Oceaneering Reports Second Quarter 2024 Results
Summary of Results |
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(in thousands, except per share amounts) |
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For the Three Months Ended |
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For the Six Months Ended |
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2024 |
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2023 |
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2024 |
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2024 |
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2023 |
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Revenue |
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$ |
668,808 |
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$ |
597,910 |
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$ |
599,092 |
|
$ |
1,267,900 |
|
$ |
1,134,897 |
Income (Loss) from Operations |
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|
60,364 |
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|
49,199 |
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|
36,693 |
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|
97,057 |
|
|
75,949 |
Net Income (Loss) |
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|
34,997 |
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|
19,002 |
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|
15,135 |
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|
50,132 |
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|
23,062 |
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Diluted Earnings (Loss) Per Share |
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$ |
0.34 |
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$ |
0.19 |
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$ |
0.15 |
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$ |
0.49 |
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$ |
0.23 |
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For the second quarter of 2024:
-
Net income was
$35.0 million and consolidated adjusted EBITDA was$85.9 million -
Consolidated operating income was
$60.4 million -
Cash flow provided by operating activities was
$52.6 million and free cash flow was$29.8 million , with an ending cash position of$383 million
As of
-
Remotely Operated Vehicles (ROV): fleet count was 250; Q2 utilization was 70%; and Q2 average revenue per day utilized was
$10,528 -
Manufactured Products backlog was
$713 million
"As evidenced by our recently announced contract awards, we anticipate continued high levels of activity in our offshore markets throughout the remainder of the year, partially offset by lower expectations in our Aerospace and Defense Technologies (ADTech) segment. As a result, we are narrowing our consolidated adjusted EBITDA guidance range to
Second Quarter 2024 Segment Results v. Second Quarter 2023 Segment Results
SSR second quarter 2024 operating income of
ROV revenue per day utilized of
Manufactured Products operating income for the second quarter improved 35% on a 12% increase in revenue, with operating income margin improving to 10%. Backlog was
As compared to the second quarter of 2023, Integrity Management and Digital Solutions (IMDS) operating income and operating income margin decreased on a 16% increase in revenue.
While ADTech experienced a 4% increase in revenue in the second quarter, operating income declined significantly as compared to the same period last year, due to a reserve taken during the quarter for a contract dispute as well as lower activity levels in our space systems business.
At the corporate level, Unallocated Expenses of
Third Quarter 2024 Guidance
On a consolidated basis, third quarter 2024 operating results are expected to continue to improve sequentially, with EBITDA in the range of
- SSR activity levels and operating profitability are expected to improve slightly;
- Manufactured Products revenue is forecasted to be higher with lower operating profitability;
- OPG revenue is expected to be similar to the second quarter of 2024 while generating significantly higher operating profitability;
- IMDS activity levels and operating profitability are expected to be relatively flat;
- ADTech revenue is projected to be flat with significantly higher operating profitability; and
-
Unallocated Expenses are forecasted to be in the
$40 million range.
Updated Full-Year 2024 Guidance
Full-year 2024 consolidated and segment guidance remains the same as previously provided, except as follows:
-
Consolidated adjusted EBITDA is expected in the range of
$340 million to$370 million , -
Net income is expected in the range of
$130 million to$150 million ; and - ADTech operating income and margins are expected to be lower as compared to 2023.
Non-GAAP Financial Measures
Adjusted 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, 2024 Adjusted EBITDA and Free Cash Flow Estimates, 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.
Conference Call Details
Oceaneering has scheduled a conference call and webcast on
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: full-year 2024 guidance range for consolidated adjusted EBITDA, free cash flow, net income, and ADTech operating income and margins; third-quarter 2024 guidance for consolidated EBITDA, operating segment revenues, operating results, operating profitability, segment activity levels, and Unallocated Expenses; expectation that 2024 will generate positive free cash flow; expectations for improved financial performance and conditions in 2024, including activity levels by segment; and the characterization, whether positive or otherwise, of market fundamentals, conditions, and dynamic, robotics markets, offshore energy activity levels (including by geographic location), pricing levels, day rates, ROV days utilized, average ROV revenue per day on hire, vessel utilization, growth, bidding activity, outlook, performance, opportunities, and future financials, including as increasing, favorable, positive, encouraging, improving, seasonal, strong, supportive, robust, meaningful, healthy or significant (which is used herein to indicate a change of 20% or greater).
The forward-looking statements included in this release are based on Oceaneering's 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; the indirect consequences of climate change and climate-related business trends; actions by members of
Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries.
For more information on Oceaneering, please visit www.oceaneering.com.
- Tables follow on next page -
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands) |
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ASSETS |
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Current assets (including cash and cash equivalents of |
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$ |
1,337,130 |
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$ |
1,305,659 |
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Net property and equipment |
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|
416,490 |
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424,293 |
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Other assets |
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|
551,246 |
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|
509,054 |
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Total Assets |
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$ |
2,304,866 |
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$ |
2,239,006 |
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LIABILITIES AND EQUITY |
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Current liabilities |
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$ |
776,945 |
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$ |
732,476 |
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Long-term debt |
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|
479,378 |
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477,058 |
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Other long-term liabilities |
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391,448 |
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395,389 |
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Equity |
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657,095 |
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|
634,083 |
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Total Liabilities and Equity |
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$ |
2,304,866 |
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$ |
2,239,006 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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For the Three Months Ended |
For the Six Months Ended |
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(in thousands, except per share amounts) |
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Revenue |
$ |
668,808 |
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$ |
597,910 |
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$ |
599,092 |
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$ |
1,267,900 |
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$ |
1,134,897 |
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Cost of services and products |
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548,597 |
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|
496,830 |
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506,708 |
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1,055,305 |
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|
956,252 |
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Gross margin |
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120,211 |
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101,080 |
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92,384 |
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212,595 |
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|
178,645 |
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Selling, general and administrative expense |
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59,847 |
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51,881 |
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55,691 |
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115,538 |
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|
102,696 |
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Income (loss) from operations |
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60,364 |
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|
49,199 |
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|
36,693 |
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|
97,057 |
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|
75,949 |
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Interest income |
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2,402 |
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|
4,154 |
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|
3,040 |
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|
5,442 |
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|
8,620 |
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Interest expense |
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(9,516 |
) |
|
(9,517 |
) |
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(9,204 |
) |
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(18,720 |
) |
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(18,800 |
) |
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Equity in income (losses) of unconsolidated affiliates |
|
295 |
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|
479 |
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|
169 |
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|
464 |
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|
1,118 |
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Other income (expense), net |
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1,759 |
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(5,846 |
) |
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1,480 |
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|
3,239 |
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(5,768 |
) |
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Income (loss) before income taxes |
|
55,304 |
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|
38,469 |
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|
32,178 |
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|
87,482 |
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|
61,119 |
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Provision (benefit) for income taxes |
|
20,307 |
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|
19,467 |
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|
17,043 |
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|
37,350 |
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|
38,057 |
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Net Income (Loss) |
$ |
34,997 |
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$ |
19,002 |
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$ |
15,135 |
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$ |
50,132 |
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$ |
23,062 |
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Weighted average diluted shares outstanding |
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102,472 |
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|
102,004 |
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|
102,250 |
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|
102,361 |
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|
102,017 |
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Diluted earnings (loss) per share |
$ |
0.34 |
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$ |
0.19 |
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$ |
0.15 |
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$ |
0.49 |
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$ |
0.23 |
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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 |
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For the Three Months Ended |
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For the Six Months Ended |
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($ in thousands) |
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Subsea Robotics |
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Revenue |
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$ |
214,985 |
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$ |
186,512 |
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$ |
186,932 |
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$ |
401,917 |
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$ |
355,673 |
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Operating income (loss) |
|
$ |
61,750 |
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$ |
42,227 |
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$ |
44,237 |
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$ |
105,987 |
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$ |
75,881 |
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Operating income (loss) % |
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29 |
% |
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23 |
% |
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24 |
% |
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26 |
% |
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21 |
% |
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ROV days available |
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|
22,750 |
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|
22,750 |
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|
22,750 |
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|
45,500 |
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45,250 |
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ROV days utilized |
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15,839 |
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16,032 |
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14,536 |
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30,375 |
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|
30,260 |
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ROV utilization |
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70 |
% |
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70 |
% |
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|
64 |
% |
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|
67 |
% |
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|
67 |
% |
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Manufactured Products |
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Revenue |
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$ |
139,314 |
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$ |
124,882 |
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$ |
129,453 |
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$ |
268,767 |
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$ |
237,821 |
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Operating income (loss) |
|
$ |
14,369 |
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$ |
10,607 |
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$ |
13,190 |
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$ |
27,559 |
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$ |
21,887 |
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Operating income (loss) % |
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10 |
% |
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8 |
% |
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10 |
% |
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10 |
% |
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|
9 |
% |
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Backlog at end of period |
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$ |
713,000 |
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$ |
418,000 |
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$ |
597,000 |
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$ |
713,000 |
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$ |
418,000 |
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Revenue |
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$ |
144,058 |
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$ |
130,547 |
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$ |
115,054 |
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$ |
259,112 |
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|
$ |
234,854 |
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Operating income (loss) |
|
$ |
13,248 |
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$ |
17,132 |
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|
$ |
844 |
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$ |
14,092 |
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$ |
22,646 |
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Operating income (loss) % |
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|
9 |
% |
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|
13 |
% |
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|
1 |
% |
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|
5 |
% |
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|
10 |
% |
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Integrity Management & Digital Solutions |
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Revenue |
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$ |
73,492 |
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$ |
63,166 |
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$ |
69,690 |
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|
$ |
143,182 |
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|
$ |
123,249 |
|
Operating income (loss) |
|
$ |
3,473 |
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|
$ |
3,844 |
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|
$ |
3,615 |
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|
$ |
7,088 |
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|
$ |
6,926 |
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Operating income (loss) % |
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|
5 |
% |
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|
6 |
% |
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|
5 |
% |
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|
5 |
% |
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|
6 |
% |
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Aerospace and Defense Technologies |
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Revenue |
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$ |
96,959 |
|
|
$ |
92,803 |
|
|
$ |
97,963 |
|
|
$ |
194,922 |
|
|
$ |
183,300 |
|
Operating income (loss) |
|
$ |
7,244 |
|
|
$ |
11,357 |
|
|
$ |
12,808 |
|
|
$ |
20,052 |
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|
$ |
19,853 |
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Operating income (loss) % |
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|
7 |
% |
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|
12 |
% |
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|
13 |
% |
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|
10 |
% |
|
|
11 |
% |
|
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Unallocated Expenses |
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Operating income (loss) |
|
$ |
(39,720 |
) |
|
$ |
(35,968 |
) |
|
$ |
(38,001 |
) |
|
$ |
(77,721 |
) |
|
$ |
(71,244 |
) |
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Total |
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Revenue |
|
$ |
668,808 |
|
|
$ |
597,910 |
|
|
$ |
599,092 |
|
|
$ |
1,267,900 |
|
|
$ |
1,134,897 |
|
Operating income (loss) |
|
$ |
60,364 |
|
|
$ |
49,199 |
|
|
$ |
36,693 |
|
|
$ |
97,057 |
|
|
$ |
75,949 |
|
|
Operating income (loss) % |
|
|
9 |
% |
|
|
8 |
% |
|
|
6 |
% |
|
|
8 |
% |
|
|
7 |
% |
|
|
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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. |
SELECTED CASH FLOW INFORMATION |
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For the Three Months Ended |
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For the Six Months Ended |
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(in thousands) |
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Capital Expenditures, including Acquisitions |
|
|
$ |
22,858 |
|
$ |
22,428 |
|
$ |
25,518 |
|
$ |
48,376 |
|
$ |
40,736 |
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Depreciation and Amortization: |
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Energy Services and Products |
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Subsea Robotics |
|
|
$ |
11,981 |
|
$ |
13,356 |
|
$ |
12,810 |
|
$ |
24,791 |
|
$ |
28,296 |
||
Manufactured Products |
|
|
|
3,237 |
|
|
3,013 |
|
|
3,175 |
|
|
6,412 |
|
|
6,057 |
||
|
|
|
|
5,584 |
|
|
6,976 |
|
|
6,435 |
|
|
12,019 |
|
|
14,104 |
||
Integrity Management & Digital Solutions |
|
|
|
1,803 |
|
|
939 |
|
|
1,259 |
|
|
3,062 |
|
|
1,797 |
||
Total Energy Services and Products |
|
|
|
22,605 |
|
|
24,284 |
|
|
23,679 |
|
|
46,284 |
|
|
50,254 |
||
Aerospace and Defense Technologies |
|
|
|
616 |
|
|
632 |
|
|
603 |
|
|
1,219 |
|
|
1,285 |
||
Unallocated Expenses |
|
|
|
2,759 |
|
|
1,130 |
|
|
2,776 |
|
|
5,535 |
|
|
2,328 |
||
Total Depreciation and Amortization |
|
|
$ |
25,980 |
|
$ |
26,046 |
|
$ |
27,058 |
|
$ |
53,038 |
|
$ |
53,867 |
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
In addition to financial results determined in accordance with
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS) |
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For the Three Months Ended |
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|
Net Income (Loss) |
Diluted EPS |
Net Income (Loss) |
Diluted EPS |
Net Income (Loss) |
Diluted EPS |
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(in thousands, except per share amounts) |
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|
|
|
|
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Net income (loss) and diluted EPS as reported in accordance with GAAP |
$ |
34,997 |
|
$ |
0.34 |
$ |
19,002 |
|
$ |
0.19 |
$ |
15,135 |
|
$ |
0.15 |
||||||
Pre-tax adjustments for the effects of: |
|
|
|
|
|
|
|||||||||||||||
Foreign currency (gains) losses |
|
(1,034 |
) |
|
|
4,845 |
|
|
|
(2,197 |
) |
|
|||||||||
Total pre-tax adjustments |
|
(1,034 |
) |
|
|
4,845 |
|
|
|
(2,197 |
) |
|
|||||||||
|
|
|
|
|
|
|
|||||||||||||||
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods |
|
70 |
|
|
|
(2,387 |
) |
|
|
790 |
|
|
|||||||||
Discrete tax items: |
|
|
|
|
|
|
|||||||||||||||
Share-based compensation |
|
(48 |
) |
|
|
(3 |
) |
|
|
(1,926 |
) |
|
|||||||||
Uncertain tax positions |
|
1,706 |
|
|
|
4,312 |
|
|
|
(149 |
) |
|
|||||||||
Valuation allowances |
|
520 |
|
|
|
(8,678 |
) |
|
|
4,571 |
|
|
|||||||||
Other |
|
(7,645 |
) |
|
|
1,563 |
|
|
|
(2,336 |
) |
|
|||||||||
Total discrete tax adjustments |
|
(5,467 |
) |
|
|
(2,806 |
) |
|
|
160 |
|
|
|||||||||
Total of adjustments |
|
(6,431 |
) |
|
|
(348 |
) |
|
|
(1,247 |
) |
|
|||||||||
Adjusted Net Income (Loss) |
$ |
28,566 |
|
$ |
0.28 |
$ |
18,654 |
|
$ |
0.18 |
$ |
13,888 |
|
$ |
0.14 |
||||||
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) |
|
|
102,472 |
|
|
102,004 |
|
|
102,250 |
||||||||||||
|
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
|
For the Six Months Ended |
||||||||||||||||||
|
|
|
|
||||||||||||||||||
|
|
|
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 |
|
|
$ |
50,132 |
|
$ |
0.49 |
$ |
23,062 |
|
$ |
0.23 |
|||||||||
Pre-tax adjustments for the effects of: |
|
|
|
|
|
|
|||||||||||||||
Foreign currency (gains) losses |
|
|
|
(3,231 |
) |
|
|
4,578 |
|
|
|||||||||||
Total pre-tax adjustments |
|
|
|
(3,231 |
) |
|
|
4,578 |
|
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods |
|
|
|
860 |
|
|
|
(2,303 |
) |
|
|||||||||||
Discrete tax items: |
|
|
|
|
|
|
|||||||||||||||
Share-based compensation |
|
|
|
(1,974 |
) |
|
|
(1,370 |
) |
|
|||||||||||
Uncertain tax positions |
|
|
|
1,557 |
|
|
|
4,401 |
|
|
|||||||||||
Valuation allowances |
|
|
|
5,091 |
|
|
|
(5,102 |
) |
|
|||||||||||
Other |
|
|
|
(9,981 |
) |
|
|
770 |
|
|
|||||||||||
Total discrete tax adjustments |
|
|
|
(5,307 |
) |
|
|
(1,301 |
) |
|
|||||||||||
Total of adjustments |
|
|
|
(7,678 |
) |
|
|
974 |
|
|
|||||||||||
Adjusted Net Income (Loss) |
|
|
$ |
42,454 |
|
$ |
0.41 |
$ |
24,036 |
|
$ |
0.24 |
|||||||||
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) |
|
|
|
|
102,361 |
|
|
102,017 |
EBITDA and Adjusted EBITDA and Margins |
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
($ in thousands) |
|||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Net income (loss) |
$ |
34,997 |
|
$ |
19,002 |
|
$ |
15,135 |
|
$ |
50,132 |
|
$ |
23,062 |
|
|||||
Depreciation and amortization |
|
25,980 |
|
|
26,046 |
|
|
27,058 |
|
|
53,038 |
|
|
53,867 |
|
|||||
Subtotal |
|
60,977 |
|
|
45,048 |
|
|
42,193 |
|
|
103,170 |
|
|
76,929 |
|
|||||
Interest expense, net of interest income |
|
7,114 |
|
|
5,363 |
|
|
6,164 |
|
|
13,278 |
|
|
10,180 |
|
|||||
Amortization included in interest expense |
|
(1,504 |
) |
|
37 |
|
|
(1,479 |
) |
|
(2,983 |
) |
|
63 |
|
|||||
Provision (benefit) for income taxes |
|
20,307 |
|
|
19,467 |
|
|
17,043 |
|
|
37,350 |
|
|
38,057 |
|
|||||
EBITDA |
|
86,894 |
|
|
69,915 |
|
|
63,921 |
|
|
150,815 |
|
|
125,229 |
|
|||||
Adjustments for the effects of: |
|
|
|
|
|
|||||||||||||||
Foreign currency (gains) losses |
|
(1,034 |
) |
|
4,845 |
|
|
(2,197 |
) |
|
(3,231 |
) |
|
4,578 |
|
|||||
Total of adjustments |
|
(1,034 |
) |
|
4,845 |
|
|
(2,197 |
) |
|
(3,231 |
) |
|
4,578 |
|
|||||
Adjusted EBITDA |
$ |
85,860 |
|
$ |
74,760 |
|
$ |
61,724 |
|
$ |
147,584 |
|
$ |
129,807 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
Revenue |
$ |
668,808 |
|
$ |
597,910 |
|
$ |
599,092 |
|
$ |
1,267,900 |
|
$ |
1,134,897 |
|
|||||
|
|
|
|
|
|
|||||||||||||||
EBITDA margin % |
|
13 |
% |
|
12 |
% |
|
11 |
% |
|
12 |
% |
|
11 |
% |
|||||
Adjusted EBITDA margin % |
|
13 |
% |
|
13 |
% |
|
10 |
% |
|
12 |
% |
|
11 |
% |
|
|
|
|
|
|
|||||||||||||||
Free Cash Flow |
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
For the Three Months Ended |
For the Six Months Ended |
||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
(in thousands) |
|||||||||||||||||||
Net Income (loss) |
$ |
34,997 |
|
$ |
19,002 |
|
$ |
15,135 |
|
$ |
50,132 |
|
$ |
23,062 |
|
|||||
Non-cash adjustments: |
|
|
|
|
|
|||||||||||||||
Depreciation and amortization |
|
25,980 |
|
|
26,046 |
|
|
27,058 |
|
|
53,038 |
|
|
53,867 |
|
|||||
Other non-cash |
|
1,744 |
|
|
2,923 |
|
|
2,682 |
|
|
4,426 |
|
|
2,735 |
|
|||||
Other increases (decreases) in cash from operating activities |
|
(10,098 |
) |
|
(27,520 |
) |
|
(114,592 |
) |
|
(124,690 |
) |
|
(102,132 |
) |
|||||
Cash flow provided by (used in) operating activities |
|
52,623 |
|
|
20,451 |
|
|
(69,717 |
) |
|
(17,094 |
) |
|
(22,468 |
) |
|||||
Purchases of property and equipment |
|
(22,858 |
) |
|
(22,428 |
) |
|
(25,518 |
) |
|
(48,376 |
) |
|
(40,736 |
) |
|||||
Free Cash Flow |
$ |
29,765 |
|
$ |
(1,977 |
) |
$ |
(95,235 |
) |
$ |
(65,470 |
) |
$ |
(63,204 |
) |
|||||
|
||||||||||||||||||||
2024 Adjusted EBITDA Estimates |
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
For the Three Months Ending |
||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
|
|
Low |
High |
|||||||||||||||
|
|
|
|
(in thousands) |
||||||||||||||||
Income (loss) before income taxes |
|
|
|
$ |
65,000 |
|
$ |
70,000 |
|
|||||||||||
Depreciation and amortization |
|
|
|
|
24,000 |
|
|
28,000 |
|
|||||||||||
Subtotal |
|
|
|
|
89,000 |
|
|
98,000 |
|
|||||||||||
Interest expense, net of interest income |
|
|
|
|
6,000 |
|
|
7,000 |
|
|||||||||||
Adjusted EBITDA |
|
|
|
$ |
95,000 |
|
$ |
105,000 |
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
For the Year Ending |
||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
|
|
Low |
High |
|||||||||||||||
|
|
|
|
(in thousands) |
||||||||||||||||
Income (loss) before income taxes |
|
|
|
$ |
215,000 |
|
$ |
232,000 |
|
|||||||||||
Depreciation and amortization |
|
|
|
|
100,000 |
|
|
110,000 |
|
|||||||||||
Subtotal |
|
|
|
|
315,000 |
|
|
342,000 |
|
|||||||||||
Interest expense, net of interest income |
|
|
|
|
25,000 |
|
|
28,000 |
|
|||||||||||
Adjusted EBITDA |
|
|
|
$ |
340,000 |
|
$ |
370,000 |
|
|||||||||||
|
|
|
|
|
|
|||||||||||||||
2024 Free Cash Flow Estimate |
||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
For the Year Ending |
||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
|
|
Low |
High |
|||||||||||||||
|
|
|
|
(in thousands) |
||||||||||||||||
Net income (loss) |
|
|
|
$ |
130,000 |
|
$ |
150,000 |
|
|||||||||||
Depreciation and amortization |
|
|
|
|
100,000 |
|
|
110,000 |
|
|||||||||||
Other increases (decreases) in cash from operating activities |
|
|
|
(10,000 |
) |
|
20,000 |
|
||||||||||||
Cash flow provided by (used in) operating activities |
|
|
|
220,000 |
|
|
280,000 |
|
||||||||||||
Purchases of property and equipment |
|
|
|
|
(110,000 |
) |
|
(130,000 |
) |
|||||||||||
Free Cash Flow |
|
|
|
$ |
110,000 |
|
$ |
150,000 |
|
EBITDA and Adjusted EBITDA and Margins by Segment |
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
For the Three Months Ended |
|||||||||||||||||||||||||||
|
SSR |
MP |
OPG |
IMDS |
ADTech |
Unallocated
|
Total |
|||||||||||||||||||||
|
($ in thousands) |
|||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP |
$ |
61,750 |
|
$ |
14,369 |
|
$ |
13,248 |
|
$ |
3,473 |
|
$ |
7,244 |
|
$ |
(39,720 |
) |
$ |
60,364 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Depreciation and amortization |
|
11,981 |
|
|
3,237 |
|
|
5,584 |
|
|
1,803 |
|
|
616 |
|
|
2,759 |
|
|
25,980 |
|
|||||||
Other pre-tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
550 |
|
|
550 |
|
|||||||
EBITDA |
|
73,731 |
|
|
17,606 |
|
|
18,832 |
|
|
5,276 |
|
|
7,860 |
|
|
(36,411 |
) |
|
86,894 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency (gains) losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,034 |
) |
|
(1,034 |
) |
|||||||
Total of adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,034 |
) |
|
(1,034 |
) |
|||||||
Adjusted EBITDA |
$ |
73,731 |
|
$ |
17,606 |
|
$ |
18,832 |
|
$ |
5,276 |
|
$ |
7,860 |
|
$ |
(37,445 |
) |
$ |
85,860 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Revenue |
$ |
214,985 |
|
$ |
139,314 |
|
$ |
144,058 |
|
$ |
73,492 |
|
$ |
96,959 |
|
|
$ |
668,808 |
|
|||||||||
Operating income (loss) % as reported in accordance with GAAP |
|
29 |
% |
|
10 |
% |
|
9 |
% |
|
5 |
% |
|
7 |
% |
|
|
9 |
% |
|||||||||
EBITDA Margin |
|
34 |
% |
|
13 |
% |
|
13 |
% |
|
7 |
% |
|
8 |
% |
|
|
13 |
% |
|||||||||
Adjusted EBITDA Margin |
|
34 |
% |
|
13 |
% |
|
13 |
% |
|
7 |
% |
|
8 |
% |
|
|
13 |
% |
|||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
For the Three Months Ended |
|||||||||||||||||||||||||||
|
SSR |
MP |
OPG |
IMDS |
ADTech |
Unallocated
|
Total |
|||||||||||||||||||||
|
($ in thousands) |
|||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP |
$ |
42,227 |
|
$ |
10,607 |
|
$ |
17,132 |
|
$ |
3,844 |
|
$ |
11,357 |
|
$ |
(35,968 |
) |
$ |
49,199 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Depreciation and amortization |
|
13,356 |
|
|
3,013 |
|
|
6,976 |
|
|
939 |
|
|
632 |
|
|
1,130 |
|
|
26,046 |
|
|||||||
Other pre-tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(5,330 |
) |
|
(5,330 |
) |
|||||||
EBITDA |
|
55,583 |
|
|
13,620 |
|
|
24,108 |
|
|
4,783 |
|
|
11,989 |
|
|
(40,168 |
) |
|
69,915 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency (gains) losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,845 |
|
|
4,845 |
|
|||||||
Total of adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,845 |
|
|
4,845 |
|
|||||||
Adjusted EBITDA |
$ |
55,583 |
|
$ |
13,620 |
|
$ |
24,108 |
|
$ |
4,783 |
|
$ |
11,989 |
|
$ |
(35,323 |
) |
$ |
74,760 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Revenue |
$ |
186,512 |
|
$ |
124,882 |
|
$ |
130,547 |
|
$ |
63,166 |
|
$ |
92,803 |
|
|
$ |
597,910 |
|
|||||||||
Operating income (loss) % as reported in accordance with GAAP |
|
23 |
% |
|
8 |
% |
|
13 |
% |
|
6 |
% |
|
12 |
% |
|
|
8 |
% |
|||||||||
EBITDA Margin |
|
30 |
% |
|
11 |
% |
|
18 |
% |
|
8 |
% |
|
13 |
% |
|
|
12 |
% |
|||||||||
Adjusted EBITDA Margin |
|
30 |
% |
|
11 |
% |
|
18 |
% |
|
8 |
% |
|
13 |
% |
|
|
13 |
% |
|||||||||
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|||||||||||||||||||||||||||
|
SSR |
MP |
OPG |
IMDS |
ADTech |
Unallocated
|
Total |
|||||||||||||||||||||
|
($ in thousands) |
|||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP |
$ |
44,237 |
|
$ |
13,190 |
|
$ |
844 |
|
$ |
3,615 |
|
$ |
12,808 |
|
$ |
(38,001 |
) |
$ |
36,693 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Depreciation and amortization |
|
12,810 |
|
|
3,175 |
|
|
6,435 |
|
|
1,259 |
|
|
603 |
|
|
2,776 |
|
|
27,058 |
|
|||||||
Other pre-tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
170 |
|
|
170 |
|
|||||||
EBITDA |
|
57,047 |
|
|
16,365 |
|
|
7,279 |
|
|
4,874 |
|
|
13,411 |
|
|
(35,055 |
) |
|
63,921 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency (gains) losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,197 |
) |
|
(2,197 |
) |
|||||||
Total of adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,197 |
) |
|
(2,197 |
) |
|||||||
Adjusted EBITDA |
$ |
57,047 |
|
$ |
16,365 |
|
$ |
7,279 |
|
$ |
4,874 |
|
$ |
13,411 |
|
$ |
(37,252 |
) |
$ |
61,724 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Revenue |
$ |
186,932 |
|
$ |
129,453 |
|
$ |
115,054 |
|
$ |
69,690 |
|
$ |
97,963 |
|
|
$ |
599,092 |
|
|||||||||
Operating income (loss) % as reported in accordance with GAAP |
|
24 |
% |
|
10 |
% |
|
1 |
% |
|
5 |
% |
|
13 |
% |
|
|
6 |
% |
|||||||||
EBITDA Margin |
|
31 |
% |
|
13 |
% |
|
6 |
% |
|
7 |
% |
|
14 |
% |
|
|
11 |
% |
|||||||||
Adjusted EBITDA Margin |
|
31 |
% |
|
13 |
% |
|
6 |
% |
|
7 |
% |
|
14 |
% |
|
|
10 |
% |
|||||||||
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA and Margins by Segment |
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
For the Six Months Ended |
|||||||||||||||||||||||||||
|
SSR |
MP |
OPG |
IMDS |
ADTech |
Unallocated
|
Total |
|||||||||||||||||||||
|
($ in thousands) |
|||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP |
$ |
105,987 |
|
$ |
27,559 |
|
$ |
14,092 |
|
$ |
7,088 |
|
$ |
20,052 |
|
$ |
(77,721 |
) |
$ |
97,057 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Depreciation and amortization |
|
24,791 |
|
|
6,412 |
|
|
12,019 |
|
|
3,062 |
|
|
1,219 |
|
|
5,535 |
|
|
53,038 |
|
|||||||
Other pre-tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
720 |
|
|
720 |
|
|||||||
EBITDA |
|
130,778 |
|
|
33,971 |
|
|
26,111 |
|
|
10,150 |
|
|
21,271 |
|
|
(71,466 |
) |
|
150,815 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency (gains) losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3,231 |
) |
|
(3,231 |
) |
|||||||
Total of adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3,231 |
) |
|
(3,231 |
) |
|||||||
Adjusted EBITDA |
$ |
130,778 |
|
$ |
33,971 |
|
$ |
26,111 |
|
$ |
10,150 |
|
$ |
21,271 |
|
$ |
(74,697 |
) |
$ |
147,584 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Revenue |
$ |
401,917 |
|
$ |
268,767 |
|
$ |
259,112 |
|
$ |
143,182 |
|
$ |
194,922 |
|
|
$ |
1,267,900 |
|
|||||||||
Operating income (loss) % as reported in accordance with GAAP |
|
26 |
% |
|
10 |
% |
|
5 |
% |
|
5 |
% |
|
10 |
% |
|
|
8 |
% |
|||||||||
EBITDA Margin |
|
33 |
% |
|
13 |
% |
|
10 |
% |
|
7 |
% |
|
11 |
% |
|
|
12 |
% |
|||||||||
Adjusted EBITDA Margin |
|
33 |
% |
|
13 |
% |
|
10 |
% |
|
7 |
% |
|
11 |
% |
|
|
12 |
% |
|||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
For the Six Months Ended |
|||||||||||||||||||||||||||
|
SSR |
MP |
OPG |
IMDS |
ADTech |
Unallocated
|
Total |
|||||||||||||||||||||
|
($ in thousands) |
|||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP |
$ |
75,881 |
|
$ |
21,887 |
|
$ |
22,646 |
|
$ |
6,926 |
|
$ |
19,853 |
|
$ |
(71,244 |
) |
$ |
75,949 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Depreciation and amortization |
|
28,296 |
|
|
6,057 |
|
|
14,104 |
|
|
1,797 |
|
|
1,285 |
|
|
2,328 |
|
|
53,867 |
|
|||||||
Other pre-tax |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,587 |
) |
|
(4,587 |
) |
|||||||
EBITDA |
|
104,177 |
|
|
27,944 |
|
|
36,750 |
|
|
8,723 |
|
|
21,138 |
|
|
(73,503 |
) |
|
125,229 |
|
|||||||
Adjustments for the effects of: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Foreign currency (gains) losses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,578 |
|
|
4,578 |
|
|||||||
Total of adjustments |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,578 |
|
|
4,578 |
|
|||||||
Adjusted EBITDA |
$ |
104,177 |
|
$ |
27,944 |
|
$ |
36,750 |
|
$ |
8,723 |
|
$ |
21,138 |
|
$ |
(68,925 |
) |
$ |
129,807 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Revenue |
$ |
355,673 |
|
$ |
237,821 |
|
$ |
234,854 |
|
$ |
123,249 |
|
$ |
183,300 |
|
|
$ |
1,134,897 |
|
|||||||||
Operating income (loss) % as reported in accordance with GAAP |
|
21 |
% |
|
9 |
% |
|
10 |
% |
|
6 |
% |
|
11 |
% |
|
|
7 |
% |
|||||||||
EBITDA Margin |
|
29 |
% |
|
12 |
% |
|
16 |
% |
|
7 |
% |
|
12 |
% |
|
|
11 |
% |
|||||||||
Adjusted EBITDA Margin |
|
29 |
% |
|
12 |
% |
|
16 |
% |
|
7 |
% |
|
12 |
% |
|
|
11 |
% |
|||||||||
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724752461/en/
investorrelations@oceaneering.com
Senior Director, Investor Relations
713-329-4755
Source: