Second Quarter Highlights:
Oil States International, Inc. (NYSE:OIS) reported a net loss for
the second quarter ended June 30, 2016 of $11.7 million, or $0.23
per diluted share, which included pre-tax charges of $1.1 million
($0.7 million after-tax, or $0.01 per diluted share) for severance
and other downsizing charges. These results compare to reported net
income for the second quarter ended June 30, 2015 of $6.1 million,
or $0.12 per diluted share, which included pre-tax charges of $1.7
million ($1.4 million after-tax, or $0.03 per diluted share) for
severance and other downsizing charges.
During the second quarter of 2016, the Company
generated revenues of $175.8 million and Adjusted Consolidated
EBITDA (Note B) of $13.5 million (excluding $1.1 million for
severance and other downsizing charges). These results compare to
revenues of $269.3 million and Adjusted Consolidated EBITDA of
$43.2 million reported in the second quarter of 2015 (excluding
$1.7 million of severance and other downsizing charges).
For the first half of 2016, the Company reported
revenues of $345.5 million and Adjusted Consolidated EBITDA of
$25.7 million (excluding $2.7 million of severance and other
downsizing charges). The net loss for the first half of 2016
totaled $24.9 million and included $2.7 million ($1.7 million
after-tax, or $0.03 per diluted share) of severance and other
downsizing charges. For the first half of 2015, the Company
reported revenues of $606.6 million and Adjusted Consolidated
EBITDA of $112.1 million (excluding $3.8 million of severance and
other downsizing charges). Net income for the first half of 2015
totaled $25.6 million and included $3.8 million ($2.6 million
after-tax, or $0.05 per diluted share) of severance and other
downsizing charges in addition to a higher effective tax rate.
Oil States’ President and Chief Executive
Officer, Cindy B. Taylor, stated, “Despite the 23% sequential
quarterly decline in the average U.S. rig count, our well site
services revenue was only down 7% and our consolidated revenue
actually improved 4%. Starting later in the second quarter, we
began to see some encouraging signs that activity was troughing for
U.S. lower 48 drilling and completion work, and that activity could
actually be starting to recover. Evidencing this trend, the average
price per barrel of WTI improved 36% sequentially in the second
quarter and the current U.S. rig count has increased 14% from its
low point in May 2016. However, the WTI crude price has pulled back
about 11% since the end of the quarter to its current level of
approximately $43 per barrel. The impact of this recent decline in
commodity prices on customer perception and spending will become
apparent in the following months.”
BUSINESS SEGMENT RESULTS
Offshore ProductsOffshore products generated
revenues and Segment EBITDA (Note A) of $135.2 million and $27.2
million, respectively, in the second quarter of 2016 compared to
revenues of $183.1 million and Segment EBITDA of $40.9 million in
the second quarter of 2015. Offshore products revenues and Segment
EBITDA decreased 26% and 33% year-over-year, respectively, due to
lower contributions across most of the segment’s product and
service lines. The lower quarterly revenues were primarily the
result of reductions in production-related products, lower levels
of service activities, weaker demand for drilling products and a
backlog position that has trended lower since mid-2014, partially
offset by improved subsea pipeline product revenues. Segment EBITDA
margins were 20.1% in the second quarter of 2016 compared to 22.3%
realized in the second quarter of 2015. Backlog declined 12%
sequentially, totaling $268 million at June 30, 2016 compared to
$306 million reported at March 31, 2016 and $409 million reported
at June 30, 2015. Major backlog additions during the second quarter
included orders for pipeline products destined for the Middle East
and replacement equipment on a Gulf of Mexico production facility.
Well Site ServicesWell site services generated
revenues of $40.7 million and a Segment EBITDA loss of $3.6 million
in the second quarter of 2016 compared to revenues and Segment
EBITDA of $86.1 million and $11.1 million, respectively, in the
second quarter of 2015. Well site services revenues and
Segment EBITDA decreased 53% and 132% year-over-year, respectively,
primarily due to a 57% year-over-year decrease in the number of
completion services jobs performed, partially offset by a 25%
year-over-year increase in revenue per completion service job
primarily as a result of a mix shift to more long-duration jobs in
international markets and longer-term project work in the U.S. Gulf
of Mexico. The segment’s second quarter 2016 results continued to
be negatively impacted by extreme competitive pressures and
depressed activity levels in the U.S. shale basins. However, while
still negative, second quarter 2016 Segment EBITDA improved
sequentially in our completion services business line. Lower
utilization in the land drilling business, which averaged 9% in the
second quarter of 2016 compared to 34% in the second quarter of
2015, also negatively impacted results. However, we did experience
a quarterly sequential improvement in our land drilling utilization
for the first time since the second quarter of 2014.
Income TaxesThe Company recognized an effective
tax rate benefit of 35.5% in the second quarter of 2016. This
compares to an effective tax rate provision of 19.0% reported in
the second quarter of 2015. The lower effective tax rate in the
second quarter of 2015 was primarily due to significantly lower
domestic earnings stemming from the industry downturn.
Financial ConditionThe Company invested $8.1
million in capital expenditures during the second quarter of 2016.
Capital expenditures made during the second quarter included
expansionary investments for certain offshore products facilities
along with maintenance capital spent on completion services
equipment.
As of June 30, 2016, $80.4 million was
outstanding under the Company’s revolving credit facility. Total
availability under the facility as of June 30, 2016 was $283.2
million (net of standby letters of credit totaling $32.5
million).
Conference Call InformationThe call is scheduled
for Wednesday, July 27, 2016 at 12:00 pm ET, is being webcast and
can be accessed from the Company’s website at
http://www.oilstatesintl.com. Participants may also join the
conference call by dialing (800) 447-0521 in the United States or
by dialing +1 847 413 3238 internationally and using the passcode
42972261. A replay of the conference call will be available one and
a half hours after the completion of the call by dialing (888)
843-7419 in the United States or by dialing +1 630 652 3042
internationally and entering the passcode 42972261.
About Oil StatesOil States International, Inc.
is an energy services company with a leading market position as a
manufacturer of products for deepwater production facilities and
certain drilling equipment, as well as a provider of completion
services and land drilling services to the oil and gas
industry. Oil States is publicly traded on the New York Stock
Exchange under the symbol “OIS”.
For more information on the Company, please
visit Oil States International’s website at
http://www.oilstatesintl.com.
Forward Looking StatementsThe foregoing contains
forward-looking statements within the meaning of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements are those that do not state historical
facts and are, therefore, inherently subject to risks and
uncertainties. The forward-looking statements included therein are
based on then current expectations and entail various risks and
uncertainties that could cause actual results to differ materially
from those forward-looking statements. Such risks and uncertainties
include, among other things, risks associated with the general
nature of the energy service industry and other factors discussed
in the "Business" and "Risk Factors" sections of the Form 10-K for
the year ended December 31, 2015 filed by Oil States with the
Securities and Exchange Commission on February 22, 2016.
|
OIL STATES
INTERNATIONAL, INC. AND SUBSIDIARIES |
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(In Thousands, Except Per
Share Amounts) |
|
|
|
|
THREE MONTHS
ENDED |
|
SIX MONTHS
ENDED |
|
|
|
JUNE
30, |
|
JUNE
30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
175,849 |
|
|
$ |
269,258 |
|
|
$ |
345,504 |
|
|
$ |
606,617 |
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Cost of sales and
services |
|
|
136,400 |
|
|
|
194,664 |
|
|
|
265,215 |
|
|
|
432,386 |
|
Selling, general and
administrative expenses |
|
|
30,486 |
|
|
|
32,002 |
|
|
|
60,466 |
|
|
|
67,607 |
|
Depreciation and
amortization expense |
|
|
29,415 |
|
|
|
32,432 |
|
|
|
59,817 |
|
|
|
65,011 |
|
Other operating
(income) expense |
|
|
(3,291 |
) |
|
|
1,436 |
|
|
|
(2,728 |
) |
|
|
(871 |
) |
|
|
|
193,010 |
|
|
|
260,534 |
|
|
|
382,770 |
|
|
|
564,133 |
|
Operating (loss) income |
|
|
(17,161 |
) |
|
|
8,724 |
|
|
|
(37,266 |
) |
|
|
42,484 |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(1,315 |
) |
|
|
(1,627 |
) |
|
|
(2,760 |
) |
|
|
(3,335 |
) |
Interest income |
|
|
110 |
|
|
|
138 |
|
|
|
202 |
|
|
|
275 |
|
Other income |
|
|
224 |
|
|
|
355 |
|
|
|
430 |
|
|
|
821 |
|
(Loss) income from
continuing operations before income taxes |
|
|
(18,142 |
) |
|
|
7,590 |
|
|
|
(39,394 |
) |
|
|
40,245 |
|
Income tax benefit (expense) |
|
|
6,437 |
|
|
|
(1,442 |
) |
|
|
14,453 |
|
|
|
(14,694 |
) |
Net (loss) income from continuing
operations |
|
|
(11,705 |
) |
|
|
6,148 |
|
|
|
(24,941 |
) |
|
|
25,551 |
|
Net (loss) income from discontinued
operations, net of tax |
|
|
(1 |
) |
|
|
35 |
|
|
|
(4 |
) |
|
|
201 |
|
Net (loss) income attributable to Oil
States International, Inc. |
|
$ |
(11,706 |
) |
|
$ |
6,183 |
|
|
$ |
(24,945 |
) |
|
$ |
25,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Oil
States International, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations |
|
$ |
(11,705 |
) |
|
$ |
6,148 |
|
|
$ |
(24,941 |
) |
|
$ |
25,551 |
|
Discontinued
operations |
|
|
(1 |
) |
|
|
35 |
|
|
|
(4 |
) |
|
|
201 |
|
Net (loss) income attributable to Oil
States International, Inc. |
|
$ |
(11,706 |
) |
|
$ |
6,183 |
|
|
$ |
(24,945 |
) |
|
$ |
25,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss) income per share
attributable to Oil States International, Inc. common stockholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations |
|
$ |
(0.23 |
) |
|
$ |
0.12 |
|
|
$ |
(0.50 |
) |
|
$ |
0.50 |
|
Discontinued
operations |
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
Net (loss) income |
|
$ |
(0.23 |
) |
|
$ |
0.12 |
|
|
$ |
(0.50 |
) |
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net (loss) income per share
attributable to Oil States International, Inc. common stockholders
from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations |
|
$ |
(0.23 |
) |
|
$ |
0.12 |
|
|
$ |
(0.50 |
) |
|
$ |
0.50 |
|
Discontinued
operations |
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
Net (loss) income |
|
$ |
(0.23 |
) |
|
$ |
0.12 |
|
|
$ |
(0.50 |
) |
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
50,210 |
|
|
|
50,427 |
|
|
|
50,126 |
|
|
|
50,627 |
|
Diluted |
|
|
50,210 |
|
|
|
50,515 |
|
|
|
50,126 |
|
|
|
50,725 |
|
OIL STATES
INTERNATIONAL, INC. AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE
SHEETS(In Thousands, Except Share Amounts) |
|
|
JUNE
30, |
|
DECEMBER
31, |
ASSETS |
|
2016 |
|
|
|
2015 |
|
|
(UNAUDITED) |
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
51,957 |
|
|
$ |
35,973 |
|
Accounts receivable, net |
|
264,101 |
|
|
|
333,494 |
|
Inventories, net |
|
202,269 |
|
|
|
212,882 |
|
Prepaid expenses and other current
assets |
|
18,785 |
|
|
|
29,124 |
|
Total current assets |
|
537,112 |
|
|
|
611,473 |
|
|
|
|
|
Property, plant, and equipment, net |
|
601,228 |
|
|
|
638,725 |
|
Goodwill, net |
|
264,050 |
|
|
|
263,787 |
|
Other intangible assets, net |
|
56,889 |
|
|
|
59,385 |
|
Other noncurrent assets |
|
23,557 |
|
|
|
23,101 |
|
Total assets |
$ |
1,482,836 |
|
|
$ |
1,596,471 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
48,392 |
|
|
$ |
59,116 |
|
Accrued liabilities |
|
42,805 |
|
|
|
49,300 |
|
Income taxes |
|
5,948 |
|
|
|
8,303 |
|
Current portion of long-term debt
and capitalized leases |
|
520 |
|
|
|
533 |
|
Deferred revenue |
|
29,427 |
|
|
|
36,655 |
|
Other current liabilities |
|
291 |
|
|
|
293 |
|
Total current liabilities |
|
127,383 |
|
|
|
154,200 |
|
|
|
|
|
Long-term debt and capitalized
leases (1) |
|
83,604 |
|
|
|
125,887 |
|
Deferred income taxes |
|
22,983 |
|
|
|
40,497 |
|
Other noncurrent liabilities |
|
21,273 |
|
|
|
20,215 |
|
Total liabilities |
|
255,243 |
|
|
|
340,799 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Oil States International, Inc.
stockholders’ equity: |
|
|
Common stock, $.01 par value,
200,000,000 shares authorized, 62,279,956 shares and 61,712,805
shares issued, respectively, and 51,360,090 shares and 50,953,149
shares outstanding, respectively |
|
623 |
|
|
|
617 |
|
Additional paid-in capital |
|
721,082 |
|
|
|
712,980 |
|
Retained earnings |
|
1,154,918 |
|
|
|
1,179,863 |
|
Accumulated other comprehensive
loss |
|
(58,015 |
) |
|
|
(50,698 |
) |
Common stock held in treasury at
cost, 10,919,866 and 10,759,656 shares, respectively |
|
(591,015 |
) |
|
|
(587,090 |
) |
Total
stockholders’ equity |
|
1,227,593 |
|
|
|
1,255,672 |
|
Total
liabilities and stockholders’ equity |
$ |
1,482,836 |
|
|
$ |
1,596,471 |
|
|
|
|
|
|
|
|
|
(1) As of June 30, 2016, the Company had approximately $283.2
million available under its revolving credit facility.
|
|
|
OIL STATES
INTERNATIONAL, INC. AND SUBSIDIARIES |
|
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) |
|
|
|
|
SIX
MONTHSENDED JUNE 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net (loss)
income |
$ |
(24,945 |
) |
|
$ |
25,752 |
|
|
Adjustments to reconcile net (loss)
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Loss (income) from
discontinued operations |
|
4 |
|
|
|
(201 |
) |
|
Depreciation and
amortization |
|
59,817 |
|
|
|
65,011 |
|
|
Deferred income tax
(benefit) expense |
|
(20,206 |
) |
|
|
(2,331 |
) |
|
Tax impact of
share-based payment arrangements |
|
-- |
|
|
|
(215 |
) |
|
Provision for bad
debt |
|
784 |
|
|
|
(1,134 |
) |
|
Gain on disposals of
assets |
|
(372 |
) |
|
|
(628 |
) |
|
Non-cash compensation
charge |
|
10,569 |
|
|
|
10,697 |
|
|
Amortization of
deferred financing costs |
|
390 |
|
|
|
390 |
|
|
Other, net |
|
665 |
|
|
|
(136 |
) |
|
Changes in operating assets and
liabilities, net of effect from acquired businesses: |
|
|
|
|
|
|
|
Accounts
receivable |
|
62,321 |
|
|
|
206,706 |
|
Inventories |
|
7,677 |
|
|
|
(6,939 |
) |
Accounts payable and
accrued liabilities |
|
(14,798 |
) |
|
|
(70,666 |
) |
Taxes payable |
|
5,908 |
|
|
|
5,005 |
|
Other operating assets
and liabilities, net |
|
(5,688 |
) |
|
|
(9,816 |
) |
|
Net cash flows
provided by continuing operating activities |
|
82,126 |
|
|
|
221,495 |
|
|
Net cash flows
(used in) provided by discontinued operating activities |
|
(6 |
) |
|
|
314 |
|
|
Net cash flows provided by
operating activities |
|
82,120 |
|
|
|
221,809 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Capital
expenditures |
|
(18,398 |
) |
|
|
(68,740 |
) |
|
Acquisitions of
businesses, net of cash acquired |
|
-- |
|
|
|
(33,427 |
) |
|
Proceeds from
disposition of property, plant and equipment |
|
546 |
|
|
|
1,061 |
|
|
Other, net |
|
(1,551 |
) |
|
|
(392 |
) |
|
Net cash flows
used in continuing investing activities |
|
(19,403 |
) |
|
|
(101,498 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Revolving credit
(repayments) borrowings, net |
|
(42,422 |
) |
|
|
10,224 |
|
|
Debt and capital lease
repayments |
|
(263 |
) |
|
|
(273 |
) |
|
Issuance of common
stock from share-based payment arrangements |
|
367 |
|
|
|
2,209 |
|
|
Purchase of treasury
stock |
|
-- |
|
|
|
(90,659 |
) |
|
Tax impact of
share-based payment arrangements |
|
-- |
|
|
|
215 |
|
|
Shares added to
treasury stock as a result of net share settlements due to vesting
of restricted stock |
|
(3,924 |
) |
|
|
(6,750 |
) |
|
Other, net |
|
(1 |
) |
|
|
-- |
|
|
Net cash flows
used in continuing financing activities |
|
(46,243 |
) |
|
|
(85,034 |
) |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on
cash |
|
(490 |
) |
|
|
892 |
|
|
Net change in cash and cash
equivalents |
|
15,984 |
|
|
|
36,169 |
|
|
Cash and cash equivalents, beginning
of period |
|
35,973 |
|
|
|
53,263 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of
period |
$ |
51,957 |
|
|
$ |
89,432 |
|
|
|
|
|
|
|
|
|
|
|
Oil States International, Inc. and Subsidiaries |
|
|
|
|
Segment Data |
|
|
|
|
(in thousands) |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion
services |
|
|
|
$ |
36,824 |
|
$ |
69,421 |
|
|
$ |
77,773 |
|
$ |
187,531 |
|
|
|
|
|
|
|
Drilling
services |
|
|
|
|
3,869 |
|
|
16,703 |
|
|
|
6,641 |
|
|
40,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Well site
services |
|
|
|
|
40,693 |
|
|
86,124 |
|
|
|
84,414 |
|
|
227,913 |
|
|
|
|
|
|
Offshore
products |
|
|
|
|
135,156 |
|
|
183,134 |
|
|
|
261,090 |
|
|
378,704 |
|
|
|
|
|
Total
revenues |
|
|
|
|
$ |
175,849 |
|
$ |
269,258 |
|
|
$ |
345,504 |
|
$ |
606,617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion
services (1,2) |
|
|
$ |
(21,466 |
) |
$ |
(10,969 |
) |
|
$ |
(45,801 |
) |
$ |
1,499 |
|
|
|
|
|
|
|
Drilling
services |
|
|
|
|
(5,951 |
) |
|
(4,342 |
) |
|
|
(14,056 |
) |
|
(6,881 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Well site
services |
|
|
|
|
(27,417 |
) |
|
(15,311 |
) |
|
|
(59,857 |
) |
|
(5,382 |
) |
|
|
|
|
|
Offshore
products (1,2) |
|
|
|
|
21,676 |
|
|
34,836 |
|
|
|
44,987 |
|
|
71,377 |
|
|
|
|
|
|
Corporate
and eliminations |
|
|
|
(11,420 |
) |
|
(10,801 |
) |
|
|
(22,396 |
) |
|
(23,511 |
) |
|
|
|
|
Total
operating (loss) income |
|
|
$ |
(17,161 |
) |
$ |
8,724 |
|
|
$ |
(37,266 |
) |
$ |
42,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP Financial Information- Segment
EBITDA and Adjusted Segment EBITDA (A) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Well site
services |
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion
services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) income |
|
|
$ |
(21,466 |
) |
$ |
(10,969 |
) |
|
$ |
(45,801 |
) |
$ |
1,499 |
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
17,615 |
|
|
19,145 |
|
|
|
35,558 |
|
|
38,588 |
|
|
|
|
|
|
|
Other
income |
|
|
|
286 |
|
|
279 |
|
|
|
512 |
|
|
708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
(3,565 |
) |
|
8,455 |
|
|
|
(9,731 |
) |
|
40,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
and other downsizing charges |
|
|
|
226 |
|
|
765 |
|
|
|
1,150 |
|
|
1,855 |
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
$ |
(3,339 |
) |
$ |
9,220 |
|
|
$ |
(8,581 |
) |
$ |
42,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
|
$ |
(5,951 |
) |
$ |
(4,342 |
) |
|
$ |
(14,056 |
) |
$ |
(6,881 |
) |
|
|
|
|
|
|
Depreciation and amortization expense |
|
5,902 |
|
|
6,962 |
|
|
|
12,424 |
|
|
13,644 |
|
|
|
|
|
|
|
Other
income (expense) |
|
|
|
- |
|
|
(2 |
) |
|
|
1 |
|
|
41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
|
|
(49 |
) |
|
2,618 |
|
|
|
(1,631 |
) |
|
6,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
and other downsizing charges |
|
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
|
|
|
Adjusted
EBITDA |
|
|
|
$ |
(49 |
) |
$ |
2,618 |
|
|
$ |
(1,631 |
) |
$ |
6,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Well site
services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
|
|
$ |
(27,417 |
) |
$ |
(15,311 |
) |
|
$ |
(59,857 |
) |
$ |
(5,382 |
) |
|
|
|
|
|
|
Depreciation and amortization expense |
|
23,517 |
|
|
26,107 |
|
|
|
47,982 |
|
|
52,232 |
|
|
|
|
|
|
|
Other
income |
|
|
|
|
286 |
|
|
277 |
|
|
|
513 |
|
|
749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA |
|
|
|
|
(3,614 |
) |
|
11,073 |
|
|
|
(11,362 |
) |
|
47,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
and other downsizing charges |
|
|
|
226 |
|
|
765 |
|
|
|
1,150 |
|
|
1,855 |
|
|
|
|
|
|
Adjusted
Segment EBITDA |
|
|
$ |
(3,388 |
) |
$ |
11,838 |
|
|
$ |
(10,212 |
) |
$ |
49,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offshore
products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
|
$ |
21,676 |
|
$ |
34,836 |
|
|
$ |
44,987 |
|
$ |
71,377 |
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
5,611 |
|
|
5,967 |
|
|
|
11,265 |
|
|
12,067 |
|
|
|
|
|
|
|
Other
income (expense) |
|
|
|
(61 |
) |
|
78 |
|
|
|
(81 |
) |
|
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA |
|
|
|
|
27,226 |
|
|
40,881 |
|
|
|
56,171 |
|
|
83,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
and other downsizing charges |
|
|
|
845 |
|
|
957 |
|
|
|
1,531 |
|
|
1,962 |
|
|
|
|
|
|
Adjusted
Segment EBITDA |
|
|
$ |
28,071 |
|
$ |
41,838 |
|
|
$ |
57,702 |
|
$ |
85,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Operating (loss) income for the three and six months ended
June 30, 2016 included severance and other downsizing charges of
$0.2 million and $1.2 million, respectively, related to the
completion services business and $0.8 million and $1.5 million,
respectively, related to the offshore products segment.
(2) Operating (loss) income for the three and
six months ended June 30, 2015 included severance and other
downsizing charges of $0.8 million and $1.9 million, respectively,
related to the completion services business and $1.0 million and
$2.0 million, respectively, related to the offshore products
segment.
(A) The terms Segment EBITDA and Adjusted
Segment EBITDA consist of operating (loss) income plus depreciation
and amortization expense, and certain other items. Segment
EBITDA and Adjusted Segment EBITDA is not a measure of financial
performance under generally accepted accounting principles and
should not be considered in isolation from or as a substitute for
operating (loss) income or cash flow measures prepared in
accordance with generally accepted accounting principles or as a
measure of profitability or liquidity. Additionally, Segment
EBITDA and Adjusted Segment EBITDA may not be comparable to other
similarly titled measures of other companies. The Company has
included Segment EBITDA and Adjusted Segment EBITDA as a
supplemental disclosure because its management believes that
Segment EBITDA and Adjusted Segment EBITDA provide useful
information regarding its ability to service debt and to fund
capital expenditures and provides investors a helpful measure for
comparing its operating performance with the performance of other
companies that have different financing and capital structures or
tax rates. The Company uses Segment EBITDA and Adjusted
Segment EBITDA to compare and to monitor the performance of its
business segments to other comparable public companies and as a
benchmark for the award of incentive compensation under its annual
incentive compensation plan. The table above sets forth a
reconciliation of Segment EBITDA and Adjusted Segment EBITDA to
operating (loss) income, which is the most directly comparable
measure of financial performance calculated under generally
accepted accounting principles.
|
|
|
|
|
|
|
|
|
|
|
|
Oil States International, Inc. and
Subsidiaries |
|
|
Reconciliation of GAAP to Non-GAAP Financial
Information |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income from continuing operations |
$ |
(11,705 |
) |
$ |
6,148 |
|
|
$ |
(24,941 |
) |
$ |
25,551 |
|
|
|
Income tax
(benefit) expense |
|
|
(6,437 |
) |
|
1,442 |
|
|
|
(14,453 |
) |
|
14,694 |
|
|
|
Depreciation and amortization expense |
|
29,415 |
|
|
32,432 |
|
|
|
59,817 |
|
|
65,011 |
|
|
|
Interest
income |
|
|
|
(110 |
) |
|
(138 |
) |
|
|
(202 |
) |
|
(275 |
) |
|
|
Interest
expense |
|
|
|
1,315 |
|
|
1,627 |
|
|
|
2,760 |
|
|
3,335 |
|
|
|
|
Consolidated EBITDA (B) |
$ |
12,478 |
|
$ |
41,511 |
|
|
$ |
22,981 |
|
$ |
108,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
to Consolidated EBITDA (3,4): |
|
|
|
|
|
|
|
|
Severance
and other downsizing charges |
|
1,071 |
|
|
1,722 |
|
|
|
2,681 |
|
|
3,817 |
|
|
|
Adjusted
Consolidated EBITDA (B) |
$ |
13,549 |
|
$ |
43,233 |
|
|
$ |
25,662 |
|
$ |
112,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Adjustments to Consolidated EBITDA for the three and six
months ended June 30, 2016 included severance and other downsizing
charges of $0.2 million and $1.2 million, respectively, related to
the completion services business and $0.8 million and $1.5 million,
respectively, related to the offshore products segment.
(4) Adjustments to Consolidated EBITDA for the
three and six months ended June 30, 2015 included severance and
other downsizing charges of $0.8 million and $1.9 million,
respectively, related to the completion services business and $1.0
million and $2.0 million, respectively, related to the offshore
products segment.
(B) The terms Consolidated EBITDA and Adjusted
Consolidated EBITDA consist of net (loss) income plus net interest
expense, taxes, depreciation and amortization expense, and certain
other items. Consolidated EBITDA and Adjusted Consolidated
EBITDA is not a measure of financial performance under generally
accepted accounting principles and should not be considered in
isolation from or as a substitute for net (loss) income from
continuing operations or cash flow measures prepared in accordance
with generally accepted accounting principles or as a measure of
profitability or liquidity. Additionally, Consolidated EBITDA
and Adjusted Consolidated EBITDA may not be comparable to other
similarly titled measures of other companies. The Company has
included Consolidated EBITDA and Adjusted Consolidated EBITDA as a
supplemental disclosure because its management believes that
Consolidated EBITDA and Adjusted Consolidated EBITDA provide useful
information regarding its ability to service debt and to fund
capital expenditures and provides investors a helpful measure for
comparing its operating performance with the performance of other
companies that have different financing and capital structures or
tax rates. The Company uses Consolidated EBITDA and Adjusted
Consolidated EBITDA to compare and to monitor the performance of
its business segments to other comparable public companies and as a
benchmark for the award of incentive compensation under its annual
incentive compensation plan. The table above sets forth a
reconciliation of Consolidated EBITDA and Adjusted Consolidated
EBITDA to net (loss) income from continuing operations, which is
the most directly comparable measure of financial performance
calculated under generally accepted accounting
principles.
|
Oil States International, Inc. and Subsidiaries |
|
|
Additional Quarterly Segment and Operating Data |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental operating data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offshore
products backlog ($ in millions) |
|
|
|
$ |
267.7 |
|
$ |
409.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion
services job tickets |
|
|
|
|
|
3,455 |
|
|
8,111 |
|
|
|
|
Average
revenue per ticket ($ in thousands) |
|
|
|
$ |
10.7 |
|
$ |
8.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
drilling operating statistics: |
|
|
|
|
|
|
|
|
|
|
Average
rigs available |
|
|
|
|
|
|
34 |
|
|
34 |
|
|
|
|
|
Utilization |
|
|
|
|
|
|
9.0 |
% |
|
33.9 |
% |
|
|
|
|
Implied day
rate ($ in thousands per day) |
|
|
|
$ |
13.9 |
|
$ |
15.9 |
|
|
|
|
|
Implied
daily cash margin ($ in thousands per day) |
|
|
$ |
1.4 |
|
$ |
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Contact:
Lloyd A. Hajdik
Oil States International, Inc.
Executive Vice President, Chief Financial Officer and Treasurer
713-652-0582
Patricia Gil
Oil States International, Inc.
Investor Relations
713-470-4860
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