• Industries
  • Integrated Solutions
  • Products and Services
  • Careers
  • OII 14.77 +0.01 +0.07% Volume: 911,235 September 13, 2019

    Financial Press Releases

  • Industries
  • What's Next
    Discover How We Are
    Connecting What’s Needed with What’s Next™
    Find Out What's Next
  • Products & Services
  • Investor Relations
  • View all news

    Oceaneering Reports Fourth Quarter and Full Year 2017 Results

    February 22, 2018

    HOUSTON, Feb. 22, 2018 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $173.6 million, or $1.76 per share, on revenue of $484 million for the three months ended December 31, 2017.  Adjusted net loss was $8.0 million, or $(0.08) per share, reflecting the impact of $181.6 million of adjustments, primarily a $189.1 million noncash tax benefit due to recent United States tax reform.  During the prior quarter ended September 30, 2017, Oceaneering reported a net loss of $1.8 million, or $(0.02) per share, on revenue of $476 million, and adjusted net income of $3.2 million, or $0.03 per share.

    For the full year 2017, Oceaneering reported net income of $166.4 million, or $1.68 per share, on revenue of $1.9 billion.  Adjusted net loss was $6.8 million, or $(0.07) per share, reflecting the impact of $173.2 million of adjustments, primarily a $189.1 million noncash tax benefit due to recent United States tax reform.  This compared to 2016 net income of $24.6 million, or $0.25 per share, on revenue of $2.3 billion, and adjusted net income of $73.2 million, or $0.74 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 forecasted 2018 EBITDA) and free cash flow are non-GAAP measures that exclude the impacts of certain identified items.  Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and EBITDA Margins, 2018 EBITDA Estimates, 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


    Years Ended



    Dec 31,


    Sep 30,


    Dec 31,










    2017


    2016


    2017


    2017


    2016












    Revenue


    $

    484,175



    $

    488,445



    $

    476,120



    $

    1,921,507



    $

    2,271,603


    Gross Margin


    41,299



    51,071



    54,885



    194,610



    279,227


    Income (Loss) from Operations


    (9,115)



    (3,859)



    10,531



    10,656



    70,764


    Net Income (Loss)


    $

    173,568



    $

    (11,028)



    $

    (1,768)



    $

    166,398



    $

    24,586













    Diluted Earnings Per Share (EPS)


    $

    1.76



    $

    (0.11)



    $

    (0.02)



    $

    1.68



    $

    0.25







    Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "While 2017 was certainly a challenging year, we are pleased that each of our operating segments remained profitable, and overall, we generated adjusted EBITDA of $222 million.  We accomplished this by winning significant new business and protecting market share, executing well for our customers, and maintaining an impressive safety record.   

    "On an adjusted basis for the fourth quarter, operating income was $20.4 million lower than that of the immediately preceding quarter, due to reduced profit contributions from each of Oceaneering's segments.  The anticipated impacts from seasonality and the continued lower levels of activity and pricing in our oilfield segments were, overall, in line with our expectations.  However, results for Advanced Technologies disappointed, with a decline in profitability instead of the improvement we had anticipated.  Overall, our operating results and EBITDA were slightly less than our expectations, and each of our operating segments remained profitable.

    "Compared to the third quarter, adjusted ROV operating income for the fourth quarter was down, resulting from approximately a 12% reduction of revenue and 15% fewer days utilized.  The fourth quarter results included $7.3 million of revenue associated with the sale of ROV accessory equipment that was integrated into a customer's rigs.  This equipment sale increased our calculated ROV average revenue per day-on-hire and our profitability.

    "At the end of December 2017, our ROV fleet size of 279 vehicles remained unchanged from September 30, 2017.  Our fleet utilization for the fourth quarter was 42%, down from 50% in the third quarter.  Our fleet use mix during this period was 66% in drill support and 34% for vessel-based activity, compared to 61% and 39%, respectively, in the prior quarter.  The quarterly decline in the utilization percentage of our ROV fleet was primarily attributable to seasonality associated with the global vessel market.

    "On an adjusted basis, compared to the third quarter, Subsea Products operating income was slightly lower during the fourth quarter.  As we anticipated, Subsea Products revenue was higher, due to increased activity and profitability in our service and rental business unit, but that improvement was offset by decreased margins in manufactured products.  Our Subsea Products backlog at December 31, 2017 was $276 million, compared to our September 30, 2017 backlog of $284 million.  Our book-to-bill ratio was 0.95 and 0.75 for the fourth quarter and full year of 2017, respectively.

    "Sequentially, Subsea Projects operating income was down during the fourth quarter.  The decline was principally driven by the seasonal decrease in vessel and diving activities, and the completion of the Island Pride contract offshore India during the fourth quarter.  Asset Integrity operating income modestly decreased as projected, on increased revenue at lower market pricing.

    "Advanced Technologies operating income declined, on increased revenue, due to execution issues and additional costs incurred for commercial programs.  Unallocated Expenses were higher than expected, due to an unanticipated adverse judgment in an uninsured liability claim.

    "A $189.1 million benefit related to recent United States tax reform is included in our tax provision.  Excluding the impact of United States tax reform, our tax provision was the result of geographical mix of earnings and losses that resulted in taxes in certain jurisdictions that exceeded the tax benefit from the losses in other jurisdictions, which could not be realized in the quarter due to valuation allowances provided.

    "For 2018, overall, we project our consolidated revenue to be down slightly, with decreases in three of our energy segments, offset by increases in Asset Integrity and Advanced Technologies.  We continue to project our 2018 results to be lower than our 2017 results, due to reduced pricing for our service and product offerings and lower absorption of our manufacturing fixed costs resulting from lower expected throughput.  For the year, we anticipate generating $140 million to $180 million of EBITDA, with positive EBITDA contributions from each of our operating segments.

    "At the midpoint of this range, our EBITDA for 2018 would represent a decline of about 28% from 2017 adjusted EBITDA.  This decline should not be misconstrued as a further deterioration of our markets.  With the exception of seasonality, we view the current market to be relatively stable.

    "Operationally, we anticipate ROVs, Subsea Products and Subsea Projects results to be lower, with the largest declines in profitability occurring in Subsea Products and Subsea Projects.  For ROVs, we project increased days on hire, however, with lower operating results, due to a shift in geographic mix and continued competitive pricing that we expect to drive our average revenue per day lower.  We expect Subsea Products segment results to decline due to anticipated lower pricing and manufacturing throughput, as we enter the year with less backlog compared to 2017, and the natural lag effect between our customer's financial investment decisions and order awards.  Until we see an increase in Subsea Products backlog and throughput, our outlook is that margins will weaken further into the low- to mid-single digit range.

    "Our Subsea Projects segment is expected to have a more challenging year with reduced international vessel and diving activity, and continued competitive pressures on vessel dayrates in the spot call out market in the Gulf of Mexico, and the regulatory drydocking of the Ocean Intervention.  Unlike 2017, we are entering 2018 with no meaningful fixed-term vessel contracts with our customers.  For Asset Integrity, results are expected to increase slightly year-over-year.  Our Advanced Technologies results are projected to be higher, due to increased activity within our entertainment group, supporting the theme park arena.  We anticipate Unallocated Expenses to increase $12 million to $18 million in 2018, interest expense to be notably higher, and our effective tax benefit rate to be approximately 5% before discrete items.

    "We believe our first quarter 2018 operating results will be lower than our fourth quarter results, due to a continuation of low levels of offshore activity.  The decline will be lead by operating losses in our Subsea Products, Subsea Projects, and ROV segments.  We expect near breakeven operating levels in our Asset Integrity segment.  For Advanced Technologies, we project our operating results to improve, and we expect our Unallocated Expenses to be higher.

    "For 2018, we expect our organic capital expenditures to total between $80 million and $120 million.  This  includes approximately $40 million to $50 million of maintenance capital expenditures and $40 million to $70 million of growth capital expenditures, including the final payments to complete the Jones Act vessel Ocean Evolution and well intervention equipment.  We believe our liquidity (including $430 million in cash at year end and a $500 million revolving credit facility) provides us ample resources to manage our business through the cycle, and to position ourselves for the eventual upturn in offshore activity.

    "To increase our liquidity runway, in early February 2018 we issued $300 million of ten-year senior notes through a public offering.  We used the net proceeds to repay our outstanding $300 million term loan due October 2019.  We also amended our Credit Agreement to extend the maturities of our $500 million undrawn unsecured revolving credit facility, such that the total commitments for the revolving credit facility will be $500 million until October 2021 and thereafter $450 million until January 2023.  As a result, our next scheduled debt principal maturity is in November 2024.

    "Beyond 2018, with stable and improving long-term oil prices, we foresee an increase in offshore expenditures and improving demand for our energy-related services and products.  Meanwhile, we continue to look for opportunities to grow organically and via acquisitions."

    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 the Company. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering's: statements about backlog, to the extent backlog may be an indicator of future revenue or profitability; outlook for the full year and first quarter of 2018, anticipated EBITDA, EBITDA contributions from each of its segments, and belief that the 2018 decline in EBITDA compared to 2017 should not be misconstrued as a further deterioration of its markets; expected contributions of its segments to the operating results and the associated explanations; overall view of the markets; expectation about Subsea Products margins; our expectation that Advanced Technologies operating income should improve due to increased activity within the commercial theme park arena; expectations about interest expense; anticipated effective tax benefit rate before discrete items; expectations about capital expenditures; belief that its liquidity, including cash at year end and credit facility provide it with ample resources to manage its business through the cycle, and to position itself for the eventual upturn in offshore activity; characterization of an upturn in offshore activity as eventual; expectations about stable and improving long-term oil prices, offshore expenditures and improving demand for its energy-related services and products; and intention to look for opportunities to resume growth organically and via acquisitions. 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 backlog, costs, capital expenditures, future earnings, capital allocation strategies, dividend levels, sustainability of dividend levels, liquidity, competitive position, financial flexibility, debt levels, forecasts or expectations regarding business outlook; growth for Oceaneering as a whole and for each of its segments (and for specific products or geographic areas within each segment); 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; the loss of major contracts or alliances; future global economic conditions; and future results of operations. For a more complete discussion of these 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 energy industry.  Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment, and aerospace industries.

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

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

    OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES





















    CONDENSED CONSOLIDATED BALANCE SHEETS






































    Dec 31, 2017


    Dec 31, 2016
















    (in thousands)

    ASSETS



















    Current Assets (including cash and cash equivalents of $430,316 and $450,193)


    $

    1,187,402



    $

    1,262,595



    Net Property and Equipment







    1,064,204



    1,153,258



    Other Assets












    772,344



    714,462





    TOTAL ASSETS






    $

    3,023,950



    $

    3,130,315






















    LIABILITIES AND EQUITY






    Current Liabilities












    $

    435,797



    $

    508,364



    Long-term Debt












    792,312



    793,058



    Other Long-term Liabilities






    131,323



    312,250



    Equity












    1,664,518



    1,516,643





    TOTAL LIABILITIES AND EQUITY


    $

    3,023,950



    $

    3,130,315






















    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
































    For the Three Months Ended


    For the Year Ended












    Dec 31, 2017


    Dec 31, 2016


    Sep 30, 2017


    Dec 31, 2017


    Dec 31, 2016












    (in thousands, except per share amounts)






















    Revenue








    $

    484,175



    $

    488,445



    $

    476,120



    $

    1,921,507



    $

    2,271,603



    Cost of services and products



    442,876



    437,374



    421,235



    1,726,897



    1,992,376




    Gross Margin




    41,299



    51,071



    54,885



    194,610



    279,227



    Selling, general and administrative expense




    50,414



    54,930



    44,354



    183,954



    208,463




    Income (loss) from Operations






    (9,115)



    (3,859)



    10,531



    10,656



    70,764



    Interest income








    1,976



    1,479



    1,997



    7,355



    3,900



    Interest expense








    (5,300)



    (6,394)



    (8,650)



    (27,817)



    (25,318)



    Equity earnings (losses) of unconsolidated affiliates



    (185)



    (299)



    (424)



    (1,983)



    244



    Other income (expense), net




    (2,154)



    579



    (1,287)



    (6,055)



    (6,244)




    Income (loss) before Income Taxes




    (14,778)



    (8,494)



    2,167



    (17,844)



    43,346



    Provision for income taxes (benefit)




    (188,346)



    2,534



    3,935



    (184,242)



    18,760




    Net income (loss)




    $

    173,568



    $

    (11,028)



    $

    (1,768)



    $

    166,398



    $

    24,586






















    Weighted average diluted shares outstanding



    98,852



    98,064



    98,270



    98,764



    98,424


    Diluted Earnings (loss) per Share




    $

    1.76



    $

    (0.11)



    $

    (0.02)



    $

    1.68



    $

    0.25






















    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 Year Ended






    Dec 31, 2017


    Dec 31, 2016


    Sep 30, 2017


    Dec 31, 2017


    Dec 31, 2016






    ($ in thousands)











    Remotely Operated Vehicles


    Revenue


    $

    91,584



    $

    108,352



    $

    104,617



    $

    393,655



    $

    522,121



    Gross Margin


    $

    9,154



    $

    13,079



    $

    12,102



    $

    50,937



    $

    59,038


    Operating Income


    $

    1,056



    $

    4,031



    $

    5,009



    $

    22,366



    $

    25,193


    Operating Income %


    1

    %


    4

    %


    5

    %


    6

    %


    5

    %


    Days available


    25,737



    25,684



    25,695



    101,951



    112,588



    Days utilized


    10,785



    12,745



    12,742



    47,282



    59,963



    Utilization %


    42

    %


    50

    %


    50

    %


    46

    %


    53

    %















    Subsea Products


    Revenue


    $

    156,398



    $

    149,052



    $

    143,583



    $

    625,513



    $

    692,030



    Gross Margin


    $

    24,384



    $

    20,988



    $

    24,949



    $

    97,086



    $

    140,275


    Operating Income


    $

    11,121



    $

    4,068



    $

    12,383



    $

    45,539



    $

    75,938


    Operating Income %


    7

    %


    3

    %


    9

    %


    7

    %


    11

    %

    Backlog at end of period


    $

    276,000



    $

    431,000



    $

    284,000



    $

    276,000



    $

    431,000
















    Subsea Projects


    Revenue


    $

    73,376



    $

    94,096



    $

    80,116



    $

    291,993



    $

    472,979



    Gross Margin


    $

    4,348



    $

    6,245



    $

    10,187



    $

    25,021



    $

    51,392


    Operating Income


    $

    580



    $

    2,421



    $

    6,512



    $

    10,279



    $

    34,476


    Operating Income %


    1

    %


    3

    %


    8

    %


    4

    %


    7

    %















    Asset Integrity



    Revenue


    $

    64,830



    $

    59,938



    $

    61,098



    $

    236,778



    $

    275,397



    Gross Margin


    $

    9,243



    $

    12,428



    $

    9,754



    $

    37,382



    $

    41,458


    Operating Income


    $

    2,159



    $

    3,197



    $

    3,050



    $

    11,231



    $

    7,551


    Operating Income %


    3

    %


    5

    %


    5

    %


    5

    %


    3

    %















    Advanced Technologies


    Revenue


    $

    97,987



    $

    77,007



    $

    86,706



    $

    373,568



    $

    309,076



    Gross Margin


    $

    8,383



    $

    7,692



    $

    11,833



    $

    44,421



    $

    33,784


    Operating Income


    $

    2,779



    $

    1,331



    $

    6,602



    $

    22,039



    $

    11,809


    Operating Income %


    3

    %


    2

    %


    8

    %


    6

    %


    4

    %















    Unallocated Expenses











    Gross Margin


    $

    (14,213)



    $

    (9,361)



    $

    (13,940)



    $

    (60,237)



    $

    (46,720)


    Operating Income


    $

    (26,810)



    $

    (18,907)



    $

    (23,025)



    $

    (100,798)



    $

    (84,203)














    TOTAL



    Revenue


    $

    484,175



    $

    488,445



    $

    476,120



    $

    1,921,507



    $

    2,271,603



    Gross Margin


    $

    41,299



    $

    51,071



    $

    54,885



    $

    194,610



    $

    279,227


    Operating Income (Loss)


    $

    (9,115)



    $

    (3,859)



    $

    10,531



    $

    10,656



    $

    70,764


    Operating Income (Loss) %


    (2)

    %


    (1)

    %


    2

    %


    1

    %


    3

    %















     

    SELECTED CASH FLOW INFORMATION


















    For the Three Months Ended


    For the Year Ended







    Dec 31, 2017


    Dec 31, 2016


    Sep 30, 2017


    Dec 31, 2017


    Dec 31, 2016







    (in thousands)













    Capital expenditures, including acquisitions



    $

    33,780



    $

    56,624



    $

    29,878



    $

    104,958



    $

    142,513














    Depreciation and Amortization:












    Oilfield














    Remotely Operated Vehicles



    $

    27,445



    $

    29,552



    $

    28,269



    $

    113,979



    $

    140,967



    Subsea Products



    13,437



    13,795



    13,340



    52,561



    53,759



    Subsea Projects



    8,127



    8,595



    7,881



    31,869



    34,042



    Asset Integrity



    2,336



    2,600



    2,139



    7,715



    14,336


    Total Oilfield




    51,345



    54,542



    51,629



    206,124



    243,104


    Advanced Technologies



    794



    791



    796



    3,171



    3,120


    Unallocated Expenses



    900



    954



    1,088



    4,224



    4,023


              Total depreciation and amortization



    $

    53,039



    $

    56,287



    $

    53,513



    $

    213,519



    $

    250,247

















    RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

    In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G).  We have included Adjusted Net Income and Diluted Earnings per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow.  As a result, these amounts are non-GAAP financial measures.  We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business.  Furthermore, our management uses these measures as measures of the performance of our operations.  We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, 2018 EBITDA Estimates, and Free Cash Flow, as well as the following by segment:  Adjusted Operating Income and Margins, EBITDA, 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






    Dec 31, 2017

    Dec 31, 2016

    Sep 30, 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


    $

    173,568



    $

    1.76



    $

    (11,028)



    $

    (0.11)



    $

    (1,768)



    $

    (0.02)


    Pre-tax adjustments for the effects of:














    Restructuring expenses






    11,809









    Charge related to prior year non-income related taxes


    700









    1,500





    Allowance for bad debts






    2,827









    Foreign currency (gains) losses


    1,750





    (1,689)





    1,273




    Total pre-tax adjustments


    2,450





    12,947





    2,773




















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




    (858)





    (4,531)





    (971)




    Tax effect related to recent United States tax reform


    (189,117)












    Difference in tax provision on income before taxes in accordance with GAAP, including discrete tax items


    5,944





    5,506





    3,177





















    Total of adjustments


    (181,581)





    13,922





    4,979




    Adjusted Net Income (Loss)



    $

    (8,013)



    $

    (0.08)



    $

    2,894



    $

    0.03



    $

    3,211



    $

    0.03


















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




    98,279





    98,542





    98,797




















    For the Years Ended



    Dec 31, 2017

    Dec 31, 2016



    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






    $

    166,398



    $

    1.68



    $

    24,586



    $

    0.25


    Pre-tax adjustments for the effects of:










    Inventory write-downs






    30,490





    Restructuring expenses






    11,809





    Allowance for bad debts






    8,396





    Charge related to prior year non-income related taxes


    2,200









    Fixed asset write-offs






    13,790





    Foreign currency losses


    5,156





    4,770




    Total pre-tax adjustments






    7,356





    69,255




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


    (2,575)





    (24,239)




    Tax effect related to recent United States tax reform


    (189,117)








    Difference in tax provision on income before taxes in accordance with GAAP, including discrete tax items


    11,121





    3,589

















    Total of adjustments






    (173,215)





    48,605




    Adjusted Net Income (Loss)





    $

    (6,817)



    $

    (0.07)



    $

    73,191



    $

    0.74
















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








    98,238





    98,424


















    Note:










    For consistency in presentation, the difference in tax provision on income before taxes is computed using the U.S. statutory rate of 35.0% in determining Adjusted Net Income (Loss) for the respective periods.

















    EBITDA and EBITDA Margins
























    For the Three Months Ended


    For the Year Ended








    Dec 31,
    2017


    Dec 31,
    2016


    Sep 30,
    2017


    Dec 31, 2017


    Dec 31, 2016








    ($ in thousands)

















    Net income (loss)




    $

    173,568



    $

    (11,028)



    $

    (1,768)



    $

    166,398



    $

    24,586


    Depreciation and amortization




    53,039



    56,287



    53,513



    213,519



    250,247



    Subtotal




    226,607



    45,259



    51,745



    379,917



    274,833


    Interest expense, net of interest income




    3,324



    4,915



    6,653



    20,462



    21,418


    Amortization included in interest expense




    (283)



    (285)



    (283)



    (1,132)



    (1,145)


    Provision for income taxes (benefit)




    (188,346)



    2,534



    3,935



    (184,242)



    18,760



    EBITDA




    $

    41,302



    $

    52,423



    $

    62,050



    $

    215,005



    $

    313,866


















    Revenue




    $

    484,175



    $

    488,445



    $

    476,120



    $

    1,921,507



    $

    2,271,603


















    EBITDA margin %




    9

    %


    11

    %


    13

    %


    11

    %


    14

    %

















     

    2018 EBITDA Estimates




















    Low


    High












    (in thousands)







    Loss before income taxes



    $

    (110,000)



    $

    (80,000)








    Depreciation and amortization



    210,000



    220,000











    Subtotal


    100,000



    140,000








    Interest expense, net of interest income



    40,000



    40,000











    EBITDA


    $

    140,000



    $

    180,000




































    Free Cash Flows












    For the Year Ended





    Dec 31, 2017


    Dec 31, 2016





    (in thousands)

    Net income




    $

    166,398



    $

    24,586


    Depreciation and amortization




    213,519



    250,247


    Other increases (decreases) in cash from operating activities




    (243,439)



    64,606


    Cash flow provided by operating activities




    136,478



    339,439


    Purchases of property and equipment




    (93,680)



    (112,392)


    Free Cash Flow









    $

    42,798



    $

    227,047
















     




    Adjusted Operating Income and Margins by Segment






    For the Three Months Ended December 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


    $

    1,056



    $

    11,121



    $

    580



    $

    2,159



    $

    2,779



    $

    (26,810)



    $

    (9,115)


    Adjustments for the effects of:















    Charge related to prior year non-income related taxes


    600



    100











    700




    Total of adjustments


    600



    100











    700


    Adjusted operating income (loss)


    $

    1,656



    $

    11,221



    $

    580



    $

    2,159



    $

    2,779



    $

    (26,810)



    $

    (8,415)



















    Revenue


    $

    91,584



    $

    156,398



    $

    73,376



    $

    64,830



    $

    97,987





    $

    484,175


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


    1

    %


    7

    %


    1

    %


    3

    %


    3

    %




    (2)

    %

    Operating income (loss) % using adjusted amounts


    2

    %


    7

    %


    1

    %


    3

    %


    3

    %




    (2)

    %







































    For the Three Months Ended December 31, 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


    $

    4,031



    $

    4,068



    $

    2,421



    $

    3,197



    $

    1,331



    $

    (18,907)



    $

    (3,859)


    Adjustments for the effects of:















    Restructuring expenses


    3,786



    3,730



    2,054



    1,388



    532



    319



    11,809



    Allowance for bad debts


    855



    97



    194



    1,681







    2,827




    Total of adjustments


    4,641



    3,827



    2,248



    3,069



    532



    319



    14,636


    Adjusted operating income


    $

    8,672



    $

    7,895



    $

    4,669



    $

    6,266



    $

    1,863



    $

    (18,588)



    $

    10,777




































    Revenue


    $

    108,352



    $

    149,052



    $

    94,096



    $

    59,938



    $

    77,007





    $

    488,445


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


    4

    %


    3

    %


    3

    %


    5

    %


    2

    %




    (1)

    %

    Operating income % using adjusted amounts


    8

    %


    5

    %


    5

    %


    10

    %


    2

    %




    2

    %


     




    Adjusted Operating Income and Margins by Segment























    For the Three Months Ended September 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


    $

    5,009



    $

    12,383



    $

    6,512



    $

    3,050



    $

    6,602



    $

    (23,025)



    $

    10,531


    Adjustments for the effects of:















    Charge related to prior year non-income related taxes


    1,275



    225











    1,500




    Total of adjustments


    1,275



    225











    1,500


    Adjusted operating income


    $

    6,284



    $

    12,608



    $

    6,512



    $

    3,050



    $

    6,602



    $

    (23,025)



    $

    12,031




































    Revenue


    $

    104,617



    $

    143,583



    $

    80,116



    $

    61,098



    $

    86,706





    $

    476,120


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


    5

    %


    9

    %


    8

    %


    5

    %


    8

    %




    2

    %

    Operating income % using adjusted amounts


    6

    %


    9

    %


    8

    %


    5

    %


    8

    %




    3

    %


     




    Adjusted Operating Income and Margins by Segment






    For the Year Ended December 31, 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


    $

    22,366



    $

    45,539



    $

    10,279



    $

    11,231



    $

    22,039



    $

    (100,798)



    $

    10,656


    Adjustments for the effects of:















    Charge related to prior year non-income related taxes


    1,875



    325











    2,200




    Total of adjustments


    1,875



    325











    2,200


    Adjusted operating income


    $

    24,241



    $

    45,864



    $

    10,279



    $

    11,231



    $

    22,039



    $

    (100,798)



    $

    12,856



















    Revenue


    $

    393,655



    $

    625,513



    $

    291,993



    $

    236,778



    $

    373,568





    $

    1,921,507


    Operating income % as reported in accordance with GAAP


    6

    %


    7

    %


    4

    %


    5

    %


    6

    %




    1

    %

    Operating income % using adjusted amounts


    6

    %


    7

    %


    4

    %


    5

    %


    6

    %




    1

    %






















    For the Year Ended December 31, 2016





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses


    Total





    ($ in thousands)

    Operating income as reported in accordance with GAAP


    $

    25,193



    $

    75,938



    $

    34,476



    $

    7,551



    $

    11,809



    $

    (84,203)



    $

    70,764


    Adjustments for the effects of:















    Inventory write-downs


    25,200



    5,290











    30,490



    Restructuring expenses


    3,786



    3,730



    2,054



    1,388



    532



    319



    11,809



    Allowance for bad debts


    1,195



    1,867



    321



    5,013







    8,396



    Fixed asset write-offs


    10,840



    2,950











    13,790




    Total of adjustments


    41,021



    13,837



    2,375



    6,401



    532



    319



    64,485


    Adjusted operating income


    $

    66,214



    $

    89,775



    $

    36,851



    $

    13,952



    $

    12,341



    $

    (83,884)



    $

    135,249



















    Revenue


    $

    522,121



    $

    692,030



    $

    472,979



    $

    275,397



    $

    309,076





    $

    2,271,603


    Operating income % as reported in accordance with GAAP


    5

    %


    11

    %


    7

    %


    3

    %


    4

    %




    3

    %

    Operating income % using adjusted amounts


    13

    %


    13

    %


    8

    %


    5

    %


    4

    %




    6

    %


     




    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended December 31, 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


    $

    1,056



    $

    11,121



    $

    580



    $

    2,159



    $

    2,779



    $

    (26,810)



    $

    (9,115)


    Adjustments for the effects of:















    Depreciation and amortization


    27,445



    13,437



    8,127



    2,336



    794



    900



    53,039



    Other pre-tax












    (2,622)



    (2,622)



    EBITDA


    28,501



    24,558



    8,707



    4,495



    3,573



    (28,532)



    41,302


    Adjustments for the effects of:















    Charge related to prior year non-income related taxes


    600



    100











    700



    Foreign currency (gains) losses












    1,750



    1,750




    Total of adjustments


    600



    100









    1,750



    2,450


    Adjusted EBITDA


    $

    29,101



    $

    24,658



    $

    8,707



    $

    4,495



    $

    3,573



    $

    (26,782)



    $

    43,752



















    Revenue


    $

    91,584



    $

    156,398



    $

    73,376



    $

    64,830



    $

    97,987





    $

    484,175


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


    1

    %


    7

    %


    1

    %


    3

    %


    3

    %




    (2)

    %

    EBITDA Margin


    31

    %


    16

    %


    12

    %


    7

    %


    4

    %




    9

    %

    Adjusted EBITDA Margin


    32

    %


    16

    %


    12

    %


    7

    %


    4

    %




    9

    %






















    For the Three Months Ended December 31, 2016





    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


    $

    4,031



    $

    4,068



    $

    2,421



    $

    3,197



    $

    1,331



    $

    (18,907)



    $

    (3,859)


    Adjustments for the effects of:















    Depreciation and amortization


    29,552



    13,795



    8,595



    2,600



    791



    954



    56,287



    Other pre-tax












    (5)



    (5)



    EBITDA


    33,583



    17,863



    11,016



    5,797



    2,122



    (17,958)



    52,423


    Adjustments for the effects of:















    Restructuring expenses


    3,786



    3,730



    2,054



    1,388



    532



    319



    11,809



    Allowance for bad debts


    855



    97



    194



    1,681







    2,827



    Foreign currency (gains) losses












    (1,689)



    (1,689)




    Total of adjustments


    4,641



    3,827



    2,248



    3,069



    532



    (1,370)



    12,947


    Adjusted EBITDA


    $

    38,224



    $

    21,690



    $

    13,264



    $

    8,866



    $

    2,654



    $

    (19,328)



    $

    65,370



















    Revenue


    $

    108,352



    $

    149,052



    $

    94,096



    $

    59,938



    $

    77,007





    $

    488,445


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


    4

    %


    3

    %


    3

    %


    5

    %


    2

    %




    (1)

    %

    EBITDA Margin


    31

    %


    12

    %


    12

    %


    10

    %


    3

    %




    11

    %

    Adjusted EBITDA Margin


    35

    %


    15

    %


    14

    %


    15

    %


    3

    %




    13

    %

    `




    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended September 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


    $

    5,009



    $

    12,383



    $

    6,512



    $

    3,050



    $

    6,602



    $

    (23,025)



    $

    10,531


    Adjustments for the effects of:















    Depreciation and amortization


    28,269



    13,340



    7,881



    2,139



    796



    1,088



    53,513



    Other pre-tax












    (1,994)



    (1,994)



    EBITDA


    33,278



    25,723



    14,393



    5,189



    7,398



    (23,931)



    62,050


    Adjustments for the effects of:















    Charge related to prior year non-income related taxes


    1,275



    225











    1,500



    Foreign currency (gains) losses












    1,273



    1,273




    Total of adjustments


    1,275



    225









    1,273



    2,773


    Adjusted EBITDA


    $

    34,553



    $

    25,948



    $

    14,393



    $

    5,189



    $

    7,398



    $

    (22,658)



    $

    64,823



















    Revenue


    $

    104,617



    $

    143,583



    $

    80,116



    $

    61,098



    $

    86,706





    $

    476,120


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


    5

    %


    9

    %


    8

    %


    5

    %


    8

    %




    2

    %

    EBITDA Margin


    32

    %


    18

    %


    18

    %


    8

    %


    9

    %




    13

    %

    Adjusted EBITDA Margin


    33

    %


    18

    %


    18

    %


    8

    %


    9

    %




    14

    %


















     




    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Year Ended December 31, 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


    $

    22,366



    $

    45,539



    $

    10,279



    $

    11,231



    $

    22,039



    $

    (100,798)



    $

    10,656


    Adjustments for the effects of:















    Depreciation and amortization


    113,979



    52,561



    31,869



    7,715



    3,171



    4,224



    213,519



    Other pre-tax












    (9,170)



    (9,170)



    EBITDA


    136,345



    98,100



    42,148



    18,946



    25,210



    (105,744)



    215,005


    Adjustments for the effects of:















    Charge related to prior year non-income related taxes


    1,875



    325











    2,200



    Foreign currency (gains) losses












    5,156



    5,156




    Total of adjustments


    1,875



    325









    5,156



    7,356


    Adjusted EBITDA


    $

    138,220



    $

    98,425



    $

    42,148



    $

    18,946



    $

    25,210



    $

    (100,588)



    $

    222,361



















    Revenue


    $

    393,655



    $

    625,513



    $

    291,993



    $

    236,778



    $

    373,568





    $

    1,921,507


    Operating income % as reported in accordance with GAAP


    6

    %


    7

    %


    4

    %


    5

    %


    6

    %




    1

    %

    EBITDA Margin


    35

    %


    16

    %


    14

    %


    8

    %


    7

    %




    11

    %

    Adjusted EBITDA Margin


    35

    %


    16

    %


    14

    %


    8

    %


    7

    %




    12

    %






















    For the Year Ended December 31, 2016





    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


    $

    25,193



    $

    75,938



    $

    34,476



    $

    7,551



    $

    11,809



    $

    (84,203)



    $

    70,764


    Adjustments for the effects of:















    Depreciation and amortization


    140,967



    53,759



    34,042



    14,336



    3,120



    4,023



    250,247



    Other pre-tax












    (7,145)



    (7,145)



    EBITDA


    166,160



    129,697



    68,518



    21,887



    14,929



    (87,325)



    313,866


    Adjustments for the effects of:















    Inventory write-downs


    25,200



    5,290











    30,490



    Restructuring expenses


    3,786



    3,730



    2,054



    1,388



    532



    319



    11,809



    Allowance for bad debts


    1,195



    1,867



    321



    5,013







    8,396



    Foreign currency (gains) losses












    4,770



    4,770




    Total of adjustments


    30,181



    10,887



    2,375



    6,401



    532



    5,089



    55,465


    Adjusted EBITDA


    $

    196,341



    $

    140,584



    $

    70,893



    $

    28,288



    $

    15,461



    $

    (82,236)



    $

    369,331



















    Revenue


    $

    522,121



    $

    692,030



    $

    472,979



    $

    275,397



    $

    309,076





    $

    2,271,603


    Operating income % as reported in accordance with GAAP


    5

    %


    11

    %


    7

    %


    3

    %


    4

    %




    3

    %

    EBITDA Margin


    32

    %


    19

    %


    14

    %


    8

    %


    5

    %




    14

    %

    Adjusted EBITDA Margin


    38

    %


    20

    %


    15

    %


    10

    %


    5

    %




    16

    %

     

    Cision View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-fourth-quarter-and-full-year-2017-results-300603097.html

    SOURCE Oceaneering International, Inc.

    Categories: Press Releases
    View all news