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    Oceaneering Reports Second Quarter 2021 Results

    July 28, 2021

    HOUSTON, July 28, 2021 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $6.2 million, or $0.06 per share, on revenue of $498 million for the three months ended June 30, 2021.  Adjusted net income was $10.4 million, or $0.10 per share, reflecting the impact of $3.2 million of pre-tax adjustments associated with a loss on the sale of an asset and foreign exchange losses recognized during the quarter, and $1.6 million of discrete tax adjustments, primarily due to changes in valuation allowances.

    During the prior quarter ended March 31, 2021, Oceaneering reported a net loss of $9.4 million, or $(0.09) per share, on revenue of $438 million.  Adjusted net income was $2.8 million, or $0.03 per share, reflecting 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.

    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


    Six Months Ended



    Jun 30,


    Mar 31,


    Jun 30,










    2021


    2020


    2021


    2021


    2020












    Revenue


    $

    498,199



    $

    427,216



    $

    437,553



    $

    935,752



    $

    963,884


    Gross Margin


    68,397



    42,537



    56,657



    125,054



    89,289


    Income (Loss) from Operations


    22,819



    (5,182)



    13,783



    36,602



    (385,939)


    Net Income (Loss)


    6,241



    (24,788)



    (9,365)



    (3,124)



    (392,386)













    Diluted Earnings (Loss) Per Share


    $

    0.06



    $

    (0.25)



    $

    (0.09)



    $

    (0.03)



    $

    (3.96)







    For the second quarter of 2021:

    • Consolidated Adjusted EBITDA was $60.6 million
    • Consolidated Adjusted Operating Income was $24.2 million
    • Cash flow generated from operations was $50.5 million and free cash flow was $37.9 million
    • Cash position increased by $13.3 million, from $443 million to $456 million
    • We retired $30.5 million of our 2024 senior notes through open market repurchases

    Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Based on our first half financial performance and expectations for the second half of 2021, we are raising our adjusted EBITDA guidance to a range of $200 million to $225 million for the full year.  This confidence, despite ongoing uncertainties associated with COVID-19, stems from positive client interactions, supportive oil price expectations, and growing backlog.

    "Our second quarter 2021 results returned positive net income, and we produced adjusted EBITDA of $60.6 million, which exceeded consensus estimates.  These positive results were attributable to the increased seasonal demand for our services and products in our energy businesses, growth in our government focused business segment, and forfeitures of long-term incentive accruals in Unallocated Expenses.

    Segment Results:

    "Sequentially, Subsea Robotics (SSR) revenue and adjusted operating income both increased as expected due to higher seasonal activity for ROV, survey, and tooling services.  SSR adjusted EBITDA margin of 31% was relatively consistent with the first quarter of 2021, with pricing remaining stable across our SSR business lines.

    "Second quarter 2021 ROV days on hire were sequentially higher for both drill support and vessel-based services as compared to first quarter 2021.  Fleet utilization rose significantly, averaging 62% for the quarter, as compared to 53% for the first quarter.  Our fleet use during the quarter was 58% in drill support and 42% in vessel-based activity, compared to 64% and 36%, respectively, during the first quarter.  Second quarter 2021 average ROV revenue per day on hire of $8,056 was 2% higher than the first quarter of 2021.

    "Manufactured Products (MP) second quarter 2021 adjusted operating income declined from the first quarter of 2021 on lower revenue.  Sequentially, adjusted operating income margin decreased to 1% from 4% in the first quarter of 2021 as lower segment revenue decreased the ability to leverage our cost base.  Our Manufactured Products backlog on June 30, 2021 was $315 million, compared to our March 31, 2021 backlog of $248 million.  Our book-to-bill ratio was 1.3 for the six months ended June 30, 2021 and 0.8 for the trailing 12 months.

    "The second quarter 2021 Offshore Projects Group (OPG) adjusted operating income declined as compared to the first quarter of 2021 despite a meaningful increase in revenue.  Revenue benefited from ongoing field activities on several projects in Angola and a seasonal increase in intervention, maintenance and repair (IMR) work in the Gulf of Mexico.  The sequential decline in adjusted operating income margin, from 10% in the first quarter of 2021 to 7% in the second quarter of 2021, was primarily due to unplanned downtime and related costs associated with the Angola riserless light well intervention project, which was partially offset by higher IMR activity levels in the Gulf of Mexico.

    "Integrity Management and Digital Solutions (IMDS) sequential adjusted operating income was higher on a 19% increase in revenue.  Higher seasonal activity and the start-up of several new projects contributed to the revenue increase.  Continuing efficiency improvements, including utilization of field personnel, resulted in adjusted operating income margin increasing to 7% in the second quarter 2021 from 5% in the first quarter of 2021.

    "Aerospace and Defense Technologies (ADTech) second quarter 2021 adjusted operating income improved from the first quarter of 2021 on a 20% increase in revenue.  Adjusted operating income margin of 18% was better than forecast due to project mix and favorable rate-based adjustments.  At the corporate level for the second quarter of 2021, adjusted Unallocated Expenses of $30.3 million were slightly lower as compared to the first quarter of 2021 due to lower expense accruals related to incentive-based compensation forfeitures.

    Third Quarter Outlook:

    "For the third quarter, compared to the second quarter, we anticipate relatively flat activity and operating profitability in our SSR, Manufactured Products, and IMDS segments, lower activity levels and relatively flat operating profitability in our OPG segment, and lower activity levels and lower operating profitability in our ADTech segment.  Unallocated Expenses are forecast to be in the mid-$30 million range due primarily to increased information technology infrastructure costs and normalized accruals for incentive-based compensation.  On a consolidated basis, we expect a sequential decline in third quarter 2021 results, with adjusted EBITDA in the range of $50 million to $55 million on slightly lower revenue.

    Cash and Liquidity:

    "Our cash balance of $456 million, coupled with improved debt markets and our expectation to generate meaningful free cash flow in 2021, will provide us with improved flexibility to address our 2024 debt maturity while we continue to leverage our technologies and core competencies into energy transition opportunities."

    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: full year 2021 adjusted EBITDA range and the bases for that range; characterization of demand or activity levels as seasonal; references to backlog, to the extent backlog may be an indicator of future revenue or profitability; anticipated third quarter segment activity levels and operating profitability as compared to second quarter 2021; forecasted Unallocated Expenses and the bases for that forecast; expectations about consolidated third quarter 2021 sequential results and revenue, and adjusted EBITDA range; characterization of debt markets and expectation to generate meaningful free cash flow in 2021; and the expectation of improved flexibility to address the 2024 debt maturity.

    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, force majeure declarations and the exercise of contractual suspension rights 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



































    Jun 30, 2021


    Dec 31, 2020

















    (in thousands)


    ASSETS


















    Current assets (including cash and cash equivalents of $456,087 and $452,016)






    $

    1,228,876



    $

    1,170,263




    Net property and equipment







    537,909



    591,107




    Other assets










    294,764



    284,472






    Total Assets






    $

    2,061,549



    $

    2,045,842






















    LIABILITIES AND EQUITY











    Current liabilities










    $

    479,523



    $

    437,116




    Long-term debt










    773,423



    805,251




    Other long-term liabilities






    245,871



    245,318




    Equity










    562,732



    558,157






    Total Liabilities and Equity






    $

    2,061,549



    $

    2,045,842






















    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS





























    For the Three Months Ended


    For the Six Months Ended










    Jun 30, 2021


    Jun 30, 2020


    Mar 31, 2021


    Jun 30, 2021


    Jun 30, 2020











    (in thousands, except per share amounts)






















    Revenue






    $

    498,199



    $

    427,216



    $

    437,553



    $

    935,752



    $

    963,884




    Cost of services and products


    429,802



    384,679



    380,896



    810,698



    874,595





    Gross margin


    68,397



    42,537



    56,657



    125,054



    89,289




    Selling, general and administrative expense


    45,578



    47,719



    42,874



    88,452



    103,460




    Long-lived assets impairments










    68,763




    Goodwill impairment










    303,005





    Income (loss) from operations




    22,819



    (5,182)



    13,783



    36,602



    (385,939)




    Interest income






    683



    511



    519



    1,202



    1,788




    Interest expense, net of amounts capitalized


    (9,729)



    (11,611)



    (10,407)



    (20,136)



    (24,073)




    Equity in income (losses) of unconsolidated affiliates


    378



    674



    534



    912



    1,871




    Other income (expense), net


    (1,955)



    (3,660)



    (1,453)



    (3,408)



    (10,788)





    Income (loss) before income taxes


    12,196



    (19,268)



    2,976



    15,172



    (417,141)




    Provision (benefit) for income taxes


    5,955



    5,520



    12,341



    18,296



    (24,755)





    Net Income (Loss)


    $

    6,241



    $

    (24,788)



    $

    (9,365)



    $

    (3,124)



    $

    (392,386)






















    Weighted average diluted shares outstanding


    100,847



    99,273



    99,461



    99,613



    99,164



    Diluted earnings (loss) per share


    $

    0.06



    $

    (0.25)



    $

    (0.09)



    $

    (0.03)



    $

    (3.96)






















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



     

    SEGMENT INFORMATION
















    For the Three Months Ended


    For the Six Months Ended







    Jun 30, 2021


    Jun 30, 2020 *


    Mar 31, 2021


    Jun 30, 2021


    Jun 30, 2020 *






    ($ in thousands)

    Subsea Robotics
















    Revenue



    $

    141,371



    $

    119,234



    $

    119,119



    $

    260,490



    $

    259,004



    Gross margin



    $

    31,767



    $

    21,324



    $

    24,078



    $

    55,845



    $

    40,797


    Operating income (loss)



    $

    21,710



    $

    11,662



    $

    14,619



    $

    36,329



    $

    (82,421)


    Operating income (loss) %



    15

    %


    10

    %


    12

    %


    14

    %


    (32)

    %


    ROV days available



    22,750



    22,750



    22,469



    45,219



    45,500



    ROV days utilized



    14,005



    13,501



    11,887



    25,892



    28,354



    ROV utilization



    62

    %


    59

    %


    53

    %


    57

    %


    62

    %
















    Manufactured Products
















    Revenue



    $

    79,127



    $

    100,570



    $

    86,825



    $

    165,952



    $

    267,104



    Gross margin



    $

    8,391



    $

    13,679



    $

    10,004



    $

    18,395



    $

    31,628


    Operating income (loss)



    $

    790



    $

    3,865



    $

    2,753



    $

    3,543



    $

    (62,273)


    Operating income (loss) %



    1

    %


    4

    %


    3

    %


    2

    %


    (23)

    %

    Backlog at end of period



    $

    315,000



    $

    380,000



    $

    248,000



    $

    315,000



    $

    380,000

















    Offshore Projects Group
















    Revenue



    $

    107,951



    $

    73,840



    $

    89,234



    $

    197,185



    $

    148,094



    Gross margin



    $

    14,566



    $

    3,170



    $

    15,111



    $

    29,677



    $

    5,265


    Operating income (loss)



    $

    7,996



    $

    (4,135)



    $

    8,813



    $

    16,809



    $

    (83,458)


    Operating income (loss) %



    7

    %


    (6)

    %


    10

    %


    9

    %


    (56)

    %
















    Integrity Management & Digital Solutions














    Revenue



    $

    64,070



    $

    53,969



    $

    54,048



    $

    118,118



    $

    118,698



    Gross margin



    $

    10,462



    $

    5,455



    $

    8,209



    $

    18,671



    $

    15,247


    Operating income (loss)



    $

    4,721



    $

    (1,825)



    $

    2,474



    $

    7,195



    $

    (123,360)


    Operating income (loss) %



    7

    %


    (3)

    %


    5

    %


    6

    %


    (104)

    %
















    Aerospace and Defense Technologies














    Revenue



    $

    105,680



    $

    79,603



    $

    88,327



    $

    194,007



    $

    170,984



    Gross margin



    $

    24,603



    $

    17,313



    $

    22,110



    $

    46,713



    $

    34,798


    Operating income (loss)



    $

    19,340



    $

    13,430



    $

    16,839



    $

    36,179



    $

    26,401


    Operating income (loss) %



    18

    %


    17

    %


    19

    %


    19

    %


    15

    %















    Unallocated Expenses















    Gross margin



    $

    (21,392)



    $

    (18,404)



    $

    (22,855)



    $

    (44,247)



    $

    (38,446)


    Operating income (loss)



    $

    (31,738)



    $

    (28,179)



    $

    (31,715)



    $

    (63,453)



    $

    (60,828)















    Total


















    Revenue



    $

    498,199



    $

    427,216



    $

    437,553



    $

    935,752



    $

    963,884



    Gross margin



    $

    68,397



    $

    42,537



    $

    56,657



    $

    125,054



    $

    89,289


    Operating income (loss)



    $

    22,819



    $

    (5,182)



    $

    13,783



    $

    36,602



    $

    (385,939)


    Operating income (loss) %



    5

    %


    (1)

    %


    3

    %


    4

    %


    (40)

    %


    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


    For the Six Months Ended







    Jun 30, 2021


    Jun 30, 2020


    Mar 31, 2021


    Jun 30, 2021


    Jun 30, 2020







    (in thousands)













    Capital Expenditures, including Acquisitions



    $

    12,629



    $

    10,631



    $

    10,699



    $

    23,328



    $

    37,860




















    For the Three Months Ended


    For the Six Months Ended







    Jun 30, 2021


    Jun 30, 2020 *


    Mar 31, 2021


    Jun 30, 2021


    Jun 30, 2020 *







    (in thousands)

    Depreciation and amortization:












    Energy Services and Products













    Subsea Robotics



    $

    22,436



    $

    25,080



    $

    22,952



    $

    45,388



    $

    164,267



    Manufactured Products



    3,248



    3,587



    3,227



    6,475



    19,551



    Offshore Projects Group



    6,862



    8,255



    7,125



    13,987



    83,162



    Integrity Management & Digital Solutions



    1,091



    757



    1,124



    2,215



    125,100


    Total Energy Services and Products



    33,637



    37,679



    34,428



    68,065



    392,080


    Aerospace and Defense Technologies



    1,404



    658



    1,276



    2,680



    1,345


    Unallocated Expenses



    184



    361



    767



    951



    1,469



    Total Depreciation and Amortization



    $

    35,225



    $

    38,698



    $

    36,471



    $

    71,696



    $

    394,894

















    Goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense above, was $310 million

    in the six months ended June 30, 2020.
















    * 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







    Jun 30, 2021

    Jun 30, 2020

    Mar 31, 2021







    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


    $

    6,241



    $

    0.06



    $

    (24,788)



    $

    (0.25)



    $

    (9,365)



    $

    (0.09)



    Pre-tax adjustments for the effects of:















    Loss on sale of asset




    1,415














    Restructuring expenses and other






    5,708





    1,308






    Foreign currency (gains) losses


    1,800





    3,908





    1,861





    Total pre-tax adjustments


    3,215





    9,616





    3,169






















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


    (674)





    (2,331)





    (605)





    Discrete tax items:














        Share-based compensation


    (4)





    16





    577





        Uncertain tax positions


    186





    735





    (16)





        U.S. CARES Act






    1,159









        Valuation allowances


    3,525





    3,245





    6,758





        Other


    (2,136)





    (1,887)





    2,275






    Total discrete tax adjustments


    1,571





    3,268





    9,594






    Total of adjustments


    4,112





    10,553





    12,158





    Adjusted Net Income (Loss)


    $

    10,353



    $

    0.10



    $

    (14,235)



    $

    (0.14)



    $

    2,793



    $

    0.03



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




    100,847





    99,273





    100,480





































     

















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


























    For the Six Months Ended







    Jun 30, 2021

    Jun 30, 2020










    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






    $

    (3,124)



    $

    (0.03)



    $

    (392,386)



    $

    (3.96)


    Pre-tax adjustments for the effects of:














    Long-lived assets impairments










    68,763





    Long-lived assets write-offs










    7,328





    Goodwill impairment










    303,005





    Loss on sale of asset








    1,415









    Restructuring expenses and other






    1,308





    12,338





    Foreign currency (gains) losses






    3,661





    10,958




    Total pre-tax adjustments






    6,384





    402,392




















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






    (1,279)





    (47,686)




    Discrete tax items:













    Share-based compensation






    573





    1,003




    Uncertain tax positions






    170





    (8,917)




    U.S. CARES Act










    (32,625)




    Valuation allowances






    10,283





    68,453




    Other






    139





    (937)





    Total discrete tax adjustments






    11,165





    26,977





    Total of adjustments






    16,270





    381,683




    Adjusted Net Income (Loss)






    $

    13,146



    $

    0.13



    $

    (10,703)



    $

    (0.11)


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








    100,672





    99,164



     















    EBITDA and Adjusted EBITDA and Margins




















    For the Three Months Ended


    For the Six Months Ended






    Jun 30, 2021


    Jun 30, 2020


    Mar 31, 2021


    Jun 30, 2021


    Jun 30, 2020






    ($ in thousands)















    Net income (loss)



    $

    6,241



    $

    (24,788)



    $

    (9,365)



    $

    (3,124)



    $

    (392,386)


    Depreciation and amortization



    35,225



    38,698



    36,471



    71,696



    394,894



    Subtotal



    41,466



    13,910



    27,106



    68,572



    2,508


    Interest expense, net of interest income


    9,046



    11,100



    9,888



    18,934



    22,285


    Amortization included in interest expense


    907



    333



    303



    1,210




    Provision (benefit) for income taxes



    5,955



    5,520



    12,341



    18,296



    (24,755)



    EBITDA



    57,374



    30,863



    49,638



    107,012



    38


    Adjustments for the effects of:













    Long-lived assets impairments











    68,763



    Loss on sale of asset



    1,415







    1,415





    Restructuring expenses and other





    5,708



    1,308



    1,308



    12,338



    Foreign currency (gains) losses



    1,800



    3,908



    1,861



    3,661



    10,958




    Total of adjustments



    3,215



    9,616



    3,169



    6,384



    92,059



    Adjusted EBITDA



    $

    60,589



    $

    40,479



    $

    52,807



    $

    113,396



    $

    92,097
















    Revenue



    $

    498,199



    $

    427,216



    $

    437,553



    $

    935,752



    $

    963,884
















    EBITDA margin %



    12

    %


    7

    %


    11

    %


    11

    %


    %

    Adjusted EBITDA margin %



    12

    %


    9

    %


    12

    %


    12

    %


    10

    %















     













    Free Cash Flow
















    For the Three Months Ended


    For the Six Months Ended




    Jun 30, 2021


    Jun 30, 2020


    Mar 31, 2021


    Jun 30, 2021


    Jun 30, 2020




    (in thousands)

    Net Income (loss)


    $

    6,241



    $

    (24,788)



    $

    (9,365)



    $

    (3,124)



    $

    (392,386)


    Non-cash adjustments:












    Depreciation and amortization, including goodwill impairment


    35,225



    38,698



    36,471



    71,696



    394,894



    Long-lived asset impairments










    68,763



    Other non-cash


    (1,294)



    41



    (365)



    (1,659)



    (4,585)


    Other increases (decreases) in cash from operating activities


    10,374



    23,567



    (28,464)



    (18,090)



    (61,318)


    Cash flow provided by (used in) operating activities


    50,546



    37,518



    (1,723)



    48,823



    5,368


    Purchases of property and equipment


    (12,629)



    (10,631)



    (10,699)



    (23,328)



    (37,860)


    Free Cash Flow


    $

    37,917



    $

    26,887



    $

    (12,422)



    $

    25,495



    $

    (32,492)






































    2021 Adjusted EBITDA Estimates






















    For the Three Months Ended










    September 30, 2021










    Low


    High










    (in thousands)

    Income (loss) before income taxes








    $

    4,000



    $

    7,000


    Depreciation and amortization








    36,000



    38,000



    Subtotal








    40,000



    45,000


    Interest expense, net of interest income








    10,000



    10,000



    Adjusted EBITDA








    $

    50,000



    $

    55,000























    For the Year Ended










    December 31, 2021










    Low


    High










    (in thousands)

    Income (loss) before income taxes








    $

    15,000



    $

    35,000


    Depreciation and amortization








    145,000



    150,000



    Subtotal








    160,000



    185,000


    Interest expense, net of interest income








    40,000



    40,000



    Adjusted EBITDA








    $

    200,000



    $

    225,000















     




    Adjusted Operating Income (Loss) and Margins by Segment






    For the Three Months Ended June 30, 2021





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated
    Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    21,710



    $

    790



    $

    7,996



    $

    4,721



    $

    19,340



    $

    (31,738)



    $

    22,819


    Adjustments for the effects of:















    Loss on sale of asset












    1,415



    1,415




    Total of adjustments












    1,415



    1,415



















    Adjusted Operating Income (Loss)


    $

    21,710



    $

    790



    $

    7,996



    $

    4,721



    $

    19,340



    $

    (30,323)



    $

    24,234



















    Revenue


    $

    141,371



    $

    79,127



    $

    107,951



    $

    64,070



    $

    105,680





    $

    498,199


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


    15

    %


    1

    %


    7

    %


    7

    %


    18

    %




    5

    %

    Operating income (loss) % using adjusted amounts


    15

    %


    1

    %


    7

    %


    7

    %


    18

    %




    5

    %











































    For the Three Months Ended June 30, 2020 *





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated
    Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    11,662



    $

    3,865



    $

    (4,135)



    $

    (1,825)



    $

    13,430



    $

    (28,179)



    $

    (5,182)


    Adjustments for the effects of:















    Restructuring expenses and other


    1,380



    1,212



    1,405



    1,536





    175



    5,708




    Total of adjustments


    1,380



    1,212



    1,405



    1,536





    175



    5,708



















    Adjusted Operating Income (Loss)


    $

    13,042



    $

    5,077



    $

    (2,730)



    $

    (289)



    $

    13,430



    $

    (28,004)



    $

    526



















    Revenue


    $

    119,234



    $

    100,570



    $

    73,840



    $

    53,969



    $

    79,603





    $

    427,216


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


    10

    %


    4

    %


    (6)

    %


    (3)

    %


    17

    %




    (1)

    %

    Operating income (loss) % using adjusted amounts


    11

    %


    5

    %


    (4)

    %


    (1)

    %


    17

    %




    %


    * Recast to reflect segment changes.



















































    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

    %



     




    Adjusted Operating Income (Loss) and Margins by Segment






    For the Six Months Ended June 30, 2021





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated
    Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    36,329



    $

    3,543



    $

    16,809



    $

    7,195



    $

    36,179



    $

    (63,453)



    $

    36,602


    Adjustments for the effects of:















    Loss on sale of asset












    1,415



    1,415



    Restructuring expenses and other


    395



    537



    149



    217



    10





    1,308




    Total of adjustments


    395



    537



    149



    217



    10



    1,415



    2,723



















    Adjusted Operating Income (Loss)


    $

    36,724



    $

    4,080



    $

    16,958



    $

    7,412



    $

    36,189



    $

    (62,038)



    $

    39,325



















    Revenue


    $

    260,490



    $

    165,952



    $

    197,185



    $

    118,118



    $

    194,007





    $

    935,752


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


    14

    %


    2

    %


    9

    %


    6

    %


    19

    %




    4

    %

    Operating income (loss) % using adjusted amounts


    14

    %


    2

    %


    9

    %


    6

    %


    19

    %




    4

    %






















    For the Six Months Ended June 30, 2020 *





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated
    Expenses


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    (82,421)



    $

    (62,273)



    $

    (83,458)



    $

    (123,360)



    $

    26,401



    $

    (60,828)



    $

    (385,939)


    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


    2,299



    3,196



    2,621



    3,767





    455



    12,338




    Total of adjustments


    111,745



    75,658



    76,428



    127,148





    455



    391,434



















    Adjusted Operating Income (Loss)


    $

    29,324



    $

    13,385



    $

    (7,030)



    $

    3,788



    $

    26,401



    $

    (60,373)



    $

    5,495



















    Revenue


    $

    259,004



    $

    267,104



    $

    148,094



    $

    118,698



    $

    170,984





    $

    963,884


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


    (32)

    %


    (23)

    %


    (56)

    %


    (104)

    %


    15

    %




    (40)

    %

    Operating income (loss) % using adjusted amounts


    11

    %


    5

    %


    (5)

    %


    3

    %


    15

    %




    1

    %


    * Recast to reflect segment changes.














     




    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Three Months Ended June 30, 2021





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated
    Expenses
    and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    21,710



    $

    790



    $

    7,996



    $

    4,721



    $

    19,340



    $

    (31,738)



    $

    22,819


    Adjustments for the effects of:















    Depreciation and amortization


    22,436



    3,248



    6,862



    1,091



    1,404



    184



    35,225



    Other pre-tax












    (670)



    (670)



    EBITDA


    44,146



    4,038



    14,858



    5,812



    20,744



    (32,224)



    57,374


    Adjustments for the effects of:















    Loss on sale of asset












    1,415



    1,415



    Foreign currency (gains) losses












    1,800



    1,800




    Total of adjustments












    3,215



    3,215


    Adjusted EBITDA


    $

    44,146



    $

    4,038



    $

    14,858



    $

    5,812



    $

    20,744



    $

    (29,009)



    $

    60,589



















    Revenue


    $

    141,371



    $

    79,127



    $

    107,951



    $

    64,070



    $

    105,680





    $

    498,199


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


    15

    %


    1

    %


    7

    %


    7

    %


    18

    %




    5

    %

    EBITDA Margin


    31

    %


    5

    %


    14

    %


    9

    %


    20

    %




    12

    %

    Adjusted EBITDA Margin


    31

    %


    5

    %


    14

    %


    9

    %


    20

    %




    12

    %






















    For the Three Months Ended June 30, 2020 *





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated
    Expenses
    and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    11,662



    $

    3,865



    $

    (4,135)



    $

    (1,825)



    $

    13,430



    $

    (28,179)



    $

    (5,182)


    Adjustments for the effects of:















    Depreciation and amortization


    25,080



    3,587



    8,255



    757



    658



    361



    38,698



    Other pre-tax












    (2,653)



    (2,653)



    EBITDA


    36,742



    7,452



    4,120



    (1,068)



    14,088



    (30,471)



    30,863


    Adjustments for the effects of:















    Restructuring expenses and other


    1,380



    1,212



    1,405



    1,536





    175



    5,708



    Foreign currency (gains) losses












    3,908



    3,908




    Total of adjustments


    1,380



    1,212



    1,405



    1,536





    4,083



    9,616


    Adjusted EBITDA


    $

    38,122



    $

    8,664



    $

    5,525



    $

    468



    $

    14,088



    $

    (26,388)



    $

    40,479



















    Revenue


    $

    119,234



    $

    100,570



    $

    73,840



    $

    53,969



    $

    79,603





    $

    427,216


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


    10

    %


    4

    %


    (6)

    %


    (3)

    %


    17

    %




    (1)

    %

    EBITDA Margin


    31

    %


    7

    %


    6

    %


    (2)

    %


    18

    %




    7

    %

    Adjusted EBITDA Margin


    32

    %


    9

    %


    7

    %


    1

    %


    18

    %




    9

    %


















    * Recast to reflect segment changes.



















    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

    %


















     




    EBITDA and Adjusted EBITDA and Margins by Segment






    For the Six Months Ended June 30, 2021





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated
    Expenses
    and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    36,329



    $

    3,543



    $

    16,809



    $

    7,195



    $

    36,179



    $

    (63,453)



    $

    36,602


    Adjustments for the effects of:















    Depreciation and amortization


    45,388



    6,475



    13,987



    2,215



    2,680



    951



    71,696



    Other pre-tax












    (1,286)



    (1,286)



    EBITDA


    81,717



    10,018



    30,796



    9,410



    38,859



    (63,788)



    107,012


    Adjustments for the effects of:















    Loss on sale of asset












    1,415



    1,415



    Restructuring expenses and other


    395



    537



    149



    217



    10





    1,308



    Foreign currency (gains) losses












    3,661



    3,661




    Total of adjustments


    395



    537



    149



    217



    10



    5,076



    6,384


    Adjusted EBITDA


    $

    82,112



    $

    10,555



    $

    30,945



    $

    9,627



    $

    38,869



    $

    (58,712)



    $

    113,396



















    Revenue


    $

    260,490



    $

    165,952



    $

    197,185



    $

    118,118



    $

    194,007





    $

    935,752


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


    14

    %


    2

    %


    9

    %


    6

    %


    19

    %




    4

    %

    EBITDA Margin


    31

    %


    6

    %


    16

    %


    8

    %


    20

    %




    11

    %

    Adjusted EBITDA Margin


    32

    %


    6

    %


    16

    %


    8

    %


    20

    %




    12

    %






















    For the Six Months Ended June 30, 2020 *





    SSR


    MP


    OPG


    IMDS


    ADTech


    Unallocated
    Expenses
    and other


    Total





    ($ in thousands)

    Operating Income (Loss) as reported in accordance with GAAP


    $

    (82,421)



    $

    (62,273)



    $

    (83,458)



    $

    (123,360)



    $

    26,401



    $

    (60,828)



    $

    (385,939)


    Adjustments for the effects of:















    Depreciation and amortization


    164,267



    19,551



    83,162



    125,100



    1,345



    1,469



    394,894



    Other pre-tax












    (8,917)



    (8,917)



    EBITDA


    81,846



    (42,722)



    (296)



    1,740



    27,746



    (68,276)



    38


    Adjustments for the effects of:















    Long-lived assets impairments




    61,074



    7,522



    167







    68,763



    Restructuring expenses and other


    2,299



    3,196



    2,621



    3,767





    455



    12,338



    Foreign currency (gains) losses












    10,958



    10,958




    Total of adjustments


    2,299



    64,270



    10,143



    3,934





    11,413



    92,059


    Adjusted EBITDA


    $

    84,145



    $

    21,548



    $

    9,847



    $

    5,674



    $

    27,746



    $

    (56,863)



    $

    92,097



















    Revenue


    $

    259,004



    $

    267,104



    $

    148,094



    $

    118,698



    $

    170,984





    $

    963,884


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


    (32)

    %


    (23)

    %


    (56)

    %


    (104)

    %


    15

    %




    (40)

    %

    EBITDA Margin


    32

    %


    (16)

    %


    %


    1

    %


    16

    %




    %

    Adjusted EBITDA Margin


    32

    %


    8

    %


    7

    %


    5

    %


    16

    %




    10

    %


















    * Recast to reflect segment changes.













     

    Cision View original content:https://www.prnewswire.com/news-releases/oceaneering-reports-second-quarter-2021-results-301343520.html

    SOURCE Oceaneering International, Inc.

    Categories: Press Releases
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