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    Oceaneering Reports Second Quarter 2017 Results

    July 26, 2017

    HOUSTON, July 26, 2017 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported  net income of $2.1 million, or $0.02 per share, on revenue of $515 million for the three months ended June 30, 2017.  During the prior quarter ended March 31, 2017, Oceaneering reported a net loss of $7.5 million, or $(0.08) per share, on revenue of $446 million, and an adjusted net loss of $4.0 million, or $(0.04) per share.

    Adjusted operating income, operating margin, 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 which 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 EBITDA Margins, Free Cash Flow, Adjusted Operating Income 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,










    2017


    2016


    2017


    2017


    2016












    Revenue


    $

    515,036



    $

    625,539



    $

    446,176



    $

    961,212



    $

    1,233,883


    Gross Margin


    53,571



    95,233



    44,855



    98,426



    192,713


    Income (Loss) from Operations


    9,390



    38,380



    (150)



    9,240



    86,479


    Net Income (Loss)


    $

    2,132



    $

    22,309



    $

    (7,534)



    $

    (5,402)



    $

    47,412













    Diluted Earnings (Loss) Per Share (EPS)


    $

    0.02



    $

    0.23



    $

    (0.08)



    $

    (0.06)



    $

    0.48


    Sequentially, operating income increased by $9.5 million on improved profit contributions from all of our business segments, except for Subsea Products, which was slightly lower.

    Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Our overall operating results during the quarter were in line with expectations.  We were pleased that each of our operating segments remained profitable.  On a consolidated basis, for the first half of 2017, we have generated $112 million of EBITDA and $61 million of free cash flow.  We believe our cash flow and liquidity position us well to manage our business through the continuing industry downturn; at the end of the quarter, we had $482 million in cash and an undrawn $500 million revolving credit facility.  Based on these strengths, the Board maintained our current dividend rate and declared a $0.15 per share dividend to be paid during the third quarter of 2017.

    "Compared to the first quarter, ROV operating income increased on higher activity for vessel based services.  Our fleet mix during the quarter was 61% in drill support and 39% for vessel-based activity, compared to 69% and 31%, for the prior quarter.  Revenue grew 10% on increased days on hire and revenue per day on hire, and ROV EBITDA margin of 38% improved slightly from 37% for the first quarter.

    "During the second quarter, we put one new ROV into service and retired four.  At the end of June 2017, we had 279 vehicles in our fleet.  Our fleet utilization for the second quarter was 48%, up from 46% in the first quarter.  We held our share of the contracted floating drill support market, with 53% of the 153 floating rigs under contract.

    "Sequentially, Subsea Products operating income was slightly lower than expected, due to the continued weakness and competitive nature of the service and rental market.  Our Subsea Products backlog at June 30, 2017 was $328 million, compared to our March 31, 2017 backlog of $407 million.  The backlog decline was primarily related to umbilicals.  Our book-to-bill ratio year-to-date was 0.69.

    "Compared to the first quarter, Subsea Projects revenue and operating income increased driven by seasonal improvements in U.S. Gulf of Mexico deepwater vessel work and survey services.  Asset Integrity revenue and operating income were up due to seasonality.  Advanced Technologies revenue and operating income improved, primarily due to continued increased commercial activity and work for the U.S. Navy.  Unallocated Expenses were essentially flat.

    "For the third quarter of 2017, we are expecting a sequential increase in our overall quarterly operating income.  This improvement should be led by Subsea Products and Subsea Projects, with slight declines in profit contributions from our other operating segments and flat Unallocated Expenses.

    "Relative to the first half of 2017, during the second half we expect to generate higher consolidated operating income on relatively flat revenue.  Subsea Products profit contribution is expected to be higher, as projected increases in service and rental activity more than offset lower manufactured products throughput.  We continue to project our Subsea Products operating margins to be in the mid- to high-single digit range.  We expect operating income contributions from ROV and Asset Integrity during the second half to be similar to the first half.  For Subsea Projects, we anticipate our results to be considerably lower due to the completion of vessel work offshore Angola, projected low levels of vessel activity, and vessel oversupply.  With respect to Advanced Technologies, we expect improved operating income due to a projected uptick in our commercial businesses.

    "Our overall outlook for the full year of 2017 has not changed.  We continue to project that we will be marginally profitable at the operating income line on a consolidated basis.

    "Beyond 2017, we believe that the oil and gas industry will continue its investment in deepwater projects, and foresee improving demand for our services and products.  Meanwhile, we continue to look for opportunities that may emerge to grow our company, with more focus on our customers' operating expenditures in the production phase of the offshore oilfield life cycle, while providing a dividend to shareholders."

    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: belief that its cash flow and liquidity position it well to manage its business through the continuing industry downturn; Subsea Products backlog; outlook for the third quarter of 2017, and expected contributions of its segments to the third quarter results; expectations of Subsea Products margins; expectation of higher consolidated operating income on relatively flat revenue in the second half of 2017, relative to the first half of 2017, and expected contributions of its segments to those operating results;  expectation for the full year of 2017 to be marginally profitable at the operating income line on a consolidated basis; beliefs about deepwater investment and improving demand for its services and products; and intention to look for opportunities that may emerge to grow our company, with more focus on our customers' operating expenditures in the production phase of the offshore oilfield life cycle, while providing a dividend to shareholders. 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 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 oil and gas industry, with a focus on deepwater applications.  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, 2017


    Dec 31, 2016














    (in thousands)

    ASSETS

















    Current Assets (including cash and cash equivalents of $482,339 and $450,193)


    $

    1,261,705



    $

    1,262,595



    Net Property and Equipment







    1,100,190



    1,153,258



    Other Assets










    729,906



    714,462





    TOTAL ASSETS






    $

    3,091,801



    $

    3,130,315




















    LIABILITIES AND SHAREHOLDERS' EQUITY






    Current Liabilities










    $

    482,906



    $

    508,364



    Long-term Debt










    794,099



    793,058



    Other Long-term Liabilities






    323,651



    312,250



    Shareholders' Equity










    1,491,145



    1,516,643





    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


    $

    3,091,801



    $

    3,130,315


     

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




























    For the Three Months Ended


    For the Six Months Ended










    Jun 30, 2017


    Jun 30, 2016


    Mar 31, 2017


    Jun 30, 2017


    Jun 30, 2016










    (in thousands, except per share amounts)




















    Revenue






    $

    515,036



    $

    625,539



    $

    446,176



    $

    961,212



    $

    1,233,883



    Cost of services and products


    461,465



    530,306



    401,321



    862,786



    1,041,170




    Gross Margin


    53,571



    95,233



    44,855



    98,426



    192,713



    Selling, general and administrative expense


    44,181



    56,853



    45,005



    89,186



    106,234




    Income (loss) from Operations




    9,390



    38,380



    (150)



    9,240



    86,479



    Interest income






    2,045



    1,442



    1,337



    3,382



    1,737



    Interest expense






    (7,599)



    (6,207)



    (6,268)



    (13,867)



    (12,599)



    Equity earnings (losses) of unconsolidated affiliates


    (394)



    263



    (980)



    (1,374)



    789



    Other income (expense), net


    (58)



    (1,405)



    (2,556)



    (2,614)



    (7,393)




    Income before Income Taxes


    3,384



    32,473



    (8,617)



    (5,233)



    69,013



    Provision for income taxes (benefit)


    1,252



    10,164



    (1,083)



    169



    21,601




    Net Income (loss)


    $

    2,132



    $

    22,309



    $

    (7,534)



    $

    (5,402)



    $

    47,412




















    Weighted average diluted shares outstanding


    98,751



    98,424



    98,138



    98,201



    98,355


    Diluted Earnings (Loss) per Share


    $

    0.02



    $

    0.23



    $

    (0.08)



    $

    (0.06)



    $

    0.48




















    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, 2017


    Jun 30, 2016


    Mar 31, 2017


    Jun 30, 2017


    Jun 30, 2016






    ($ in thousands)











    Remotely Operated Vehicles


    Revenue


    $

    103,432



    $

    139,641



    $

    94,022



    $

    197,454



    $

    287,262



    Gross Margin


    $

    16,659



    $

    26,925



    $

    13,022



    $

    29,681



    $

    62,247


    Operating Income


    $

    10,376



    $

    18,020



    $

    5,925



    $

    16,301



    $

    45,007


    Operating Income %


    10

    %


    13

    %


    6

    %


    8

    %


    16

    %


    Days available


    25,300



    28,959



    25,219



    50,519



    57,778



    Days utilized


    12,267



    16,057



    11,488



    23,755



    32,062



    Utilization


    48

    %


    55

    %


    46

    %


    47

    %


    55

    %















    Subsea Products


    Revenue


    $

    174,893



    $

    190,897



    $

    150,639



    $

    325,532



    $

    385,709



    Gross Margin


    $

    22,762



    $

    42,728



    $

    24,991



    $

    47,753



    $

    98,864


    Operating Income


    $

    10,552



    $

    25,121



    $

    11,483



    $

    22,035



    $

    65,761


    Operating Income %


    6

    %


    13

    %


    8

    %


    7

    %


    17

    %

    Backlog at end of period


    $

    328,000



    $

    503,000



    $

    407,000



    $

    328,000



    $

    503,000
















    Subsea Projects


    Revenue


    $

    75,545



    $

    138,662



    $

    62,956



    $

    138,501



    $

    268,084



    Gross Margin


    $

    6,462



    $

    14,317



    $

    4,024



    $

    10,486



    $

    25,826


    Operating Income


    $

    3,000



    $

    10,237



    $

    187



    $

    3,187



    $

    17,026


    Operating Income %


    4

    %


    7

    %


    %


    2

    %


    6

    %















    Asset Integrity



    Revenue


    $

    58,192



    $

    73,864



    $

    52,658



    $

    110,850



    $

    143,464



    Gross Margin


    $

    10,004



    $

    10,096



    $

    8,381



    $

    18,385



    $

    17,439


    Operating Income (Loss)


    $

    3,755



    $

    (805)



    $

    2,267



    $

    6,022



    $

    (371)


    Operating Income (Loss) %


    6

    %


    (1)

    %


    4

    %


    5

    %


    %















    Advanced Technologies


    Revenue


    $

    102,974



    $

    82,475



    $

    85,901



    $

    188,875



    $

    149,364



    Gross Margin


    $

    14,133



    $

    10,600



    $

    10,072



    $

    24,205



    $

    16,427


    Operating Income


    $

    7,632



    $

    5,528



    $

    5,026



    $

    12,658



    $

    6,121


    Operating Income %


    7

    %


    7

    %


    6

    %


    7

    %


    4

    %















    Unallocated Expenses











    Gross margin


    $

    (16,449)



    $

    (9,433)



    $

    (15,635)



    $

    (32,084)



    $

    (28,090)


    Operating income


    $

    (25,925)



    $

    (19,721)



    $

    (25,038)



    $

    (50,963)



    $

    (47,065)














    TOTAL



    Revenue


    $

    515,036



    $

    625,539



    $

    446,176



    $

    961,212



    $

    1,233,883



    Gross Margin


    $

    53,571



    $

    95,233



    $

    44,855



    $

    98,426



    $

    192,713


    Operating Income (Loss)


    $

    9,390



    $

    38,380



    $

    (150)



    $

    9,240



    $

    86,479


    Operating Income %


    2

    %


    6

    %


    %


    1

    %


    7

    %

     

    SELECTED CASH FLOW INFORMATION


















    For the Three Months Ended


    For the Six Months Ended







    Jun 30, 2017


    Jun 30, 2016


    Mar 31, 2017


    Jun 30, 2017


    Jun 30, 2016







    (in thousands)













    Capital expenditures, including acquisitions



    $

    23,493



    $

    31,738



    $

    17,807



    $

    41,300



    $

    52,944














    Depreciation and Amortization:












    Oilfield














    Remotely Operated Vehicles



    $

    29,036



    $

    34,026



    $

    29,229



    $

    58,265



    $

    67,710



    Subsea Products



    12,785



    12,952



    12,999



    25,784



    25,759



    Subsea Projects



    7,781



    8,353



    8,080



    15,861



    16,872



    Asset Integrity



    1,780



    2,843



    1,460



    3,240



    5,756


    Total Oilfield




    51,382



    58,174



    51,768



    103,150



    116,097


    Advanced Technologies



    784



    806



    797



    1,581



    1,540


    Unallocated Expenses



    1,138



    999



    1,098



    2,236



    2,123


    Total depreciation and amortization



    $

    53,304



    $

    59,979



    $

    53,663



    $

    106,967



    $

    119,760


     

    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 and Free Cash Flow, as well as the following by segment:  Adjusted Operating Income and Margins, EBITDA, 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.

















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






















    For the Three Months Ended






    Jun 30, 2017

    Jun 30, 2016

    Mar 31, 2017






    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


    $

    2,132



    $

    0.02



    $

    22,309



    $

    0.23



    $

    (7,534)



    $

    (0.08)


    Pre tax adjustments for the effects of:














    Allowance for bad debts






    5,757









    Foreign currency (gains) losses


    (20)





    1,218





    2,153




    Total pre tax adjustments


    (20)





    6,975





    2,153




















    Tax effect on pre tax adjustments at the 35% statutory rate




    7





    (2,441)





    (754)

















    Discrete tax items










    2,106


















    Total of adjustments


    (13)





    4,534





    3,505





    Adjusted amounts


    $

    2,119



    $

    0.02



    $

    26,843



    $

    0.27



    $

    (4,029)



    $

    (0.04)


     















    EBITDA and EBITDA Margins




















    For the Three Months Ended


    For the Six Months Ended






    Jun 30, 2017


    Jun 30, 2016


    Mar 31, 2017


    Jun 30, 2017


    Jun 30, 2016






    ($ in thousands)















    Net Income (Loss)


    $

    2,132



    $

    22,309



    $

    (7,534)



    $

    (5,402)



    $

    47,412


    Depreciation and Amortization


    53,304



    59,979



    53,663



    106,967



    119,760



    Subtotal


    55,436



    82,288



    46,129



    101,565



    167,172


    Interest Expense, net of Interest Income


    5,554



    4,765



    4,931



    10,485



    10,862


    Amortization included in Interest Expense


    (283)



    (286)



    (283)



    (566)



    (573)


    Provision for Income Taxes (Benefit)


    1,252



    10,164



    (1,083)



    169



    21,601



    EBITDA


    $

    61,959



    $

    96,931



    $

    49,694



    $

    111,653



    $

    199,062
















    Revenue


    $

    515,036



    $

    625,539



    $

    446,176



    $

    961,212



    $

    1,233,883
















    EBITDA margin %


    12

    %


    15

    %


    11

    %


    12

    %


    16

    %

     

    Free Cash Flow












    For the Six Months Ended





    Jun 30, 2017


    Jun 30, 2016





    (in thousands)

    Net Income


    $

    (5,402)


    $

    47,412

    Depreciation and amortization


    106,967


    119,760

    Other increases (decreases) in cash from operating activities


    1,039


    (22,571)

    Cash flow provided by operating activities


    102,604


    144,601

    Purchases of property and equipment


    (41,300)


    (52,944)

    Free Cash Flow


    $

    61,304


    $

    91,657

     




    Adjusted Operating Income and Margins by Segment






    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 as reported in accordance with GAAP


    $

    10,376



    $

    10,552



    $

    3,000



    $

    3,755



    $

    7,632



    $

    (25,925)



    $

    9,390


    Adjusted amounts


    $

    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

    %







































    For the Three Months Ended June 30, 2016





    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


    $

    18,020



    $

    25,121



    $

    10,237



    $

    (805)



    $

    5,528



    $

    (19,721)



    $

    38,380


    Adjustments for the effects of:















    Allowance for bad debts


    479



    1,826



    108



    3,344







    5,757




    Total of adjustments


    479



    1,826



    108



    3,344







    5,757


    Adjusted amounts


    $

    18,499



    $

    26,947



    $

    10,345



    $

    2,539



    $

    5,528



    $

    (19,721)



    $

    44,137



















    Revenue


    $

    139,641



    $

    190,897



    $

    138,662



    $

    73,864



    $

    82,475





    $

    625,539


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


    13

    %


    13

    %


    7

    %


    (1)

    %


    7

    %




    6

    %

    Operating income % using adjusted amounts


    13

    %


    14

    %


    7

    %


    3

    %


    7

    %




    7

    %

     























    For the Three Months Ended March 31, 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


    $

    5,925



    $

    11,483



    $

    187



    $

    2,267



    $

    5,026



    $

    (25,038)



    $

    (150)


    Adjusted amounts


    $

    5,925



    $

    11,483



    $

    187



    $

    2,267



    $

    5,026



    $

    (25,038)



    $

    (150)




































    Revenue


    $

    94,022



    $

    150,639



    $

    62,956



    $

    52,658



    $

    85,901





    $

    446,176


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


    6

    %


    8

    %


    %


    4

    %


    6

    %




    %

    Operating income % using adjusted amounts


    6

    %


    8

    %


    %


    4

    %


    6

    %




    %

     




    Adjusted Operating Income and Margins by Segment






    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 amounts


    $

    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

    %






















    For the Six Months Ended June 30, 2016





    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


    $

    45,007



    $

    65,761



    $

    17,026



    $

    (371)



    $

    6,121



    $

    (47,065)



    $

    86,479


    Adjustments for the effects of:















    Allowance for bad debts


    479



    1,826



    108



    3,344







    5,757



    Fixed asset write-offs

















    Total of adjustments


    479



    1,826



    108



    3,344







    5,757


    Adjusted amounts


    $

    45,486



    $

    67,587



    $

    17,134



    $

    2,973



    $

    6,121



    $

    (47,065)



    $

    92,236



















    Revenue


    $

    287,262



    $

    385,709



    $

    268,084



    $

    143,464



    $

    149,364





    $

    1,233,883


    Operating income % as reported in accordance with GAAP


    16

    %


    17

    %


    6

    %


    %


    4

    %




    7

    %

    Operating income % using adjusted amounts


    16

    %


    18

    %


    6

    %


    2

    %


    4

    %




    7

    %

     




    EBITDA and Adjusted EBITDA and Margins by Segment






    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 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




















    For the Three Months Ended June 30, 2016


    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


    $

    18,020



    $

    25,121



    $

    10,237



    $

    (805)



    $

    5,528



    $

    (19,721)



    $

    38,380


    Adjustments for the effects of:
















    Depreciation and amortization


    34,026



    12,952



    8,353



    2,843



    806



    999



    59,979



    Other pre-tax












    (1,428)



    (1,428)



    EBITDA


    52,046



    38,073



    18,590



    2,038



    6,334



    (20,150)



    96,931


    Adjustments for the effects of:
















    Allowance for bad debts


    479



    1,826



    108



    3,344







    5,757



    Foreign currency (gains) losses












    1,219



    1,219




    Total of adjustments


    479



    1,826



    108



    3,344





    1,219



    6,976


    Adjusted EBITDA


    $

    52,525



    $

    39,899



    $

    18,698



    $

    5,382



    $

    6,334



    $

    (18,931)



    $

    103,907




















    Revenue


    $

    139,641



    $

    190,897



    $

    138,662



    $

    73,864



    $

    82,475





    $

    625,539


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


    13

    %


    13

    %


    7

    %


    (1)

    %


    7

    %



    6

    %

    EBITDA Margin


    37

    %


    20

    %


    13

    %


    3

    %


    8

    %



    15

    %

    Adjusted EBITDA Margin


    38

    %


    21

    %


    13

    %


    7

    %


    8

    %



    17

    %

     



    EBITDA and Adjusted EBITDA and Margins by Segment





    For the Three Months Ended March 31, 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


    $

    5,925



    $

    11,483



    $

    187



    $

    2,267



    $

    5,026



    $

    (25,038)


    $

    (150)


    Adjustments for the effects of:




    Depreciation and amortization


    29,229



    12,999



    8,080



    1,460



    797



    1,098


    53,663



    Other pre-tax












    (3,819)


    (3,819)



    EBITDA


    35,154



    24,482



    8,267



    3,727



    5,823



    (27,759)


    49,694


    Adjustments for the effects of:




    Foreign currency (gains) losses












    2,153


    2,153


    Adjusted EBITDA


    $

    35,154



    $

    24,482



    $

    8,267



    $

    3,727



    $

    5,823



    $

    (25,606)


    $

    51,847





    Revenue


    $

    94,022



    $

    150,639



    $

    62,956



    $

    52,658



    $

    85,901





    $

    446,176


    Operating income % as reported in accordance with GAAP


    6

    %


    8

    %


    %


    4

    %


    6

    %




    %

    EBITDA Margin


    37

    %


    16

    %


    13

    %


    7

    %


    7

    %




    11

    %

    Adjusted EBITDA Margin


    37

    %


    16

    %


    13

    %


    7

    %


    7

    %




    12

    %

     


    EBITDA and Adjusted EBITDA and Margins by Segment



    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 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

    %



    For the Six Months Ended June 30, 2016


    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


    $

    45,007



    $

    65,761



    $

    17,026



    $

    (371)



    $

    6,121



    $

    (47,065)


    $

    86,479


    Adjustments for the effects of:



    Depreciation and amortization


    67,710



    25,759



    16,872



    5,756



    1,540



    2,123


    119,760



    Other pre-tax












    (7,177)


    (7,177)



    EBITDA


    112,717



    91,520



    33,898



    5,385



    7,661



    (52,119)


    199,062


    Adjustments for the effects of:



    Allowance for bad debts


    479



    1,826



    108



    3,344






    5,757



    Foreign currency (gains) losses












    7,103


    7,103




    Total of adjustments


    479



    1,826



    108



    3,344





    7,103


    12,860


    Adjusted EBITDA


    $

    113,196



    $

    93,346



    $

    34,006



    $

    8,729



    $

    7,661



    $

    (45,016)


    $

    211,922



    Revenue


    $

    287,262



    $

    385,709



    $

    268,084



    $

    143,464



    $

    149,364





    $

    1,233,883


    Operating income % as reported in accordance with GAAP


    16

    %


    17

    %


    6

    %


    %


    4

    %




    7

    %

    EBITDA Margin


    39

    %


    24

    %


    13

    %


    4

    %


    5

    %




    16

    %

    Adjusted EBITDA Margin


    39

    %


    24

    %


    13

    %


    6

    %


    5

    %




    17

    %

     

    View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-second-quarter-2017-results-300494632.html

    SOURCE Oceaneering International, Inc.

    Categories: Press Releases
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