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    Oceaneering Reports Second Quarter 2018 Results

    July 25, 2018

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

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

    Summary of Results

    (in thousands, except per share amounts)




    Three Months Ended


    Six Months Ended



    Jun 30,


    Mar 31,


    Jun 30,










    2018


    2017


    2018


    2018


    2017












    Revenue


    $

    478,674



    $

    515,036



    $

    416,413



    $

    895,087



    $

    961,212


    Gross Margin


    29,728



    53,571



    18,828



    48,556



    98,426


    Income (Loss) from Operations


    (19,637)



    9,390



    (27,149)



    (46,786)



    9,240


    Net Income (Loss)


    (33,076)



    2,132



    (49,133)



    (82,209)



    (5,402)













    Diluted Earnings (Loss) Per Share


    $

    (0.34)



    $

    0.02



    $

    (0.50)



    $

    (0.83)



    $

    (0.06)







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

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

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

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

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

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

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

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

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

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

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

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

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

    This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected business, financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering's: outlook and EBITDA guidance for the third quarter, second half, and full year of 2018; anticipated EBITDA, EBITDA contributions from each of its segments, expected contributions of its segments to 2018 operating results; expectations of ROV fleet utilization and EBITDA margins; expectations of Subsea Products margins and book-to-bill ratio; backlog; and overall view of the markets.  The forward-looking statements included in this release are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Among the factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry; supply and demand of drilling rigs; oil and natural gas demand and production growth; oil and natural gas prices; fluctuations in currency markets worldwide; future global economic conditions; the loss of major contracts or alliances; future performance under our customer contracts; and the effects of competition. For a more complete discussion of these and other risk factors, please see Oceaneering's latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.

    Oceaneering is a global provider of engineered services and products, primarily to the offshore energy industry.  Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment, and aerospace industries.
    For more information on Oceaneering, please visit www.oceaneering.com.

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

     



















    OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES



















    CONDENSED CONSOLIDATED BALANCE SHEETS


































    Jun 30, 2018


    Dec 31, 2017














    (in thousands)

    ASSETS

















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




    $

    1,114,245



    $

    1,187,402



    Net Property and Equipment







    1,014,004



    1,064,204



    Other Assets










    774,499



    772,344





    TOTAL ASSETS






    $

    2,902,748



    $

    3,023,950




















    LIABILITIES AND EQUITY






    Current Liabilities










    $

    427,376



    $

    435,797



    Long-term Debt










    782,228



    792,312



    Other Long-term Liabilities






    122,610



    131,323



    Equity










    1,570,534



    1,664,518





    TOTAL LIABILITIES AND EQUITY






    $

    2,902,748



    $

    3,023,950




















    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




























    For the Three Months Ended


    For the Six Months Ended










    Jun 30, 2018


    Jun 30, 2017


    Mar 31, 2018


    Jun 30, 2018


    Jun 30, 2017










    (in thousands, except per share amounts)




















    Revenue






    $

    478,674



    $

    515,036



    $

    416,413



    $

    895,087



    $

    961,212



    Cost of services and products


    448,946



    461,465



    397,585



    846,531



    862,786




    Gross Margin


    29,728



    53,571



    18,828



    48,556



    98,426



    Selling, general and administrative expense


    49,365



    44,181



    45,977



    95,342



    89,186




    Income (loss) from Operations




    (19,637)



    9,390



    (27,149)



    (46,786)



    9,240



    Interest income






    2,950



    2,045



    2,592



    5,542



    3,382



    Interest expense






    (8,802)



    (7,599)



    (9,371)



    (18,173)



    (13,867)



    Equity losses of unconsolidated affiliates


    (737)



    (394)



    (843)



    (1,580)



    (1,374)



    Other income (expense), net


    (3,556)



    (58)



    (8,474)



    (12,030)



    (2,614)




    Income (loss) before Income Taxes


    (29,782)



    3,384



    (43,245)



    (73,027)



    (5,233)



    Provision (benefit) for income taxes


    3,294



    1,252



    5,888



    9,182



    169




    Net Income (loss)


    $

    (33,076)



    $

    2,132



    $

    (49,133)



    $

    (82,209)



    $

    (5,402)




















    Weighted average diluted shares outstanding


    98,531



    98,751



    98,383



    98,457



    98,201


    Diluted Earnings (Loss) per Share


    $

    (0.34)



    $

    0.02



    $

    (0.50)



    $

    (0.83)



    $

    (0.06)




















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

     

    SEGMENT INFORMATION






    For the Three Months Ended


    For the Six Months Ended






    Jun 30, 2018


    Jun 30, 2017


    Mar 31, 2018


    Jun 30, 2018


    Jun 30, 2017






    ($ in thousands)











    Remotely Operated Vehicles

    Revenue


    $

    107,426



    $

    103,432



    $

    85,594



    $

    193,020



    $

    197,454



    Gross Margin


    $

    12,176



    $

    16,659



    $

    4,955



    $

    17,131



    $

    29,681


    Operating Income (Loss)


    $

    4,542



    $

    10,376



    $

    (2,398)



    $

    2,144



    $

    16,301


    Operating Income (Loss)%


    4

    %


    10

    %


    (3)

    %


    1

    %


    8

    %


    Days available


    25,386



    25,300



    25,138



    50,524



    50,519



    Days utilized


    13,654



    12,267



    11,034



    24,688



    23,755



    Utilization


    54

    %


    48

    %


    44

    %


    49

    %


    47

    %















    Subsea Products

    Revenue


    $

    121,704



    $

    174,893



    $

    126,688



    $

    248,392



    $

    325,532



    Gross Margin


    $

    16,075



    $

    22,762



    $

    15,005



    $

    31,080



    $

    47,753


    Operating Income


    $

    2,295



    $

    10,552



    $

    1,755



    $

    4,050



    $

    22,035


    Operating Income %


    2

    %


    6

    %


    1

    %


    2

    %


    7

    %

    Backlog at end of period


    $

    245,000



    $

    328,000



    $

    240,000



    $

    245,000



    $

    328,000
















    Subsea Projects

    Revenue


    $

    78,036



    $

    75,545



    $

    56,860



    $

    134,896



    $

    138,501



    Gross Margin


    $

    (5,145)



    $

    6,462



    $

    1,117



    $

    (4,028)



    $

    10,486


    Operating Income (Loss)


    $

    (10,358)



    $

    3,000



    $

    (2,359)



    $

    (12,717)



    $

    3,187


    Operating Income (Loss) %


    (13)

    %


    4

    %


    (4)

    %


    (9)

    %


    2

    %















    Asset Integrity

    Revenue


    $

    67,422



    $

    58,192



    $

    61,288



    $

    128,710



    $

    110,850



    Gross Margin


    $

    9,461



    $

    10,004



    $

    8,018



    $

    17,479



    $

    18,385


    Operating Income


    $

    3,357



    $

    3,755



    $

    1,679



    $

    5,036



    $

    6,022


    Operating Income %


    5

    %


    6

    %


    3

    %


    4

    %


    5

    %















    Advanced Technologies

    Revenue


    $

    104,086



    $

    102,974



    $

    85,983



    $

    190,069



    $

    188,875



    Gross Margin


    $

    13,999



    $

    14,133



    $

    7,822



    $

    21,821



    $

    24,205


    Operating Income


    $

    7,886



    $

    7,632



    $

    1,668



    $

    9,554



    $

    12,658


    Operating Income %


    8

    %


    7

    %


    2

    %


    5

    %


    7

    %














    Unallocated Expenses












    Gross Margin


    $

    (16,838)



    $

    (16,449)



    $

    (18,089)



    $

    (34,927)



    $

    (32,084)


    Operating Expense


    $

    (27,359)



    $

    (25,925)



    $

    (27,494)



    $

    (54,853)



    $

    (50,963)














    TOTAL



    Revenue


    $

    478,674



    $

    515,036



    $

    416,413



    $

    895,087



    $

    961,212



    Gross Margin


    $

    29,728



    $

    53,571



    $

    18,828



    $

    48,556



    $

    98,426


    Operating Income (Loss)


    $

    (19,637)



    $

    9,390



    $

    (27,149)



    $

    (46,786)



    $

    9,240


    Operating Income (Loss) %


    (4)

    %


    2

    %


    (7)

    %


    (5)


    %

    1

    %















     

    SELECTED CASH FLOW INFORMATION
















    For the Three Months Ended


    For the Six Months Ended






    Jun 30, 2018


    Jun 30, 2017


    Mar 31, 2018


    Jun 30, 2018


    Jun 30, 2017






    (in thousands)












    Capital expenditures, including acquisitions


    $

    27,798



    $

    23,493



    $

    94,130



    $

    121,928



    $

    41,300













    Depreciation and Amortization:











    Energy Services and Products












    Remotely Operated Vehicles


    $

    28,269



    $

    29,036



    $

    27,642



    $

    55,911



    $

    58,265



    Subsea Products


    14,914



    12,785



    14,025



    28,939



    25,784



    Subsea Projects


    13,053



    7,781



    8,313



    21,366



    15,861



    Asset Integrity


    1,836



    1,780



    1,848



    3,684



    3,240


    Total Energy Services and Products


    58,072



    51,382



    51,828



    109,900



    103,150


    Advanced Technologies


    737



    784



    766



    1,503



    1,581


    Unallocated Expenses


    1,034



    1,138



    1,534



    2,568



    2,236



    Total depreciation and amortization


    $

    59,843



    $

    53,304



    $

    54,128



    $

    113,971



    $

    106,967
















    RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

    In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G).  We have included Adjusted Net Income and Diluted Earnings per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow.  As a result, these amounts are non-GAAP financial measures.  We believe these are useful measures for investors to review, because they provide consistent measures of the underlying results of our ongoing business.  Furthermore, our management uses these measures as measures of the performance of our operations.  We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, 2018 EBITDA Estimates and Free Cash Flow, as well as the following by segment:  Adjusted Operating Income and Margins, EBITDA, EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins.  We define EBITDA margin as EBITDA divided by revenue.  Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow.  EBITDA and EBITDA margins, Adjusted EBITDA and Adjusted EBITDA margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures.  We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions).  We have included these disclosures in this press release because EBITDA,  EBITDA margins and Free Cash Flow are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts.  Furthermore, our management uses these measures for purposes of evaluating our financial performance.  Our presentation of EBITDA, EBITDA margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report.  Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP.  The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.

    RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

















    Adjusted Net Income (Loss) and Diluted Earnings per Share






















    For the Three Months Ended






    Jun 30, 2018

    Jun 30, 2017

    Mar 31, 2018






    Net Income


    Diluted EPS


    Net Income


    Diluted EPS


    Net Income


    Diluted EPS






    (in thousands, except per share amounts)








    Net Income (Loss) and Diluted EPS as reported in accordance with GAAP


    $

    (33,076)



    $

    (0.34)



    $

    2,132



    $

    0.02



    $

    (49,133)



    $

    (0.50)


    Pre tax adjustments for the effects of:














    Property & equipment write-offs


    4,233













    Intangible asset write-offs


    3,458













    Foreign currency (gains) losses


    3,418





    (20)





    8,315




    Total pre-tax adjustments


    11,109





    (20)





    8,315




















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


    (2,173)





    7





    (1,746)




    Discrete tax items (1)


    1,180









    2,400




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






    68






















    Total of adjustments


    10,116





    55





    8,969




    Adjusted Net Income (Loss)


    $

    (22,960)



    $

    (0.23)



    $

    2,187



    $

    0.02



    $

    (40,164)



    $

    (0.41)


















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



    98,531





    98,751





    98,383












    For the Six Months Ended



    Jun 30, 2018

    Jun 30, 2017



    Net Income


    Diluted EPS


    Net Income


    Diluted EPS



    (in thousands, except per share amounts)








    Net Income (Loss) and Diluted EPS as reported in accordance with GAAP




    $

    (82,209)



    $

    (0.83)



    $

    (5,402)



    $

    (0.06)


    Pre tax adjustments for the effects of:










    Property & equipment write-offs


    4,233









    Intangible asset write-offs


    3,458









    Foreign currency losses


    11,733





    2,133




    Total pre tax adjustments






    19,424





    2,133




















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


    (3,919)





    (747)




















    Discrete tax items (1)


    3,580





    2,106




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






    (105)





    Total of adjustments





    19,085





    3,387







    Adjusted net income


    $

    (63,124)



    $

    (0.64)



    $

    (2,015)



    $

    (0.02)


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






    98,457





    98,201



















    Notes:





    (1)

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



    (2)

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

















     

    EBITDA and EBITDA Margins
























    For the Three Months Ended


    For the Six Months Ended








    Jun 30, 2018


    Jun 30, 2017


    Mar 31, 2018


    Jun 30, 2018


    Jun 30, 2017








    ($ in thousands)

















    Net Income (Loss)




    $

    (33,076)



    $

    2,132



    $

    (49,133)



    $

    (82,209)



    $

    (5,402)


    Depreciation and Amortization




    59,843



    53,304



    54,128



    113,971



    106,967



    Subtotal




    26,767



    55,436



    4,995



    31,762



    101,565


    Interest Expense, net of Interest Income


    5,852



    5,554



    6,779



    12,631



    10,485


    Amortization included in Interest Expense


    (333)



    (283)



    (774)



    (1,107)



    (566)


    Provision (Benefit) for Income Taxes




    3,294



    1,252



    5,888



    9,182



    169



    EBITDA




    $

    35,580



    $

    61,959



    $

    16,888



    $

    52,468



    $

    111,653


















    Revenue




    $

    478,674



    $

    515,036



    $

    416,413



    $

    895,087



    $

    961,212


















    EBITDA margin %




    7

    %


    12

    %


    4

    %


    6

    %


    12

    %

















     

    2018 EBITDA Estimates























    Low


    High











    (in thousands)


    Loss before income taxes







    $

    (105,000)



    (85,000)



    Depreciation and amortization







    215,000



    215,000




    Subtotal








    110,000



    130,000



    Interest expense, net of interest income







    30,000



    30,000




    EBITDA








    $

    140,000



    $

    160,000





























    Free Cash Flow






















    For the Six Months Ended











    Jun 30, 2018


    Jun 30, 2017









    (in thousands)


    Net Loss







    $

    (82,209)



    $

    (5,402)



    Depreciation and amortization







    113,971



    106,967



    Other increases (decreases) in cash from operating activities







    (16,077)



    1,039



    Cash flow provided by operating activities







    15,685



    102,604



    Purchases of property and equipment







    (53,530)



    (41,300)



    Free Cash Flow







    $

    (37,845)



    $

    61,304



     

    Adjusted Operating Income (Loss) and Margins by Segment






    For the Three Months Ended June 30, 2018





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses


    Total





    ($ in thousands)

    Operating income (loss) as reported in accordance with GAAP


    $

    4,542



    $

    2,295



    $

    (10,358)



    $

    3,357



    $

    7,886



    $

    (27,359)



    $

    (19,637)


    Adjustments for the effects of:















    Property & equipment write-offs


    617



    1,531



    2,085









    4,233



    Intangible asset write-offs






    3,458









    3,458




    Total of adjustments


    617



    1,531



    5,543









    7,691



















    Adjusted operating income (loss)


    $

    5,159



    $

    3,826



    $

    (4,815)



    $

    3,357



    $

    7,886



    $

    (27,359)



    $

    (11,946)



















    Revenue


    $

    107,426



    $

    121,704



    $

    78,036



    $

    67,422



    $

    104,086





    $

    478,674


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


    4

    %


    2

    %


    (13)

    %


    5

    %


    8

    %




    (4)

    %

    Operating income (loss)% using adjusted amounts


    5

    %


    3

    %


    (6)

    %


    5

    %


    8

    %




    (2)

    %







































    For the Three Months Ended June 30, 2017





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses


    Total





    ($ in thousands)

    Operating income (loss) as reported in accordance with GAAP


    $

    10,376



    $

    10,552



    $

    3,000



    $

    3,755



    $

    7,632



    $

    (25,925)



    $

    9,390


    Adjusted operating income (loss)


    $

    10,376



    $

    10,552



    $

    3,000



    $

    3,755



    $

    7,632



    $

    (25,925)



    $

    9,390



















    Revenue


    $

    103,432



    $

    174,893



    $

    75,545



    $

    58,192



    $

    102,974





    $

    515,036


    Operating income % as reported in accordance with GAAP


    10

    %


    6

    %


    4

    %


    6

    %


    7

    %




    2

    %

    Operating income % using adjusted amounts


    10

    %


    6

    %


    4

    %


    6

    %


    7

    %




    2

    %


     

    Adjusted Operating Income (Loss) and Margins by Segment























    For the Three Months Ended March 31, 2018





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses


    Total





    ($ in thousands)

    Operating income (loss) as reported in accordance with GAAP


    $

    (2,398)



    $

    1,755



    $

    (2,359)



    $

    1,679



    $

    1,668



    $

    (27,494)



    $

    (27,149)


    Adjusted operating income (loss)


    $

    (2,398)



    $

    1,755



    $

    (2,359)



    $

    1,679



    $

    1,668



    $

    (27,494)



    $

    (27,149)




































    Revenue


    $

    85,594



    $

    126,688



    $

    56,860



    $

    61,288



    $

    85,983





    $

    416,413


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


    (3)

    %


    1

    %


    (4)

    %


    3

    %


    2

    %




    (7)

    %

    Operating income (loss) % using adjusted amounts


    (3)

    %


    1

    %


    (4)

    %


    3

    %


    2

    %




    (7)

    %


     

    Adjusted Operating Income (Loss) and Margins by Segment






    For the Six Months Ended June 30, 2018





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses


    Total





    ($ in thousands)

    Operating income (loss) as reported in accordance with GAAP


    $

    2,144



    $

    4,050



    $

    (12,717)



    $

    5,036



    $

    9,554



    $

    (54,853)



    $

    (46,786)


    Adjustments for the effects of:















    Property & equipment write-offs


    617



    1,531



    2,085









    4,233



    Intangible asset write-offs






    3,458









    3,458




    Total of adjustments


    617



    1,531



    5,543









    7,691


    Adjusted operating income (loss)


    $

    2,761



    $

    5,581



    $

    (7,174)



    $

    5,036



    $

    9,554



    $

    (54,853)



    $

    (39,095)



















    Revenue


    $

    193,020



    $

    248,392



    $

    134,896



    $

    128,710



    $

    190,069





    $

    895,087


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


    1

    %


    2

    %


    (9)

    %


    4

    %


    5

    %




    (5)

    %

    Operating income (loss) % using adjusted amounts


    1

    %


    2

    %


    (5)

    %


    4

    %


    5

    %




    (4)

    %






















    For the Six Months Ended June 30, 2017





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses


    Total





    ($ in thousands)

    Operating income as reported in accordance with GAAP


    $

    16,301



    $

    22,035



    $

    3,187



    $

    6,022



    $

    12,658



    $

    (50,963)



    $

    9,240


    Adjusted operating income


    $

    16,301



    $

    22,035



    $

    3,187



    $

    6,022



    $

    12,658



    $

    (50,963)



    $

    9,240



















    Revenue


    $

    197,454



    $

    325,532



    $

    138,501



    $

    110,850



    $

    188,875





    $

    961,212


    Operating income % as reported in accordance with GAAP


    8

    %


    7

    %


    2

    %


    5

    %


    7

    %




    1

    %

    Operating income % using adjusted amounts


    8

    %


    7

    %


    2

    %


    5

    %


    7

    %




    1

    %


     

    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended June 30, 2018





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses
    and other


    Total





    ($ in thousands)

    Operating income (loss) as reported in accordance with GAAP


    $

    4,542



    $

    2,295



    $

    (10,358)



    $

    3,357



    $

    7,886



    $

    (27,359)



    $

    (19,637)


    Adjustments for the effects of:















    Depreciation and amortization


    28,269



    14,914



    13,053



    1,836



    737



    1,034



    59,843



    Other pre-tax












    (4,626)



    (4,626)



    EBITDA


    32,811



    17,209



    2,695



    5,193



    8,623



    (30,951)



    35,580


    Adjustments for the effects of:















    Foreign currency (gains) losses












    3,418



    3,418




    Total of adjustments












    3,418



    3,418


    Adjusted EBITDA


    $

    32,811



    $

    17,209



    $

    2,695



    $

    5,193



    $

    8,623



    $

    (27,533)



    $

    38,998



















    Revenue


    $

    107,426



    $

    121,704



    $

    78,036



    $

    67,422



    $

    104,086





    $

    478,674


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


    4

    %


    2

    %


    (13)

    %


    5

    %


    8

    %




    (4)

    %

    EBITDA Margin


    31

    %


    14

    %


    3

    %


    8

    %


    8

    %




    7

    %

    Adjusted EBITDA Margin


    31

    %


    14

    %


    3

    %


    8

    %


    8

    %




    8

    %






















    For the Three Months Ended June 30, 2017





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses
    and other


    Total





    ($ in thousands)

    Operating income (loss) as reported in accordance with GAAP


    $

    10,376



    $

    10,552



    $

    3,000



    $

    3,755



    $

    7,632



    $

    (25,925)



    $

    9,390


    Adjustments for the effects of:















    Depreciation and amortization


    29,036



    12,785



    7,781



    1,780



    784



    1,138



    53,304



    Other pre-tax












    (735)



    (735)



    EBITDA


    39,412



    23,337



    10,781



    5,535



    8,416



    (25,522)



    61,959


    Adjustments for the effects of:















    Foreign currency (gains) losses












    (20)



    (20)




    Total of adjustments












    (20)



    (20)


    Adjusted EBITDA


    $

    39,412



    $

    23,337



    $

    10,781



    $

    5,535



    $

    8,416



    $

    (25,542)



    $

    61,939



















    Revenue


    $

    103,432



    $

    174,893



    $

    75,545



    $

    58,192



    $

    102,974





    $

    515,036


    Operating income % as reported in accordance with GAAP


    10

    %


    6

    %


    4

    %


    6

    %


    7

    %




    2

    %

    EBITDA Margin


    38

    %


    13

    %


    14

    %


    10

    %


    8

    %




    12

    %

    Adjusted EBITDA Margin


    38

    %


    13

    %


    14

    %


    10

    %


    8

    %




    12

    %

     

    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended March 31, 2018





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses
    and other


    Total





    ($ in thousands)

    Operating income (loss) as reported in accordance with GAAP


    $

    (2,398)



    $

    1,755



    $

    (2,359)



    $

    1,679



    $

    1,668



    $

    (27,494)



    $

    (27,149)


    Adjustments for the effects of:















    Depreciation and amortization


    27,642



    14,025



    8,313



    1,848



    766



    1,534



    54,128



    Other pre-tax












    (10,091)



    (10,091)



    EBITDA


    25,244



    15,780



    5,954



    3,527



    2,434



    (36,051)



    16,888


    Adjustments for the effects of:















    Foreign currency (gains) losses












    8,315



    8,315
















    8,315



    8,315


    Adjusted EBITDA


    $

    25,244



    $

    15,780



    $

    5,954



    $

    3,527



    $

    2,434



    $

    (27,736)



    $

    25,203



















    Revenue


    $

    85,594



    $

    126,688



    $

    56,860



    $

    61,288



    $

    85,983





    $

    416,413


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


    (3)

    %


    1

    %


    (4)

    %


    3

    %


    2

    %




    (7)

    %

    EBITDA Margin


    29

    %


    12

    %


    10

    %


    6

    %


    3

    %




    4

    %

    Adjusted EBITDA Margin


    29

    %


    12

    %


    10

    %


    6

    %


    3

    %




    6

    %


















     

    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Six Months Ended June 30, 2018





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses
    and other


    Total





    ($ in thousands)

    Operating income (loss) as reported in accordance with GAAP


    $

    2,144



    $

    4,050



    $

    (12,717)



    $

    5,036



    $

    9,554



    $

    (54,853)



    $

    (46,786)


    Adjustments for the effects of:















    Depreciation and amortization


    55,911



    28,939



    21,366



    3,684



    1,503



    2,568



    113,971



    Other pre-tax












    (14,717)



    (14,717)



    EBITDA


    58,055



    32,989



    8,649



    8,720



    11,057



    (67,002)



    52,468


    Adjustments for the effects of:















    Foreign currency (gains) losses












    11,733



    11,733




    Total of adjustments












    11,733



    11,733


    Adjusted EBITDA


    $

    58,055



    $

    32,989



    $

    8,649



    $

    8,720



    $

    11,057



    $

    (55,269)



    $

    64,201



















    Revenue


    $

    193,020



    $

    248,392



    $

    134,896



    $

    128,710



    $

    190,069





    $

    895,087


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


    1

    %


    2

    %


    (9)

    %


    4

    %


    5

    %




    (5)

    %

    EBITDA Margin


    30

    %


    13

    %


    6

    %


    7

    %


    6

    %




    6

    %

    Adjusted EBITDA Margin


    30

    %


    13

    %


    6

    %


    7

    %


    6

    %




    7

    %






















    For the Six Months Ended June 30, 2017





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unalloc.
    Expenses
    and other


    Total





    ($ in thousands)

    Operating income (loss) as reported in accordance with GAAP


    $

    16,301



    $

    22,035



    $

    3,187



    $

    6,022



    $

    12,658



    $

    (50,963)



    $

    9,240


    Adjustments for the effects of:















    Depreciation and amortization


    58,265



    25,784



    15,861



    3,240



    1,581



    2,236



    106,967



    Other pre-tax












    (4,554)



    (4,554)



    EBITDA


    74,566



    47,819



    19,048



    9,262



    14,239



    (53,281)



    111,653


    Adjustments for the effects of:















    Foreign currency (gains) losses












    2,133



    2,133




    Total of adjustments












    2,133



    2,133


    Adjusted EBITDA


    $

    74,566



    $

    47,819



    $

    19,048



    $

    9,262



    $

    14,239



    $

    (51,148)



    $

    113,786



















    Revenue


    $

    197,454



    $

    325,532



    $

    138,501



    $

    110,850



    $

    188,875





    $

    961,212


    Operating income % as reported in accordance with GAAP


    8

    %


    7

    %


    2

    %


    5

    %


    7

    %




    1

    %

    EBITDA Margin


    38

    %


    15

    %


    14

    %


    8

    %


    8

    %




    12

    %

    Adjusted EBITDA Margin


    38

    %


    15

    %


    14

    %


    8

    %


    8

    %




    12

    %

     

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

    SOURCE Oceaneering International, Inc.

    Categories: Press Releases
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