Oil States International, Inc. (NYSE: OIS) reported a net loss of
$19.9 million, or $0.33 per share, for the fourth quarter
of 2021. The reported results included: non-cash impairment charges
of $2.2 million ($1.7 million after tax, or $0.03 per
share) related to write-downs of inventories and fixed assets;
severance and restructuring charges of $0.8 million
($0.6 million after-tax, or $0.01 per share); and a
non-cash foreign currency translation loss of $9.3 million
($9.3 million after-tax, or $0.15 per share) reclassified from
other comprehensive income upon exit of the Company's Argentinian
operation. After excluding these charges, the Company's adjusted
net loss was $8.2 million, or $0.14 per share.
During the fourth quarter of 2021, the Company
generated revenues of $161.3 million and Adjusted Consolidated
EBITDA (Note A) of $13.4 million. These results compare
to revenues of $140.5 million and Adjusted Consolidated EBITDA
of $8.5 million reported in the third quarter of 2021.
Fourth quarter 2021 highlights included:
-
Offshore/Manufactured Products segment revenue and Adjusted Segment
EBITDA (Note B) increased sequentially 34% and 59%, respectively,
driven by a 72% increase in project-related revenue
-
Offshore/Manufactured Products backlog increased $11 million
to $260 million, with a book-to-bill ratio of 1.1x, augmented
by one notable project award exceeding $10 million
- Well Site Services
Adjusted Segment EBITDA increased sequentially to $6.2 million
despite a modest seasonal reduction in revenue
Oil States' President and Chief Executive Officer,
Cindy B. Taylor, stated,
"Our consolidated revenues and Adjusted
Consolidated EBITDA increased sequentially by 15% and 57%,
respectively, despite global challenges associated with the
COVID-19 pandemic, supply chain disruptions and a modest seasonal
decline in U.S. customer completion activity in the Northeast.
"Revenues in our Offshore/Manufactured Products
segment led the growth, with a 34% sequential increase driven
primarily by higher sales of project-driven production, testing and
connector products. Adjusted Segment EBITDA for
Offshore/Manufactured Products increased $5.1 million, or 59%,
sequentially totaling $13.7 million, reflective of the revenue
growth. Backlog grew to $260 million at December 31, 2021
with quarterly bookings of $105 million, yielding book-to-bill
ratios of 1.1x for the fourth quarter and 1.2x for the full-year
2021.
"Our Well Site Services segment revenues
decreased 6% from the prior quarter due to a seasonal decline in
customer activity in our U.S. Rocky Mountain and Northeast regions
coupled with slower activity stemming from ongoing infrastructure
repairs by operators in the Gulf of Mexico following Hurricane Ida.
However, Adjusted Segment EBITDA increased sequentially for the
fifth consecutive quarter, given a more favorable revenue mix and
the benefit of cost control measures.
"Fourth quarter revenues in our Downhole
Technologies segment were up modestly from the third quarter,
driven by higher sales of our domestic perforating products.
"We continue to focus on delivering superior
products and services to our customers, which are expected to
provide sustainable returns to the Company and its stakeholders as
industry activity continues to recover from the harsh effects of
the COVID-19 pandemic. We are focused on profitable product and
service lines and will allocate capital accordingly. With this
focus, stockholders' returns should continue to improve."
For the year ended December 31, 2021, the
Company reported a net loss of $64.0 million, or $1.06 per
share, revenues of $573.2 million and Adjusted Consolidated
EBITDA of $38.1 million. The full-year 2021 results included:
non-cash impairment charges of $7.7 million ($6.1 million
after-tax, or $0.10 per share) related to write-downs of
inventories and fixed and lease assets; severance and restructuring
charges of $7.5 million ($5.9 million after-tax, or $0.10
per share); a non-cash foreign currency translation loss of
$9.3 million ($9.3 million after-tax, or $0.15 per share)
reclassified from other comprehensive income upon exit of the
Company's Argentinian operation; and non-cash gains of
$4.0 million ($3.2 million after-tax, or $0.05 per share)
associated with debt extinguishments. After excluding these charges
and credits, the Company’s adjusted net loss was
$45.8 million, or $0.76 per share.
BUSINESS SEGMENT RESULTS
(See Segment Data tables)
Offshore/Manufactured Products
Offshore/Manufactured Products reported revenues
of $92.2 million and Adjusted Segment EBITDA of
$13.7 million in the fourth quarter of 2021, compared to
revenues of $69.0 million and Adjusted Segment EBITDA of
$8.6 million reported in the third quarter of 2021. Revenues
increased 34% sequentially, driven primarily by increases in
project-driven and service revenues of 72% and 17%, respectively.
Adjusted Segment EBITDA margin in the fourth quarter of 2021 was
15%, compared to 12% in the third quarter of 2021.
Backlog totaled $260 million as of
December 31, 2021, a 4% sequential increase from
September 30, 2021. During the fourth quarter of 2021, the
segment received one notable project award exceeding
$10 million. Fourth quarter 2021 bookings totaled
$105 million, yielding a quarterly book-to-bill ratio of 1.1x
and a full-year ratio of 1.2x.
Well Site Services
Well Site Services reported revenues of
$43.3 million and Adjusted Segment EBITDA of $6.2 million
in the fourth quarter of 2021, compared to revenues of
$46.0 million and Adjusted Segment EBITDA of $5.9 million
reported in the third quarter of 2021. Adjusted Segment EBITDA
margin the fourth quarter of 2021 was 14%, compared to 13% in the
third quarter of 2021.
In the fourth quarter of 2021, the segment
recorded non-cash inventory and fixed asset impairment charges of
$2.2 million due to the decision to exit certain
non-performing service lines.
Downhole Technologies
Downhole Technologies reported revenues of
$25.8 million and Adjusted Segment EBITDA of $0.1 million
in the fourth quarter of 2021, compared to revenues of
$25.5 million and Adjusted Segment EBITDA of $1.4 million
reported in the third quarter of 2021. During the fourth quarter
2021, the segment recorded bad debt expense of $0.7 million on
a receivable from a customer which announced liquidation in January
2022. Adjusted Segment EBITDA margin in the fourth quarter of 2021
was 1%, compared to 6% in the third quarter of 2021.
Corporate
Corporate operating expenses in the fourth
quarter of 2021 totaled $6.7 million.
Interest Expense, Net
Net interest expense totaled $2.6 million
in the fourth quarter of 2021, which included $0.5 million of
non-cash amortization of deferred debt issuance costs.
Other Income (Expense), Net
In the fourth quarter of 2021, the Company
recognized a $9.3 million non-cash loss associated with the
reclassification of unrealized foreign currency translation
adjustments to net income (loss), which were released upon the
liquidation of the Company's Argentinian operation. An offsetting
non-cash benefit was recognized as other comprehensive income in
the fourth quarter.
Income Taxes
The Company recognized an effective tax rate
benefit of 1% in the fourth quarter of 2021, which compared to an
effective tax rate benefit of 21% in the third quarter of 2021. The
effective tax rate benefit for the fourth quarter of 2021 was below
the U.S. statutory rate primarily due to certain non-deductible
expenses, including the non-cash currency translation loss.
Financial Condition
No borrowings were outstanding under the
Company's asset-based revolving credit facility (the "ABL
Facility") at December 31, 2021. Cash totaled
$52.9 million, compared to $67.6 million at
September 30, 2021. Liquidity (cash plus borrowing
availability) totaled $101.7 million at December 31, 2021
with amounts available to be drawn under the ABL Facility totaling
$48.9 million.
The Company's total debt represented 20% of
combined total debt and stockholders' equity as of
December 31, 2021 and 2020.
Conference Call Information
The call is scheduled for February 17, 2022
at 9:00 a.m. central standard time, is being webcast and can
be accessed from the Company's website at www.ir.oilstatesintl.com.
Participants may also join the conference call by dialing 1 (888)
771-4371 in the United States or by dialing +1 (847) 585-4405
internationally and using the passcode 50277012. A replay of the
conference call will be available one and a half hours after the
completion of the call and can be accessed from the Company's
website at www.ir.oilstatesintl.com.
About Oil States
Oil States International, Inc. is a global
provider of manufactured products and services to customers in the
energy, industrial and military sectors. The Company's manufactured
products include highly engineered capital equipment and consumable
products. Oil States is headquartered in Houston, Texas with
manufacturing and service facilities strategically located across
the globe. Oil States is publicly traded on the New York Stock
Exchange under the symbol "OIS".
For more information on the Company, please
visit Oil States International's website at
www.oilstatesintl.com.
Forward Looking Statements
The foregoing contains forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Forward-looking statements are those that do not state
historical facts and are, therefore, inherently subject to risks
and uncertainties. The forward-looking statements included herein
are based on current expectations and entail various risks and
uncertainties that could cause actual results to differ materially
from those forward-looking statements. Such risks and uncertainties
include, among others, the level of supply of and demand for oil
and natural gas, fluctuations in the prices thereof, the cyclical
nature of the oil and natural gas industry, 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, 2020 and the subsequently filed 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 31,2021 |
|
September 30,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Products |
$ |
89,401 |
|
|
$ |
70,409 |
|
|
$ |
73,051 |
|
|
$ |
299,293 |
|
|
$ |
331,272 |
|
Services |
|
71,919 |
|
|
|
70,119 |
|
|
|
64,326 |
|
|
|
273,868 |
|
|
|
306,803 |
|
|
|
161,320 |
|
|
|
140,528 |
|
|
|
137,377 |
|
|
|
573,161 |
|
|
|
638,075 |
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
Product costs |
|
72,890 |
|
|
|
60,310 |
|
|
|
62,992 |
|
|
|
246,589 |
|
|
|
287,615 |
|
Service costs |
|
60,357 |
|
|
|
56,897 |
|
|
|
52,517 |
|
|
|
223,807 |
|
|
|
274,190 |
|
Cost of revenues (exclusive of depreciation
andamortization expense presented below)(1) |
|
133,247 |
|
|
|
117,207 |
|
|
|
115,509 |
|
|
|
470,396 |
|
|
|
561,805 |
|
Selling, general and administrative expense |
|
20,297 |
|
|
|
20,078 |
|
|
|
22,597 |
|
|
|
83,692 |
|
|
|
94,102 |
|
Depreciation and amortization expense |
|
18,655 |
|
|
|
19,657 |
|
|
|
23,237 |
|
|
|
80,741 |
|
|
|
98,543 |
|
Impairments of goodwill |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
406,056 |
|
Impairments of fixed and lease assets |
|
722 |
|
|
|
— |
|
|
|
4,257 |
|
|
|
4,166 |
|
|
|
12,447 |
|
Other operating income, net |
|
(328 |
) |
|
|
(275 |
) |
|
|
141 |
|
|
|
(1,042 |
) |
|
|
(538 |
) |
|
|
172,593 |
|
|
|
156,667 |
|
|
|
165,741 |
|
|
|
637,953 |
|
|
|
1,172,415 |
|
Operating loss |
|
(11,273 |
) |
|
|
(16,139 |
) |
|
|
(28,364 |
) |
|
|
(64,792 |
) |
|
|
(534,340 |
) |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(2,577 |
) |
|
|
(2,569 |
) |
|
|
(2,637 |
) |
|
|
(10,170 |
) |
|
|
(13,869 |
) |
Other income (expense), net(2) |
|
(6,289 |
) |
|
|
2,137 |
|
|
|
368 |
|
|
|
1,628 |
|
|
|
13,880 |
|
Loss before income taxes |
|
(20,139 |
) |
|
|
(16,571 |
) |
|
|
(30,633 |
) |
|
|
(73,334 |
) |
|
|
(534,329 |
) |
Income tax benefit |
|
269 |
|
|
|
3,529 |
|
|
|
11,886 |
|
|
|
9,341 |
|
|
|
65,946 |
|
Net loss |
$ |
(19,870 |
) |
|
$ |
(13,042 |
) |
|
$ |
(18,747 |
) |
|
$ |
(63,993 |
) |
|
$ |
(468,383 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.33 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.06 |
) |
|
$ |
(7.83 |
) |
Diluted |
$ |
(0.33 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.06 |
) |
|
$ |
(7.83 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
60,380 |
|
|
|
60,377 |
|
|
|
59,885 |
|
|
|
60,293 |
|
|
|
59,812 |
|
Diluted |
|
60,380 |
|
|
|
60,377 |
|
|
|
59,885 |
|
|
|
60,293 |
|
|
|
59,812 |
|
________________
(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. For the three
months and year ended December 31, 2020, cost of revenues
(exclusive of depreciation and amortization expense) included
non-cash inventory impairment charges of $5.9 million (in
product costs) and $31.2 million ($17.9 million in
product costs and $13.3 million in service costs),
respectively.
(2) 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. For the year ended
December 31, 2020, non-cash gains of $10.7 million were
recognized in connection with the purchases of $34.9 million
in principal amount of the 2023 Notes.
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS(In
Thousands)
|
December 31, 2021 |
|
December 31, 2020 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
52,852 |
|
|
$ |
72,011 |
|
Accounts receivable, net |
|
186,080 |
|
|
|
163,135 |
|
Inventories, net |
|
168,573 |
|
|
|
170,376 |
|
Prepaid expenses and other current assets |
|
19,222 |
|
|
|
18,071 |
|
Total current assets |
|
426,727 |
|
|
|
423,593 |
|
|
|
|
|
Property, plant, and equipment, net |
|
338,583 |
|
|
|
383,562 |
|
Operating lease assets, net |
|
25,388 |
|
|
|
33,140 |
|
Goodwill, net |
|
76,412 |
|
|
|
76,489 |
|
Other intangible assets, net |
|
185,749 |
|
|
|
205,749 |
|
Other noncurrent assets |
|
32,889 |
|
|
|
29,727 |
|
Total assets |
$ |
1,085,748 |
|
|
$ |
1,152,260 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Current portion of long-term debt |
$ |
18,262 |
|
|
$ |
17,778 |
|
Accounts payable |
|
63,343 |
|
|
|
46,433 |
|
Accrued liabilities |
|
43,401 |
|
|
|
44,504 |
|
Current operating lease liabilities |
|
6,481 |
|
|
|
7,620 |
|
Income taxes payable |
|
2,564 |
|
|
|
2,413 |
|
Deferred revenue |
|
43,236 |
|
|
|
43,384 |
|
Total current liabilities |
|
177,287 |
|
|
|
162,132 |
|
|
|
|
|
Long-term debt |
|
160,488 |
|
|
|
165,759 |
|
Long-term operating lease liabilities |
|
23,452 |
|
|
|
29,166 |
|
Deferred income taxes |
|
3,637 |
|
|
|
14,263 |
|
Other noncurrent liabilities |
|
25,058 |
|
|
|
23,309 |
|
Total liabilities |
|
389,922 |
|
|
|
394,629 |
|
|
|
|
|
Stockholders' equity: |
|
|
|
Common stock |
|
739 |
|
|
|
733 |
|
Additional paid-in capital |
|
1,105,135 |
|
|
|
1,122,945 |
|
Retained earnings |
|
281,567 |
|
|
|
329,327 |
|
Accumulated other comprehensive loss |
|
(66,031 |
) |
|
|
(71,385 |
) |
Treasury stock |
|
(625,584 |
) |
|
|
(623,989 |
) |
Total stockholders' equity |
|
695,826 |
|
|
|
757,631 |
|
Total liabilities and stockholders' equity |
$ |
1,085,748 |
|
|
$ |
1,152,260 |
|
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS(In Thousands)
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
|
Cash flows from operating activities: |
|
|
|
Net loss |
$ |
(63,993 |
) |
|
$ |
(468,383 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization expense |
|
80,741 |
|
|
|
98,543 |
|
Impairments of goodwill |
|
— |
|
|
|
406,056 |
|
Impairments of inventories |
|
3,581 |
|
|
|
31,151 |
|
Impairments of fixed and lease assets |
|
4,166 |
|
|
|
12,447 |
|
Stock-based compensation expense |
|
7,879 |
|
|
|
8,431 |
|
Amortization of debt discount and deferred financing costs |
|
2,314 |
|
|
|
7,736 |
|
Deferred income tax benefit |
|
(8,639 |
) |
|
|
(24,404 |
) |
Release of foreign currency translation adjustments on liquidation
of an international operation |
|
9,320 |
|
|
|
— |
|
Gains on extinguishment of 1.50% convertible senior notes |
|
(4,022 |
) |
|
|
(10,721 |
) |
Gains on disposals of assets |
|
(6,472 |
) |
|
|
(2,444 |
) |
Other, net |
|
(511 |
) |
|
|
4,668 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(24,407 |
) |
|
|
63,876 |
|
Inventories |
|
(10,334 |
) |
|
|
17,578 |
|
Accounts payable and accrued liabilities |
|
17,727 |
|
|
|
(37,315 |
) |
Deferred revenue |
|
(148 |
) |
|
|
25,549 |
|
Other operating assets and liabilities, net |
|
(8 |
) |
|
|
(13 |
) |
Net cash flows provided by operating activities |
|
7,194 |
|
|
|
132,755 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Capital expenditures |
|
(17,517 |
) |
|
|
(12,749 |
) |
Proceeds from disposition of property and equipment |
|
11,527 |
|
|
|
9,601 |
|
Other, net |
|
(636 |
) |
|
|
(581 |
) |
Net cash flows used in investing activities |
|
(6,626 |
) |
|
|
(3,729 |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Revolving credit facility borrowings |
|
12,873 |
|
|
|
72,173 |
|
Revolving credit facility repayments |
|
(31,873 |
) |
|
|
(105,104 |
) |
Issuance of 4.75% convertible senior notes |
|
135,000 |
|
|
|
— |
|
Purchases of 1.50% convertible senior notes |
|
(125,952 |
) |
|
|
(20,078 |
) |
Other debt and finance lease repayments, net |
|
(230 |
) |
|
|
(8,222 |
) |
Payment of financing costs |
|
(7,791 |
) |
|
|
(1,041 |
) |
Shares added to treasury stock as a result of net share settlements
due to vesting of stock awards |
|
(1,595 |
) |
|
|
(2,745 |
) |
Net cash flows used in financing activities |
|
(19,568 |
) |
|
|
(65,017 |
) |
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
(159 |
) |
|
|
(491 |
) |
Net change in cash and cash equivalents |
|
(19,159 |
) |
|
|
63,518 |
|
Cash and cash equivalents, beginning of period |
|
72,011 |
|
|
|
8,493 |
|
Cash and cash equivalents, end of period |
$ |
52,852 |
|
|
$ |
72,011 |
|
|
|
|
|
Cash paid (received) for: |
|
|
|
Interest |
$ |
6,532 |
|
|
$ |
6,402 |
|
Income taxes, net |
|
152 |
|
|
|
(36,766 |
) |
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
SEGMENT DATA(In
Thousands)(unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 31,2021(2) |
|
September 30,2021(3) |
|
December 31,2020(4) |
|
December 31,2021(5) |
|
December 31,2020(6) |
Revenues: |
|
|
|
|
|
|
|
|
|
Offshore/Manufactured Products(1): |
|
|
|
|
|
|
|
|
|
Project-driven products |
$ |
43,603 |
|
|
$ |
25,294 |
|
|
$ |
36,340 |
|
|
$ |
122,097 |
|
|
$ |
165,497 |
|
Short-cycle products |
|
18,212 |
|
|
|
18,682 |
|
|
|
6,808 |
|
|
|
65,174 |
|
|
|
48,142 |
|
Other products and services |
|
30,394 |
|
|
|
25,027 |
|
|
|
32,370 |
|
|
|
111,458 |
|
|
|
126,661 |
|
Total Offshore/Manufactured Products |
|
92,209 |
|
|
|
69,003 |
|
|
|
75,518 |
|
|
|
298,729 |
|
|
|
340,300 |
|
Downhole Technologies |
|
25,775 |
|
|
|
25,527 |
|
|
|
23,193 |
|
|
|
103,492 |
|
|
|
97,936 |
|
Well Site Services |
|
43,336 |
|
|
|
45,998 |
|
|
|
38,666 |
|
|
|
170,940 |
|
|
|
199,839 |
|
Total revenues |
$ |
161,320 |
|
|
$ |
140,528 |
|
|
$ |
137,377 |
|
|
$ |
573,161 |
|
|
$ |
638,075 |
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
Offshore/Manufactured Products |
$ |
7,802 |
|
|
$ |
1,764 |
|
|
$ |
1,408 |
|
|
$ |
15,447 |
|
|
$ |
(80,794 |
) |
Downhole Technologies |
|
(4,525 |
) |
|
|
(5,035 |
) |
|
|
(8,019 |
) |
|
|
(13,470 |
) |
|
|
(224,414 |
) |
Well Site Services |
|
(7,818 |
) |
|
|
(5,250 |
) |
|
|
(11,642 |
) |
|
|
(34,511 |
) |
|
|
(193,388 |
) |
Corporate |
|
(6,732 |
) |
|
|
(7,618 |
) |
|
|
(10,111 |
) |
|
|
(32,258 |
) |
|
|
(35,744 |
) |
Total operating loss |
$ |
(11,273 |
) |
|
$ |
(16,139 |
) |
|
$ |
(28,364 |
) |
|
$ |
(64,792 |
) |
|
$ |
(534,340 |
) |
________________
(1) Disaggregated revenue data
is provided to supplement the Segment Data.
(2) 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 Downhole
Technologies segment, operating income (loss) included severance
and restructuring charges of $0.2 million. 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.
(3) Operating income (loss) for
the three months ended September 30, 2021 included
$0.3 million of severance and restructuring charges related to
the Offshore/Manufactured Products segment. 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 $0.1 million. In the Well Site
Services segment, operating income (loss) included severance and
restructuring charges of $0.4 million.
(4) Operating income (loss) for
the three months ended December 31, 2020 included $0.6 million
of severance and restructuring charges in the Offshore/Manufactured
Products segment. In the Downhole Technologies segment, operating
income (loss) included non-cash fixed and lease asset impairment
charges of $3.6 million and severance and restructuring
charges of $0.7 million. In the Well Site Services segment,
operating income (loss) included a non-cash fixed asset impairment
charge of $0.7 million and severance and restructuring charges
of $0.2 million. In Corporate, operating income (loss)
included $1.2 million of severance charges.
(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 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 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
Corporate, operating income (loss) included $1.6 million of
severance charges.
(6) Operating income (loss) for
the year ended December 31, 2020 included a non-cash goodwill
impairment charge of $86.5 million, a non-cash inventory
impairment charge of $16.2 million and $1.4 million of
severance and restructuring charges related to the
Offshore/Manufactured Products segment. In the Downhole
Technologies segment, operating income (loss) included a non-cash
goodwill impairment charge of $192.5 million, a non-cash
inventory impairment charge of $5.9 million, non-cash fixed
asset and lease impairment charges of $3.6 million and
$2.0 million of severance and restructuring charges. In the
Well Site Services segment, operating income (loss) included a
non-cash goodwill impairment charge of $127.1 million, a
non-cash inventory impairment charge of $9.0 million, non-cash
fixed asset impairment charges of $8.8 million and
$4.3 million of severance and restructuring charges. In
Corporate, operating income (loss) included $1.4 million of
severance charges.
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATIONSEGMENT EBITDA AND ADJUSTED
SEGMENT EBITDA (B)(In Thousands)(unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 31,2021 |
|
September 30,2021 |
|
December 31,2020 |
|
December 31 2021 |
|
December 31,2020 |
Offshore/Manufactured Products: |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
7,802 |
|
|
$ |
1,764 |
|
|
$ |
1,408 |
|
|
$ |
15,447 |
|
|
$ |
(80,794 |
) |
Other income, net |
|
21 |
|
|
|
881 |
|
|
|
82 |
|
|
|
770 |
|
|
|
542 |
|
Depreciation and amortization expense |
|
5,502 |
|
|
|
5,662 |
|
|
|
5,376 |
|
|
|
22,190 |
|
|
|
21,881 |
|
Impairment of goodwill |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
86,500 |
|
Impairment of inventories |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,249 |
|
Segment EBITDA |
|
13,325 |
|
|
|
8,307 |
|
|
|
6,866 |
|
|
|
38,407 |
|
|
|
44,378 |
|
Severance and restructuring charges |
|
330 |
|
|
|
256 |
|
|
|
633 |
|
|
|
868 |
|
|
|
1,355 |
|
Adjusted Segment EBITDA |
$ |
13,655 |
|
|
$ |
8,563 |
|
|
$ |
7,499 |
|
|
$ |
39,275 |
|
|
$ |
45,733 |
|
|
|
|
|
|
|
|
|
|
|
Downhole Technologies: |
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(4,525 |
) |
|
$ |
(5,035 |
) |
|
$ |
(8,019 |
) |
|
$ |
(13,470 |
) |
|
$ |
(224,414 |
) |
Other income (expense), net |
|
— |
|
|
|
(4 |
) |
|
|
16 |
|
|
|
(6 |
) |
|
|
(81 |
) |
Depreciation and amortization expense |
|
4,455 |
|
|
|
4,226 |
|
|
|
5,745 |
|
|
|
17,591 |
|
|
|
22,649 |
|
Impairment of goodwill |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
192,502 |
|
Impairment of inventories |
|
— |
|
|
|
2,113 |
|
|
|
— |
|
|
|
2,113 |
|
|
|
5,921 |
|
Impairment of fixed and lease assets |
|
— |
|
|
|
— |
|
|
|
3,602 |
|
|
|
— |
|
|
|
3,602 |
|
Segment EBITDA |
|
(70 |
) |
|
|
1,300 |
|
|
|
1,344 |
|
|
|
6,228 |
|
|
|
179 |
|
Severance and restructuring charges |
|
202 |
|
|
|
129 |
|
|
|
703 |
|
|
|
809 |
|
|
|
2,018 |
|
Adjusted Segment EBITDA |
$ |
132 |
|
|
$ |
1,429 |
|
|
$ |
2,047 |
|
|
$ |
7,037 |
|
|
$ |
2,197 |
|
|
|
|
|
|
|
|
|
|
|
Well Site Services: |
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(7,818 |
) |
|
$ |
(5,250 |
) |
|
$ |
(11,642 |
) |
|
$ |
(34,511 |
) |
|
$ |
(193,388 |
) |
Other income |
|
3,010 |
|
|
|
1,260 |
|
|
|
270 |
|
|
|
6,162 |
|
|
|
2,698 |
|
Depreciation and amortization expense |
|
8,511 |
|
|
|
9,531 |
|
|
|
11,906 |
|
|
|
40,152 |
|
|
|
53,240 |
|
Impairment of goodwill |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
127,054 |
|
Impairments of inventories |
|
1,468 |
|
|
|
— |
|
|
|
— |
|
|
|
1,468 |
|
|
|
8,981 |
|
Impairments of fixed and lease assets |
|
722 |
|
|
|
— |
|
|
|
655 |
|
|
|
4,166 |
|
|
|
8,845 |
|
Segment EBITDA |
|
5,893 |
|
|
|
5,541 |
|
|
|
1,189 |
|
|
|
17,437 |
|
|
|
7,430 |
|
Severance and restructuring charges |
|
257 |
|
|
|
352 |
|
|
|
219 |
|
|
|
4,266 |
|
|
|
4,311 |
|
Adjusted Segment EBITDA |
$ |
6,150 |
|
|
$ |
5,893 |
|
|
$ |
1,408 |
|
|
$ |
21,703 |
|
|
$ |
11,741 |
|
|
|
|
|
|
|
|
|
|
|
Corporate: |
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(6,732 |
) |
|
$ |
(7,618 |
) |
|
$ |
(10,111 |
) |
|
$ |
(32,258 |
) |
|
$ |
(35,744 |
) |
Other income (expense) |
|
(9,320 |
) |
|
|
— |
|
|
|
— |
|
|
|
(5,298 |
) |
|
|
10,721 |
|
Depreciation and amortization expense |
|
187 |
|
|
|
238 |
|
|
|
210 |
|
|
|
808 |
|
|
|
773 |
|
Release of foreign currency translation adjustments onliquidation
of an international operation |
|
9,320 |
|
|
|
— |
|
|
|
— |
|
|
|
9,320 |
|
|
|
— |
|
Gains on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,022 |
) |
|
|
(10,721 |
) |
EBITDA |
|
(6,545 |
) |
|
|
(7,380 |
) |
|
|
(9,901 |
) |
|
|
(31,450 |
) |
|
|
(34,971 |
) |
Severance charges |
|
— |
|
|
|
— |
|
|
|
1,169 |
|
|
|
1,555 |
|
|
|
1,385 |
|
Adjusted EBITDA |
$ |
(6,545 |
) |
|
$ |
(7,380 |
) |
|
$ |
(8,732 |
) |
|
$ |
(29,895 |
) |
|
$ |
(33,586 |
) |
OIL STATES INTERNATIONAL, INC. AND
SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL INFORMATION CONSOLIDATED EBITDA AND
ADJUSTED CONSOLIDATED EBITDA (A)(In
Thousands)(unaudited)
|
Three Months Ended |
|
Year Ended |
|
December 31,2021 |
|
September 30,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(19,870 |
) |
|
$ |
(13,042 |
) |
|
$ |
(18,747 |
) |
|
$ |
(63,993 |
) |
|
$ |
(468,383 |
) |
Interest expense, net |
|
2,577 |
|
|
|
2,569 |
|
|
|
2,637 |
|
|
|
10,170 |
|
|
|
13,869 |
|
Income tax benefit |
|
(269 |
) |
|
|
(3,529 |
) |
|
|
(11,886 |
) |
|
|
(9,341 |
) |
|
|
(65,946 |
) |
Depreciation and amortization expense |
|
18,655 |
|
|
|
19,657 |
|
|
|
23,237 |
|
|
|
80,741 |
|
|
|
98,543 |
|
Impairments of goodwill |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
406,056 |
|
Impairments of inventories |
|
1,468 |
|
|
|
2,113 |
|
|
|
— |
|
|
|
3,581 |
|
|
|
31,151 |
|
Impairments of fixed and lease assets |
|
722 |
|
|
|
— |
|
|
|
4,257 |
|
|
|
4,166 |
|
|
|
12,447 |
|
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 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,022 |
) |
|
|
(10,721 |
) |
Consolidated EBITDA |
|
12,603 |
|
|
|
7,768 |
|
|
|
(502 |
) |
|
|
30,622 |
|
|
|
17,016 |
|
Severance and restructuring charges |
|
789 |
|
|
|
737 |
|
|
|
2,724 |
|
|
|
7,498 |
|
|
|
9,069 |
|
Adjusted Consolidated EBITDA |
$ |
13,392 |
|
|
$ |
8,505 |
|
|
$ |
2,222 |
|
|
$ |
38,120 |
|
|
$ |
26,085 |
|
________________
(A) The terms Consolidated
EBITDA and Adjusted Consolidated EBITDA consist of net loss plus
net interest expense, taxes, depreciation and amortization expense,
non-cash asset impairment charges and a non-cash loss associated
with the reclassification of unrealized foreign currency
translation adjustments which were released upon the liquidation of
an international operation, less gains on extinguishment of 1.50%
convertible senior notes (the "2023 Notes") and adjustments for
certain other items. Consolidated EBITDA and Adjusted Consolidated
EBITDA are not measures of financial performance under generally
accepted accounting principles and should not be considered in
isolation from or as a substitute for net loss or cash flow
measures prepared in accordance with generally accepted accounting
principles or as measures of profitability or liquidity.
Additionally, Consolidated EBITDA and Adjusted Consolidated EBITDA
may not be comparable to other similarly titled measures of other
companies. The Company has included Consolidated EBITDA and
Adjusted Consolidated EBITDA as supplemental disclosures because
its management believes that Consolidated EBITDA and Adjusted
Consolidated EBITDA provide 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 Consolidated EBITDA and Adjusted Consolidated 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 Consolidated EBITDA and Adjusted Consolidated
EBITDA to net loss, which is the most directly comparable measure
of financial performance calculated under generally accepted
accounting principles.
(B) The terms EBITDA, Adjusted
EBITDA, Segment EBITDA and Adjusted Segment EBITDA consist of
operating income (loss) plus other income (expense), depreciation
and amortization expense, non-cash asset impairment charges and a
non-cash loss associated with the reclassification of unrealized
foreign currency translation adjustments which were released upon
the liquidation of an international operation, less gains on
extinguishment of the 2023 Notes and adjustments for certain other
items. EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment
EBITDA are not measures of financial performance under generally
accepted accounting principles and should not be considered in
isolation from or as a substitute for operating income (loss) or
cash flow measures prepared in accordance with generally accepted
accounting principles or as a measure of profitability or
liquidity. Additionally, EBITDA, Adjusted EBITDA, Segment EBITDA
and Adjusted Segment EBITDA may not be comparable to other
similarly titled measures of other companies. The Company has
included EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted
Segment EBITDA as supplemental disclosures because its management
believes that EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted
Segment EBITDA provide 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
EBITDA, Adjusted EBITDA, Segment EBITDA and 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 tables above set forth reconciliations of
EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA
to operating income (loss), which is the most directly comparable
measure of financial performance calculated under generally
accepted accounting principles.
Company Contact:
Lloyd A. HajdikOil States International,
Inc.Executive Vice President, Chief Financial Officer and
Treasurer713-652-0582SOURCE: Oil States International, Inc.
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