• Industries
  • Integrated Solutions
  • Products and Services
  • Careers
  • 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 First Quarter 2020 Results

    May 13, 2020

    HOUSTON, May 13, 2020 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported a net loss of $368 million, or $(3.71) per share, on revenue of $537 million for the three months ended March 31, 2020. Adjusted net income was $3.5 million, or $0.04 per share, reflecting the impact of $393 million of pre-tax adjustments, including $379 million associated with goodwill impairments, asset impairments and write-offs during the quarter.

    During the prior quarter ended December 31, 2019, Oceaneering reported a net loss of $263 million, or $(2.66) per share, on revenue of $561 million. Adjusted net income was $2.5 million, or $0.03 per share, reflecting the impact of $255 million of pre-tax adjustments, primarily $240 million associated with asset impairments, write-downs and write-offs recognized during the quarter.

    Adjusted operating income (loss), operating margins, net income (loss) and earnings (loss) per share, EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins) and free cash flow are non-GAAP measures 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, 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



    Mar 31,


    Dec 31,






    2020


    2019


    2019








    Revenue


    $

    536,668



    $

    493,886



    $

    560,810


    Gross Margin


    46,752



    27,587



    (20,387)


    Income (Loss) from Operations


    (380,757)



    (21,714)



    (254,170)


    Net Income (Loss)


    (367,598)



    (24,827)



    (262,912)









    Diluted Earnings (Loss) Per Share


    $

    (3.71)



    $

    (0.25)



    $

    (2.66)



    Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "I am very pleased that, even with the unprecedented global uncertainties presented during the first quarter, our adjusted results exceeded expectations.  The key factor in achieving these results was better-than-anticipated performance within our energy-focused businesses, which included the benefit from cost reduction measures implemented during the fourth quarter of 2019 and the first quarter of 2020.  Each of our operating segments generated positive adjusted operating results and adjusted EBITDA, and our consolidated adjusted EBITDA of $51.6 million surpassed both our outlook and published consensus estimates.

    "As anticipated, our cash balance decreased during the quarter, primarily as a result of a difference in timing associated with customer progress milestone cash collections and payments to vendors on several large contracts.  Additionally, during the quarter, we disbursed accrued employee incentive payments related to attainment of specific performance goals in prior periods.

    "During the quarter, primarily as a result of the negative market impacts from COVID-19 and significantly lower crude oil prices, we recognized certain non-cash impairment charges, mostly related to goodwill.  We also recognized additional restructuring costs as we continued to adjust our staffing levels and geographic footprint.

    "Sequentially, both our first quarter ROV revenue and average revenue per day on hire decreased 4% on flat days on hire.  As expected, ongoing cost control measures and efficiencies, along with fewer installations and mobilizations, resulted in improved adjusted operating performance and adjusted EBITDA.  Adjusted EBITDA margin increased to 32%.  At the end of March, our ROV fleet count remained at 250 vehicles and, for the first quarter, fleet utilization was 65%. Our fleet use during the quarter was 68% in drill support and 32% in vessel-based activity.  At the end of March, we had ROV contracts on 95 of the 153 floating rigs under contract, resulting in a drill support market share of 62%.

    "Subsea Products first quarter adjusted operating results exceeded expectations and were comparable to the results of the fourth quarter of 2019.  Manufactured products revenue and operating results met expectations. Service and rental results exceeded expectations, largely due to higher activity in Norway and West Africa. Our Subsea Products backlog at March 31, 2020 was $528 million, compared to our December 31, 2019 backlog of $630 million.  Reflecting the higher level of throughput and a lower level of market activity, our book-to-bill ratio for the first quarter was 0.5.

    "Sequentially, Subsea Projects adjusted operating results declined as expected on materially lower revenue, as a result of lower seasonal vessel and survey activity.  Asset Integrity adjusted operating results improved, benefiting from cost reduction activities undertaken in the fourth quarter of 2019 and first quarter of 2020.

    "For our non-energy segment, Advanced Technologies, our first quarter 2020 adjusted operating results were sequentially flat.  Adverse impacts of COVID-19 to our entertainment business results offset gains from our government service businesses.  As compared to the fourth quarter of 2019, Unallocated Expenses declined as a result of lower accruals for incentive-based compensation.

    "During the first quarter, primarily due to the increase in non-cash working capital referenced above, we used $32.2 million of cash in our operating activities.  We also used $27.2 million of cash for growth and maintenance capital expenditures.  These two items were the largest contributors to a $66.2 million cash decrease during the quarter.

    "For the second quarter and full year of 2020, we are not providing operating or EBITDA guidance due to the lack of visibility into the majority of our businesses.  Many of the markets we serve are being profoundly affected by the effects of and the associated responses to COVID-19, as well as the significant reductions in our oil and gas customer spending as a result of the lower crude oil price environment. We maintain our guidance that Unallocated Expenses are forecast to be in the high-$20 million range per quarter.  We are further revising our capital expenditures guidance by lowering the range to $45 million to $65 million, and our cash tax payments guidance by lowering the range to $30 million to $35 million.

    "Preserving our liquidity and balance sheet remains a high priority in the current environment and, as mentioned on our last earnings call, we are taking decisive actions to reduce expenses.  We are currently targeting a reduction of annualized expenses in the range of $125 million to $160 million by the end of 2020, inclusive of $35 million to $40 million of reduced depreciation expense.  Cost reduction actions being taken include efficiency-enabling projects, simplification of our operating structure including headcount reductions and rationalizing facilities, compensation reductions for senior leadership, a 50% reduction in the Company's 401(k) plan match, supply chain savings and elimination of non-productive assets.  Any volume related direct cost reductions are not included in these estimated savings.  Since launching this effort, approximately $70 million of annualized cost reductions have been initiated.  Additional savings are expected to be achieved throughout the remainder of the year, with the majority occurring in the second and third quarters.  We expect the cash costs associated with these actions to approximate $15 million.

    "While we currently are not able to provide operating or EBITDA guidance, we still believe that we should generate positive free cash flow during 2020.  This belief is based on the following: actions we are taking to achieve cost reductions; reduced capital spending levels; lower cash taxes; our expectation for $16 million to $34 million in CARES Act tax refunds; and cash expected to be generated from working capital for the remainder of the year."

    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, future expected business and financial performance and prospects of Oceaneering.  More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering's: forecasted Unallocated Expenses per quarter, and annual capital expenditures and cash tax payments; targeted reduction range of annualized expenses, including depreciation expense; timing and anticipation of additional savings from cost reduction actions already initiated; cash costs associated with initiated and pending cost reduction actions; belief in generating positive free cash flow during 2020, and the bases for that belief, including expectations regarding: actions to achieve cost reductions, capital spending, cash taxes, CARES Act tax refunds, and cash from working capital for the remainder of the year.

    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, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth and the supply and demand of offshore drilling rigs; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; the continuing effects of the COVID-19 pandemic and the governmental, customer, supplier, and other responses thereto; cancellations of contracts, change orders and other contractual modifications and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in tax laws, regulations and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts or terrorist attacks.  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 10Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements.  Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.

    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:
    Mark Peterson
    Vice President, Corporate Development and Investor Relations
    Oceaneering International, Inc.
    713-329-4507
    investorrelations@oceaneering.com

     
















    OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
















    CONDENSED CONSOLIDATED BALANCE SHEETS



























    Mar 31,
    2020


    Dec 31,
    2019













    (in thousands)


    ASSETS














    Current assets (including cash and cash equivalents of $307,460 and $373,655)


    $

    1,151,906



    $

    1,244,436




    Net property and equipment



    671,828



    776,532




    Other assets






    341,363



    719,695






    Total Assets


    $

    2,165,097



    $

    2,740,663


















    LIABILITIES AND EQUITY



    Current liabilities




    $

    485,733



    $

    600,956




    Long-term debt




    806,396



    796,516




    Other long-term liabilities


    236,309



    267,782




    Equity






    636,659



    1,075,409






    Total Liabilities and Equity


    $

    2,165,097



    $

    2,740,663


















    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

























    For the Three Months Ended











    Mar 31,
    2020


    Mar 31,
    2019


    Dec 31,
    2019











    (in thousands, except per share amounts)


















    Revenue


    $

    536,668



    $

    493,886



    $

    560,810




    Cost of services and products


    489,916



    466,299



    581,197





    Gross margin


    46,752



    27,587



    (20,387)




    Selling, general and administrative expense


    55,741



    49,301



    59,717




    Long-lived assets impairments


    68,763





    159,353




    Goodwill impairment


    303,005





    14,713





    Income (loss) from operations


    (380,757)



    (21,714)



    (254,170)




    Interest income


    1,277



    2,604



    1,352




    Interest expense, net of amounts capitalized


    (12,462)



    (9,424)



    (11,706)




    Equity in income (losses) of unconsolidated affiliates


    1,197



    (164)



    941




    Other income (expense), net


    (7,128)



    719



    (3,687)





    Income (loss) before income taxes


    (397,873)



    (27,979)



    (267,270)




    Provision (benefit) for income taxes


    (30,275)



    (3,152)



    (4,358)





    Net Income (Loss)


    $

    (367,598)



    $

    (24,827)



    $

    (262,912)


















    Weighted average diluted shares outstanding


    99,055



    98,714



    98,930



    Diluted earnings (loss) per share


    $

    (3.71)



    $

    (0.25)



    $

    (2.66)


















    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








    Mar 31, 2020


    Mar 31, 2019


    Dec 31, 2019








    ($ in thousands)










    Remotely Operated Vehicles











    Revenue



    $

    111,780



    $

    100,346



    $

    116,020




    Gross margin



    $

    18,112



    $

    9,421



    $

    (7,728)



    Operating income (loss)



    $

    9,066



    $

    1,418



    $

    (18,660)



    Operating income (loss) %



    8

    %


    1

    %


    (16)

    %



    Days available



    22,750



    24,506



    25,576




    Days utilized



    14,853



    12,942



    14,836




    Utilization



    65

    %


    53

    %


    58

    %














    Subsea Products











    Revenue



    $

    194,838



    $

    128,844



    $

    183,659




    Gross margin



    $

    28,639



    $

    12,315



    $

    4,527



    Operating income (loss)



    $

    (91,858)



    $

    (476)



    $

    (10,325)



    Operating income (loss) %



    (47)

    %


    %


    (6)

    %


    Backlog at end of period



    $

    528,000



    $

    464,000



    $

    630,000















    Subsea Projects











    Revenue



    $

    61,455



    $

    89,728



    $

    86,728




    Gross margin



    $

    (2,114)



    $

    9,033



    $

    1,546



    Operating income (loss)



    $

    (145,290)



    $

    2,892



    $

    (148,075)



    Operating income (loss) %



    (236)

    %


    3

    %


    (171)

    %














    Asset Integrity











    Revenue



    $

    59,132



    $

    60,689



    $

    61,835




    Gross margin



    $

    8,729



    $

    6,272



    $

    (6,867)



    Operating income (loss)



    $

    (109,441)



    $

    (713)



    $

    (48,919)



    Operating income (loss) %



    (185)

    %


    (1)

    %


    (79)

    %














    Advanced Technologies











    Revenue



    $

    109,463



    $

    114,279



    $

    112,568




    Gross margin



    $

    13,428



    $

    15,248



    $

    12,354



    Operating income (loss)



    $

    (10,585)



    $

    9,599



    $

    5,270



    Operating income (loss) %



    (10)

    %


    8

    %


    5

    %













    Unallocated Expenses










    Gross margin



    $

    (20,042)



    $

    (24,702)



    $

    (24,219)



    Operating income (loss)



    $

    (32,649)



    $

    (34,434)



    $

    (33,461)













    Total















    Revenue



    $

    536,668



    $

    493,886



    $

    560,810




    Gross margin



    $

    46,752



    $

    27,587



    $

    (20,387)



    Operating income (loss)



    $

    (380,757)



    $

    (21,714)



    $

    (254,170)



    Operating income (loss) %



    (71)

    %


    (4)

    %


    (45)

    %



    The above Segment Information does not include adjustments for non-recurring transactions.   See the tables in our Reconciliations of Non-GAAP to GAAP Financial Information section for financial measures that management considers representative of our ongoing operations.













     

    SELECTED CASH FLOW INFORMATION
















    For the Three Months Ended








    Mar 31, 2020


    Mar 31, 2019


    Dec 31, 2019








    (in thousands)










    Capital Expenditures, including Acquisitions


    $

    27,229



    $

    29,964



    $

    18,837












    Depreciation and amortization:








    Energy Services and Products









    Remotely Operated Vehicles


    $

    25,725



    $

    27,990



    $

    32,043




    Subsea Products


    62,454



    12,991



    30,992




    Subsea Projects


    143,346



    7,882



    14,541




    Asset Integrity


    111,385



    1,634



    30,529



    Total Energy Services and Products


    342,910



    50,497



    108,105



    Advanced Technologies


    12,178



    830



    766



    Unallocated Expenses


    1,108



    1,159



    1,199



    Total Depreciation and Amortization

    $

    356,196



    $

    52,486



    $

    110,070















    Goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense above, was $310 million and $59.4 million, respectively, in the three months ended March 31, 2020 and December 31, 2019.














    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 (Loss) and Diluted Earnings (Loss) per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow.  As a result, these amounts are non-GAAP financial measures.  We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business.  Furthermore, our management uses these measures as measures of the performance of our operations.  We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins and Free Cash Flow, as well as the following by segment:  Adjusted Operating Income and Margins, EBITDA, 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 (Loss) per Share (EPS)






















    For the Three Months Ended






    Mar 31, 2020

    Mar 31, 2019

    Dec 31, 2019






    Net Income
    (Loss)


    Diluted EPS


    Net Income
    (Loss)


    Diluted EPS


    Net Income
    (Loss)


    Diluted EPS






    (in thousands, except per share amounts)








    Net income (loss) and diluted EPS as reported in accordance with GAAP


    $

    (367,598)



    $

    (3.71)



    $

    (24,827)



    $

    (0.25)



    $

    (262,912)



    $

    (2.66)


    Pre-tax adjustments for the effects of:














    Long-lived assets impairments


    68,763









    159,353





    Long-lived assets write-offs


    7,328









    44,653





    Inventory write-downs










    21,285





    Goodwill impairment


    303,005









    14,713





    Restructuring expenses and other


    6,630









    11,751





    Foreign currency (gains) losses


    7,050





    (614)





    3,477




    Total pre-tax adjustments


    392,776





    (614)





    255,232




















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


    (45,355)





    129





    (50,653)




    Discrete tax items:













        Share-based compensation


    987





    986





    2




        Uncertain tax positions


    (9,652)





    1,022





    1,276




        U.S. CARES Act


    (33,784)












        Tax reform










    272




        Valuation allowances


    65,208





    1,539





    59,667




        Other


    950





    (2,141)





    (356)





    Total discrete tax adjustments


    23,709





    1,406





    60,861





    Total of adjustments


    371,130





    921





    265,440




    Adjusted Net Income (Loss)


    $

    3,532



    $

    0.04



    $

    (23,906)



    $

    (0.24)



    $

    2,528



    $

    0.03


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




    99,649





    98,714





    99,721


















     













    EBITDA and Adjusted EBITDA and Margins
















    For the Three Months Ended






    Mar 31, 2020


    Mar 31, 2019


    Dec 31, 2019






    ($ in thousands)











    Net income (loss)



    $

    (367,598)



    $

    (24,827)



    $

    (262,912)


    Depreciation and amortization


    356,196



    52,486



    110,070



    Subtotal


    (11,402)



    27,659



    (152,842)


    Interest expense, net of interest income


    11,185



    6,820



    10,354


    Amortization included in interest expense


    (333)



    (340)



    (335)


    Provision (benefit) for income taxes


    (30,275)



    (3,152)



    (4,358)



    EBITDA


    (30,825)



    30,987



    (147,181)


    Adjustments for the effects of:








    Long-lived assets impairments


    68,763





    159,353



    Inventory write-downs






    21,285



    Restructuring expenses and other


    6,630





    11,751



    Foreign currency (gains) losses


    7,050



    (614)



    3,477




    Total of adjustments


    82,443



    (614)



    195,866



    Adjusted EBITDA


    $

    51,618



    $

    30,373



    $

    48,685












    Revenue



    $

    536,668



    $

    493,886



    $

    560,810












    EBITDA margin %


    (6)

    %


    6

    %


    (26)

    %

    Adjusted EBITDA margin %


    10

    %


    6

    %


    9

    %











     







    Free Cash Flow










    For the Three Months Ended




    Mar 31, 2020


    Mar 31, 2019




    (in thousands)

    Net Income (loss)


    $

    (367,598)



    $

    (24,827)


    Non-cash adjustments:






    Depreciation and amortization, including goodwill impairment


    356,196



    52,486



    Other non-cash


    64,137



    62


    Other increases (decreases) in cash from operating activities


    (84,885)



    (8,597)


    Cash flow provided by (used in) operating activities


    (32,150)



    19,124


    Purchases of property and equipment


    (27,229)



    (29,964)


    Free Cash Flow


    $

    (59,379)



    $

    (10,840)














     






    Adjusted Operating Income (Loss) and Margins by Segment






    For the Three Months Ended March 31, 2020





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unallocated
    Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    9,066



    $

    (91,858)



    $

    (145,290)



    $

    (109,441)



    $

    (10,585)



    $

    (32,649)



    $

    (380,757)


    Adjustments for the effects of:















    Long-lived assets impairments




    54,859



    7,689





    6,215





    68,763



    Long-lived assets write-offs






    7,328









    7,328



    Goodwill impairment




    51,302



    129,562



    110,753



    11,388





    303,005



    Restructuring expenses and other


    713



    1,668



    1,480



    1,694



    795



    280



    6,630




    Total of adjustments


    713



    107,829



    146,059



    112,447



    18,398



    280



    385,726



















    Adjusted Operating Income (Loss)


    $

    9,779



    $

    15,971



    $

    769



    $

    3,006



    $

    7,813



    $

    (32,369)



    $

    4,969



















    Revenue


    $

    111,780



    $

    194,838



    $

    61,455



    $

    59,132



    $

    109,463





    $

    536,668


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


    8

    %


    (47)

    %


    (236)

    %


    (185)

    %


    (10)

    %




    (71)

    %

    Operating income (loss)% using adjusted amounts


    9

    %


    8

    %


    1

    %


    5

    %


    7

    %




    1

    %






















    For the Three Months Ended March 31, 2019





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unallocated
    Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    1,418



    $

    (476)



    $

    2,892



    $

    (713)



    $

    9,599



    $

    (34,434)



    $

    (21,714)



















    Adjusted Operating Income (Loss)


    $

    1,418



    $

    (476)



    $

    2,892



    $

    (713)



    $

    9,599



    $

    (34,434)



    $

    (21,714)



















    Revenue


    $

    100,346



    $

    128,844



    $

    89,728



    $

    60,689



    $

    114,279





    $

    493,886


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


    1

    %


    %


    3

    %


    (1)

    %


    8

    %




    (4)

    %

    Operating income (loss)% using adjusted amounts


    1

    %


    %


    3

    %


    (1)

    %


    8

    %




    (4)

    %


     






    Adjusted Operating Income (Loss) and Margins by Segment























    For the Three Months Ended December 31, 2019





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unallocated
    Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    (18,660)



    $

    (10,325)



    $

    (148,075)



    $

    (48,919)



    $

    5,270



    $

    (33,461)



    $

    (254,170)


    Adjustments for the effects of:
















    Long-lived assets impairments






    142,615



    16,738







    159,353



    Long-lived assets write-offs


    5,697



    18,757



    6,091



    14,108







    44,653



    Inventory write-downs


    15,343



    3,567



    1,586





    789





    21,285



    Goodwill impairment








    14,713







    14,713



    Restructuring expenses and other


    2,297



    2,650



    2,851



    3,082



    815



    56



    11,751




    Total of adjustments


    23,337



    24,974



    153,143



    48,641



    1,604



    56



    251,755


    Adjusted Operating Income (Loss)


    $

    4,677



    $

    14,649



    $

    5,068



    $

    (278)



    $

    6,874



    $

    (33,405)



    $

    (2,415)



















    Revenue


    $

    116,020



    $

    183,659



    $

    86,728



    $

    61,835



    $

    112,568





    $

    560,810


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


    (16)

    %


    (6)

    %


    (171)

    %


    (79)

    %


    5

    %




    (45)

    %

    Operating income (loss) % using adjusted amounts


    4

    %


    8

    %


    6

    %


    %


    6

    %




    %


     






    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended March 31, 2020





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unallocated
    Expenses
    and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    9,066



    $

    (91,858)



    $

    (145,290)



    $

    (109,441)



    $

    (10,585)



    $

    (32,649)



    $

    (380,757)


    Adjustments for the effects of:















    Depreciation and amortization


    25,725



    62,454



    143,346



    111,385



    12,178



    1,108



    356,196



    Other pre-tax












    (6,264)



    (6,264)



    EBITDA


    34,791



    (29,404)



    (1,944)



    1,944



    1,593



    (37,805)



    (30,825)


    Adjustments for the effects of:















    Long-lived assets impairments




    54,859



    7,689





    6,215





    68,763



    Restructuring expenses and other


    713



    1,668



    1,480



    1,694



    795



    280



    6,630



    Foreign currency (gains) losses












    7,050



    7,050




    Total of adjustments


    713



    56,527



    9,169



    1,694



    7,010



    7,330



    82,443


    Adjusted EBITDA


    $

    35,504



    $

    27,123



    $

    7,225



    $

    3,638



    $

    8,603



    $

    (30,475)



    $

    51,618



















    Revenue


    $

    111,780



    $

    194,838



    $

    61,455



    $

    59,132



    $

    109,463





    $

    536,668


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


    8

    %


    (47)

    %


    (236)

    %


    (185)

    %


    (10)

    %




    (71)

    %

    EBITDA Margin


    31

    %


    (15)

    %


    (3)

    %


    3

    %


    1

    %




    (6)

    %

    Adjusted EBITDA Margin


    32

    %


    14

    %


    12

    %


    6

    %


    8

    %




    10

    %






















    For the Three Months Ended March 31, 2019





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unallocated
    Expenses
    and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    1,418



    $

    (476)



    $

    2,892



    $

    (713)



    $

    9,599



    $

    (34,434)



    $

    (21,714)


    Adjustments for the effects of:















    Depreciation and amortization


    27,990



    12,991



    7,882



    1,634



    830



    1,159



    52,486



    Other pre-tax












    215



    215



    EBITDA


    29,408



    12,515



    10,774



    921



    10,429



    (33,060)



    30,987


    Adjustments for the effects of:















    Foreign currency (gains) losses












    (614)



    (614)




    Total of adjustments












    (614)



    (614)


    Adjusted EBITDA


    $

    29,408



    $

    12,515



    $

    10,774



    $

    921



    $

    10,429



    $

    (33,674)



    $

    30,373



















    Revenue


    $

    100,346



    $

    128,844



    $

    89,728



    $

    60,689



    $

    114,279





    $

    493,886


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


    1

    %


    %


    3

    %


    (1)

    %


    8

    %




    (4)

    %

    EBITDA Margin


    29

    %


    10

    %


    12

    %


    2

    %


    9

    %




    6

    %

    Adjusted EBITDA Margin


    29

    %


    10

    %


    12

    %


    2

    %


    9

    %




    6

    %

     






    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended December 31, 2019





    Remotely
    Operated
    Vehicles


    Subsea
    Products


    Subsea
    Projects


    Asset
    Integrity


    Advanced
    Tech.


    Unallocated
    Expenses
    and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    (18,660)



    $

    (10,325)



    $

    (148,075)



    $

    (48,919)



    $

    5,270



    $

    (33,461)



    $

    (254,170)


    Adjustments for the effects of:















    Depreciation and amortization


    32,043



    30,992



    14,541



    30,529



    766



    1,199



    110,070



    Other pre-tax












    (3,081)



    (3,081)



    EBITDA


    13,383



    20,667



    (133,534)



    (18,390)



    6,036



    (35,343)



    (147,181)


    Adjustments for the effects of:















    Long-lived assets impairments






    142,615



    16,738







    159,353



    Inventory write-downs


    15,343



    3,567



    1,586





    789





    21,285



    Restructuring expenses and other


    2,297



    2,650



    2,851



    3,082



    815



    56



    11,751



    Foreign currency (gains) losses












    3,477



    3,477




    Total of adjustments


    17,640



    6,217



    147,052



    19,820



    1,604



    3,533



    195,866


    Adjusted EBITDA


    $

    31,023



    $

    26,884



    $

    13,518



    $

    1,430



    $

    7,640



    $

    (31,810)



    $

    48,685



















    Revenue


    $

    116,020



    $

    183,659



    $

    86,728



    $

    61,835



    $

    112,568





    $

    560,810


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


    (16)

    %


    (6)

    %


    (171)

    %


    (79)

    %


    5

    %




    (45)

    %

    EBITDA Margin


    12

    %


    11

    %


    (154)

    %


    (30)

    %


    5

    %




    (26)

    %

    Adjusted EBITDA Margin


    27

    %


    15

    %


    16

    %


    2

    %


    7

    %




    9

    %

     

    Cision View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-first-quarter-2020-results-301058763.html

    SOURCE Oceaneering International, Inc.

    Categories: Press Releases
    View all news