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    Oceaneering Reports First Quarter 2021 Results

    April 28, 2021

    HOUSTON, April 28, 2021 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported a net loss of $9.4 million, or $(0.09) per share, on revenue of $438 million for the three months ended March 31, 2021.  Adjusted net income was $2.8 million, or $0.03 per share, reflecting, among other things, the impact of $3.2 million of pre-tax adjustments associated with restructuring and other expenses and foreign exchange losses recognized during the quarter, and $9.6 million of discrete tax adjustments.

    During the prior quarter ended December 31, 2020, Oceaneering reported a net loss of $25 million, or $(0.25) per share, on revenue of $424 million.  Adjusted net income was $1.8 million, or $0.02 per share, reflecting, among other things, the impact of $9.8 million of pre-tax adjustments associated with asset impairments and write-offs, restructuring and other expenses, and foreign exchange losses recognized during the quarter, and $9.6 million of discrete tax adjustments.

    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 Adjusted EBITDA and Margins, Free Cash Flow, 2021 Adjusted EBITDA Estimates, 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,








    2021


    2020


    2020










    Revenue


    $

    437,553



    $

    536,668



    $

    424,262



    Gross Margin


    56,657



    46,752



    45,001



    Income (Loss) from Operations


    13,783



    (380,757)



    480



    Net Income (Loss)


    (9,365)



    (367,598)



    (25,000)











    Diluted Earnings (Loss) Per Share


    $

    (0.09)



    $

    (3.71)



    $

    (0.25)





    For the first quarter of 2021:

    • Consolidated Adjusted EBITDA was $52.8 million
    • Consolidated Adjusted Operating Income was $15.1 million
    • Cash flow used in operations was $1.7 million and free cash flow was ($12.4) million
    • Cash position declined by $9.3 million, from $452 million to $443 million
    • Remotely Operated Vehicles (ROV) fleet utilization was 53% and average revenue per day on hire was $7,874

    Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "We have continued to improve our operating performance by driving operational efficiency, led by focusing on safety, quality and value-based solutions for our customers.  I am pleased with the rate of progress made during the first quarter of 2021.  Each of our operating segments generated positive adjusted operating income and adjusted EBITDA, and our consolidated adjusted EBITDA of $52.8 million surpassed both our guidance and published consensus estimates.  Based on our first quarter results and revised outlook, we are narrowing our expected adjusted EBITDA range to $180 million to $210 million for 2021.

    "Our first quarter 2021 Subsea Robotics (SSR) adjusted operating income was flat on slightly higher revenue, as compared to fourth quarter 2020.  Operating activity in our SSR segment exceeded our original expectation due to higher-than-forecast ROV drill support days and survey activity.  Pricing for the various SSR services remained stable during the first quarter, resulting in an adjusted EBITDA margin of 32%, consistent with average adjusted EBITDA margins achieved during 2020.

    "First quarter 2021 ROV activity remained consistent as compared to the fourth quarter of 2020 with fleet utilization averaging 53% versus 54% during the fourth quarter of 2020.  A seasonal decrease in days on hire for vessel-based services was slightly offset by an increase in days on hire for drill support services.  Our ROV fleet use during the first quarter 2021 was 64% in drill support and 36% in vessel-based activity versus fourth quarter 2020 use of 60% and 40%, respectively.  Average ROV revenue per day of on hire of $7,874 was 7% higher over the fourth quarter.

    "Sequentially, our first quarter 2021 ROV fleet count remained at 250 systems.  As of March 31, 2021, we had ROV contracts on 78 of the 135 floating rigs under contract, or 58%, as compared to 58% as of December 31, 2020, when we had ROV contracts on 75 of the 129 floating rigs under contract.  Subject to quarterly variances, we continue to expect our drill support market share to generally approximate 60%.

    "Manufactured Products (MP) first quarter 2021 adjusted operating income declined, as expected, from the fourth quarter of 2020 on lower segment revenue.  Adjusted operating income margin decreased to 4% in the first quarter of 2021, from 9% in the fourth quarter of 2020, which had benefited from favorable contract close-outs and negotiated supply chain savings that did not occur in the first quarter.  Activity in our mobility solutions businesses remained weak during the first quarter of 2021.  Our Manufactured Products backlog on March 31, 2021 was $248 million, compared to our December 31, 2020 backlog of $266 million.  Our book-to-bill ratio was 0.6 for the trailing 12 months, as compared with a book-to-bill ratio of 0.4 for the year ended December 31, 2020.

    "Our first quarter 2021 Offshore Projects Group (OPG) adjusted operating income increased on substantially higher revenue.  Revenue benefited due to the start-up of field activities on the riserless light well intervention project in Angola.  The sequential increase in adjusted operating income margin, from 2% in the fourth quarter of 2020 to 10% in the first quarter of 2021, was due to increased utilization of assets and personnel, while holding indirect costs stable.

    "Integrity Management and Digital Solutions (IMDS) first quarter 2021 adjusted operating income was higher than fourth quarter of 2020 on flat revenue.  The improvement in adjusted operating income margin, from 3% in the fourth quarter of 2020 to 5% in the first quarter of 2021, benefited from the continuing transformation of how and where work is performed, which is driving more effective use of personnel.

    "Aerospace and Defense Technologies (ADTech) first quarter 2021 adjusted operating income marginally improved from the fourth quarter of 2020 on flat revenue.  Adjusted operating income margin of 19% was consistent with that achieved for the fourth quarter of 2020.  At the corporate level for the first quarter of 2021, Unallocated Expenses of $31.7 million were lower as compared to the fourth quarter of 2020.

    "For the second quarter, compared to the first quarter, we anticipate higher activity levels and operating profitability improvement in our SSR and OPG segments, higher activity levels and relatively flat operating profitability in our IMDS and ADTech segments, and lower activity levels and lower operating profitability in our Manufactured Products segment.  Unallocated Expenses are forecast to be in the low- to mid-$30 million range.  On a consolidated basis, we expect second quarter 2021 results to improve, with adjusted EBITDA in the range of $55 million to $60 million on sequentially higher revenue.

    "For the full year of 2021, at the segment level, as compared to 2020, we forecast SSR operating results to improve on slightly higher revenue, and adjusted EBITDA margin to remain relatively flat.  ROV fleet utilization is expected to be in the upper 50% range for the year.  For Manufactured Products, we forecast lower operating results as compared to 2020; however, we expect improved order intake during the first half of 2021, which should drive increased activity in the second half of 2021.  The book-to-bill ratio is expected to be in the range of 1.1 to 1.5 for the full year, and adjusted operating margin is expected to be in the low- to mid-single digit range.  For OPG, we forecast increased vessel utilization and the continuation of the Angola riserless light well intervention project to benefit OPG's results in the second quarter of 2021, leading to a meaningful annual improvement in adjusted operating results on higher revenue.  For IMDS, we forecast improved operating results on higher revenue with adjusted operating margin in the high single-digit range for the year.  And for ADTech, we expect improved operating results on increased revenue with an annual operating margin approximately the same as that achieved in 2020.

    "We forecast our 2021 income tax payments to be in the range of $40 million to $45 million.  In addition, we expect to receive CARES Act tax refunds of $28 million during the year.  We continue to forecast our organic capital expenditures to total between $50 million and $70 million.  This includes approximately $35 million to $40 million of maintenance capital expenditures and $15 million to $30 million of growth capital expenditures.

    "Our first quarter performance and refreshed outlook for the year give us confidence to narrow our 2021 adjusted EBITDA guidance to a range of $180 million to $210 million.  Our priority continues to be generating cash.  In 2021, our expectation remains that we will generate positive free cash flow in excess of the amount generated in 2020, excluding the cash benefit associated with expected CARES Act tax refunds.  We remain committed to maintaining strong liquidity and believe that our cash position, undrawn revolving credit facility and debt maturity profile should provide us ample resources and time to address potential opportunities to improve our returns." 

    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 expectations about: backlog, to the extent backlog may be an indicator of future revenue or profitability; adjusted EBITDA range for the full year of 2021; ROV drill support market share; second quarter segment activity levels and operating profitability, Unallocated Expenses, and consolidated revenue, results, and adjusted EBITDA; full-year segment operating results, revenue, and adjusted EBITDA margins; full-year ROV fleet utilization; full-year Manufactured Products order intake and second half activity, book-to-bill ratio, and operating margin; full-year OPG operating results and revenue and the timing and basis for the expectations; full-year IMDS operating results, revenue, and adjusted operating margin; full-year ADTech operating results, revenue, and operating margin; forecasted Unallocated Expenses per quarter, and annual capital expenditures and cash tax payments; CARES Act tax refunds; free cash flow in 2021; and sufficiency of resources to address opportunities to improve returns.

    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 10-Q 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, aerospace, and entertainment 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, 2021


    Dec 31, 2020












    (in thousands)

    ASSETS













    Current assets (including cash and cash equivalents of $442,743 and $452,016)


    $

    1,161,517



    $

    1,170,263



    Net property and equipment



    561,650



    591,107



    Other assets






    280,357



    284,472





    Total Assets


    $

    2,003,524



    $

    2,045,842
















    LIABILITIES AND EQUITY






    Current liabilities






    $

    416,743



    $

    437,116



    Long-term debt






    804,888



    805,251



    Other long-term liabilities


    233,548



    245,318



    Equity






    548,345



    558,157





    Total Liabilities and Equity


    $

    2,003,524



    $

    2,045,842
















    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
























    For the Three Months Ended










    Mar 31, 2021


    Mar 31, 2020


    Dec 31, 2020










    (in thousands, except per share amounts)
















    Revenue






    $

    437,553



    $

    536,668



    $

    424,262



    Cost of services and products


    380,896



    489,916



    379,261




    Gross margin


    56,657



    46,752



    45,001



    Selling, general and administrative expense


    42,874



    55,741



    42,839



    Long-lived assets impairments




    68,763



    1,682



    Goodwill impairment




    303,005






    Income (loss) from operations




    13,783



    (380,757)



    480



    Interest income






    519



    1,277



    881



    Interest expense, net of amounts capitalized


    (10,407)



    (12,462)



    (10,577)



    Equity in income (losses) of unconsolidated affiliates


    534



    1,197



    266



    Other income (expense), net


    (1,453)



    (7,128)



    (645)




    Income (loss) before income taxes


    2,976



    (397,873)



    (9,595)



    Provision (benefit) for income taxes


    12,341



    (30,275)



    15,405




    Net Income (Loss)


    $

    (9,365)



    $

    (367,598)



    $

    (25,000)
















    Weighted average diluted shares outstanding


    99,461



    99,055



    99,306


    Diluted earnings (loss) per share


    $

    (0.09)



    $

    (3.71)



    $

    (0.25)
















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

     

    SEGMENT INFORMATION














    For the Three Months Ended







    Mar 31, 2021


    Mar 31, 2020 *


    Dec 31, 2020






    ($ in thousands)

    Subsea Robotics












    Revenue



    $

    119,119



    $

    139,770



    $

    114,711



    Gross margin



    $

    24,078



    $

    19,473



    $

    24,777


    Operating income (loss)



    $

    14,619



    $

    (94,083)



    $

    14,477


    Operating income (loss) %



    12

    %


    (67)

    %


    13

    %


    ROV days available



    22,469



    22,750



    22,999



    ROV days utilized



    11,887



    14,853



    12,456



    ROV utilization



    53

    %


    65

    %


    54

    %












    Manufactured Products












    Revenue



    $

    86,825



    $

    166,534



    $

    99,899



    Gross margin



    $

    10,004



    $

    17,949



    $

    20,092


    Operating income (loss)



    $

    2,753



    $

    (66,138)



    $

    12,218


    Operating income (loss) %



    3

    %


    (40)

    %


    12

    %

    Backlog at end of period



    $

    248,000



    $

    419,000



    $

    266,000













    Offshore Projects Group












    Revenue



    $

    89,234



    $

    74,254



    $

    67,821



    Gross margin



    $

    15,111



    $

    2,095



    $

    (2,367)


    Operating income (loss)



    $

    8,813



    $

    (79,323)



    $

    (9,940)


    Operating income (loss) %



    10

    %


    (107)

    %


    (15)

    %












    Integrity Management & Digital Solutions










    Revenue



    $

    54,048



    $

    64,729



    $

    54,307



    Gross margin



    $

    8,209



    $

    9,792



    $

    7,396


    Operating income (loss)



    $

    2,474



    $

    (121,535)



    $

    892


    Operating income (loss) %



    5

    %


    (188)

    %


    2

    %












    Aerospace and Defense Technologies










    Revenue



    $

    88,327



    $

    91,381



    $

    87,524



    Gross margin



    $

    22,110



    $

    17,485



    $

    20,328


    Operating income (loss)



    $

    16,839



    $

    12,971



    $

    16,525


    Operating income (loss) %



    19

    %


    14

    %


    19

    %











    Unallocated Expenses











    Gross margin



    $

    (22,855)



    $

    (20,042)



    $

    (25,225)


    Operating income (loss)



    $

    (31,715)



    $

    (32,649)



    $

    (33,692)











    Total














    Revenue



    $

    437,553



    $

    536,668



    $

    424,262



    Gross margin



    $

    56,657



    $

    46,752



    $

    45,001


    Operating income (loss)



    $

    13,783



    $

    (380,757)



    $

    480


    Operating income (loss) %



    3

    %


    (71)

    %


    %


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












    * Recast to reflect segment changes.



















     

    SELECTED CASH FLOW INFORMATION














    For the Three Months Ended







    Mar 31, 2021


    Mar 31, 2020


    Dec 31, 2020







    (in thousands)









    Capital Expenditures, including Acquisitions



    $

    10,699



    $

    27,229



    $

    14,847
















    For the Three Months Ended







    Mar 31, 2021


    Mar 31, 2020 *


    Dec 31, 2020







    (in thousands)

    Depreciation and amortization:








    Energy Services and Products









    Subsea Robotics



    $

    22,952



    $

    139,187



    $

    23,210



    Manufactured Products



    3,227



    15,964



    3,193



    Offshore Projects Group



    7,125



    74,907



    16,979



    Integrity Management & Digital Solutions



    1,124



    124,343



    1,255


    Total Energy Services and Products



    34,428



    354,401



    44,637


    Aerospace and Defense Technologies



    1,276



    687



    667


    Unallocated Expenses



    767



    1,108



    1,146



    Total Depreciation and Amortization



    $

    36,471



    $

    356,196



    $

    46,450













    Goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense

    above, was $310 million and $9.6 million in the three months ended March 31, 2020 and December 31, 2020, respectively.












    * Recast to reflect segment changes.








    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, 2021 Adjusted 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

    (continued)

















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






















    For the Three Months Ended






    Mar 31, 2021

    Mar 31, 2020

    Dec 31, 2020






    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


    $

    (9,365)



    $

    (0.09)



    $

    (367,598)



    $

    (3.71)



    $

    (25,000)



    $

    (0.25)


    Pre-tax adjustments for the effects of:














    Long-lived assets impairments






    68,763





    1,682





    Long-lived assets write-offs






    7,328





    9,571





    Goodwill impairment






    303,005









    Restructuring expenses and other


    1,308





    6,630





    (2,176)





    Foreign currency (gains) losses


    1,861





    7,050





    720




    Total pre-tax adjustments


    3,169





    392,776





    9,797




















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


    (605)





    (45,355)





    7,432




    Discrete tax items:













        Share-based compensation


    577





    987





    13




        Uncertain tax positions


    (16)





    (9,652)





    3,033




        U.S. CARES Act






    (33,784)








        Valuation allowances


    6,758





    65,208





    5,635




        Other


    2,275





    950





    889





    Total discrete tax adjustments


    9,594





    23,709





    9,570





    Total of adjustments


    12,158





    371,130





    26,799




    Adjusted Net Income (Loss)


    $

    2,793



    $

    0.03



    $

    3,532



    $

    0.04



    $

    1,799



    $

    0.02


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




    100,480





    99,649





    99,712


































     

    RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

    (continued)











    EBITDA and Adjusted EBITDA and Margins
















    For the Three Months Ended






    Mar 31, 2021


    Mar 31, 2020


    Dec 31, 2020






    ($ in thousands)











    Net income (loss)



    $

    (9,365)



    $

    (367,598)



    $

    (25,000)


    Depreciation and amortization



    36,471



    356,196



    46,450



    Subtotal



    27,106



    (11,402)



    21,450


    Interest expense, net of interest income


    9,888



    11,185



    9,696


    Amortization included in interest expense


    303



    (333)



    322


    Provision (benefit) for income taxes



    12,341



    (30,275)



    15,405



    EBITDA



    49,638



    (30,825)



    46,873


    Adjustments for the effects of:









    Long-lived assets impairments





    68,763



    1,682



    Restructuring expenses and other



    1,308



    6,630



    (2,176)



    Foreign currency (gains) losses



    1,861



    7,050



    720




    Total of adjustments



    3,169



    82,443



    226



    Adjusted EBITDA



    $

    52,807



    $

    51,618



    $

    47,099












    Revenue



    $

    437,553



    $

    536,668



    $

    424,262












    EBITDA margin %



    11

    %


    (6)

    %


    11

    %

    Adjusted EBITDA margin %



    12

    %


    10

    %


    11

    %











     

    RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

    (continued)

















    Free Cash Flow












    For the Three Months Ended




    Mar 31, 2021


    Mar 31, 2020


    Dec 31, 2020




    (in thousands)

    Net Income (loss)


    $

    (9,365)



    $

    (367,598)



    $

    (25,000)


    Non-cash adjustments:








    Depreciation and amortization, including goodwill impairment


    36,471



    356,196



    46,450



    Long-lived asset impairments




    68,763



    1,682



    Other non-cash


    (365)



    (4,626)



    4,209


    Other increases (decreases) in cash from operating activities


    (28,464)



    (84,885)



    76,943


    Cash flow provided by (used in) operating activities


    (1,723)



    (32,150)



    104,284


    Purchases of property and equipment


    (10,699)



    (27,229)



    (14,847)


    Free Cash Flow


    $

    (12,422)



    $

    (59,379)



    $

    89,437


























    2021 Adjusted EBITDA Estimates














    For the Three Months Ended






    June 30, 2021






    Low


    High






    (in thousands)

    Income (loss) before income taxes




    $

    9,000



    $

    12,000


    Depreciation and amortization




    36,000



    38,000



    Subtotal




    45,000



    50,000


    Interest expense, net of interest income




    10,000



    10,000



    Adjusted EBITDA




    $

    55,000



    $

    60,000















    For the Year Ended






    December 31, 2021






    Low


    High






    (in thousands)

    Income (loss) before income taxes




    $

    (5,000)



    $

    20,000


    Depreciation and amortization




    145,000



    150,000



    Subtotal




    140,000



    170,000


    Interest expense, net of interest income




    40,000



    40,000



    Adjusted EBITDA




    $

    180,000



    $

    210,000










     

    RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

    (continued)




    Adjusted Operating Income (Loss) and Margins by Segment






    For the Three Months Ended March 31, 2021





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    14,619



    $

    2,753



    $

    8,813



    $

    2,474



    $

    16,839



    $

    (31,715)



    $

    13,783


    Adjustments for the effects of:















    Restructuring expenses and other


    395



    537



    149



    217



    10





    1,308




    Total of adjustments


    395



    537



    149



    217



    10





    1,308



















    Adjusted Operating Income (Loss)


    $

    15,014



    $

    3,290



    $

    8,962



    $

    2,691



    $

    16,849



    $

    (31,715)



    $

    15,091



















    Revenue


    $

    119,119



    $

    86,825



    $

    89,234



    $

    54,048



    $

    88,327





    $

    437,553


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


    12

    %


    3

    %


    10

    %


    5

    %


    19

    %




    3

    %

    Operating income (loss)% using adjusted amounts


    13

    %


    4

    %


    10

    %


    5

    %


    19

    %




    3

    %






















    For the Three Months Ended March 31, 2020 *





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    (94,083)



    $

    (66,138)



    $

    (79,323)



    $

    (121,535)



    $

    12,971



    $

    (32,649)



    $

    (380,757)


    Adjustments for the effects of:















    Long-lived assets impairments




    61,074



    7,522



    167







    68,763



    Long-lived assets write-offs


    7,328













    7,328



    Goodwill impairment


    102,118



    11,388



    66,285



    123,214







    303,005



    Restructuring expenses and other


    919



    1,984



    1,216



    2,231





    280



    6,630




    Total of adjustments


    110,365



    74,446



    75,023



    125,612





    280



    385,726



















    Adjusted Operating Income (Loss)


    $

    16,282



    $

    8,308



    $

    (4,300)



    $

    4,077



    $

    12,971



    $

    (32,369)



    $

    4,969



















    Revenue


    $

    139,770



    $

    166,534



    $

    74,254



    $

    64,729



    $

    91,381





    $

    536,668


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


    (67)

    %


    (40)

    %


    (107)

    %


    (188)

    %


    14

    %




    (71)

    %

    Operating income (loss)% using adjusted amounts


    12

    %


    5

    %


    (6)

    %


    6

    %


    14

    %




    1

    %


    * Recast to reflect segment changes.













     

    RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

    (continued)




    Adjusted Operating Income (Loss) and Margins by Segment























    For the Three Months Ended December 31, 2020





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    14,477



    $

    12,218



    $

    (9,940)



    $

    892



    $

    16,525



    $

    (33,692)



    $

    480


    Adjustments for the effects of:
















    Long-lived assets impairments






    1,304



    378







    1,682



    Long-lived assets write-offs






    9,401



    170







    9,571



    Restructuring expenses and other


    221



    (3,489)



    643



    422



    27





    (2,176)




    Total of adjustments


    221



    (3,489)



    11,348



    970



    27





    9,077


    Adjusted Operating Income (Loss)


    $

    14,698



    $

    8,729



    $

    1,408



    $

    1,862



    $

    16,552



    $

    (33,692)



    $

    9,557



















    Revenue


    $

    114,711



    $

    99,899



    $

    67,821



    $

    54,307



    $

    87,524





    $

    424,262


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


    13

    %


    12

    %


    (15)

    %


    2

    %


    19

    %




    %

    Operating income (loss) % using adjusted amounts


    13

    %


    9

    %


    2

    %


    3

    %


    19

    %




    2

    %


     

    RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

    (continued)




    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended March 31, 2021





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated Expenses and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    14,619



    $

    2,753



    $

    8,813



    $

    2,474



    $

    16,839



    $

    (31,715)



    $

    13,783


    Adjustments for the effects of:















    Depreciation and amortization


    22,952



    3,227



    7,125



    1,124



    1,276



    767



    36,471



    Other pre-tax












    (616)



    (616)



    EBITDA


    37,571



    5,980



    15,938



    3,598



    18,115



    (31,564)



    49,638


    Adjustments for the effects of:















    Restructuring expenses and other


    395



    537



    149



    217



    10





    1,308



    Foreign currency (gains) losses












    1,861



    1,861




    Total of adjustments


    395



    537



    149



    217



    10



    1,861



    3,169


    Adjusted EBITDA


    $

    37,966



    $

    6,517



    $

    16,087



    $

    3,815



    $

    18,125



    $

    (29,703)



    $

    52,807



















    Revenue


    $

    119,119



    $

    86,825



    $

    89,234



    $

    54,048



    $

    88,327





    $

    437,553


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


    12

    %


    3

    %


    10

    %


    5

    %


    19

    %




    3

    %

    EBITDA Margin


    32

    %


    7

    %


    18

    %


    7

    %


    21

    %




    11

    %

    Adjusted EBITDA Margin


    32

    %


    8

    %


    18

    %


    7

    %


    21

    %




    12

    %






















    For the Three Months Ended March 31, 2020 *





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated Expenses and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    (94,083)



    $

    (66,138)



    $

    (79,323)



    $

    (121,535)



    $

    12,971



    $

    (32,649)



    $

    (380,757)


    Adjustments for the effects of:















    Depreciation and amortization


    139,187



    15,964



    74,907



    124,343



    687



    1,108



    356,196



    Other pre-tax












    (6,264)



    (6,264)



    EBITDA


    45,104



    (50,174)



    (4,416)



    2,808



    13,658



    (37,805)



    (30,825)


    Adjustments for the effects of:















    Long-lived assets impairments




    61,074



    7,522



    167







    68,763



    Restructuring expenses and other


    919



    1,984



    1,216



    2,231





    280



    6,630



    Foreign currency (gains) losses












    7,050



    7,050




    Total of adjustments


    919



    63,058



    8,738



    2,398





    7,330



    82,443


    Adjusted EBITDA


    $

    46,023



    $

    12,884



    $

    4,322



    $

    5,206



    $

    13,658



    $

    (30,475)



    $

    51,618



















    Revenue


    $

    139,770



    $

    166,534



    $

    74,254



    $

    64,729



    $

    91,381





    $

    536,668


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


    (67)

    %


    (40)

    %


    (107)

    %


    (188)

    %


    14

    %




    (71)

    %

    EBITDA Margin


    32

    %


    (30)

    %


    (6)

    %


    4

    %


    15

    %




    (6)

    %

    Adjusted EBITDA Margin


    33

    %


    8

    %


    6

    %


    8

    %


    15

    %




    10

    %


















    * Recast to reflect segment changes.













     

    RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

    (continued)




    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended December 31, 2020





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated
    Expenses
    and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    14,477



    $

    12,218



    $

    (9,940)



    $

    892



    $

    16,525



    $

    (33,692)



    $

    480


    Adjustments for the effects of:















    Depreciation and amortization


    23,210



    3,193



    16,979



    1,255



    667



    1,146



    46,450



    Other pre-tax












    (57)



    (57)



    EBITDA


    37,687



    15,411



    7,039



    2,147



    17,192



    (32,603)



    46,873


    Adjustments for the effects of:















    Long-lived assets impairments






    1,304



    378







    1,682



    Restructuring expenses and other


    221



    (3,489)



    643



    422



    27





    (2,176)



    Foreign currency (gains) losses












    720



    720




    Total of adjustments


    221



    (3,489)



    1,947



    800



    27



    720



    226


    Adjusted EBITDA


    $

    37,908



    $

    11,922



    $

    8,986



    $

    2,947



    $

    17,219



    $

    (31,883)



    $

    47,099



















    Revenue


    $

    114,711



    $

    99,899



    $

    67,821



    $

    54,307



    $

    87,524





    $

    424,262


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


    13

    %


    12

    %


    (15)

    %


    2

    %


    19

    %




    %

    EBITDA Margin


    33

    %


    15

    %


    10

    %


    4

    %


    20

    %




    11

    %

    Adjusted EBITDA Margin


    33

    %


    12

    %


    13

    %


    5

    %


    20

    %




    11

    %


















     

    Cision View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-first-quarter-2021-results-301279346.html

    SOURCE Oceaneering International, Inc.

    Categories: Press Releases
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