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    Oceaneering Reports Third Quarter 2018 Results

    October 24, 2018

    HOUSTON, Oct. 24, 2018 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported a net loss of $66.0 million, or $(0.67) per share, on revenue of $519 million for the three months ended September 30, 2018.  Adjusted net loss was $13.9 million, or $(0.14) per share, excluding the impact of $56.5 million of certain tax adjustments, the after-tax effects of a $9.3 million gain realized on the sale of a minority interest investment, and $3.7 million of foreign currency exchange losses.

    During the prior quarter ended June 30, 2018, Oceaneering reported a net loss of $33.1 million, or $(0.34) per share, on revenue of $479 million, and an adjusted net loss of $23.0 million, or $(0.23) per share.

    Adjusted operating income (loss) and margins, adjusted net income (loss) and diluted 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


    Nine Months Ended



    Sep 30,


    Jun 30,


    Sep 30,










    2018


    2017


    2018


    2018


    2017












    Revenue


    $

    519,300



    $

    476,120



    $

    478,674



    $

    1,414,387



    $

    1,437,332


    Gross Margin


    47,635



    54,885



    29,728



    96,191



    153,311


    Income (Loss) from Operations


    (1,552)



    10,531



    (19,637)



    (48,338)



    19,771


    Net Income (Loss)


    (65,979)



    (1,768)



    (33,076)



    (148,188)



    (7,170)













    Diluted Earnings (Loss) Per Share


    $

    (0.67)



    $

    (0.02)



    $

    (0.34)



    $

    (1.50)



    $

    (0.07)







    Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Our consolidated third quarter 2018 operating results met our expectations.  However, from a segment perspective, these results were not achieved in the manner we initially anticipated.

    "Compared to our adjusted second quarter 2018 results, operating results for the third quarter 2018 improved by $10.4 million, mainly due to favorable profit contributions from Subsea Projects and Subsea Products, and lower Unallocated expenses, partially offset by lower profitability in our Remotely Operated Vehicle (ROV) segment.

    "We are pleased that each of our operating segments was profitable and on a consolidated basis we generated adjusted EBITDA of $47.2 million.  Our cash position increased to $367 million as of September 30, 2018.

    "Operationally, for the third quarter 2018, ROV days on hire increased 4% as our fleet utilization improved to 56% from 54% in the second quarter.  Average ROV revenue per day on hire was lower, as expected, and declined 6% sequentially, as we experienced a geographic shift in activity to lower day rate operating areas, notably Europe and Brazil.  Operating income declined more than expected due to operational inefficiencies associated with the reactivation of equipment and crews.  Consequently, ROV EBITDA margin declined to 27%, from the approximately 30% that was expected.

    "Our fleet use mix during the quarter was 59% in drill support and 41% in vessel-based activity, compared to 62% and 38% for the prior quarter.  At the end of September, we had ROVs on 91, or 61%, of the 150 floating rigs under contract.  At the end of June 30, 2018, we had ROVs on 92, or 60%, of the 154 floating rigs.  At the end of September 2018, our fleet size remained at 279 vehicles.

    "Subsea Product's operating income during the third quarter 2018 was better than expected, on a 13% increase in quarterly revenues.  The improved operating results were due to increased throughput in our manufactured products businesses.  Our Subsea Products backlog at September 30, 2018 was $333 million, compared to our June 30, 2018 backlog of $245 million.  The backlog improvement was largely attributable to an increase in order intake for our service and rental business offerings.  Our book-to-bill ratio year-to-date was 1.2 and the past twelve months has been 1.1.

    "Sequentially, Subsea Projects achieved a return to profitability, as expected, and generated $6.1 million of operating income during the third quarter 2018, on a 35% increase in quarterly revenues.  These results were mainly driven by higher levels of seasonal utilization and pricing in the U.S. Gulf of Mexico deepwater vessel and diving services, and an increase in survey services.  Ecosse results were lower than projected due to equipment modifications and field trials that delayed execution.  Asset Integrity operating income was down, due to delays in anticipated project awards by customers.

    "For our non-energy segment, Advanced Technologies, third quarter 2018 operating income was slightly better than expected, due to increased project throughput in our commercial theme park unit.  Unallocated Expenses for the third quarter 2018 were lower than the second quarter 2018 as performance-based compensation expenses were reduced based on our expected level of results relative to the respective plan targets.

    "Our third quarter 2018 tax provision of $61.1 million included $56.5 million of discrete tax items.  The largest discrete item of $39.1 million related to valuation allowances recorded for certain tax benefits recognized in prior years that may not be realizable in certain foreign jurisdictions.  Other discrete items included: $7.9 million to reflect recently issued proposed regulations relating to the U.S. tax reform legislation adopted in December 2017; $3.6 million related to uncertain tax positions; and $5.9 million associated with various other issues.  We expect the above tax provision for discrete items will have minimal cash tax implications for the foreseeable future.  During the nine months ended September 30, 2018, our cash taxes paid totaled $25.8 million as compared to the $30.0 million paid during the same period of 2017.

    "Looking forward, we believe our fourth quarter 2018 results will be lower than our adjusted third quarter results due to the onset of seasonality leading to reduced levels of offshore energy activity.  Sequentially, we expect lower operating income from each of our energy segments, with most of the decline expected to be in Subsea Products and Subsea Projects segments.  Additionally, in our Subsea Products segment we are expecting an unfavorable impact at our manufacturing facility in Panama City, Florida due to damage caused by Hurricane Michael in mid-October 2018.  For our non-energy segment, Advanced Technologies, we are projecting a quarterly improvement in operating income.  Unallocated Expenses are expected to be in the upper-$20 million range.

    "For the full year of 2018, we currently expect our adjusted EBITDA to be in the lower half of the guidance range of $140 million to $160 million.  And, we continue to expect each of our operating segments will contribute positive EBITDA.

    "We are encouraged that the long-term fundamentals for the offshore energy industry have stabilized and we believe we are now in the early stages of a recovery in activity in general, and in our businesses.  We expect a recovery will take time, and only after a sustained higher level of activity can prices for our services and products be increased enough to generate satisfactory returns.

    "Accordingly, looking into 2019, we are projecting increased activity levels in each of our segments, likely led by revenue gains in our Subsea Products manufacturing business unit.  However, the pace of recovery is still difficult to determine, and at this time we are not prepared to offer more detailed guidance on 2019."

    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: overall view of the markets; backlog; expectation that the tax provision for discrete items will have minimal cash tax implications for the foreseeable future; outlook and EBITDA guidance for the fourth quarter and full year of 2018; expected fourth quarter Unallocated Expenses; expected contributions of its segments to fourth quarter and 2018 operating results; outlook for the full year of 2018; anticipated adjusted EBITDA and EBITDA contributions from each of its segments; statements about long-term industry fundamentals and recovery; statement about a sustained higher level of activity being required before prices for our services and products can be increased enough to generate satisfactory returns; and outlook for 2019 and expectations for increased activity levels in each of its segments.  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


































    Sep 30, 2018


    Dec 31, 2017














    (in thousands)

    ASSETS

















    Current Assets (including cash and cash equivalents of $367,150 and $430,316)

    $

    1,189,836



    $

    1,187,402



    Net Property and Equipment







    993,514



    1,064,204



    Other Assets










    740,349



    772,344





    TOTAL ASSETS






    $

    2,923,699



    $

    3,023,950




















    LIABILITIES AND EQUITY






    Current Liabilities










    $

    476,314



    $

    435,797



    Long-term Debt










    782,190



    792,312



    Other Long-term Liabilities






    163,722



    131,323



    Equity










    1,501,473



    1,664,518





    TOTAL LIABILITIES AND EQUITY




    $

    2,923,699



    $

    3,023,950




















    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




























    For the Three Months Ended


    For the Nine Months Ended










    Sep 30, 2018


    Sep 30, 2017


    Jun 30, 2018


    Sep 30, 2018


    Sep 30, 2017










    (in thousands, except per share amounts)




















    Revenue






    $

    519,300



    $

    476,120



    $

    478,674



    $

    1,414,387



    $

    1,437,332



    Cost of services and products


    471,665



    421,235



    448,946



    1,318,196



    1,284,021




    Gross Margin


    47,635



    54,885



    29,728



    96,191



    153,311



    Selling, general and administrative expense


    49,187



    44,354



    49,365



    144,529



    133,540




    Income (loss) from Operations




    (1,552)



    10,531



    (19,637)



    (48,338)



    19,771



    Interest income






    2,645



    1,997



    2,950



    8,187



    5,379



    Interest expense






    (9,885)



    (8,650)



    (8,802)



    (28,058)



    (22,517)



    Equity losses of unconsolidated affiliates


    (1,684)



    (424)



    (737)



    (3,264)



    (1,798)



    Other income (expense), net


    5,632



    (1,287)



    (3,556)



    (6,398)



    (3,901)




    Income (loss) before Income Taxes


    (4,844)



    2,167



    (29,782)



    (77,871)



    (3,066)



    Provision (benefit) for income taxes


    61,135



    3,935



    3,294



    70,317



    4,104




    Net Income (Loss)


    $

    (65,979)



    $

    (1,768)



    $

    (33,076)



    $

    (148,188)



    $

    (7,170)




















    Weighted average diluted shares outstanding


    98,533



    98,270



    98,531



    98,483



    98,224


    Diluted Earnings (Loss) per Share


    $

    (0.67)



    $

    (0.02)



    $

    (0.34)



    $

    (1.50)



    $

    (0.07)




















    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 Nine Months Ended







    Sep 30, 2018


    Sep 30, 2017


    Jun 30, 2018


    Sep 30, 2018


    Sep 30, 2017







    ($ in thousands)












    Remotely Operated Vehicles


    Revenue



    $

    105,045



    $

    104,617



    $

    107,426



    $

    298,065



    $

    302,071



    Gross Margin



    $

    8,757



    $

    12,102



    $

    12,176



    $

    25,888



    $

    41,783


    Operating Income



    $

    772



    $

    5,009



    $

    4,542



    $

    2,916



    $

    21,310


    Operating Income %



    1

    %


    5

    %


    4

    %


    1

    %


    7

    %


    Days available



    25,668



    25,695



    25,386



    76,192



    76,214



    Days utilized



    14,249



    12,742



    13,654



    38,937



    36,497



    Utilization



    56

    %


    50

    %


    54

    %


    51

    %


    48

    %
















    Subsea Products


    Revenue



    $

    137,099



    $

    143,583



    $

    121,704



    $

    385,491



    $

    469,115



    Gross Margin



    $

    18,748



    $

    24,949



    $

    16,075



    $

    49,828



    $

    72,702


    Operating Income



    $

    5,367



    $

    12,383



    $

    2,295



    $

    9,417



    $

    34,418


    Operating Income %



    4

    %


    9

    %


    2

    %


    2

    %


    7

    %

    Backlog at end of period



    $

    333,000



    $

    284,000



    $

    245,000



    $

    333,000



    $

    284,000

















    Subsea Projects


    Revenue



    $

    104,972



    $

    80,116



    $

    78,036



    $

    239,868



    $

    218,617



    Gross Margin



    $

    10,829



    $

    10,187



    $

    (5,145)



    $

    6,801



    $

    20,673


    Operating Income (Loss)



    $

    6,088



    $

    6,512



    $

    (10,358)



    $

    (6,629)



    $

    9,699


    Operating Income (Loss) %



    6

    %


    8

    %


    (13)

    %


    (3)

    %


    4

    %
















    Asset Integrity


    Revenue



    $

    62,346



    $

    61,098



    $

    67,422



    $

    191,056



    $

    171,948



    Gross Margin



    $

    9,430



    $

    9,754



    $

    9,461



    $

    26,909



    $

    28,139


    Operating Income



    $

    2,275



    $

    3,050



    $

    3,357



    $

    7,311



    $

    9,072


    Operating Income %



    4

    %


    5

    %


    5

    %


    4

    %


    5

    %
















    Advanced Technologies


    Revenue



    $

    109,838



    $

    86,706



    $

    104,086



    $

    299,907



    $

    275,581



    Gross Margin



    $

    14,824



    $

    11,833



    $

    13,999



    $

    36,645



    $

    36,038


    Operating Income



    $

    8,960



    $

    6,602



    $

    7,886



    $

    18,514



    $

    19,260


    Operating Income %



    8

    %


    8

    %


    8

    %


    6

    %


    7

    %















    Unallocated Expenses














    Gross Margin



    $

    (14,953)



    $

    (13,940)



    $

    (16,838)



    $

    (49,880)



    $

    (46,024)


    Operating Expense



    $

    (25,014)



    $

    (23,025)



    $

    (27,359)



    $

    (79,867)



    $

    (73,988)















    TOTAL



    Revenue



    $

    519,300



    $

    476,120



    $

    478,674



    $

    1,414,387



    $

    1,437,332



    Gross Margin



    $

    47,635



    $

    54,885



    $

    29,728



    $

    96,191



    $

    153,311


    Operating Income (Loss)



    $

    (1,552)



    $

    10,531



    $

    (19,637)



    $

    (48,338)



    $

    19,771


    Operating Income (Loss) %



    %


    2

    %


    (4)

    %


    (3)

    %


    1

    %
















     

    SELECTED CASH FLOW INFORMATION


















    For the Three Months Ended


    For the Nine Months Ended







    Sep 30, 2018


    Sep 30, 2017


    Jun 30, 2018


    Sep 30, 2018


    Sep 30, 2017







    (in thousands)













    Capital expenditures, including acquisitions



    $

    30,389



    $

    29,878



    $

    27,798



    $

    152,317



    $

    71,178














    Depreciation and Amortization:












    Energy Services and Products













    Remotely Operated Vehicles



    $

    27,428



    $

    28,269



    $

    28,269



    $

    83,339



    $

    86,534



    Subsea Products



    12,349



    13,340



    14,914



    41,288



    39,124



    Subsea Projects



    7,464



    7,881



    13,053



    28,830



    23,742



    Asset Integrity



    1,635



    2,139



    1,836



    5,319



    5,379


    Total Energy Services and Products



    48,876



    51,629



    58,072



    158,776



    154,779


    Advanced Technologies



    792



    796



    737



    2,295



    2,377


    Unallocated Expenses



    1,035



    1,088



    1,034



    3,603



    3,324


    Total Depreciation and Amortization



    $

    50,703



    $

    53,513



    $

    59,843



    $

    164,674



    $

    160,480

















    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 Margin, 2018 Adjusted EBITDA Estimates and Free Cash Flow, as well as the following by segment:  Adjusted Operating Income and Margin, EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin.  We define EBITDA Margin as EBITDA divided by revenue.  Adjusted EBITDA and Adjusted EBITDA Margin 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 Margin, Adjusted EBITDA and Adjusted EBITDA Margin, 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 Margin 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 Margin 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 (Loss) per Share






















    For the Three Months Ended






    Sep 30, 2018

    Sep 30, 2017

    Jun 30, 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


    $

    (65,979)



    $

    (0.67)



    $

    (1,768)



    $

    (0.02)



    $

    (33,076)



    $

    (0.34)


    Pre-tax adjustments for the effects of:














    Charge related to prior year non-income related taxes






    1,500









    Property & equipment write-offs










    4,233





    Intangible asset write-offs










    3,458





    Gain on sale of investment


    (9,293)













    Foreign currency losses


    3,745





    1,273





    3,418




    Total pre-tax adjustments


    (5,548)





    2,773





    11,109




















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


    1,165





    (971)





    (2,173)




    Discrete tax adjustments:














    Uncertain tax positions


    3,571





    1,419





    1,358





    Tax reform


    7,932













    Valuation allowances


    39,136













    Other


    5,853





    994





    (178)




    Total discrete tax adjustments


    56,492





    2,413





    1,180




    Difference in tax provision on income before taxes in accordance with GAAP (1)






    763






















    Total of adjustments


    52,109





    4,978





    10,116




    Adjusted Net Income (Loss) and Adjusted Diluted EPS


    $

    (13,870)



    $

    (0.14)



    $

    3,210



    $

    0.03



    $

    (22,960)



    $

    (0.23)


















    Weighted average diluted shares outstanding utilized for Adjusted Diluted EPS




    98,533





    98,797





    98,531




















    For the Nine Months Ended



    Sep 30, 2018

    Sep 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


    $

    (148,188)



    $

    (1.50)



    $

    (7,170)



    $

    (0.07)


    Pre-tax adjustments for the effects of:










    Charge related to prior year non-income related taxes






    1,500





    Property & equipment write-offs


    4,233









    Intangible asset write-offs


    3,458









    Gain on sale of investment


    (9,293)









    Foreign currency losses


    15,478





    3,406




    Total pre-tax adjustments






    13,876





    4,906




















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


    (2,754)





    (1,718)




















    Discrete tax adjustments:










    Share-based compensation


    1,820





    2,900





    Uncertain tax positions


    4,833





    195





    Tax reform


    7,932









    Valuation allowances


    39,136









    Other


    6,351





    1,424




    Total discrete tax adjustments


    60,072





    4,519




    Difference in tax provision on income before taxes in accordance with GAAP (1)






    658





    Total of adjustments






    71,194





    8,365




    Adjusted Net Income (Loss) and Adjusted Diluted EPS


    $

    (76,994)



    $

    (0.78)



    $

    1,195



    $

    0.01















    Weighted average diluted shares outstanding utilized for Adjusted Diluted EPS




    98,483





    98,735


















    Notes:

    (1)

    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 nine months ended September 30, 2018, and three months ended June 30, 2018 due to changes in U.S. tax law.

     

    EBITDA and EBITDA Margins
























    For the Three Months Ended


    For the Nine Months Ended








    Sep 30, 2018


    Sep 30, 2017


    Jun 30, 2018


    Sep 30, 2018


    Sep 30, 2017








    ($ in thousands)

















    Net Income (Loss)




    $

    (65,979)



    $

    (1,768)



    $

    (33,076)



    $

    (148,188)



    $

    (7,170)


    Depreciation and Amortization




    50,703



    53,513



    59,843



    164,674



    160,480



    Subtotal




    (15,276)



    51,745



    26,767



    16,486



    153,310


    Interest Expense, net of Interest Income


    7,240



    6,653



    5,852



    19,871



    17,138


    Amortization included in Interest Expense


    (332)



    (283)



    (333)



    (1,439)



    (849)


    Provision (Benefit) for Income Taxes




    61,135



    3,935



    3,294



    70,317



    4,104



    EBITDA




    $

    52,767



    $

    62,050



    $

    35,580



    $

    105,235



    $

    173,703


















    Revenue




    $

    519,300



    $

    476,120



    $

    478,674



    $

    1,414,387



    $

    1,437,332


















    EBITDA Margin




    10

    %


    13

    %


    7

    %


    7

    %


    12

    %

















     

    2018 Adjusted EBITDA Estimates























    Low


    High











    (in thousands)


    Loss before income taxes, as adjusted







    $

    (95,000)



    (75,000)



    Depreciation and amortization, as adjusted







    208,000



    208,000





    Subtotal







    113,000



    133,000



    Interest expense, net of interest income







    27,000



    27,000





    Adjusted EBITDA







    $

    140,000



    $

    160,000





























    Free Cash Flow






















    For the Nine Months Ended











    Sep 30, 2018


    Sep 30, 2017









    (in thousands)


    Net Loss







    $

    (148,188)



    $

    (7,170)



    Depreciation and amortization







    164,674



    160,480



    Other increases (decreases) in cash from operating activities







    19,170



    (9,296)



    Cash flow provided by operating activities







    35,656



    144,014



    Purchases of property and equipment







    (83,919)



    (59,900)



    Free Cash Flow







    $

    (48,263)



    $

    84,114



     

    Adjusted Operating Income (Loss) and Margins by Segment






    For the Three Months Ended September 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


    $

    772



    $

    5,367



    $

    6,088



    $

    2,275



    $

    8,960



    $

    (25,014)



    $

    (1,552)



















    Adjusted operating income (loss)


    $

    772



    $

    5,367



    $

    6,088



    $

    2,275



    $

    8,960



    $

    (25,014)



    $

    (1,552)



















    Revenue


    $

    105,045



    $

    137,099



    $

    104,972



    $

    62,346



    $

    109,838





    $

    519,300


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


    1

    %


    4

    %


    6

    %


    4

    %


    8

    %




    %

    Operating income (loss) % using adjusted amounts


    1

    %


    4

    %


    6

    %


    4

    %


    8

    %




    %







































    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 (loss) 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 (loss)


    $

    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 % 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 (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)

    %


     

    Adjusted Operating Income (Loss) and Margins by Segment






    For the Nine Months Ended September 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


    $

    2,916



    $

    9,417



    $

    (6,629)



    $

    7,311



    $

    18,514



    $

    (79,867)



    $

    (48,338)


    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)


    $

    3,533



    $

    10,948



    $

    (1,086)



    $

    7,311



    $

    18,514



    $

    (79,867)



    $

    (40,647)



















    Revenue


    $

    298,065



    $

    385,491



    $

    239,868



    $

    191,056



    $

    299,907





    $

    1,414,387


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


    1

    %


    2

    %


    (3)

    %


    4

    %


    6

    %




    (3)

    %

    Operating income (loss) % using adjusted amounts


    1

    %


    3

    %


    %


    4

    %


    6

    %




    (3)

    %






















    For the Nine 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


    $

    21,310



    $

    34,418



    $

    9,699



    $

    9,072



    $

    19,260



    $

    (73,988)



    $

    19,771


    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 (loss)


    $

    22,585



    $

    34,643



    $

    9,699



    $

    9,072



    $

    19,260



    $

    (73,988)



    $

    21,271



















    Revenue


    $

    302,071



    $

    469,115



    $

    218,617



    $

    171,948



    $

    275,581





    $

    1,437,332


    Operating income % as reported in accordance with GAAP


    7

    %


    7

    %


    4

    %


    5

    %


    7

    %




    1

    %

    Operating income % using adjusted amounts


    7

    %


    7

    %


    4

    %


    5

    %


    7

    %




    1

    %


     

    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended September 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


    $

    772



    $

    5,367



    $

    6,088



    $

    2,275



    $

    8,960



    $

    (25,014)



    $

    (1,552)


    Adjustments for the effects of:















    Depreciation and amortization


    27,428



    12,349



    7,464



    1,635



    792



    1,035



    50,703



    Other pre-tax












    3,616



    3,616



    EBITDA


    28,200



    17,716



    13,552



    3,910



    9,752



    (20,363)



    52,767


    Adjustments for the effects of:















    Gain on sale of investment












    (9,293)



    (9,293)



    Foreign currency losses












    3,745



    3,745




    Total of adjustments












    (5,548)



    (5,548)


    Adjusted EBITDA


    $

    28,200



    $

    17,716



    $

    13,552



    $

    3,910



    $

    9,752



    $

    (25,911)



    $

    47,219



















    Revenue


    $

    105,045



    $

    137,099



    $

    104,972



    $

    62,346



    $

    109,838





    $

    519,300


    Operating income % as reported in accordance with GAAP


    1

    %


    4

    %


    6

    %


    4

    %


    8

    %




    %

    EBITDA Margin


    27

    %


    13

    %


    13

    %


    6

    %


    9

    %




    10

    %

    Adjusted EBITDA Margin


    27

    %


    13

    %


    13

    %


    6

    %


    9

    %




    9

    %






















    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 (loss) 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 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 % 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 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 losses












    3,418



    3,418
















    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

    %


















     

    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Nine Months Ended September 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


    $

    2,916



    $

    9,417



    $

    (6,629)



    $

    7,311



    $

    18,514



    $

    (79,867)



    $

    (48,338)


    Adjustments for the effects of:















    Depreciation and amortization


    83,339



    41,288



    28,830



    5,319



    2,295



    3,603



    164,674



    Other pre-tax












    (11,101)



    (11,101)



    EBITDA


    86,255



    50,705



    22,201



    12,630



    20,809



    (87,365)



    105,235


    Adjustments for the effects of:















    Gain on sale of investment












    (9,293)



    (9,293)



    Foreign currency losses












    15,478



    15,478




    Total of adjustments












    6,185



    6,185


    Adjusted EBITDA


    $

    86,255



    $

    50,705



    $

    22,201



    $

    12,630



    $

    20,809



    $

    (81,180)



    $

    111,420



















    Revenue


    $

    298,065



    $

    385,491



    $

    239,868



    $

    191,056



    $

    299,907





    $

    1,414,387


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


    1

    %


    2

    %


    (3)

    %


    4

    %


    6

    %




    (3)

    %

    EBITDA Margin


    29

    %


    13

    %


    9

    %


    7

    %


    7

    %




    7

    %

    Adjusted EBITDA Margin


    29

    %


    13

    %


    9

    %


    7

    %


    7

    %




    8

    %






















    For the Nine 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 (loss) as reported in accordance with GAAP


    $

    21,310



    $

    34,418



    $

    9,699



    $

    9,072



    $

    19,260



    $

    (73,988)



    $

    19,771


    Adjustments for the effects of:















    Depreciation and amortization


    86,534



    39,124



    23,742



    5,379



    2,377



    3,324



    160,480



    Other pre-tax












    (6,548)



    (6,548)



    EBITDA


    107,844



    73,542



    33,441



    14,451



    21,637



    (77,212)



    173,703


    Adjustments for the effects of:















    Charge related to prior year non-income related taxes


    1,275



    225











    1,500



    Foreign currency losses












    3,406



    3,406




    Total of adjustments


    1,275



    225









    3,406



    4,906


    Adjusted EBITDA


    $

    109,119



    $

    73,767



    $

    33,441



    $

    14,451



    $

    21,637



    $

    (73,806)



    $

    178,609



















    Revenue


    $

    302,071



    $

    469,115



    $

    218,617



    $

    171,948



    $

    275,581





    $

    1,437,332


    Operating income % as reported in accordance with GAAP


    7

    %


    7

    %


    4

    %


    5

    %


    7

    %




    1

    %

    EBITDA Margin


    36

    %


    16

    %


    15

    %


    8

    %


    8

    %




    12

    %

    Adjusted EBITDA Margin


    36

    %


    16

    %


    15

    %


    8

    %


    8

    %




    12

    %

     

    Cision View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-third-quarter-2018-results-300737389.html

    SOURCE Oceaneering International, Inc.

    Categories: Press Releases
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