore energy activity levels (including by geographic location), pricing levels, day rates, ROV days on hire, average ROV revenue per day on hire, vessel utilization, growth, bidding activity, outlook, performance, opportunities, and future financials, including as increasing, favorable, positive, encouraging, improving, seasonal, strong, supportive, robust, meaningful, healthy, or significant (which is used herein to indicate a change of 20% or greater).

The forward-looking statements included in this release are based on Oceaneering's 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, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth, and the supply and demand of offshore drilling rigs; the indirect consequences of climate change and climate-related business trends; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development, and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; cancellations of contracts, change orders and other contractual modifications, force majeure declarations, and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms, and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in data privacy and security laws, regulations, and standards; changes in tax laws, regulations, and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development, and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military, and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts, or terrorist attacks. 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. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.

Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries.

For more information on Oceaneering, please visit www.oceaneering.com.

- Tables follow on next page -

 

 

 

 

 

 

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

Mar 31, 2024

 

Dec 31, 2023

 

 

 

(in thousands)

ASSETS

 

 

 

 

 

Current assets (including cash and cash equivalents of $354,697 and $461,566)

 

$

1,237,492

 

 

$

1,305,659

 

Net property and equipment

 

 

422,089

 

 

 

424,293

 

Other assets

 

 

 

569,296

 

 

 

509,054

 

Total Assets

 

$

2,228,877

 

 

$

2,239,006

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities

 

 

$

703,378

 

 

$

732,476

 

Long-term debt

 

 

 

478,173

 

 

 

477,058

 

Other long-term liabilities

 

 

418,183

 

 

 

395,389

 

Equity

 

 

 

629,143

 

 

 

634,083

 

Total Liabilities and Equity

 

$

2,228,877

 

 

$

2,239,006

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

For the Three Months Ended

 

Mar 31, 2024

 

Mar 31, 2023

 

Dec 31, 2023

 

(in thousands, except per share amounts)

 

 

 

 

 

 

Revenue

$

599,092

 

 

$

536,987

 

 

$

654,629

 

Cost of services and products

 

506,708

 

 

 

459,422

 

 

 

549,000

 

Gross margin

 

92,384

 

 

 

77,565

 

 

 

105,629

 

Selling, general and administrative expense

 

55,691

 

 

 

50,815

 

 

 

58,179

 

Income (loss) from operations

 

36,693

 

 

 

26,750

 

 

 

47,450

 

Interest income

 

3,040

 

 

 

4,466

 

 

 

3,081

 

Interest expense

 

(9,204

)

 

 

(9,283

)

 

 

(7,921

)

Equity in income (losses) of unconsolidated affiliates

 

169

 

 

 

639

 

 

 

445

 

Other income (expense), net

 

1,480

 

 

 

78

 

 

 

3,564

 

Income (loss) before income taxes

 

32,178

 

 

 

22,650

 

 

 

46,619

 

Provision (benefit) for income taxes

 

17,043

 

 

 

18,590

 

 

 

2,090

 

Net Income (Loss)

$

15,135

 

 

$

4,060

 

 

$

44,529

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

102,250

 

 

 

102,029

 

 

 

102,366

 

Diluted earnings (loss) per share

$

0.15

 

 

$

0.04

 

 

$

0.43

 

 

 

 

 

 

 

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

 

 

 

 

 

Mar 31, 2024

 

Mar 31, 2023

 

Dec 31, 2023

 

 

 

 

($ in thousands)

Subsea Robotics

 

 

 

 

 

 

 

 

Revenue

 

 

$

186,932

 

 

$

169,161

 

 

$

199,505

 

Gross margin

 

 

$

56,776

 

 

$

44,631

 

 

$

64,085

 

Operating income (loss)

 

 

$

44,237

 

 

$

33,654

 

 

$

50,594

 

Operating income (loss) %

 

 

 

24

%

 

 

20

%

 

 

25

%

ROV days available

 

 

 

22,750

 

 

 

22,500

 

 

 

23,000

 

ROV days utilized

 

 

 

14,536

 

 

 

14,228

 

 

 

15,682

 

ROV utilization

 

 

 

64

%

 

 

63

%

 

 

68

%

 

 

 

 

 

 

 

 

 

 

Manufactured Products

 

 

 

 

 

 

 

 

Revenue

 

 

$

129,453

 

 

$

112,939

 

 

$

132,994

 

Gross margin

 

 

$

22,461

 

 

$

19,754

 

 

$

13,923

 

Operating income (loss)

 

 

$

13,190

 

 

$

11,280

 

 

$

5,435

 

Operating income (loss) %

 

 

 

10

%

 

 

10

%

 

 

4

%

Backlog at end of period

 

 

$

597,000

 

 

$

446,000

 

 

$

622,000

 

 

 

 

 

 

 

 

 

 

 

Offshore Projects Group

 

 

 

 

 

 

 

 

 

Revenue

 

 

$

115,054

 

 

$

104,307

 

 

$

161,239

 

Gross margin

 

 

$

8,968

 

 

$

13,024

 

 

$

26,269

 

Operating income (loss)

 

 

$

844

 

 

$

5,514

 

 

$

15,155

 

Operating income (loss) %

 

 

 

1

%

 

 

5

%

 

 

9

%

 

 

 

 

 

 

 

 

 

 

Integrity Management & Digital Solutions

 

 

 

 

 

 

 

 

Revenue

 

 

$

69,690

 

 

$

60,083

 

 

$

65,977

 

 

Gross margin

 

 

$

9,896

 

 

$

8,849

 

 

$

9,914

 

Operating income (loss)

 

 

$

3,615

 

 

$

3,082

 

 

$

3,205

 

Operating income (loss) %

 

 

 

5

%

 

 

5

%

 

 

5

%

 

 

 

 

 

 

 

 

 

 

Aerospace and Defense Technologies

 

 

 

 

 

 

 

 

Revenue

 

 

$

97,963

 

 

$

90,497

 

 

$

94,914

 

 

Gross margin

 

 

$

18,803

 

 

$

15,100

 

 

$

17,350

 

Operating income (loss)

 

 

$

12,808

 

 

$

8,496

 

 

$

11,010

 

Operating income (loss) %

 

 

 

13

%

 

 

9

%

 

 

12

%

 

 

 

 

 

 

 

 

 

Unallocated Expenses

 

 

 

 

 

 

 

 

 

Gross margin

 

 

$

(24,520

)

 

$

(23,793

)

 

$

(25,912

)

Operating income (loss)

 

 

$

(38,001

)

 

$

(35,276

)

 

$

(37,949

)

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

$

599,092

 

 

$

536,987

 

 

$

654,629

 

 

Gross margin

 

 

$

92,384

 

 

$

77,565

 

 

$

105,629

 

Operating income (loss)

 

 

$

36,693

 

 

$

26,750

 

 

$

47,450

 

Operating income (loss) %

 

 

 

6

%

 

 

5

%

 

 

7

%

 

The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption "Reconciliations of Non-GAAP to GAAP Financial Information" for financial measures that our management considers in evaluating our ongoing operations.

 

SELECTED CASH FLOW INFORMATION

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

Mar 31, 2024

 

Mar 31, 2023

 

Dec 31, 2023

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

Capital Expenditures, including Acquisitions

 

 

$

25,518

 

$

18,308

 

$

34,045

 

 

 

 

 

 

 

 

Depreciation and Amortization:

 

 

 

 

 

 

 

Energy Services and Products

 

 

 

 

 

 

 

Subsea Robotics

 

 

$

12,810

 

$

14,940

 

$

13,264

Manufactured Products

 

 

 

3,175

 

 

3,044

 

 

3,096

Offshore Projects Group

 

 

 

6,435

 

 

7,128

 

 

6,921

Integrity Management & Digital Solutions

 

 

 

1,259

 

 

858

 

 

902

Total Energy Services and Products

 

 

 

23,679

 

 

25,970

 

 

24,183

Aerospace and Defense Technologies

 

 

 

603

 

 

653

 

 

619

Unallocated Expenses

 

 

 

2,776

 

 

1,198

 

 

695

Total Depreciation and Amortization

 

 

$

27,058

 

$

27,821

 

$

25,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 certain rules and regulations promulgated by the Securities and Exchange Commission). We have included Adjusted Net Income (Loss) and Diluted Earnings (Loss) 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, 2023 Adjusted EBITDA Estimates, and Free Cash Flow, as well as the following by segment: EBITDA, EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins. We define EBITDA Margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins 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 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 purposes and for comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

Mar 31, 2024

Mar 31, 2023

Dec 31, 2023

 

 

 

Net Income (Loss)

 

Diluted EPS

 

Net Income (Loss)

 

Diluted EPS

 

Net Income (Loss)

 

Diluted EPS

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

Net income (loss) and diluted EPS as reported in accordance with GAAP

 

$

15,135

 

 

$

0.15

 

$

4,060

 

 

$

0.04

 

$

44,529

 

 

$

0.43

 

Pre-tax adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

(2,197

)

 

 

 

 

(267

)

 

 

 

 

(2,275

)

 

 

 

Total pre-tax adjustments

 

 

(2,197

)

 

 

 

 

(267

)

 

 

 

 

(2,275

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

790

 

 

 

 

 

84

 

 

 

 

 

851

 

 

 

 

Discrete tax items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

(1,926

)

 

 

 

 

(1,367

)

 

 

 

 

(58

)

 

 

 

Uncertain tax positions

 

 

(149

)

 

 

 

 

89

 

 

 

 

 

(2,036

)

 

 

 

Valuation allowances

 

 

4,571

 

 

 

 

 

3,576

 

 

 

 

 

(20,350

)

 

 

 

Other

 

 

(2,336

)

 

 

 

 

(793

)

 

 

 

 

(1,230

)

 

 

 

Total discrete tax adjustments

 

 

160

 

 

 

 

 

1,505

 

 

 

 

 

(23,674

)

 

 

 

Total of adjustments

 

 

(1,247

)

 

 

 

 

1,322

 

 

 

 

 

(25,098

)

 

 

 

Adjusted Net Income (Loss)

 

$

13,888

 

 

$

0.14

 

$

5,382

 

 

$

0.05

 

$

19,431

 

 

$

0.19

 

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

 

 

 

 

102,250

 

 

 

 

102,029

 

 

 

 

102,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA and Adjusted EBITDA and Margins

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

Mar 31, 2024

 

Mar 31, 2023

 

Dec 31, 2023

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

Net income (loss)

 

 

$

15,135

 

 

$

4,060

 

 

$

44,529

 

Depreciation and amortization

 

 

 

27,058

 

 

 

27,821

 

 

 

25,497

 

Subtotal

 

 

 

42,193

 

 

 

31,881

 

 

 

70,026

 

Interest expense, net of interest income

 

 

6,164

 

 

 

4,817

 

 

 

4,840

 

Amortization included in interest expense

 

 

(1,479

)

 

 

26

 

 

 

460

 

Provision (benefit) for income taxes

 

 

 

17,043

 

 

 

18,590

 

 

 

2,090

 

EBITDA

 

 

 

63,921

 

 

 

55,314

 

 

 

77,416

 

Adjustments for the effects of:

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

(2,197

)

 

 

(267

)

 

 

(2,275

)

Total of adjustments

 

 

 

(2,197

)

 

 

(267

)

 

 

(2,275

)

Adjusted EBITDA

 

 

$

61,724

 

 

$

55,047

 

 

$

75,141

 

 

 

 

 

 

 

 

 

Revenue

 

 

$

599,092

 

 

$

536,987

 

 

$

654,629

 

 

 

 

 

 

 

 

 

EBITDA margin %

 

 

 

11

%

 

 

10

%

 

 

12

%

Adjusted EBITDA margin %

 

 

 

10

%

 

 

10

%

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

Mar 31, 2024

 

Mar 31, 2023

 

Dec 31, 2023

 

 

(in thousands)

Net Income (loss)

 

$

15,135

 

 

$

4,060

 

 

$

44,529

 

Non-cash adjustments:

 

 

 

 

 

Depreciation and amortization

 

 

27,058

 

 

 

27,821

 

 

 

25,497

 

Other non-cash

 

 

2,682

 

 

 

(188

)

 

 

(22,486

)

Other increases (decreases) in cash from operating activities

 

(114,592

)

 

 

(74,612

)

 

 

105,275

 

Cash flow provided by (used in) operating activities

 

(69,717

)

 

 

(42,919

)

 

 

152,815

 

Purchases of property and equipment

 

(25,518

)

 

 

(18,308

)

 

 

(34,045

)

Free Cash Flow

$

(95,235

)

 

$

(61,227

)

 

$

118,770

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 EBITDA Estimates

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

 

June 30, 2024

 

 

 

 

Low

 

High

 

 

 

 

(in thousands)

Income (loss) before income taxes

 

 

 

$

50,000

 

 

$

56,000

 

Depreciation and amortization

 

 

 

 

24,000

 

 

 

27,000

 

Subtotal

 

 

 

 

74,000

 

 

 

83,000

 

Interest expense, net of interest income

 

 

 

 

6,000

 

 

 

7,000

 

EBITDA

 

 

 

$

80,000

 

 

$

90,000

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

 

 

December 31, 2024

 

 

 

 

Low

 

High

 

 

 

 

(in thousands)

Income (loss) before income taxes

 

 

 

$

206,000

 

 

$

242,000

 

Depreciation and amortization

 

 

 

 

100,000

 

 

 

110,000

 

Subtotal

 

 

 

 

306,000

 

 

 

352,000

 

Interest expense, net of interest income

 

 

 

 

24,000

 

 

 

28,000

 

EBITDA

 

 

 

$

330,000

 

 

$

380,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024 Free Cash Flow Estimate

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

 

 

December 31, 2024

 

 

 

 

Low

 

High

 

 

 

 

(in thousands)

Net income (loss)

 

 

 

$

125,000

 

 

$

155,000

 

Depreciation and amortization

 

 

 

 

100,000

 

 

 

110,000

 

Other increases (decreases) in cash from operating activities

 

 

(5,000

)

 

 

15,000

 

Cash flow provided by (used in) operating activities

 

 

220,000

 

 

 

280,000

 

Purchases of property and equipment

 

 

 

 

(110,000

)

 

 

(130,000

)

Free Cash Flow

 

 

 

$

110,000

 

 

$

150,000

 

 

 

 

 

 

 

 

EBITDA and Adjusted EBITDA and Margins by Segment

 

 

 

For the Three Months Ended March 31, 2024

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

44,237

 

 

$

13,190

 

 

$

844

 

 

$

3,615

 

 

$

12,808

 

 

$

(38,001

)

 

$

36,693

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

12,810

 

 

 

3,175

 

 

 

6,435

 

 

 

1,259

 

 

 

603

 

 

 

2,776

 

 

 

27,058

 

Other pre-tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

170

 

 

 

170

 

EBITDA

 

 

57,047

 

 

 

16,365

 

 

 

7,279

 

 

 

4,874

 

 

 

13,411

 

 

 

(35,055

)

 

 

63,921

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,197

)

 

 

(2,197

)

Total of adjustments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,197

)

 

 

(2,197

)

Adjusted EBITDA

 

$

57,047

 

 

$

16,365

 

 

$

7,279

 

 

$

4,874

 

 

$

13,411

 

 

$

(37,252

)

 

$

61,724

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

186,932

 

 

$

129,453

 

 

$

115,054

 

 

$

69,690

 

 

$

97,963

 

 

 

 

$

599,092

 

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

 

 

24

%

 

 

10

%

 

 

1

%

 

 

5

%

 

 

13

%

 

 

 

6

%

EBITDA Margin

 

 

31

%

 

 

13

%

 

 

6

%

 

 

7

%

 

 

14

%

 

 

 

11

%

Adjusted EBITDA Margin

 

 

31

%

 

 

13

%

 

 

6

%

 

 

7

%

 

 

14

%

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2023

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

33,654

 

 

$

11,280

 

 

$

5,514

 

 

$

3,082

 

 

$

8,496

 

 

$

(35,276

)

 

$

26,750

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

14,940

 

 

 

3,044

 

 

 

7,128

 

 

 

858

 

 

 

653

 

 

 

1,198

 

 

 

27,821

 

Other pre-tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

743

 

 

 

743

 

EBITDA

 

 

48,594

 

 

 

14,324

 

 

 

12,642

 

 

 

3,940

 

 

 

9,149

 

 

 

(33,335

)

 

 

55,314

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(267

)

 

 

(267

)

Total of adjustments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(267

)

 

 

(267

)

Adjusted EBITDA

 

$

48,594

 

 

$

14,324

 

 

$

12,642

 

 

$

3,940

 

 

$

9,149

 

 

$

(33,602

)

 

$

55,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

169,161

 

 

$

112,939

 

 

$

104,307

 

 

$

60,083

 

 

$

90,497

 

 

 

 

$

536,987

 

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

 

 

20

%

 

 

10

%

 

 

5

%

 

 

5

%

 

 

9

%

 

 

 

 

5

%

EBITDA Margin

 

 

29

%

 

 

13

%

 

 

12

%

 

 

7

%

 

 

10

%

 

 

 

 

10

%

Adjusted EBITDA Margin

 

 

29

%

 

 

13

%

 

 

12

%

 

 

7

%

 

 

10

%

 

 

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA and Adjusted EBITDA and Margins by Segment

 

 

 

For the Three Months Ended December 31, 2023

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

50,594

 

 

$

5,435

 

 

$

15,155

 

 

$

3,205

 

 

$

11,010

 

 

$

(37,949

)

 

$

47,450

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

13,264

 

 

 

3,096

 

 

 

6,921

 

 

 

902

 

 

 

619

 

 

 

695

 

 

 

25,497

 

Other pre-tax

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,469

 

 

 

4,469

 

EBITDA

 

 

63,858

 

 

 

8,531

 

 

 

22,076

 

 

 

4,107

 

 

 

11,629

 

 

 

(32,785

)

 

 

77,416

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,275

)

 

 

(2,275

)

Total of adjustments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2,275

)

 

 

(2,275

)

Adjusted EBITDA

 

$

63,858

 

 

$

8,531

 

 

$

22,076

 

 

$

4,107

 

 

$

11,629

 

 

$

(35,060

)

 

$

75,141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

199,505

 

 

$

132,994

 

 

$

161,239

 

 

$

65,977

 

 

$

94,914

 

 

 

 

$

654,629

 

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

 

 

25

%

 

 

4

%

 

 

9

%

 

 

5

%

 

 

12

%

 

 

 

 

7

%

EBITDA Margin

 

 

32

%

 

 

6

%

 

 

14

%

 

 

6

%

 

 

12

%

 

 

 

 

12

%

Adjusted EBITDA Margin

 

 

32

%

 

 

6

%

 

 

14

%

 

 

6

%

 

 

12

%

 

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240424424956/en/

investorrelations@oceaneering.com Hilary Frisbie Senior Director, Investor Relations Oceaneering International, Inc. 713-329-4755 Mark Peterson Vice President, Corporate Development and Investor Relations Oceaneering International, Inc. 713-329-4507